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For earning good returns definitely forex is the best place. But traders are required with high risk bearing capability and capital to trade in forex.
It is very good and healthy for those who are serious enough to make a good fortune. You need certain skills and knowledge and experience to become successful in Forex Trading.
I'd want you to find out why he has lost a lot of money in Forex. Ask yourself, Does my friend have the accurate knowledge of Forex? Does he apply the right strategy when trading? Is my success in Forex trade determined by my friend's misfortune? Yes, there is a measure of risk in forex but if you follow the rules, losses are minimized and your profits increased. So don't be dismayed, Forex is a good business if only you make it so.