Want to bet on the dollar falling and the Euro rising? What about the Yen vs. the Indian Rupee? It’s all a game of chance. Here are a few rules to keep in mind BEFORE you play the game!

1. FOREX – (foreign exchange trading) is speculative.

2. The market almost never sleeps. Don’t go to bed with your position open.

3. Anyone with $300 or more can play. Forex brokers don’t ask questions about your net worth like stock brokers do.

4. Be wary of thinking you will grow rich. Many start out making money in their “demo account” only to lose when they start playing with real money.

5. You can make a fortune, or lose it all—it is truly like “rolling the dice.”

6. There are safer ways to hedge your bets. If you want to invest abroad, consider CDs in foreign currencies that you can buy at some banks or shares of mutual funds that own foreign currencies.

I myself am not into the wild roller coaster ride of rolling the dice, but I don’t play the slots when I am in Vegas, either. What about you?

This entry was posted on Friday, October 31st, 2008 at 4:00 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.