Forex, or foreign exchange, investments involve dealing in foreign currency futures or options. This can make a lot of sense for an operating business or individuals that are forced to take on currency risk-say a farmer or an import/export firm. Futures or options let the business pass that risk on to speculators who wish to accept it. However, textbooks often fail to emphasize that most speculators who succumb to the lure of forex investments wind up losing money. It doesn't matter if they trade foreign currency or a traditional commodity, such as wheat. In the end, they almost always wind up losing. Here's how things typically work out: Suppose an investor starts out with the intention of losing no more than, say, $15,000. After a few months of trading on futures in foreign-exchange investments, the investor will typically have broken even on his futures trading-if you ignore commissions. But if you count commissions, which obviously have to be paid, the investor will have lost about $15,000. In other words, the futures trades on forex investments work out like bets on a series of random events, such as coin tosses. You'll win a few and you'll lose a few, but you won't win enough to pay your commissions, let alone leave yourself with a profit. Maximize your investment returns by following TSI Network and using our three-part Successful Investor strategy:

1. Invest mainly in well-established companies;
2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
3. Downplay or avoid stocks in the broker/media limelight.

The key to finding the “hidden gems” in penny stocks is to understand and avoid the risks that go with them. You get the benefit of Pat McKeough's decades of experience-and his specific recommendations-in our special report, Canadian Penny Stocks: What You Need to Know about Handling the Risks and Reaping the Rewards, on TSI Network. Claim your FREE copy right now!