Forex Information - The Appeal Of Forex Trading Versus The Stock Market (Part 3)

Forex is considered by some people however to be risky. Pension funds rarely invest in forex. However for the smart investor who has time to become educated, forex can be the way to go. The billionaire George Soros is a prime example of someone who has done well with forex. He shorted the British pound sterling and made $2 billion in profit at one point. He also makes over 60% returns on the Quantum Fund, which he owns and has over $4 billion under management. Of course, Soros has also lost money, but he says “I simply make a lot of money when I am right…and lose as little money as possible when I am wrong.” Soros admits to being right only about half the time, but does very well when he is right. Soros’s philosophy is to look at a country and its stock market and see if current trends are wrong. If he believes that a current trend is overshot then he goes opposite it, and makes a killing.

In October 1987 the stock market crashed and Soros lost a staggering $200 million in just one day! His reply to this was stoic, “I made a very big mistake, because I expected the crash to come in Japan, and I was prepared for that, and it would have given me an opportunity to prepare for the falloff in this country, and actually it occurred in Wall Street and not in Japan. So I was wrong!” While this mistake cost him a great deal, it wasn’t the end of the world. Soros philosophy is if he is right, he makes a ton of cash, and if he is wrong he pays for his mistake and keeps on moving. A prime example of how good money can be made in forex by investors who are willing to study, learn, invest and take risks. While not for the timed, the chances of a good return from forex make it the place for daring entrepreneurs to try their hand.

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