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Is forex the best investment?

  • #1
  • First Post: Apr 12, 2008 12:41pm Apr 12, 2008 12:41pm
Hi everyone,

I've been into forex in and out for sometimes during this year. I've always wondered if this kind of market is the "get rich quick" kind of environment. I'm 18 and I'm thinking about doing forex for a living after I graduated from college. What do you think is better than spending times learning forex?
  • #2
  • Apr 12, 2008 12:43pm Apr 12, 2008 12:43pm
Take a few minutes reading posts here, and you'll see that nobody really knows what they are doing.

So if you ever actually "learn" forex, let us know.

Quoting Vfforexlee
Hi everyone,

I've been into forex in and out for sometimes during this year. I've always wondered if this kind of market is the "get rich quick" kind of environment. I'm 18 and I'm thinking about doing forex for a living after I graduated from college. What do you think is better than spending times learning forex?
  • #3
  • Apr 12, 2008 6:42pm Apr 12, 2008 6:42pm
Quoting tdion
Take a few minutes reading posts here, and you'll see that nobody really knows what they are doing.

So if you ever actually "learn" forex, let us know.
I like your post's.
You're a " the glass is half empty" kind of guy.
The greatest enemy of a good plan is the dream of a perfect plan.
  • #4
  • Apr 12, 2008 6:53pm Apr 12, 2008 6:53pm
the "get rich quick" kind of mentality comes from some of the people who attempt to trade forex and not from forex itself.

Since you are just 18, take your college years and start learning to trade. Read books on the subject, practice with a demo account, possibly even trade some micro mini lots. Trading forex takes time and effort, invest in those before you invest in forex.
  • #5
  • Apr 12, 2008 6:56pm Apr 12, 2008 6:56pm
The forex market is tough to trade because it's super efficient, therefore they lower the price of entry to keep a constant supply of newbs to make money for the bucket shops. Other markets such as futures and stocks are not as mickey mouse, but the cost of entry is higher. So it's a bit of a catch-22, unless you already have a decent amount of money.
The breaking of a wave cannot explain the whole sea.
  • #6
  • Apr 12, 2008 7:25pm Apr 12, 2008 7:25pm
lee

What are you asking?

Nobody on here can tell you what path your life should follow.That's up to you and fate.

What subjects are you studying?
Are you going to get good results?
Are you going to university?

My opinion..for what it is worth..

If you are interested in forex/trading then after college get a job/go to uni' and study trading in your spare time.
Look at all aspects of trading ie forex...shares...bonds..commodities...interest rates etc
There is a lot to learn.
I suggest you look at longer term trading while you develop a career.
Don't get transfixed on forex.
There are other markets:-

Bonds/Eurodollars:-see how they act in relation to interest rates
Stocks:-Watch how strong stocks do not fall far when the S&P drops or weak stocks do not rise when the S&P rises.
Commodities:-Look for cycles.Look for inverted markets...oil&wheat are 2 examples!(That is a very important signal that the majority on here will not understand)

You certainly don't want to spend all day sat at a computer looking for scalping opportunities (Unless of course you have a massive account and know what you are doing and can do it for a few years then move on)

You are 18 years old.Look for a rewarding career and use trading as a bonus that can set you up for life when you are in your thirties/forties.That way you wont put pressure on yourself.

Hell I wish I was 18 and I am only 40 but it feels like I am near retirement
The greatest enemy of a good plan is the dream of a perfect plan.
  • #7
  • Apr 12, 2008 8:28pm Apr 12, 2008 8:28pm
Quote
You're a "the glass is half empty" kind of guy.

Haha

Glass? heh, glasses are rip-offs. It's all a scam on the part of the glass makers to turn a buck at our expense. After all, glasses are a negative sum game due to evaporation!
  • #8
  • Apr 12, 2008 8:43pm Apr 12, 2008 8:43pm
Quoting Rabid
Haha

Glass? heh, glasses are rip-offs. It's all a scam on the part of the glass makers to turn a buck at our expense. After all, glasses are a negative sum game due to evaporation!
Don't get you

Maybe its a UK term:-

Glass(Beer/Wine) is half full...optimist

Glass is half empty ...pessimist
The greatest enemy of a good plan is the dream of a perfect plan.
  • #9
  • Apr 12, 2008 8:58pm Apr 12, 2008 8:58pm
Quote
Maybe its a UK term:-

ROTFLOL!!! Ya, I know the term. I'm just saying that sometimes it's possible to become such a pessimist that even the question itself looks bad.

It's real easy, especially when new (at anything) to get discouraged by the jaded and the burnt-out. But if you start something new with that attitude you're certainly not going to get anywhere. Remember the whole "crabs in a bucket" analogy. Google for it if you don't know it.

Trading is certainly not easy and certainly not "get rich quick" by any stretch. But some of the best traders often pull 40% per year without a great deal of draw down... so yes it can be done if you practice and study and stare at charts till your eyes bleed.

I'm just saying that sometimes a little optimism never hurts the process, even if it's statistically unfounded.
  • #10
  • Apr 12, 2008 9:01pm Apr 12, 2008 9:01pm
Quoting Vfforexlee
Hi everyone,

I've been into forex in and out for sometimes during this year. I've always wondered if this kind of market is the "get rich quick" kind of environment.
For 95% of participants, it's the "get poor quick" kind of environment.

Quote
I'm 18 and I'm thinking about doing forex for a living after I graduated from college.
Don't shoot yourself in the foot. Get a job after graduation, stay at it a minimum of 5 years (preferably 2 advancements). If you take a few years off after college to trade and find it doesn't work out for you, when try to apply for jobs, that big blank hole on your resume will make you virtually unemployable.

Forex is 24 hours, you can always trade evenings or mornings and still work full-time, or position trade on the daily.

Quote
What do you think is better than spending times learning forex?
A WORLD of other things.
  • #11
  • Apr 12, 2008 9:49pm Apr 12, 2008 9:49pm
Magnufreakis right take the time while you are in college to study up on the ins and outs of this industry. Practise trade like crazy test theoyies and blow up demo accounts left and right to get a feel for the market. Keep you money safe (out of the market) until you have learn where it is for you or not. I would also add that you ought ot keep learning about other forms of investmetn as well. This should be a small part of your total portfolio. Good luck and stay focused!
  • #12
  • Apr 12, 2008 9:52pm Apr 12, 2008 9:52pm
Rabid, Good point. Those who succeed at anything are those that look adversity straight in the eye, smile and move forward with there plans. I would simply caution DO YOUR HOME WORK!
  • #13
  • Apr 12, 2008 9:59pm Apr 12, 2008 9:59pm
Thanks guy for the reply. However, this EA I have is superb. It is getting me to where I think I can retire in 20 years. Yet, you guys are experienced. You guys have EAs and trading skills that I don't have. Should I keep this faith on these EAs to help me get rich or should I stop day dreaming and continue on to college?
  • #14
  • Apr 12, 2008 10:28pm Apr 12, 2008 10:28pm
Quoting Vfforexlee
Thanks guy for the reply. However, this EA I have is superb. It is getting me to where I think I can retire in 20 years. Yet, you guys are experienced. You guys have EAs and trading skills that I don't have. Should I keep this faith on these EAs to help me get rich or should I stop day dreaming and continue on to college?
you can never go wrong going to college.

As far as the EA goes, it just depends on how well it was written. Some do very well in certain market conditions and in others it will do everything it can to blow your account.

In my opinion you could do both. Go to college and still work on building your forex account. If it doesn't make you rich, maybe it can provide some extra cash while you go to school.

Either way, good luck.
  • #15
  • Edited 11:12pm Apr 12, 2008 10:58pm | Edited 11:12pm
A very nice post.

However, let's not forget that you can do all those things, and still go broke.

Quoting pipwrangler
Rabid, Good point. Those who succeed at anything are those that look adversity straight in the eye, smile and move forward with there plans. I would simply caution DO YOUR HOME WORK!
And to the original poster: One rule of thumb for your newbie toolbox: you can lose money as quickly as you make it. Never forget that side of the nickel.
  • #16
  • Apr 13, 2008 8:56am Apr 13, 2008 8:56am
Quoting Vfforexlee
Thanks guy for the reply. However, this EA I have is superb. It is getting me to where I think I can retire in 20 years. Yet, you guys are experienced. You guys have EAs and trading skills that I don't have. Should I keep this faith on these EAs to help me get rich or should I stop day dreaming and continue on to college?
well it is hard I think for most of us to answer this since we dun know what is the system behind the EA, let alone the programming logic. share the basic idea and I think you will get the respond in less than 1 hour (the answer would not be as you expected though).

my suggestion is go to college, get a decent job, then get back here and have fun with us here lol

forex is a high risk side job, put it that way
  • #17
  • Apr 13, 2008 9:51am Apr 13, 2008 9:51am
Quote
Thanks guy for the reply. However, this EA I have is superb. It is getting me to where I think I can retire in 20 years. Yet, you guys are experienced. You guys have EAs and trading skills that I don't have. Should I keep this faith on these EAs to help me get rich or should I stop day dreaming and continue on to college?

Oh man, don't put your faith in an EA. Mechanical systems are tricky devils, they go from really profitable one moment to unimaginable, horrible drawdown the next. The power of an EA isn't how much it makes when it's good, it's how much it doesn't lose when it's bad. Become familiar with "drawdown" and "Sharpe ratio" for more info.

There are a lot of people that spend their entire lives developing and refining mechanical systems. They do quite alright, but they also spend years researching and developing them too. The market changes, so techniques must also.

Go to college, study something you enjoy... heck, study finance and computer programming or something related, doesn't matter. While in college enjoy the social atmosphere, explore around and look at all your options. The markets (whichever ones you like) will still be here in 5 or 10 years.

While working and save some money away for stability... also put a small amount of your yearly income (1% or 2%) in a "speculation fund" and if you decide to make a go of forex then you'll have funds you can afford to lose and a career to keep you warm and fed if you do lose them.
  • #18
  • Apr 13, 2008 5:22pm Apr 13, 2008 5:22pm
[quote=Rabid;1949101]ROTFLOL!!! Ya, I know the term. I'm just saying that sometimes it's possible to become such a pessimist that even the question itself looks bad.

It's real easy, especially when new (at anything) to get discouraged by the jaded and the burnt-out. But if you start something new with that attitude you're certainly not going to get anywhere. Remember the whole "crabs in a bucket" analogy. ]


Just found crabs in a bucket..its a good point.

I hadn't heard it before..(must be a US saying )
The greatest enemy of a good plan is the dream of a perfect plan.
  • #19
  • Jul 26, 2008 11:09pm Jul 26, 2008 11:09pm
Quoting tdion
Take a few minutes reading posts here, and you'll see that nobody really knows what they are doing.

So if you ever actually "learn" forex, let us know.
Hi, tdion.

I'm back but in a new way. What a ride! I have been here for the past 5 months learning forex every day and I finally come to the conclusion: yes, I can do forex.
  • #20
  • Jul 26, 2008 11:29pm Jul 26, 2008 11:29pm
Quoting Vfforexlee
Hi, tdion.

I'm back but in a new way. What a ride! I have been here for the past 5 months learning forex every day and I finally come to the conclusion: yes, I can do forex.
Great attitude... refreshing to see it. I hope you make a lot of money!
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
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