Is It Beneficial To Invest in FOREX?

Solve a few easy problems just to amuse yourself.

Imagine yourself being an employee or a modest private entrepreneur with a fixed income. You earn about $1000 per month and by now you’ve managed to save up to $5000. Let’s assume that $600 is your monthly living allowance. What would your living allowance total in 12 or 24 months’ time?

How much would you be able to save up in 12 or 24 months considering your initial $5000? What we have is $7200 spent as your living allowance and $9800 of the money saved in 12 months, in 24 months – the respective $14400 and $14600. Do the calculations and see these numbers for yourself.

Let’s assume that you’re going into a small business with an initial capital of $5000. Let your business give you a 25% profit for the laid-down capital before the deduction of all the expenditures. We all know well that any business is accompanied by additional costs (wage payment, business expenses, advertising, etc.). Every month therefore, before paying yourself your own salary you will have to give up 50% of the profit to cover your employees’ wages, business expenses and advertising. And then you will be getting your own salary of $600. How much will your capital total in 12 or 24 months’ time? What we get is $5621,97 in 12 months and $ 8178,24 in 24 months.

Here’s another case.
Let’s assume that you’re going into a small business (not necessarily with FOREX) with an initial capital of $5000 and by the end of the next month there is by 25% more money on your bank account than there was at the beginning of the month. Now let's assume you have no accompanying expenses except for your own salary. Again, at the end of each coming month after calculating the proceeds your living allowance will present the same amount - $600. How much will your capital total in 12 or 24 months’ time? What we get is – $40234,97 in 12 months and $ $552971,41in 24 months. Do the calculations and see these numbers for yourself.

Did you notice the difference in the sums of money? Why did they become much larger? Because the amount of money essential for our business was kept on stream and was never withdrawn from circulation. It was immediately REINVESTED generating more and more revenue. Trading in the FOREX market gives you the opportunity to efficiently reinvest your capital.