Comment on Forex Trading Signal

I received a very lengthy comment comprising of about 368 words in 3 paragraphs. I am publishing it as a posts instead of approving it as a comment as I would to share this “comment” with other readers. By the way, I consider this “comment” is more of an article rather than a comment. The “comment” was made on one of my posts, Forex Trading Siganal. The “comment” was from:

forex broker strategies
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Online Forex Trading

The first paragraph is about Online Forex Trading:

1- Forex is an online home based business that doesn’t need referring, recruiting and advertising. You only deal with the currencies through the Internet. So you as forex broker will not have to reply any email, make any phone call and spend any money on advertising.

Online Forex Trading is a home based business and a Forex Trader can trade at his leisure. A Forex Trader is free of the hassles of office routines. The writer used the Forex Broker instead of Forex Trader in this paragraph.

Forex Education

The second paragraph is on Forex Education:

2- If you learn the Forex properly, you can make a lot of money. Forex can be your full time job that makes thousands of dollars for you every month. As a forex broker you’d have to emphasize again that if you start working on Forex before you learn it properly, it can be risky and you will lose your money. It is like the driving. If you drive a car before you know how to drive, you will hurt yourself and others but if you learn it properly first, it will be pleasant and funny.

It is interesting to note that the writer emphasized on Forex Education and equates it to driving. In order to able to drive one must learn how to drive. You must have the basic knowledge about the car; the functions and usage of the equipments and instruments. The learning process is an important ingredient if you want to get a piece of the big cake of Forex Trading. You must understand the basic terminology in Forex Trading, learn on use of Trading Platforms, the use of Technical Indicators and Money Management.

Leverage and Margins

The third paragraph is on Leverage and Trading Margins:

3- You can make a lot of money by spending a small amount of money. Unlike other investments like stock market that you have to invest a lot of money to make a reasonable profit, you can make a good income through investing small amount of money. For example, with a $5000 account, you can make about $5000 per month. Of course it highly depends on the way that you trade and the strategy that you follow but good and experienced traders can double their money every month.

The writer talked about the leverage in Forex Trading and thus the amount of capital required to trade is small. But Forex Traders should be reminded that the higher the leverage, the higher is risks.

Competition

The Forex Market

4- Forex - and of course stock market - are the only businesses that competition has positive effect on them. It is amazing, isn’t it? Competition is the biggest problem in all other businesses but in Forex, it helps the traders to make more money. Why? Supply and demand are the factors that determine the price in any market. When there are too many buyer and sellers, the price volatility will be much higher and the market will be more dynamic. The price will go up and down more frequently and this is what we need to make money. When the price goes up we buy and when it goes down we sell and make profit. So if you as forex broker choose Forex as your business, you will not have to be worried about competition.

I believe what the writer wants to say in this paragraph is that the volatility of the Forex Market is good for Forex Traders. In Forex Trading, the Forex Trader is able to make money by either buying or selling the currency pair.

Just like in the first paragraph, the writer used the word Forex Broker instead of Forex Trader.

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