My Tips for Investing in Foreign Exchange

You see the informerical on television either late at night or on a weekend explaining how you can make money investing in FOREX (Foreign Exchange). "Real people" testimonials play and you send away for free information or low cost information. You probably fit in one or more of the following categories:

• you need (or want) more money - and you want it quickly
• you're unhappy with your current job
• you've dreamed about staying home and earning money
• you're worried about the economy and you want to protect yourself

So you send away for free information and end up attending a free seminar. You're convinced you can do this since so many "regular people" are earning way more than you and they're earning money in the "comfort" of their own home.

You plop down $3,000, you attend a series of trainings, but you still have to hold on to your regular job.

The pressures of daily life hit you when you're home . . . and, eventually, you make a little bit of money but the information sits on your shelf. Or, you don't make money, you get discouraged and your list of "failures" grows.

Don't be embarrassed. I know the feeling. About 15 years ago, my wife agreed I could attend a Robert Allen real estate seminar, the author of No Money Down, at cost of more than $3,000. The seminar was 90% neuro-linguistic programming and had little to actually do with real estate or forming real estate clubs. I look back on it as a total waste.

Two years ago, I attended a free seminar for FOREX Made Easy when I was marketing for my FOREX client to check out the competition. The man hosting the session talked tough and acted brash. I felt like standing up and yelling out to the 40 or 50 attendees, "you don't need to spend all this money to learn FOREX trading."

Of course, I didn't. I do know a man who spent $3,000 with FOREX Made Easy and he's earning a living driving a long-haul truck. I don't believe he earned back his investment. If he did, then I'll write about it in a future post and give credit to the company.

But if you do want to learn FOREX trading, here's my advice:

1 If you're married or in another serious relationship, then talk openly to the person you're with. If they're skeptical, and you shouldn't blame them, tell them about
my step 2.


2 Read and learn everything you can for FREE.


Go to your local library! They still have books with real paper that are useful.
Use reputable web sites like Investopedia or FX Street.
Join a MeetUp group in your area or try to find an online equivalent. Organize what you read into categories like: FOREX basics, economic indicators, trends, etc. Review what you read.


3 Budget your time and spend your time wisely. Don't sacrifice family activities. Give yourself
2 - 4 hours per week to start until you know the basic information.


4 Check with a reputable provider like CMS Forex where you can open a demo account. You can practice without spending any money whatsoever. You need to develop a practice track record of a few months before you make a real trade.


5 Be prepared to lose a little bit of money. The amount is a judgement call on your part but do not go into debt to get the funds to invest.


6 Remember that FOREX professionals who work for institutions or even brokers who successfully manage private accounts don't win all their trades.


7 Learn slowly - don't try to earn lots of money in a short period of time. Have a long term view of learning to invest in FOREX. The good news is you'll learn related skills along the way. You'll also learn about the global economy in a new way.


8 Try to involve your family if you have one. Your spouse or kids may be too young or they may not care. But if you can involve them at some level such as learning about the currency of a country, learning when the major economic reports are released, then you're involving them and you may help them learn a new skill for the future.

I believe these tips can be applied to learning about any new business or investment venture - even blogging. Let me know if these are helpful and if there are creative ways you have learned about new ventures or acquired new skills.

As for me, I'm going to re-open my own FOREX practice account. Please note: I wrote "practice" account.