facebookMy friend told me the forex trading earns a lot more than normal investment. Any advice? - Seedly

Anonymous

18 Aug 2020

General Investing

My friend told me the forex trading earns a lot more than normal investment. Any advice?

That day i chit chat with friend, and told him that based on my knowledge , investment of 10% return annually is very impressive already. normally I target for 4-6% i happy already. Then he told me he give a broker? 1000usd to play forex. and every month he get back 200-300usd, which mean 240% to 360% return a year.. i dont really believe. im sure he is not trapping me, as we only chitchatting. Is it possible actually? lets not talk abt legal or not

Discussion (8)

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In his book "Attacking Currency Trends", Greg Michalowski estimated that in one month, 68% of retail currency traders lose money. The next 32% of traders could be divided into four groups: -

(1) 13.5% make 1 to 3%

(2) 13.5% make 3 to 6%

(3) 2.5% make 6 to 10%

(4) 2.5% make more than 10%

It would not be easy to be consistently profitable but the result should be alright if one could avoid incurring big losses in the other months.​​​

Tan Yu Ji

12 Aug 2020

Economics at Nanyang Technological University

Forex trading is a completely different skillset from investing! Anyway, if you are trading stocks, there are also stock traders who earn alot everyday from trading stocks. However, if you are a trader no matter Forex or Stocks, it takes up a lot of time. Your friend said that he paid a broker to do it for him, and gets 200-300usd back. How long has it been doing it for?

There is no such thing in the world as free money. Even investments takes time..

Technically, it is possible. Realistically, it is improbable to consistently get 20% ROI every month...

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