Since ages, the rules of investment have been based on healthy common sense and good economics. The principle behind the exercise was to commit oneself to a small saving every month and put it away in a safe security. It grew, no matter how slowly, and was always there when you needed it most. On the long run, it could mean a college education for your child, or a dream cottage to retire in with enough resources to see you through those crucial years.
Sadly, the recession changed it all. The dreams of the 1990s took a downturn, and the wise who predicted that the economic meltdown would be short lived found, not surprisingly, that there was no place for them to hide. Not only did the gloom persist, it engulfed in its fury parts of the globe that had so far been relatively unscathed.
Suddenly, money and the word ‘investment’ acquired a new significance. Worldwide, a majority of the people realized that ‘money’ was something they needed now. And investments, if any, must bring results in double quick time. Long term investments of the past had already found themselves corroded by the inflation of the recent years. Mutual Funds, CDs and other conventional securities no longer seemed attractive. And for the aspiring investors at the NYSE/NASDAQ, stocks that mattered were way beyond their means, and the ones they could afford meant locking up your money for a long time with no appreciable gains to achieve. What Next?
In the haze of this uncertainty have emerged two relatively new forms of investment. They have consolidated themselves with flourish and enjoy great popularity with investors, new and old. The number one is Penny Stocks, which offer mercurial results when handled well, and the other, Foreign Exchange Trading (Forex) which is the subject of this article.
Forex, as it is popular known, has always been held in awe by small investors. For one thing, few people travel abroad more than once or twice in a lifetime, and therefore know little about foreign currencies. And, since dealing in Forex has mostly been confined to Governments, International Banks and Multi-National Corporations in the past, the inhibitions of the first time investor should be easy to understand. What people are unaware of is that had it not been for the large number of individual investors, trading in the forex markets would not be the 4- 4.5 trillion dollars daily business it is today.
In the Forex market, you buy or sell currencies. They come in pairs like USD/GBP. As an example, if you bid for the dollar against the pound sterling, your profits will depend on how the everyday value of one fluctuates against the other. Consider it sufficient, at this stage, that like any other business, the aim is to buy low and sell high, and vice versa. There are many free tutorials available online where you can familiarize yourself with the concept of forex trading in a couple of hours. To encourage new investors, most brokers offer demo accounts with $50,000 in fake money. And, it is not long before these investors learn how to shape up when real money is involved.
Yet, it can take many years to become a consistently good trader and many people either lack the confidence or commitment to enter into a trade independently. These people can rely on trade signals from any of the country’s leading brokerage firms for as little as $25 per month. The norm is to have a free Meta Trader 4 (forex signal receiver) downloaded on your computer so you can receive live signals from the broker’s super Signal Copier. You can advise your broker what trades to enter on your behalf, or better still, become hands-free and let him decide on the best deals for you. There are reputations involved, so you have little to worry about.
Also, what you need to remember is that trading in Forex is not a “get rich scheme.” So don’t set your aim too high. Instead, be happy that even on an investment of $500 you can receive atleast 30% annual returns…or the chance to double your money in less than 3 years.
Isn’t this what you were looking for?
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