Forex Automoney is a membership service which provides Forex trading signals. But is Forex Automoney a scam or does it work?
If you ask different people you get different answers to that question. Why? It’s all due to perspective and action.
I say this is a matter of perspective since Forex Automoney provides 3 types of signals for 18 currency pairs. This makes it extremely difficult for the individual home trader to monitor the outcome of each of these signals, especially the intra-day ones. It’s just too much. Since not all of the signals end in a profit (yes, ForexAutomoney doesn’t work 100% of the time) one trader can select the losing signals of a specific day while another can choose the winning ones. Therefore, one will be satisfied while the other may feel cheated. It’s all a matter of perspective.
It is also a matter of action because you have to diversify your trades and so diversify your risk as well. What I mean by that is that if you trade according to just one signal, you have a much higher chance of losing than if you play on several of the trading signals which Forex Auto Money offers.
Again, if you choose one signal and it’s a losing one, you’ll end up dissatisfied and may believe that Forex Automoney is a scam. However, if you trade widely, you’re likely to see that this isn’t the case.
So you see, the question of whether Forex Auto Money is a scam or not cannot be answered with a simple Yes or No. One thing you should be aware of is that you can try this service for 3 days for just $4.95. This makes it a very affordable way for you to see for yourself whether you like this service or not.
By: John J. Drummond
Posts Tagged ‘Risk’
Is Forex Automoney a Scam Or Worth a Try?
April 27th, 2010FOREX Investment Strategies That Work
April 19th, 2010
Are you an investor looking to make some money in a new way? Have you previously been investing in the stock market and are you now thinking of switching to the foreign exchange? There is a big difference between investing in the stock market and investing in foreign exchange. The strategies used are much different and many people are afraid of FOREX. They think it is too risky or too complicated.
But what if there was a method that took a lot of the risk out and made it easier, even if you have never traded before to succeed in the foreign exchange? Wouldn’t you want to know these strategies?
We have a FOREX investment strategy that can do just that! The first thing you need to know is that they don’t try to teach you how to trade in foreign currency. Instead you receive proprietary software that is used to teach you how to set up a trading account at the brokerage that you choose. This account then buys and sells all your investments for you.
FOREX is perfect for the careful investor that is interested in earning as much yield as possible along with preserving principle and earnings. The investment strategies used by FOREX include achieving this balance. They do it by using two different currency pairs that move in complete opposite directions for trading. This is a great strategy because when one pair is going down and experiencing loses the other pair is normally going up because they are opposites.
There is data that can be supplied that supports this strategy. For instance, if you were to view a chart of the past year, you would see that when comparing the two currency pairs it is almost like looking in a mirror. This proves that the strategy used works. This is why the FOREX investments strategies work so well; when you trade two pairs that move in opposite directions you dramatically reduce your risks. Any loses that you receive from one is partially offset by what you are gaining from the other pair. There is no type of stock market option that can offer you this type of strategy.
The FOREX investment strategies really do work and they are so simple to learn because you are not trying to learn everything there is about investing. Therefore, it only takes an hour or two to learn how to set up the accounts and then a few minutes throughout the week to monitor the account. With this amount of little effort it is possible for you receive more of an increase in a month than many mutual funds and banks do in a whole year.
By: Mark Molina
What is Leverage in Forex?
April 2nd, 2010
The forex deals are accomplished in lots and each lot consists of 100,000 units of any particular foreign currency, to purchase one single lot of foreign exchange a lot of investment is required and that may run into hundreds of thousands of dollars which means the small investors are left out of the fray. For this very purpose the concept of leverage was introduced in the forex trade. Leverage backed with credit, such as a margin account is very common in Forex trade. The leverage account in which Forex can be purchased for a combination of cash or collateral, what the broker accepts is quite popular with the forex traders. Usually the leverage in the margined account is collateralized by the initial deposit made by you in that account, if the value of the trade goes down significantly then the broker may ask you to either deposit more cash, or sell a portion of your holding.
Margin requirements and interest vary among broker/dealers. The amount of leverage you use will depend on your broker and what you feel comfortable with. You can get leverage from a high as 1% with some brokers. This means you can control $100,000 with the investment of only $1,000. The broker sets a minimum account size also known as account margin or initial investment. Once you have deposited the required sum you will be able to trade in the forex market. The minimum security for each lot usually varies from broker to broker. While with the brokers you should be well aware of the Margin call. Suppose for any reason, if the broker thinks that your holdings are in danger and your losses are approaching your margin quite fast. He may ask you to deposit more money, or dispose your holding of the forex lots to limit your risk and his risk.
Another term is quite relevant in this connection and that is variation margin. Variation Margin is also very important and it is the amount of profit or loss your account is showing on the holdings of the forex lots. There is one more point to keep in the mind is that some brokers require a higher margin during the weekends. It all depends on your broker. The leverage accounts in the forex market have actually made the life easy for the small investors. These leverage accounts helps the small investors to buy the big lots of the foreign currencies and in turn allow them to earn handsome profits. They also act as the alarm bell for the unaware investor while making any loosing proposition and in case of the loss it restricts the amount of the loss of the investor to a bearable limit of the initial investment.
The online forex market has further reduced the requirement of the margin amount to a great extent and it is now reduced to couple of hundred dollars from the initial hundreds of thousands dollars. The small investor in a forex market can earn handsomely due to the presence of the leverage accounts in the online forex market. The effect of the leverage accounts actually enables the small investor to earn huge returns like if he invests $300 on 1% leverage he gets to operate the forex of $30,000. The forex moves from 0.5 to 1.5% at the maximum on daily basis and the earnings if taken on your own investment of $300 make it quite a negligible sum but the leverage provides the magical touch to it and it becomes 100 times and now the amount interests you and attracts you. The leverage is the key to make this forex trade lucrative for the investors in true sense and till it is there it will continue to attract thousands and thousands of people towards the forex trade.
By: Murtaza Khan
