Forex Project Update

On June 4th I launched a plan I've simply referred to ever since as my Forex Project. The quick and easy summary: borrow a few thousand dollars from Discover Bank at 1.9% interest for 10 months, put it into a Forex sub-account and use it to generate fresh capital for my primary Forex acount, then give the remainder of the loan proceeds back to Discover Bank before the interest rate goes higher.

Now that I'm two months into the project, utilizing my Well Manicured Lawn method, I thought that writing up a post on this plan's progress wouldn't be a bad idea. So I wrote a post about it. Wanna read it? Here it goes! (Did anyone get that? Remember that show? Too old?)

Ok, for starters, I borrowed a total of $4,949.

Since monthly minimum payments to Discover are calculated as 2% of the outstanding balance, and since I didn't want to deal with paying this each month out of the Forex account, I figured 2% of $4,949 to be roughly $99. Multiplied by 10, the number of months the plan will run for, one gets $990, so I set this amount aside from the total amount borrowed and I use that to make the minimum payments. I earn a little bit of interest on that sum and it ensures that I can keep the payments current so the 1.9% interest rate will remain (miss a payment and these teaser rates instantly go way up!).

Then there's the initial costs involved, the balance transfer fee and the eCheck fee I paid to move the money to my Forex account via PayPal. Together these came to $104 ($99 for the balance transfer, $5 for the eCheck).

Therefore, when all was said and done, I moved a grand total of $3,855 into the Forex sub-account. This is where the project began, with the first goal being the recovery of the balance transfer fee and the eCheck fee. Once the account reached $3,959, capital gains and interest received in excess of this sum became the profits moved into my primary account.

The results so far? Freakin' awesome:

• Total cost (thus far): $117.12
  
• [Balance transfer fee: $99]
  
• [eCheck fee: $5]
  
• [Discover Bank interest charged: $13.12]
  
  
• Gross return: $521.72!
  
• [Forex capital gains and interest: $517.10]
  
• [ING Direct interest: $4.62]
  
  
• Percent return (net): 345.46%!!

Every time I'm tempted to branch out again and get back into stocks and bonds, I look over numbers like these and put those thoughts aside for another day (once my income from this stuff reaches a certain level, then I'll think about diversifying). Forex ROCKS!

** I wrote this the evening of August 3rd (yay scheduled posting!), so the numbers are actually even HIGHER now!