From The Desk Of:
Port Elizabeth, South Africa
vs. Forex and Stocks
"The differences between
and Forex or Stocks."
Does It Matter?
Well, that depends... Forex- and stock trading are obviously very different from Network Marketing. However, when it comes to creating wealth, a lot of people get confused when taking a first look at the options available.
At the end of the day, creating wealth comes down to leverage and diversification - there is nothing wrong with using all the tools available to get you to your goal. However, the amount of risk you can manage at a particular time has some important implications on where you start out.
Hopefully this page can clear it up and point you in the right direction.
Why Forex Trading?
The Forex market is huge and is known for providing traders with large amounts of financial leverage - sometimes to a ratio of 100:1. It can be a great way to build wealth, since small deposits can turn into large profits rather quickly. However, the reverse is also true - thanks to the amount of leverage available, they are just as easily turned into big losses.
Forex is a great way to increase your capital, if you have the money to buffer you when things go wrong. Forex trading has a generally agreed upon success rate of about 10%, but is slightly more predictable than other markets. However, due to the real-time nature and high leverage, the risk is high and not something to bet your life-savings on.
Why Stock Trading?
A lot of people also dream of investing in stocks, as soon as they have the money to do so. The hard fact is that it has the same limitation as Forex - you need a lot of extra money to start out. Forex generally needs quite a small deposit to get going, but a big amount to cover your losses. Being successful by investing in stocks however, needs both a big deposit and a big buffer.
Why Network Marketing?
Apart from the fact that Network Marketing is a marketing business-model while the others are not, modern Network Marketing business-plans generally do not have large start-up costs involved. Network Marketing is simply not as risky as the others, but can give you the same results - although, it might take a bit longer.
However, the main advantage to Network Marketing, is the on-going, passive, expanding growth that it offers with its unique method of combining leverage and residual income. Forex and Stocks provide you with short-term returns and all the risk ends up with you, while Network Marketing spreads the risk over your whole network and allows you to build a long-term income-generating "money machine" - in other words, something that will last and reduce your involvement, over time.