Whats the best place to learn the currency trading tricks?
Question by BrightStar: Whats the best place to learn the currency trading tricks?
Best answer:
Answer by Michael W
individuals trading foreign currencies is DANGEROUS.. Why? because many forex brokerages leverage your portfoio (i.e. you are allowed to trade ,000 in currency for a 00 deposit) The problem is, if your currency drops 10% in price (using the above leverage ratio), your account is frozen, and your entire investment is GONE.
And even larger problem is what are known as “Spreads”. This is the difference in price between the highest bidding price when you buy the currency, and the lowest asking price when you sell the currency. The difference is how the currency specialist (or your broker) makes a little bit of money on each transaction.
Always look at the spreads.. If they are more than a few pips, your broker is ripping you off.
Do not consider investing in forex without reading several books on it.
Try your local library. Don’t believe all the hype from the forex brokerages.
Know better? Leave your own answer in the comments!
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