There is a saying that if you want to make a small fortune trading in Forex, here is what you must do: Start with a Large Fortune! At the outset there are fortunes to be made in Forex, and some people are doing OK. Some day traders who remain on line as long as the markets they are trading are open and settle their bills every day and are lucky may do allright. They sometimes take a profit and sometimes take a loss. But they have to be alert, know what the thinking is and be ready to act instantly. Remember that it is possible to make a profit in a falling market. You just have to bet the correct way.
The difficulty with trading forex in this manner is that the day trader is strictly small fry, playing with a few thousand dollars, even a few hundred thousand will not affect the market at all. When the small guys take a position no noticeable movement will be seen. And then along comes one of the big players in the market with tens of millions of dollars and takes a position and the price will shift noticeably.
If the small trader is lucky and had taken the same position as the big player did before he came to the market then he will be lucky and the chances are that the price move is favourable and he can sell out, pay his brokerage fee and come out nicely on top for the day. If however he hasn’t taken a position yet then the chances are he is too late, and if he took the position the wrong way then he will probably be hitting his stop loss having had a bath.
And the small guy can do all the analysis he likes, looking at trends and analyses and trying to figure which way the market is going so he can ride that trend.
If he is LUCKY he can do well but he is betting against a stacked deck. There is little chance that he will have access to the kinds of data that the banks have, and the banks and big players have very sophisticated and astute analysts feeding up to the minute data into their models on a minute by minute basis.
So if you wish to diversify your trading and wish to try forex you need to know what the professionals know. This is why you should look at a Forex Managed Account.
A Forex managed account takes a lot of the risks of short term and day trading away. The managers of your portfolio are using all the expertise of years of fundamental and technical analyses on each currency group the whole time. Thus they have a very consistent record of providing growth over the medium to longer term. The massive swings and roundabouts will be smoother and the long term effect should see a steady growth in your capital investment.
All you have to do is create and fund and account and a portfolio manager will start trading on your behalf. You will have the right to access your account and to withdraw your funds at any time.