Lawrie Walters, Sydney Australia

Forex (Foreign Currency Exchange Market) has been used by international banks and large investment companies for years to make millions of dollars. However, with easy access to the Internet, it is now possible for anyone to take advantage of this powerful tool and make money the same way large institutions do, even with minimal startup funds at hand.

Even experienced investors seem mystified by Forex and have very little understanding of it. Forex is not much different from the Stock Market, often the same or similar techniques can be used to trade currency as is used to trade stocks and commodities. What make Forex so mysterious is the lack of available information and opportunities of training.

I have listed 10 good reasons why I prefer Forex to the Stock Market or any other investment option and why any individual, or small investor, should look at getting involved with Forex:

1. A 24 hour market. You don’t have to worry about running out of time because the Forex is open 24 hours a day, nearly all week.

2. Huge liquidity. Have you ever got stuck trying to get rid of some stocks or options? With Forex, there are always buyers, thousands of them!

3. No commission on your trading. This is specially important for individuals with small amount of money to invest. When using other investment vehicles the cost of the investment is often prohibitive no matter how attractive the investment itself is. Brokerage and other government fees can easily eat up your profit even before you completed a transaction. With Forex, there are no brokerage, government etc fees involved.

4. Low transaction costs. Typically less than 0.1%!

5. No middleman. The investor is dealing directly with the Market.

6. Instantaneous transactions. Forex is fully computerised and transaction can be completed in as little 2 seconds. The investor does not have to wait for trade confirmation to arrive by email, worst yet, by post. All ‘paper-work’ is in electronic format, easily viewed, search, analysed.

7. Huge leverage yet low margin. Both increase your profit. In most cases leverage of 10:1 to 100:1 is the rule not the exception.

8. Minimal startup requirements. Again very important for individual or small investors. With Forex it is possible to start trading with as little as $300.00 dollars!

9. Easy access to the Market and your accounts, online, 24/7. Since Forex is completely computerised, anyone with Internet access can trade online and easily access their account and trading history. Most trading platforms allow the user to export this information to other third party software for storage, graphing, analysis etc.

10. No insider trading. Because of the way Forex is ‘de-centralised’, it is almost impossible for anyone to fraud the system.

I could go on for ever about Forex, it is an amazing tool for investors and also a very exciting opportunity for individuals. I hope you’ll catch the fever, too.

Wishing you success,

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If you don’t mind losing $5,000 in 10 minutes, you may enjoy trading commodity futures contracts. There’s an old saying among commodity traders: “It’s easy to make a small fortune in commodities. Just start with a large fortune!” This is not a business for people who are emotionally attached to their money, yet thousands of average “investors” get lured into the commodity markets year after year. Why? Because of the possibility of making high percentage gains using the built-in leverage that is available to commodity futures traders.

The commodity markets include wheat, corn, soybeans, pork-bellies, gold, silver, heating oil, lumber, and numerous other common trade items. The huge companies that operate in these markets use commodity “futures” contracts to lock in their selling prices for the product in advance of delivery. This practice is called “hedging.” On the other side of that transaction is the trader, who speculates on whether the priced of the commodity will go up or down before the contract is due for delivery. Because futures contracts may be purchased using leverage, these financial instruments lend themselves to speculation.

For example, control of a corn contract worth $5,000 may only requrie $500 of actual cash, or 10% of the face value of the contract. If the corn goes up in value, and the contract becomes worth, say, $5,500, the speculator has made $500 on his or her original $500, for a 100% return. Compare this with the regular stock market, which limits leverage to 50%, so that $5,000 worth of stock requires a minimum of $2,500 of capital. If the stock goes up to $5,500 in value, the $500 gain is against $2,500 invested, for a return of “only” 20%. The 100% return sure looks a lot better, right?

You can easily see why investors in search of quick gains are hypnotized by the lure of big profits using maximum leverage in commodity futures trading. The real problem, however, is that the leverage works in BOTH DIRECTIONS. You can lose your entire investment in a matter of minutes due to the wild price gyrations that sometimes occur in these volatile markets. Let’s say the $5,000 contract drops to $4,000 in value instead of increasing. You’ve not only lost the original $500 you put into the contract, but an additional $500. You can go broke quickly this way.

So why do people play this game? Average investors do not wake up in the morning and say to themselves, “Right, I think I’ll start trading commodities.” What happens is, they receive a sales pitch from a commodity trading “guru” claiming to have a “system” for generating sure-fire profits in these wild markets. These “systems” range in price from $25 all the way up to $5,000 or more, and are sold based on the promise of “huge profits” from a small starting investment.

Newsletter writers or commodity gurus regularly pitch the myth about turning $5,000 into a million bucks in less than a year. The typical commodity system pitch comes in a long sales letter or booklet that describes a method for winning on “9 out of 10″ trades or similar inflated claims.

Of course, if it was possible to correctly trade 90% of the time, a person could easily amass millions of dollars in a very short period of time. So why are these guys so eager for you to spend $195 on their super-duper trading course? Because they probably aren’t making any real money with their own trading program! There’s much safer money to be made selling others on the idea of getting into commodity futures trading.

There is no sure-fire way to consistently make money in these markets, simply because the underlying commodity prices can swing wildly back and forth depending on a complex set of variables, many of which are totally unpredictable. That’s why the only people consistently making money in the commodity markets are the brokers, who collect a commission for executing the trade regardless of whether it wins or loses.

There are also a handful of successful professional traders who make a living in these markets. But the vast majority of people who dabble in commodity futures lose money. Unfortunately, with the lure of huge returns and easy money, a fresh crop of innocent traders enters the market each year, only to be quickly fleeced out of their money.

Don’t be one of them! Leave commodity futures trading to the professionals and stick with the more boring forms of investment, such as mutual fund investing or stocks and bonds.

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Thinking of investing and wondering what is the most efficient path?

Forex, foreign currency exchange, is relatively new and offers many benefits over traditional investments.

START UP CAPITAL
Traditional investment opportunities are often only available to those with plenty of cash and the confidence to trade it. Forex requires a minimal investment to get started. If you can afford dinner and a movie for 2 you can afford to get started with forex. Throw in the cash for tickets to a concert and a couple promotional tee shirts and you’ve got a real start in making your trades pay off.

LOW RISK-HIGH YEILD
You can be wrong 50% of the time and still make money with forex. Learn to watch the trends and you’ve got a significant edge on the volatile stock market.

CONVENIENCE
Unlike stock markets, forex trading can be done by you, on your laptop, at the end of your busy day or at the beach. Forex trades seven days a week twenty four hours a day. No setting your alarm for the market to open on the other side of the world.

LEVERAGE
Does this sound like magic to you? If you trade a “Mini Lot” you have $100 invested…but are trading a hunk of change values at $1,000. That’s a lot for a mini investment!

BULLS & BEARS
Makes no difference what the stock market trends are, which way real estate prices are moving, you can always make money with forex. No matter what the trend, you can make a profit in rising and falling markets. Just learn to watch the trends.

LIQUIDITY
No need to tie up your money for long periods of time. Your capitol is accessible any time you want it. You haven’t bought an office building, gold or pork bellies. You bought cash and you can cash in at a moments notice.

IMMEDIACY
You want to get results, see results and cash in your results immediately? Forex is quick to show you results.

REAL TIME PRACTICE
Paper trading with forex gives you instant feedback on your trades and understanding of the system. It’s simple to understand if you get the concepts sufficiently to invest your cash in the market.

FOREX FOR EXPRESS FORTUNES
Foreign currency exchange is making millionaires out of people just like you and me. Does everyone get rich trading forex? Of course not! But many do, by taking the time to learn the ups and downs and getting expert advice. If you are looking for an exciting opportunity to turn $300 into $30,000, it’s time to look at the exciting new opportunity available to you in forex, the foreign currency exchange.

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