Foreign exchange

1) FOREX can fluctuate by the minute and a trader must be sure he is selling higher than his buying price each time.2) Risk of non-payment by the buyer.3) Being known as a trader adds to his and his family’s security risk.Conversion from dollars to pesos or vice-versa could result in gain or loss depending on when the conversion is done. Unfortunately, there is no one in the world who can tell how the exchange rate will move in the future.Note that the FOREX went all the way up to over PhP56 in October 2005 and went all the way back down to less than PhP43 a few months ago. I strongly suggest that the ordinary income-earning Filipino should not speculate in FOREX. It is only for the experts who have the resources and the experience. Much like gambling, those who claim to make money can easily lose this in the next round.