So in one of my earlier posts I talked about many ways to earn money; from little money to big money, and from small risk to big risk. One of the risky ways I talked about is forex trading.
Simply put, if you buy 1 Euro for $1.30 and then tomorrow, 1 Euro goes up to $1.40, then you’ve made 10 cents. Doesn’t sound big, does it?
But here’s where it gets a little interesting, if you did this with 1,000 Euros instead of just 1 Euro, then your profit is multiplied 1,000X and you’ll earn 10 cents X 1,000 = $100. Still not satisfied?
Well here’s where it gets REALLY interesting: If you open an account with any famous online trading broker like IBFX.com or Oanda.com (super easy! even if you’re not located in the U.S.), they allow you up to 200:1 “leverage” or more.
What does this mean?
It means that if you deposit just $500 with them, they’ll allow you to trade $500 x 200 “leverage” = $100,000 ! So if you make even just 10 cents for every dollar invested, you can earn 10 cents x $100,000 = $10,000 in one pop … coming from your original $500 investment!
Wow… amazing huh? Getting back $10,000 from a $500 original investment translates to a 2,000% RETURN… now compare that to the stock market’s 8% average return per year, and you know what I’m talking about.
Of course, it may not really be practical nor wise to take full advantage of your forex broker’s “allowed” 200:1 leverage; but you see my point.
How about risk? Does earning $10,000 in one pop also mean that you can lose $10,000 in one pop? Thankfully, there are “automatic” mechanisms in your forex broker’s system to highly prevent that from happening.
Normally, assuming that the markets are open and liquid, if your account’s net value drops to zero, all your holdings are automatically sold and closed-out, so you end up with a zero balance instead of with a negative balance. So of course, this is your main risk… You may earn the hypothetical $10,000 really quickly, but you stand a chance of losing your $500 really quickly as well. It’s up to you to decide whether it’s worth risking $500 to earn back $10,000 or more.
How do you know what currencies to buy or sell? More importantly, how do you know WHEN to buy or sell these particular currencies? Well, you could read up on a lot of education and learn by yourself by trial and error (yes, very risky and for sure you will lose a lot of money in the process; but it may be worth it for some people).
Other people may take advantage of getting forex signals from more experienced forex trading strategists such as my affiliate website FapTurbo.com (reminder: any type of this kind of trading has high risk… I do not make any guarantees on their behalf and past results do not guarantee future success. As I said earlier, you could super quickly lose your hypothetical $500 even if you can super quickly earn your hypothetical $10,000). In the end, it’s important to determine what’s best for you. What works for some may not work for others.
So anyway, in case this interests you even a little bit, here are today’s ACTION STEPS:
1) Open a DEMO TRADING ACCOUNT (or a REAL one if you’re “in a hurry!”) with either IBFX.com or Oanda.com and just play around.
2) Download the FREE ebook I promised which covers the basics (click on image below or click here)
3) Have a look at my affiliate’s website FapTurbo.com (remember to keep the risk factor in mind)
Disclosure/Disclaimer: This post contains affiliate links with monetary incentive arrangements. Nevertheless, any business or interaction done between my readers and my affiliates are mainly between them and I make no guarantees on my affiliates’ behalf. I am not necessarily endorsing any product/service links which appear in this post.