On line forex trading , how profitable is it? How does it work?

Actually, most all Forex trading is accomplished online. There is no physical location like the CBOT where traders man the "pits" and actually shout out buy and sell orders.

The Forex market is the largest financial marketplace in the world with over $1.9 trillion in transactions everyday. The market is open 24 hours a day / 6 days a week. Until fairly recently the Forex market was the exclusive domain for investment bankers, institutions, corporations, world banks and big money players. Participation in the Forex market is now open to anyone, which is why you are currently hearing all the buzz about Forex.

It is quite possible to make a very good return on your investment by participating in the Forex arena….it is also quite possible to lose all your money if you do not know what you are doing. Too many people gamble their money away treating the Forex market as though it was a table in Las Vegas. They just guess which way the market will move and most often lose all their money due to lack of knowledge, fear, greed, lack of money management skills …or all four.

Taking a conservative approach and reducing your risks with strategies such as carry trades and hedging one can make a consistent monthly rate of return far in excess of what banks pay annually. (The interesting thing is that this is where the banks place YOUR money). They love to earn 30% and pay you 5%.

May all your guesses be good ones.

Paul

Does anyone know how much i can make on monthly basis,a manage forex account that has $25,000 in it

At the most you would make 75% of whatever the management team claims to have made on your account. If the account made 12% in a month they would credit you with 9% and keep the remainder as their "fee".

The biggest problem is that you have entrusted someone else with the control of your money…..something that I would never recommend.

You need to be extremely cautious of managed Forex accounts being advertised at returns of 20%, 30% and 50% per month. Huge returns are always associated with huge risks. I seriously doubt that most of these Forex managers care about the risks nearly as much as you do….after all it is not their money. There is no penalty on them if they lose your money. You should also be aware that there is very little oversight or government regulation on these managed accounts as well.

Proceed with caution, unless the $25,000 is not very important to you.

Paul

They usually call this hedging a currency pair

I enter nothing but hedge positions with both Interbank FX and GFT.

You can also place conservative hedge positions when you buy two currency pairs at the same time such as the USD/CHF and the GBP/USD. This can pay you a net positive interest each day and as a general rule, the two pairs tend to move in opposing directions with each other. Keep in mind though, that the forex market sometimes has a mind of its own and you should never participate without fully understanding and accepting the inherent risks.

Hedge trading is a very intriguing way to participate in the Forex market and very few people actually understand the benefits.

Good luck.

Paul

I am in my early 40's and looking to grow aggressively and I believe this is a good balance. Aid4families will pay 5K a month plus my trading with forex which I can average 50-100% return each month and QQQ-Nasdaq index, should make my stocks diverse. What do you think?

I think you have unrealistic expectations.

First…get rid of the aid4families garbage. Second: Don't assume that you will make any money in Forex. It's a zero sum game. For everybody making money there's somebody out there losing the exact same amount. You don't know which side of that equation you'll be on.

Third…investing all of your equities in the QQQ isn't diversifying. It's crazy tech heavy, and market cap weighted, so it's almost all large cap.

Where's your fixed income allocation? Where are your international equities? Where is your small cap exposure?

Talk to a financial adviser. A real financial advisor, with some credentials and an actual office that you can go to. Let the adviser work out your plan. This is obviously not your area of expertise.

I have recently gotten alot of OFFERS to learn to trade the FOREX with the guarentee of big profits with "NO" risk. Has anyone had real experiance with forex trading?

You're right. It's a craps shoot. If you're lucky, you'll make money, most likely you'll loose.

NEVER INVEST IN SOMETHING YOU DON'T UNDERSTAND.

from the http://www.cftc.gov/opa/enf98/opaforexa15.htm website:

2. Avoid Any Company that Predicts or Guarantees Large Profits

Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

The following are examples of statements that either are or most likely are fraudulent:

"Whether the market moves up or down, in the currency market you will make a profit."
"Make $1000 per week, every week"
"We are out-performing 90% of domestic investments."
"The main advantage of the forex markets is that there is no bear market."
"We guarantee you will make at least a 30-40% rate of return within two months."
3. Stay Away From Companies That Promise Little or No Financial Risk

Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.

The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency trading. You can lose most or all of those funds very quickly trading foreign currency futures or options contracts. Therefore, beware of companies that make the following types of statements:

"With a $10,000 deposit, the maximum you can lose is $200 to $250 per day."
"We promise to recover any losses you have."
"Your investment is secure."

I hope that helps.