Is forex a pipe dream?
Saturday, February 8, 2014
, Posted by Ryanita at 12:59 PM
Q. I feel like it is too good to be true, you can make a lot of money, but you have to take a lot of risk? Yet, people claim to make a living out of it, but I have never truly heard of any success stories from a reputable site. So, is it legit? Or are the odds against you?
Answer
Forex. Foreign Exchange. The exchange of foreign currency. What cannot be legit about it? Let's say I am in UK and I produce some oil and sell that oil on the oil market. What do I get paid in? Yes, US Dollars.
I need to pay my workers in the UK. Will they want those dollars? Probably not.
Er, what do I do? Ah, yes the Foreign Exchange market.
Where I can sell my dollars in exchange for GBP
Very useful, don't you think?
Do you want to gamble against the GBP/USD rate?
Do you want to gamble against the oil price?
Do you want to gamble on two raindrops running down the window?
Well if you don't plenty of people do!
Forex. Foreign Exchange. The exchange of foreign currency. What cannot be legit about it? Let's say I am in UK and I produce some oil and sell that oil on the oil market. What do I get paid in? Yes, US Dollars.
I need to pay my workers in the UK. Will they want those dollars? Probably not.
Er, what do I do? Ah, yes the Foreign Exchange market.
Where I can sell my dollars in exchange for GBP
Very useful, don't you think?
Do you want to gamble against the GBP/USD rate?
Do you want to gamble against the oil price?
Do you want to gamble on two raindrops running down the window?
Well if you don't plenty of people do!
Commodity market vs Forex market?
Q. which is more profitable/less risky and more easy
Answer
This question is like asking which lotto number to play, or which color should I choose?
Will this question still be pertinent if you knew that 90% of all traders fail? Is it still worth it to "try it" if it doesn't apply to you?
It takes years of study, testing, practice, development, devotion of your time and resources and losing, just to find out if you're a trader, before you can answer the question.
It's going to be a matter of personal preference, opinion and aptitude. What's hard for me may be easy for you, but trading is hard for anyone, regardless of the market. If it were easy, we would all be rich, or there would be nothing but success stories flooding Yahoo Answers. Instead, you see nothing but questions. Those that have made trading profitable have been through the wringer and endured much. Out of those few, most would say it is not worth it.
Like most beginner questions, you cannot possibly get the right answer unless you ask the right questions in the proper order. Without answering the first questions first, you're leaving your future to chance, which is just silly.
Why waste your life and throw away your money if you were never intended to be a trader? There are a lot of easier ways to earn money; trading is the most difficult challenge you will ever face by choice.
If you wish to be entertained or otherwise waste your time, choose between blackjack and the poker table. Presuming you know nothing about either, "which is more profitable/less risky and more easy?" Would you sit down at a table of professional poker players and risk your money if you don't even know the rules? Do you see the uselessness and hopelessness of the question? A pretty big chore you've given us here, to answer the unanswerable.
One of the most important Samurai texts ever written, by Miyamoto Musashi, âThe Book of the Five Rings (1643)â, offers this advice: âThink of what is right and true. Learn to see everything accurately. Become aware of what is not obvious. Be careful even in small matters. Do not do anything useless.â
There can be no great success in trading (life) without great commitment, hard work, discipline, and the realization of the ârightâ type of thinking. Without "right" thinking and asking the right questions, you'll end up holding an proverbial empty bag -- with nothing.
Take a free aptitude test at any college and find out what you would be good at first. Then choose between those, because this is where you will excel, where you will be happy, where you will find purpose and do the most good for yourself and family. Do NOT limit yourself to chasing money or what is "more easy." Crummy life choices lead to a crummy life.
This question is like asking which lotto number to play, or which color should I choose?
Will this question still be pertinent if you knew that 90% of all traders fail? Is it still worth it to "try it" if it doesn't apply to you?
It takes years of study, testing, practice, development, devotion of your time and resources and losing, just to find out if you're a trader, before you can answer the question.
It's going to be a matter of personal preference, opinion and aptitude. What's hard for me may be easy for you, but trading is hard for anyone, regardless of the market. If it were easy, we would all be rich, or there would be nothing but success stories flooding Yahoo Answers. Instead, you see nothing but questions. Those that have made trading profitable have been through the wringer and endured much. Out of those few, most would say it is not worth it.
Like most beginner questions, you cannot possibly get the right answer unless you ask the right questions in the proper order. Without answering the first questions first, you're leaving your future to chance, which is just silly.
Why waste your life and throw away your money if you were never intended to be a trader? There are a lot of easier ways to earn money; trading is the most difficult challenge you will ever face by choice.
If you wish to be entertained or otherwise waste your time, choose between blackjack and the poker table. Presuming you know nothing about either, "which is more profitable/less risky and more easy?" Would you sit down at a table of professional poker players and risk your money if you don't even know the rules? Do you see the uselessness and hopelessness of the question? A pretty big chore you've given us here, to answer the unanswerable.
One of the most important Samurai texts ever written, by Miyamoto Musashi, âThe Book of the Five Rings (1643)â, offers this advice: âThink of what is right and true. Learn to see everything accurately. Become aware of what is not obvious. Be careful even in small matters. Do not do anything useless.â
There can be no great success in trading (life) without great commitment, hard work, discipline, and the realization of the ârightâ type of thinking. Without "right" thinking and asking the right questions, you'll end up holding an proverbial empty bag -- with nothing.
Take a free aptitude test at any college and find out what you would be good at first. Then choose between those, because this is where you will excel, where you will be happy, where you will find purpose and do the most good for yourself and family. Do NOT limit yourself to chasing money or what is "more easy." Crummy life choices lead to a crummy life.
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