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January 27, 2011


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Mistake #0: Trading Forex. Forex trading is a zero-sum game at which most small time traders lose and lose big (as in lose a majority of their account). I would never touch forex, and I am a full-time stock day-trader.

This doesn't really sound like what I would expect from FMF. Is it a paid post? Aren't you supposed to make that pretty clear up front? Not impressed.

Zach --

I'm not impressed by your comment.

No, it's NOT a paid post (I don't do those.) It's an excerpt from a book (as noted in sentence #1.)

There is some really great advice in this article.

I don't trade forex but when investing I do find myself making the mistakes #5,6,7.

Thanks a lot for posting this- made me think.


Actually, I was impressed with Zach's comment. Yes it was a little snarky, but I've been accused of being snarky myself so I am willing to overlook that. Of course, FMF had an equally snarky retort, so I suppose it's all good!

I do agree with Zach's general point that this article seems to be a departure from the general philosophy of this website (get rich slowly, index funds, etc). Not that there is anything wrong with other points of view, but I would be interested to hear how FMF views currency trading and how it might fit in to the portfolio of the average reader.

I agree with Michael though. Currency trading make stock trading look safe by comparison. The only way I would "trade" currency is if I had some investment in a foreign currency that I want to hedge.


Zach went beyond being snarky -- he accused me of doing something unethical -- having a paid post without saying so. And based on what evidence? That he simply didn't like to post? That's why he got the response he did from me.

As for currency trading, I don't do it because I don't totally understand it -- and what I do understand, it seems very risky. That said, this piece is written by an expert and is not promoting a "get-rich-quick" mentality, so I thought it would be worth posting on the site for those people who may be interested in learning a bit about it.

If one was making these mistakes, they shouldn't even be allowed to own a computer, these are trite trivial regurgitations.

That said, FX trading in this modern day is more "honest" that equities, as equities have become the game of media, gov, brokers, and 20000 HAL 20000 computers. FX is highly gamed, but not highly manipulated on many levels.

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