Is forex trading a legitimate way to make money?

Dear Rich Bitch, do you really think you can make money in forex trading? I read that 95% of online forex traders lose their money. Doesn’t that mean that forex trading isn’t a good choice for anyone trying to find ways to make money. If the odds are in favor of losing money instead of earning money then shouldn’t people be discouraged from getting involved in forex trading? Devil’s Advocate

Dear Devil’s Advocate, while I am far away from being qualified to answer questions about forex trading with any authority, I can say based on my ongoing research and study that while there is no question there is money to be made in forex trading, there is good reason to pay attention to the statistics which show that more forex traders lose money than make money.

The thing to understand is that most of the money being made in the foreign exchange market is being made by very big banking firms and other people with risk capital in the million dollar range. There are some traders with less money who are successful but they still have enough money to offset the inevitable losses they will incur while trading from day to day.

People like you and me, the people being targeted by online forex brokers, the ones who really can’t afford to get involved in forex trading but do so anyway because we hope somehow to defy the odds, we are the ones who come out on the losing end mainly because we really can’t afford to play the game. The online brokers make us think we can afford to play. They set it up so that we can create an account with as little as $100 (some go even lower). All the while they know that even $50,000 is considered a risky amount to start out trading in the foreign exchange. They know that they have covered themselves by adding clauses in their contracts we won’t read because the contract is too lenthy and the jargon is in large part above our heads. They are in the business of making money off of us; so ask yourself, if 95% of us are failing, how are these companies making millions? They make their millions off our failure which is why they set us up to fail from the get go by making it possible for us to get into forex trading for next to nothing.

All of that said, it is still my intention to see if I can make money trading currency. However, to answer your question, I don’t think forex trading should get placed on any list of viable ways to make a steady, reliable income online. Not if the list is being compiled for the benefit of desperate people  who are trying to make money to keep a roof over their heads.

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