May 24, 2008
Let me first say that I’m not talking about my Forex Project. A reader brought my attention to the other Forex Project which I have heard of before and the owner Luis Rivas, who is facing lawsuits and creditors. Apparently, Mr. Rivas promised to make boat loads of money for people and never followed through. "The investors initially received payments, then the flow of money stopped…" It appears that the other Forex Project abandoned their corporate offices back in April, 2008. Some people are out as much as a half a million bucks due to Rivas’ "fraudulent Ponzi scheme."
It’s interesting that another visitor asked me about Rivas months ago and supposedly had a friend who was getting paid. Here’s what he said:
"They also sell promissory notes that pay between 5 and 8% a month. I have a friend who is involved with one of these promissory notes and has been getting his interest payments regularly but it doesn’t feel quite right to me."
I hope he didn’t follow his friend into this mess. This leads me into another point that I’d really like to elaborate on in another post. A comment was posted a couple of weeks ago asking me why I bother trading forex on my own if I only expect to make 20% a year. According to him, I could invest with a financial institution that could make this for me. The reason why I don’t are because of people like Luis Rivas and companies like Bear Stearns. Who do you trust?
Read more about this at http://www.chattanoogan.com/articles/article_128551.asp
May 14, 2008
My full-time job and only job is trading forex. I make $100,000 a year doing so and need to make at least this much to keep up with the cost of living in New York City. The first year I started, my expectations were to have returns of 20% a year while risking only about 1% on any given trade. Based on my calculations, I needed $500,000 of starting capital to realize these expectations. I withdrew a half million dollars ($500,000 USD) out of my bank account to use as my initial capital. This was just money I had laying around and could easily afford to lose. I’m doing great.
This is not a true story but I figured I’d write it as a way of answering a comment I recently received. The comment was:
"…. I don’t understand why do you need a job… if u know and understand so much about forex … why do you need a job?"
I’m not berating the commenter. It’s a great question and one that I felt needed to be addressed. Does my make-believe story answer this question? I’m sure it is possible to make a six-figure salary trading forex with less capital but at the expense of using higher leverage consequently taking on more risk. But don’t be lured by the marketers promises of untold riches. The bottom line is if you want to make money trading forex, you need money. How many sites have you seen pop up over the years that are dedicated to turning $1000 into a million dollars in a year trading forex? I’ve seen quite a few. They last 30 days and then the person running the site mysteriously disappears never to be heard from again.
May 13, 2008
The May issue of Currency Trader Magazine is out. Highlights include:
- Forex Margin – You have access to extremely high leverage in the forex market, but that doesn’t mean you have to use it.
- Can anything stop the Euro?
- Time the Euro using short-term momentum.
- Currencies and stock markets.
- The latest on the Aussie and kiwi dollars.
- Bank of Japan get a new chief.
You can download the issue for free at http://www.currencytradermag.com
May 12, 2008
May 2008 was a very inactive forex trading period for me. I only made 7 trades compared to my average of about 20 per month in previous months. I was still able to increase my year-to-date return. I was up 2.1% in May to bring my return for 2008 to 15.7%, which is almost the high for the year.
All of my flash performance graphs are up-to-date as of tonight and can be viewed always at http://www.forexproject.com/My_Forex_Graphs/.
I’m not back into the routine of trading yet but I’m starting to feel it again. The key is to get into a routine at my new job which is starting to happen. Another key to get back into trading is to start writing here more consistently. All of these things are happening and it’s a good sign that I updated my May performance graphs and also Forex On Top today. (The Forex Project has plummeted in the rankings over the last couple of months due to my inactivity)