I think most of you feel uncomfortable with the article's title. Many investors view Forex is a high risk investment rather than other that can create passive income such as property investment. In any investment games, if you don't know the rules and trick of the games, I consider it as high risk. Most of the investors think property is a safe investment until the recent sub prime meltdown hit the whole world economic.
Let go back to Forex games. I mentioned earlier that Forex Leverage is a double edged sword which either can 'kill' you or you can use it to 'kill' other participants. Bare on mind, Forex is a Zero sum games, which mean if someone win, other site someone will lose.
Why I can use trading Forex as my passive income. Firstly, I know the basic rules of this game. Then, I apply hedging in my trading strategy. Rules and strategies are totally two different variable. Without knowing basic rules, you will 'die' in the games. After knowing the basic rules, you must have your own strategies, different participants have their own styles in trading Forex. I prefer 'relaxing' style by applying 'hedge' in my positions. Did I make loses in my positions? Yes, of course I did. When you view my track records, some even shock when they see I cut big losses. But when they see the bottom line over a period of 3 months, they feel comfortable to place their money with me.
Can Forex create passive income for you? Yes, as long as you know the how to play the game, every investment tools can create passive income. The magic of the Forex game is you can get a 'big bonus' if the opportunties come. You must focus and stay calm when the opportunities come. It will appear at least 3-4 times per month if you follow the FX market closely.
