What is Currency Trading?
Like all investing, it is about making a stable return on your investment and then compounding this investment over time to grow your money. In this example it about using the foreign exchange market to achieve the returns rather than stocks or commodities.
How do you use currency trading to make investment profits?
Currency exchange funds are available for you to buy shares in which will give you access to the forex market. There are lots of funds available which would allow you to trade in many different currencies such as Australian Dollar, UK Sterling, Euro and US dollar.
Example of 3 funds (US Dollar, Euro and Australian Dollar) taken from fidelity fund tracker (04/sept/2012).
At the beginning 1000 was invested and this example shows the profit and loss incurred.
results for 1 year
US Dollar 1,020.09 +2% increase
Euro 903 -9.7%
Australian Dollar 1,010.29 +1.02% profit
The returns over the last year have been either very tiny growth or have been a negative return and this is before the fees for the fund have been deducted.
Now let us look at the last five years.
American Dollar 1,313.80 +31.38% increase +6.27 percent per year.
Euro 1232.48 +23.24% increase +4.64% increase per yr.
Aus Dollar 1,931 +93.11% which is +18.62% per year
If you stayed in the fund for 5 years you would have made any where between 30% and 90% depending on which fund you were following.
Is there another way?
There is a better way to invest in currency trading that is far more profitable. This is by following pro forex traders as they trade (copying their Trades), this allows you be far more profitable.
To trade safely you need to implement a risk management strategy that puts you in control. This allows you to pick which professional trader you want to make profits for you. Remember the trader is only there to open and close trades for you which will make you a profit, the risk management strategy will keep you in control of your risk.
How easy is a risk management system?
Yes a risk management system is easy to use if you use a ready made platform, just enter currency prices into the platform and you can manage your risk. following these steps you can gain access to currency trading profits.
How much money can i make?
This is dependent on the trader you follow however 30% to 90%+ per year is normal.
Now lets look at three traders (from zulutrade and using forextradingtutorial.biz risk management system)
1000 invested over 1 year
Trader 1 1,880.20 88% increase
Trader 2 1,656 +65.6%
Trader 3 1.403.06 +40.3% increase
The results from using a risk management system combined with a professional trader can be a marked improvement to investing in a fund. When these results are compounded over 5 years the results can be fantastic.
Compounded over five years
Trader 1 23,484.93 +2348% increase
Trader 2 12,453.79 +1245% increase
Like all investing, it is about making a stable return on your investment and then compounding this investment over time to grow your money. In this example it about using the foreign exchange market to achieve the returns rather than stocks or commodities.
How do you use currency trading to make investment profits?
Currency exchange funds are available for you to buy shares in which will give you access to the forex market. There are lots of funds available which would allow you to trade in many different currencies such as Australian Dollar, UK Sterling, Euro and US dollar.
Example of 3 funds (US Dollar, Euro and Australian Dollar) taken from fidelity fund tracker (04/sept/2012).
At the beginning 1000 was invested and this example shows the profit and loss incurred.
results for 1 year
US Dollar 1,020.09 +2% increase
Euro 903 -9.7%
Australian Dollar 1,010.29 +1.02% profit
The returns over the last year have been either very tiny growth or have been a negative return and this is before the fees for the fund have been deducted.
Now let us look at the last five years.
American Dollar 1,313.80 +31.38% increase +6.27 percent per year.
Euro 1232.48 +23.24% increase +4.64% increase per yr.
Aus Dollar 1,931 +93.11% which is +18.62% per year
If you stayed in the fund for 5 years you would have made any where between 30% and 90% depending on which fund you were following.
Is there another way?
There is a better way to invest in currency trading that is far more profitable. This is by following pro forex traders as they trade (copying their Trades), this allows you be far more profitable.
To trade safely you need to implement a risk management strategy that puts you in control. This allows you to pick which professional trader you want to make profits for you. Remember the trader is only there to open and close trades for you which will make you a profit, the risk management strategy will keep you in control of your risk.
How easy is a risk management system?
Yes a risk management system is easy to use if you use a ready made platform, just enter currency prices into the platform and you can manage your risk. following these steps you can gain access to currency trading profits.
How much money can i make?
This is dependent on the trader you follow however 30% to 90%+ per year is normal.
Now lets look at three traders (from zulutrade and using forextradingtutorial.biz risk management system)
1000 invested over 1 year
Trader 1 1,880.20 88% increase
Trader 2 1,656 +65.6%
Trader 3 1.403.06 +40.3% increase
The results from using a risk management system combined with a professional trader can be a marked improvement to investing in a fund. When these results are compounded over 5 years the results can be fantastic.
Compounded over five years
Trader 1 23,484.93 +2348% increase
Trader 2 12,453.79 +1245% increase
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