What is Forex trading, really?
If you are wondering about Forex trading or want to know why Forex trading could be a good or a bad thing, then you have to understand this:
The biggest mistake made by novice forex traders is underestimating that they are not just guessing in the best of circumstances … because those are certainly not the circumstances which exist today.
To put it bluntly:
In general, the biggest mistake made by the novice is underestimating that they were just guessing in the best of circumstances …
And for that matter, the only thing really that could be said about Forex trading is that it’s just a game, and there is no way of knowing whether your play will pay off!
So … are there forex trading opportunities?
If you want to gain experience with Forex trading, then you have the best chance of winning. I think we can easily say that if the odds are 1:6, it’s going to cost you more than 1/6. And then if the odds are 0:5, it’s going to cost you more than 0/5.
But that’s not the only way …
Of course … there are also many ways to profit off Forex trading with an individual trade, or with a trade through a broker. The main methods of investment are to buy an index fund or buy a commodity ETF. I will cover the three main methods in a minute …
The Best way to make profit off Forex trading is to buy an index fund or buy a commodity ETF
I think that we are all aware of the high cost of investing in equity (stocks) or in commodity ETFs. So the only way that anyone can afford to invest is by buying a stock fund or commodity ETF. The price of the fund depends on its investment yield, so for example…
…if the return on one ETF is greater than its investment expense ratio, then the expense ratio is higher than the return on the underlying index.
(If your ETF is not earning positive returns on its investment per share but has negative returns on its investment per share, then it is probably not worth investing.)
With an index fund, you can buy individual stocks or ETFs and buy them from one portfolio, so it is more “like owning a stock in a portfolio.”
You know you are investing in the correct type of index fund