Foreign Currency Trading is growing in popularity and there are a lot of profit to be made here. Keep in mind that there are down days too, but overall if your days of making a profit outnumber your days of loss you will be doing well. Involved is also a spread which has to be added to any trade whether a winning or losing trade, a cost of doing business.
An individual who gets involved in online Foreign Currency Trading (and just about everything is online), must be well-informed. This encompasses current events, foreign affairs, prices of other commodities, such as oil and wheat, unemployment statistics. They all come into play in determining how the various currencies go up and down in value against each other. For example a rise in unemployment in the U.S. and more government expenditures to alleviate this rise in workers losing their jobs, would in most cases make the dollar lose its value against the euro and yen. This is not guaranteed, but nevertheless a good bet, for that is what you are engaged in, betting and trading.
Foreign Currency Trading is a full-time job. You must stay on top of this 24hr. market or you can be wiped out. This is not like your 401k where you put the money in and wait until you retire, with minor periodic changes. Especially now with markets fairly volatile, upswings and downswings in currency values occur hourly. It is a good occupation to be a trader in foreign currency and someone who does their homework and reads and listens to economic reports all the time would be well-prepared. It is a leveraged business, meaning you do not have to put down the whole amount of your trade. This works out well in a profit move, in a big loss, margin requirements for you will be requested to be increased.
