This is a re-post
I came across this article about currency trading today. The title reads “Foreign currency trading is easy — an easy way to lose money”.
Everyone has their own style of investing , be it stocks, bonds, real estate, mutual funds, gold, oil and gas partnerships or some mix of all of them. However, one type of ‘investment’ that I would highly discourage everyone from is currency trading.
People with little to no knowledge of finance, investing or trading are sucked into this game with advertisements. Low minimum account opening such as $50 – $100 is advertised. Free practice accounts are offered. Leverage in Forex is often 50-1. ( down from 100-1 a few years back). In comparison, stock margin accounts are 2-1 levered or maybe 4-1 depending on the broker.
My advice: Just don’t do it. Not for the fun. Not for the thrill. If you have any amount of money that you think you don’t mind losing, just donate it to charity. There are many causes that could use it.