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Originally Posted by wdevauld
Not a whole lot of feedback here, but questions that let you know how I'm thinking
1. What is the initial investment? Are you leveraged at some crazy high ratio, or did you put up the initial amount yourself?
2. What is the risk? As with most trading, you can stand to make a lot of money, coming with that is the fact that you can lose a lot of money. How are you hedging your risk in this particular case? If you make a bad choice how can you recover, and how hard is it?
3. You said: "Once mastered, this from of trading creates a much higher-than-average lifetime earning potential" How so?
4. What are your day-to-day costs? Do you have to pay fee/commission for each transaction? Do you need to spend a monthly fee having the trading houses' software on your PC? Is there a front/back end load on moving your money into and out of the trading house?
I've been in the equities market for some time, and I'm very much a buy-and-hold investor. If you find a good company, making money, invest in it and hold on. I can say you've intrigued the entrepenuer in me, but the sceptic wants more answers.
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Questions are as good as feedback!
1. You can get anything between 100:1 to 400:1 leverage depending on the account you open and the broker you use. You can start with as little as a US$300 account. With extremely conservative trading you can grow that to significant sums in a relatively short time.
2. You can manage the risk very tightly. It's all in the education and support as far as I am concerned. Becoming a good trader needs that. I work with an educational company, and they teach you never to risk more than 5% of your capital - and you only even do that after you are completely confident that you can do a high percentage of positive trades on a consistent basis. I am up to about 80-85% positive now, and still thinking I don't want to go over that psychological barrier into live trading. When I do, I want to be properly prepared. I see you live in Calgary. There is a very good support mechanism there for the people I am with.
3. There are two strands to this business. You can spend long periods trading, if you wish, or you can set it up so you only have to spend very short periods in front of your computer. Compounding modest profits over a year can lead you to extremely high earnings in, say, two or three years. PM me for more details. The other side of the business is networking it to others. This is pretty good as well. Add 20 people and you are talking over US$11,000 for starters. Then there are on-going redisuals that can make a nice income. The good thing about networking this rather than standard products like in other businesses, is that the product makes money for the 'purchaser', and can change lives for the better. Your success isn't dependent on some god-aweful networking plan for miracle products that you can't believe in!
4. I paid for a couple of one-day courses (US$2,000) and my on-going costs are the charts (presently 120 per month, but I'm going on to some amazingly helpful advanced charts for 250/month), and a chat room (40/month) which is incredible. There are hundreds of traders in each chat room, available most of the day, to discuss and learn from. There's no transaction fee, no front end/back end loading. You just pay the spread. There are downloadable demo accounts that are free, and there's no extra software to buy as it's all web-based.
The forex market appeals to me because of its inherent stability and the fluidity of it. There is no 'holding on' needed, because you can make money on the ups as well as the downs, and you don't have to look for a 'good currency' because they are always being traded against each other. I know of others who are trading equities, and frankly I can't see that it is as easy, as immediate in its potential, and as profitable (leverage?). It is subject to all the problems that we are all too aware of, and it isn't so transparent. No-one can control the forex market - at US$1.9 trillion per day, it's simply too big, but we can all shave little bits off the ebb and flow of the currencies moving around the world, based on the same information that the banks see when they trade.
But stay sceptical. I am, and I think it's healthy - especially for survivors!