Forex

Came across the Forex site and it was interesting and opened a trial account and put some transactions for the feel of it. I did review the blog Forex blog which gave some insights into the Forex trading.

The author said that the risk is less because of the non influence of any investors on the global value of currencies. The part I like about was the margins, which is really cool if you look at it. This is nothing but you need not have to put all the money in the account but only a portion of it. For e.g if you open an account with $500 you can deal with the purchase and sale of currencies worth $100,000 at 0.5% margin and make profit if you deal with the above. I literally copied the example here.

EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

This is my latest fad and I will try to work for around 15 days to see how I do and put in some small investment of $500 and see if I can make some money. I basically need around 40,000 bucks for my MBA and would stop when I reach this point. Then need to start working for the GMAT and the admission process. The consulting business is not going anywhere because of the rates and the consultants. Guru also I was not able to make any progress and neither the lottery. Therefore, I would try the forex for some days and see if I can make the profit after figuring out how they do it.