MLM And Foreign Exchange Trading
Editor's Comment:
Here's an article (albeit a bit of a "puff piece") about a newish MLM company, "FreedomRocks". The underlying product is a Foreign Exchange trading system. These "investment" MLM schemes seem to come around in cycles and Foreign Exchange ("FX") seems to be the latest fad.
IMHO, these things should come with an even bigger health warning than usual. I worked in financial markets for over 20 years and the FX market is probably the most dangerous for the small investor. It's volatile and it's controlled by the big banks. There's no central, public, marketplace for spot FX. The market is "made" by the big banks. In effect, the banks are the "casino" and the participants are the "punters". And the small player probably has even less chance of winning than in Vegas (probably less fun as well!).
Years ago I saw a survey in "Stocks and Commodities" that reckoned over 80% of individual punters who tried their hand in the futures markets lost everything they put in and usually some more. The same figures would apply to day trading stocks, FX and pretty much any other highly speculative market.
Yes, you can make money as a speculator but it's a tough business. As the basis for an MLM company, I can think of many safer options.
Here's an article (albeit a bit of a "puff piece") about a newish MLM company, "FreedomRocks". The underlying product is a Foreign Exchange trading system. These "investment" MLM schemes seem to come around in cycles and Foreign Exchange ("FX") seems to be the latest fad.
IMHO, these things should come with an even bigger health warning than usual. I worked in financial markets for over 20 years and the FX market is probably the most dangerous for the small investor. It's volatile and it's controlled by the big banks. There's no central, public, marketplace for spot FX. The market is "made" by the big banks. In effect, the banks are the "casino" and the participants are the "punters". And the small player probably has even less chance of winning than in Vegas (probably less fun as well!).
Years ago I saw a survey in "Stocks and Commodities" that reckoned over 80% of individual punters who tried their hand in the futures markets lost everything they put in and usually some more. The same figures would apply to day trading stocks, FX and pretty much any other highly speculative market.
Yes, you can make money as a speculator but it's a tough business. As the basis for an MLM company, I can think of many safer options.
posted by the MLM News Desk at
8:49 PM
