FOREX Trading Question?
I read that most people that start out in FOREX do not do well. I started a practice account and looked at trends from the month chart down to the sixty minute chart buying into trends while keeping a good margin. I also read what the indicators do. I started with $3,000 and in a week I have grossed around $600. My question is, it seemed very easy and I didn’t know if this is typical or because the account is a demo the results are fixed for results.
I wouldn’t trust "retail forex" practice accounts, as there’s a potential incentive for "retail forex brokers" to convince people that they’re profitable, even when they aren’t, just to get people to send in real money and churn their accounts to 0. In so-called "retail forex", you aren’t really trading foreign currencies directly; you’re trading an over-the-counter contract issued by your "broker" (not really a broker even because they’re your counterparty)..
Of course, it’s certainly possible that the simulator is accurate. What I would do is try to verify the results against a third-party source, such as Yahoo’s currency calculator. Also, keep in mind that just a week isn’t a very long time horizon; you may just have gotten lucky, so you might want to look over a much longer timeframe. Anecdotal evidence seems to indicate that at least 95% of "retail forex" customers lose (you can search the Web for various stats on this, for what that’s worth).
Forex is crowded with scams, generally, so please be careful; see also this warning from the CFTC:
http://www.cftc.gov/opa/enf98/opaforexa15.htm
