What does this mean?<\/p>\n
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!<\/p>\n
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.<\/p>\n
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.<\/p>\n
How about risk? <\/strong>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.<\/p>\n Normally, assuming that the markets are open and liquid<\/em>, 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.<\/p>\n 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).<\/p>\n Other people may take advantage of getting forex signals from more experienced forex trading strategists such as ForexTrendy.com<\/a><\/strong> (reminder: any type of this kind of trading has high risk… I do not make any guarantees on ForexTrendy.com’s\u00a0behalf and past results do not guarantee future success. \u00a0As 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.<\/p>\n So anyway, in case this interests you even a little bit, here are today’s ACTION STEPS:<\/p>\n 1) Open a DEMO TRADING ACCOUNT with either IBFX.com<\/a> or Oanda.com<\/a> and just play around.
\n2) Download the FREE ebook I promised which covers the basics (click on image below or click here<\/a>)
\n3) Immediately have a look at e ForexTrendy.com<\/a><\/strong>\u00a0and if you sign up, test their buy\/sell recommendations with your IBFX\/Oanda demo account.<\/p>\n
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