Profit Guide to Forex
Forex Profit Systems

What's with the sudden explosion in forex trading?

It seems to me I can't visit a finance related site without seeing something about forex trading to the point that I see ads for $250 "mini accounts." It seems to me that trading currencies is exceedingly risky and only for the very sophisticated investor. I trade in options but I moved into that from equity investing. At least in that area I can still look at fundamental corporate performance and detailed economic forecasts to research my options activity. In the world of currencies, however, no such audited, published information exists. While I am sure there are huge amounts of money to be made, it seems as though the average investor has less chance of being successful in the long term with forex than even options trading. Are people just being drawn in to forex like all the late night "Flip this house" infomercials?

Public Comments

1. Yes, Its just the next in a great line of get rich quick schemes that promise big returns with little to no knowlege or risk

2. You are correct that Forex trading is "exceedingly risky."

I would not argue that there is a sudden interest in Forex trading. There are lots of people who are spamming 3rd party links in effort to make money for getting other to click on those links.

Some inexperienced traders and investors think, $250 is not much of a dollar risk, so they try it and they lose it all.

When trading currencies, one is trading against world governments, their own treasury system to protect their currency from market manipulation, and public corporations who are hedging sales in foreign lands where they have a potential currency exchange risk.

These huge entities can move the market. For an individual with $250 is subject to the whims of the market. 99% of the time, I would argue these amateurs are guessing whether or not they are on the right side of the trade.

In the market 20 years, and don't trade currencies. However have traded ETF's that track currencies such as UUP.

3. The markets are for speculators now - aka gambling.

4. Silly humans believing things their told. They are the same people that live/die by american idol and could normally be found attending mortgage broker schools in 2008