Okay so i have been looking at some ways to make money and i came across Forex trading. Well the trading actually looks legit, but i’m not so sure about this learning course at options university. Can someone tell me about their experience with this, or if you know an even better way to learn, say from a better book. Also do you have to pay for the options university training course?
The Forex is real, however there are two forms of "Forex Trading".
"On Exchange" and "Off Exchange" This is a fact that few people know about.
On Exchange currency trading is only offered by two companies at the time I was doing my research. Ducas Copy and FXCM. Only one is American:
FXCM. and they only trade "On Exchange" if you have an account with 25k or more in it. And with them you want to ask for an off shore trade account- so you wont be limited in leverage and your allowed to hedge.
All… yes- I mean ALL the other brokerages trade "OFF EXCHANGE" Gain Capital , ACM, CMS, MB,PFG,easy forex, jforex, to name a few.
"OFF EXCHANGE" means just that- its not traded on the real exchange. What it is traded on is an online game that each company creates themselves. Creates, controls, and alters at will. No different than playing online poker. Your playing against the house and the table is controlled by them. Since they always take the position of the opposing party- its in their best interest that you loose.
Example of how they make you loose: (exerpt from Gain Capital’s account contract section 4.2:
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.In cases where the prevailing market represents prices different from the prices GAIN Capital has posted on our screen, GAIN Capital will attempt, on a best efforts basis, to execute trades on or close to the prevailing market prices.These prevailing market prices will be the prices, which are ultimately reflected on the Customer Statements.This may or may not adversely affect customer realized and unrealized gains and losses.
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This means they are trading your account not using the numbers you are being shown on the screen- but by the real market prices.On the game version you can see- the shoots up so you hit the buy tab- in reality the price dropped- in the game you think you made money- then your statement shows up- showing you lost money that day- there’s nothing you can do about it either because you signed the contract that says they are allowed to do all sorts of things to make you loose.
As for the university- save your money! go to FXCM’s website- open a practice account- you will have access to all their tutorials- however- all you need to know is to buy when the price drops- then sell when it peaks in the other direction- about 2-7 minutes later. Don’t trade on Fridays or when they are making financial announcements on the news. Open an account with at least 25k or you will be trading off exchange Plus- opening an account with anything less wont get you anywhere fast. With 25k you can make 15k a day. I can- so you can too. Never use more than 1/3 of your margin.Don’t ever use "stops" Always sit and watch the chart anytime your holding a contract.
good luck!
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