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Ahh the FOREX currency trading SPAM makes a comeback!

posted February 12, 2009 - 8:00pm
Ahh the FOREX currency trading SPAM makes a comeback!

Just a short opinion piece about currency trading.

There is no doubt that money can be made by buying and selling currencies, or positions on currencies and all the other derivations of that market. lots of companies do it and many individuals do it, both with varying levels of success.

To succeed you have to have three things:

1) The right kind of obsessive mind that can track all of the detailed events that will influence the prices of currencies. These events can range from: natural disasters, share market movements and changes in world trade to diplomatic negotiations and results of geological surveys. For an individual tracking these kind of changes is somewhere between daunting and impossible.

2) Deep pockets. There's an old saying one of my finance lecturers said to me and I think it's as valid today as when he said it: "Don't invest money in a non capital backed investment that you can't afford to lose". If you can't afford to lose money you have no business putting it into things like FOREX trading. For every success story there are some pretty terrible ones. If you screw up in FOREX trading your money can turn into a debt before your very eyes!

3) Luck. Now I don't mean that all successful traders are lucky and all unsuccessful traders are unlucky, but luck definitely plays a part. Unless you are 100% on top of all world events which can impact currencies you're trading in (see point 1), and possibly even if you ARE, luck will influence your outcomes.

I can tell you that the chances of software alone being able to do all of this are pretty much NIL.

As I said in my previous article there is a very good chance that any automated trading software is a scam.
http://www.xomba.com/think_people_fap_turbo_and_other_automated_currency_share_derivative_etc_selling_robots

Also for anyone who doesn't think the majority of FOREX articles on the net are scams take a look at places like this:

http://www.scam.com/showthread.php?t=10263

Be careful people, if it looks too good to be true it probably is!

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Author: slewis68au
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Comments

Forex

alethea000 - Thu, 2009-19-2 10:10 am
We are still waiting to find out whether or not the £70,000 investment we had exists or not... watch this space! Alethea http://www.xomba.com/restaurant_style_chicken_tikka_massala

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ha ha.. agree with your last

Rycharde Manne - Tue, 2009-17-2 8:00 am
ha ha.. agree with your last sentence! I guess we agree but the priorities are different. Trading bots do work... sometimes! Trading houses use them, but they didn't buy them from the net. The thing I've learnt from writing my own trading algorithms is to include a parameter to signal when the rules don't work any more. Easier said than done, tho! I would want to know how the bot worked before using it. Join Xomba Here

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wow....

jmc1003 - Tue, 2009-17-2 1:26 am
Does this Forex thing really work??? Check out more of me @ www.xomba.com/user/jmc1003 www.freegreen411.com www.metacafe.com/channels/jmc1003 www.youtube.com/jmc1003 <script type="text/javascript"> var googleSearchIframe

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News

slewis68au - Mon, 2009-16-2 4:39 pm
OK I think we're actually saying the same thing in different ways. Yes the news is reflected in the numbers - after the fact which is a little too late (like you said). My point was trading decisions aren't pure mathematics. Otherwise automated trading bots would work - and they don't! Yes pundits are usually wrong - that's why they are pundits and not in their luxury yachts not caring about the news (with the guys who wrote the trading bots). Some of the most successful traders out there say they only read market reports if they want a good laugh. Mr Staypuft Old School Gamer

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News is reflected in the

Rycharde Manne - Mon, 2009-16-2 3:03 pm
News is reflected in the price, hence the numbers. I've also seen the market often react in exactly the opposite direction to what all the pundits seem to think. If you work in a brokerage and have live news feeds then you can react faster. If you're a sole trader at home by the time you get the news the price has moved and the trade gone. But then again I'm a mathematician so I just look at numbers - news is a distraction that doesn't tell you anything more than is in the price, and always later than the price move if you're a sole trader. I used to read the news later just for a laugh... and especially to see how many experts called it wrong. Join Xomba Here

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News is important

slewis68au - Mon, 2009-16-2 2:51 pm
Rycharde, I couldn't disagree more I'm afraid. Yes movements can be sudden and unpredictable but it's not all mathmatics. News can have a huge impact on both currency and the dow. I have traded shares for 20 years and seen this plenty of times. The whole thing rides on confidence (individual and corporate) and important news can have a huge impact on peoples confidence and shift their buying/selling patterns. Look at major events like winners of elections, starting of wars, etc and you'll see that they had an impact - not always the impact that everyone expected but they always had an impact! Mr Staypuft Old School Gamer

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It's a fallacy from people

Rycharde Manne - Mon, 2009-16-2 2:41 pm
It's a fallacy from people who have never traded that the news is important - it isn't. It's all just numbers and the mathematics tells you when to trade. It is necessary to know when regular news comes out, such as a Fed announcement, but is a critical mistake to second guess how the market reacts. I've seen the Dow drop 100 points then rally 200 points in 10 seconds. Join Xomba Here

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Agreed

Monteath777 - Mon, 2009-16-2 12:09 pm
I used to write for a man who was very good at Forex trading, and he was adamant that an automated system could never work. Every technical thing looks good, then a volcano erupts and your trades all lose a fortune. Game over. Never trust automated software for something as complex and as driven by HUMAN OPINION as currency trading. Good article. Life is good as a freelance writer.

For great information on the writer's life, check out my freelance writing blog for beginners.

I am with you here

mamamia07 - Mon, 2009-16-2 11:58 am
"These events can range from: natural disasters, share market movements and changes in world trade to diplomatic negotiations and results of geological surveys" - not only track these events, but track them on a quarter hour basis! and 15 minutes is a long time in the forex market. At XOMBA, Write & Make Money! My profile Buy Video Games Online

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