What do you think of those "Forex Trading Machines" which are sold online?

They say there are "X" number of days when the best deals with foreign currency are made

I believe that you should do your own research and learn as much as you can so that you know what to do with your own money. Never make an investment unless you know the product thoroughly. This does not mean you have to be certified in every subject, however, you should be able to spot when something sounds fishy or is just plain marketing hype.

This takes study and does take a long time, not something you can do in 2 -3 months time. Atleast a year of diligent study is a decent start.
There is a difference between a broker and a money manager. A broker makes money whether you make money or lose money.
A money manager makes money only if you make money in the account. The difference is subtle but very profound.
Obviously the broker does not really care about your investments and does not have the incentives to help you make money unlike a money or fund manager.
As you are still learning, my advice is to let a professional money manager handle your money while you keep an eye on it and you have studied enough and have the confidence to trade or handle the investment your self.

A money manager lives the markets and do have considerable experience to trade the markets and hence has a higher chance of being more successful.

This does not mean that you cannot lose money, but if you had a heart attack, would you go to a surgeon or to an intern? Surgeons cannot guarantee that you will come out alive, however, the chances are pretty good as he knows what he is doing.

Re: Forex Trading Machines
All rubbish and stay far away. If it were available and successful, you can corner the market and make billion of $.
To give you an example of how leverage and money management can really boost the equity, if you can make just 10pips (points) a day in the market, you can turn a 500$ investment into about 18mill$ in 5 years time. Thats the power of leverage and money management. The markets move about 180points to 250points for GBP in a single day, you have to tap just less than 10% and yet so few people make it.

Keep an open mind and question everything you see, if it is too good to be true, it usually is.

Your reading bring back to my mind that "millionaire" Lay Betting System enticed by some punters.

I will be aware because Forex sound too attractive to invest but no doubt that what seems a good deal needs analysising in depth to avoid scams.

I think that any investing is mostly common sense and lot of study. It is possible to beat the market.
But like most things in life, where there is too much money involved, you will find a lot of scams. You need to filter this out and for that you need to know what the other guy is talking about.

If you only have such a small amount to invest, stay away from Forex. You need about 50K to succesfully invest in the forex markets. Otherwise, you would have to use immense leverage, increasing your chances of a margin call.

Daytrader,
Your comments are so off the mark there, you have absolutely no concept of risk.
Take a moment to study what you have written, there are people here who are taking their first steps in Forex and might shy away from venturing there because of your comments.
Forex Markets allow anyone trading the markets to tailor their leverage and if you trade with proper money management, there is no way you can receive a margin call. You can trade the Fx markets with even 15k or 25k. Obviously the profits you make are much smaller but definitely you can invest that amount.
There are so many trader who start with 10k account and never have got a margin call till now.

i agree with FX Investor,

Has anyone ever invested on a forward contract? I am considering forward selling Euros over the next 18months or so. I have not done it before, but I heard the profits are a lot higher as you don't have to settle on the full amount or something? I've been speaking to a few people and my currency trader person about it, seems a profitable option ... has anyone done this before?

I totally agree with daytrader, if you don't have 50K, forget to invest in forex. I personally have years of experience in forex (as investor) .

First of all, stay away of on-line trading done by yourself, unless you have trader experience + time to follow the markets: 95% customers loss everything within 6 months.

Some on-line forex companies cheat on execution time, stop-loss orders, put random delay on the real-time display, etc... They let you win the first weeks and after you start loosing! Don't forget, they win money whatever you do, because they cash the spread with their broker for each transaction.

The best way remains the forex managed accounts, where professional traders work on your behalf with the money in your bank account. The traders are paid only on what they earn for you, which is a good garantee of performance. The best I know so far are located in Switzerland, where you have no taxes on capital gains and you can expect more than 10%-15% performance per year.

Cheers,
Ping

This is true about forex.

You say that this swiss company makes 10% - 15% per year? This is rather poor performance although I completely understand where you are coming from. I guess it is safe trading with small risk and small profits.

The firm I am with in europe make me around 40%+ a year and I have large funds and not small 50k accounts, We are talking in millions.

The risk for me is little. They say that max drawdowns will be 10% of balance and if this will hit any time, they will stop trading. To me this is very good risk. I could increase it to 30% max drawdowns as a lot of fund managers do this but I prefer to be safe, although my friend went for the 30% option and he gets larger profits than me. Over 100% no problems after one year of trading for him

One thing is certain, do your due dilligence.

Hi,
I'm new here but I have terrible experiences with Forex. I was persuaded to put 50K into a managed derivatives account with a London square mile investment broker.. I stipulated that the trades were to be placed at the lowest possible risk, and explained that any profits better than the current 3.5% per annum I get from my building society investments, would make me very happy... 6 months later I have lost 25k...
Since then I have been in contact with another guy, who had done the same with the same company, and has lost 20k from his 30k investment.
I have been actively attempting to find out anyone else who has lost money with this company.... and have put up a website up detailing my experiences.
I thought I was doing the right thing using professional FSA regulated traders, but it appears that the downsides are no better..!

Money management rules need to be objective and followed with rigid discipline.

An question is only easy if you know the answer to it. IF you havent researched the markets, forex itself then you are destined for bad things.

People say "can we make money on forex", well yes you can if you havent done your market reaserch and studied the markets as well are digesting the interface and different settings then you are going down a cul-de-sac.

It takes time to learn, those who lose money simply havent done then market reseach and are not testing and fine-tuning the settings.

Even that said, the traders who have still lose out.

fasar khan

skype: fasar.khan