I "owned" a forex company in the past.
Let me tell you something firsthand : We love newbies. They will give us money. Those pretty salesgirls are to get new investors to play at forex. They will stumble a lot, while we gain money. Then, they will inject more cash (added with our honeyed promises of profit in the future), more money for us. Then most newbies are too gullible if they even take a scalp profit, we will "advise" them to inject more cash just before the price correction, raking money in their injection and taking money when they are at loss. Unethical? Probably, but that's what everyone is doing.
We hate the veterans. They do give us a lot of commissions in trading volume, but they are good traders. They constantly seeking new information, public or private, to get something. They go into trading positions that can make us go bankrupt if we don't hedge their positions. Mind you, hedging is difficult to exercise and takes money, essentially an attrition battle. They are also not gullible, knowing when to cash out and walk out. They now when the price will correct itself, reducing our profit.
But every forex trader must also work hard, I dare say it must be harder than IMers. All market places in the world are run around-the-clock. Early in the morning, read Japanese news for Yen. Then it goes to China, Singapore, and Indonesia. Then we must read a little about Middle East. Then, it's time for Europe market. So much news in Europe. Then, at night, it's the US news. You have to read a lot of news, whether it's political or economic, to guess will that news change the price or not. You have to read also a lot of press releases and indexes (for example, jobless claims in US, manufacturing composite, etc.)
Forex trading can give you much profit, I assure you.
I personally can rake up into $ 35,000 in a night.
On usual days it is about $ 5,000.
Really good money, right?
But in the end, I almost go bankrupt, I nearly sell my homes, and all of my cars are already as collateral in banks.
I lost about $ 240,000 every day, because of some smart traders. Now I have started another company, but won't deal in forex again. But if you want to deal with forex, just be a broker. It synergies with IM pretty well. Run up CPAs with forex companies, they usually gives around $200 for every trader you set up. Not to mention that you can get commissions also. You can get around $18,000 in a month.
Very big profit, very big risks. Require very good knowledge, require great experience, require great "feel", require good advisors, and to some extent, luck.
Luck MAY NOT bring you profit because forex and futures trading is not about luck, but it is about skill. But luck sometimes play it's hand.
Consider my case :
In 1998, $ 1 is about IDR 2,000.
My company has an arrangement with a US company, where the US company will pay me US$ for my goods.
In a span of few month, $ 1 is IDR 10,000.
By luck, I have increased my profit for 20-fold, and increases my cash by 5-fold.
Luck? Yes.
TLDR :
- Forex is not about luck
- Forex carries a very big profit, but requires great technical skill, great analytical skill, great experience, great "market feeling", and require great work.
- it can make money in long run), no matter how complicated the strategy, solely invest in forex is pure bet.
