Currency trading just another get rich quick scheme to avoid on clarkhoward.com

RIP-OFF ALERT: The latest Dare To Be Rich scheme now making the rounds involves currency trading. It's a pitch that really appeals to people who are afraid of the stock market and have grown tired of puny returns on CDs.

First, it's important to understand that there is a legitimate business opportunity here. The main purpose of currency trading is to allow businesses that operate in multiple countries to lower the risk of exchange movement and its effect on their profits.

But the only people making money on currency trading are the ones who push a variety of "how to" info tapes and seminars. They want you to believe that you -- as an individual in your spare time -- can take their course, watch their tape or complete their webinar to learn this tricky business.

The reality is that currency trading is extremely high-risk territory. It's not the "insta-business" it seems.

The New York Post recently did a story about the currency trading frenzy. According to the article, one trading desk did just under $7 trillion in trades for clients in 2008. Another company claims one top employee earned monthly returns of 1,951% on his money.

Those kinds of numbers really get your attention and make you think you can make real money. But don't believe the hype. Clark wants you to stay safe and preserve your capital.

What others are saying

Forex Trading Offers
There is nothing wrong with Forex trading in general. There is, however, something wrong with the many offers touting quick and easy triple-digit returns.

As a hedge fund consultant I would caution individuals interested in getting involved in Forex trading. In fact, I would advise against it simply because most people will not take the time to develop the expertise necessary to succeed in this industry.

Regards,

Robert Strakkenn
By Robert Strakkenn @ 08/07/09 10:54:58 AMreport abuse
Prudent Forex Trading
About the time the market tanked, I got out and found an excellent Forex Managed Hedge Fund that is a legitimate, SEC monitored fund in completed compliance with all the rules, etc.

So far, since Jan. '09 they have realized a return average of 6.5% per month! I'm pleased and also, feel secure.

These online individual FOREX traders are mostly making money selling books and software. The individual small fish doesn't stand a chance in the waters with the big fish.

My advice, for an alternative to NYSE or NASDAQ, find a good managed fund like mine.
By Gary Dean @ 05/18/09 10:35:12 AMreport abuse
Currency Trading
To call it a scam implies that someone is taking advantage of you if you invest with currencies and that you will lose some or all of your investment. That is not necessarily the case. There is a real opportunity to make money in the currency exchange if you know what you are doing. It is no more of a scam than day trading or any other high risk high reward investment.
By Justin Struble @ 05/12/09 07:03:25 AMreport abuse
Currency Trading
Could not agree more. Incredible scammers. That is why we have developed a very low risk, with low increase in terms of what some promise, automated system. We've been testing it for 7 months, have our Beta Group ready to test, and then will off a free demo, no immediate cost to try, for safe observation first. Integrity first. Not all are scammers.
By Terry C Thomas @ 05/09/09 05:55:31 PMreport abuse
Currency Trading
Use the ETFs to take a position in currency FXA, FXE, FXB, FXY, FXF, et... or use the Merk Mutual Fund which has a good management team and reasonable expense costs MERKX.
By PartTimer @ 05/06/09 12:44:19 PMreport abuse
Currency Trading
You can make real money trading currencies, but you can just as easily lose real money. You are at the mercy of governments and individuals that manipulate currencies for their own purposes.
By James @ 05/06/09 09:10:51 AMreport abuse
Cheap Dollar
Obama and the democrats are trashing the US dollar with their crazy spending schemes. These will all have to be paid for some day. There is no way they can raise taxes enough to pay for them, so they will have to continue to borrow heavily and print more money. This will cause hyper-inflation in the US economy and the dollar will quickly decline in value, destroying wealth as it falls. The only way to avoid this is to avoid owning US dollars. First, avoid bonds. Second, move into other safer currencies. Third, own things that appreciate as the dollar declines, such as precious metals. Mutual funds that have "Real Return" in their name also usually are well positioned for inflation.
By Buzz G @ 05/05/09 04:20:38 PMreport abuse

Forex Trading Offers

There is nothing wrong with Forex trading in general. There is, however, something wrong with the many offers touting quick and easy triple-digit returns.

As a hedge fund consultant I would caution individuals interested in getting involved in Forex trading. In fact, I would advise against it simply because most people will not take the time to develop the expertise necessary to succeed in this industry.

Regards,

Robert Strakkenn

By Robert Strakkenn @ 08/07/09 10:54:58 AMreport abuse

Prudent Forex Trading

About the time the market tanked, I got out and found an excellent Forex Managed Hedge Fund that is a legitimate, SEC monitored fund in completed compliance with all the rules, etc.

So far, since Jan. '09 they have realized a return average of 6.5% per month! I'm pleased and also, feel secure.

These online individual FOREX traders are mostly making money selling books and software. The individual small fish doesn't stand a chance in the waters with the big fish.

My advice, for an alternative to NYSE or NASDAQ, find a good managed fund like mine.

By Gary Dean @ 05/18/09 10:35:12 AMreport abuse

Currency Trading

To call it a scam implies that someone is taking advantage of you if you invest with currencies and that you will lose some or all of your investment. That is not necessarily the case. There is a real opportunity to make money in the currency exchange if you know what you are doing. It is no more of a scam than day trading or any other high risk high reward investment.

By Justin Struble @ 05/12/09 07:03:25 AMreport abuse

Could not agree more. Incredible scammers. That is why we have developed a very low risk, with low increase in terms of what some promise, automated system. We've been testing it for 7 months, have our Beta Group ready to test, and then will off a free demo, no immediate cost to try, for safe observation first. Integrity first. Not all are scammers.

By Terry C Thomas @ 05/09/09 05:55:31 PMreport abuse

Use the ETFs to take a position in currency FXA, FXE, FXB, FXY, FXF, et... or use the Merk Mutual Fund which has a good management team and reasonable expense costs MERKX.

By PartTimer @ 05/06/09 12:44:19 PMreport abuse

You can make real money trading currencies, but you can just as easily lose real money. You are at the mercy of governments and individuals that manipulate currencies for their own purposes.

By James @ 05/06/09 09:10:51 AMreport abuse

Cheap Dollar

Obama and the democrats are trashing the US dollar with their crazy spending schemes. These will all have to be paid for some day. There is no way they can raise taxes enough to pay for them, so they will have to continue to borrow heavily and print more money. This will cause hyper-inflation in the US economy and the dollar will quickly decline in value, destroying wealth as it falls. The only way to avoid this is to avoid owning US dollars. First, avoid bonds. Second, move into other safer currencies. Third, own things that appreciate as the dollar declines, such as precious metals. Mutual funds that have "Real Return" in their name also usually are well positioned for inflation.

By Buzz G @ 05/05/09 04:20:38 PMreport abuse

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May 05, 2009 -- Currency trading just another get rich quick scheme to avoid

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