Currency Trading

antofarabiaantofarabia
in Everything Else
I just want opinions here ... considering bettering my life in one way or another and would like a succesful trader's insightful knowledge in using the forex program...I'm too lazy to go through demos - so if you've got a word or two lemme hear em.

Comments

  • mb7241mb7241
    If you're good at predicting, you might try through PayPal. Their exchange spread (I think that's the proper term) is about 8% (i.e. you'll pay 8% more than the currency is worth in order to do the exchange), though there's no minimum (I think) as to how much you can exchange. Most regular banks charge several percent (sometimes up to 10%) plus a commission fee that can be as high as $20 or more (around here...where you are, it may be different).
  • arch_8ngelarch_8ngel
    The fees for currency trading are much higher than with stocks.

    Also, if you're from the US and you're buying other currencies, you're betting against the home team, which is generally a bad idea.



    Over the last week Europe and much of the rest of the world has started a slow grind downward, so I don't know if there is much upside

    to trading currencies at the moment, anyway.





    I would highly recommend reading some good books on investing in the stock market, as the market is rarely bearish for everything at once,

    and there is always money to be made. Also, if you're dead set on currency trading, it is likely cheaper to trade in an ETF than actual

    FOREX.
  • antofarabiaantofarabia
    it's been 3 months ... my picks are up a solid 20% ... any one else want to join the currency forces with me???
  • gavmasterflashgavmasterflash
    Man, I learned how to do this shit in my international econ class. I still have the notes, I don't remember all the stuff. I don't know if what I learned would do me any good since it was dealing with numbers in the hundreds of millions.



    Anyway, what are your picks?
  • arch_8ngelarch_8ngel
    Yeah, what are your picks? As far as I know, nothing is up against the dollar lately except the yen, and that is way less than 20%. In fact most currencies are down 15 - 30% against the dollar.
  • antofarabiaantofarabia
    what you guys are thinking is investing $1 per dollar ... invest on the margin and you can obtain some pretty good returns if you keep in line with general tendencies ... and do not i repeat do not ever use money you cannot afford to lose (it will affect your gains if any)



    Positions change rapidly so you have to look for the key entry and exit phases ... these can typically be found when the stock market swings 400+ pts one way or another ... which typically indicates a market swing the next day of the opposite ... but not always so never ever use too much leverage ...



    U.S. Stock Market decreases = Euro, Aussie decrease and Japanese Yen increase

    U.S. Stock Market increases = Euro, Aussie increase and Japanese Yen decrease



    Those are your typical trends for a playing the currency market for dummies ... but there are other factors to look into such as how world markets are doing ... what the federal governments are doing in terms of monetary supply both through production and through banks ... and how the general feel of the economy is ...



    For a long position look for the U.S. Dollar to continue in good position unless President Elect Barack Obama keeps funding "FREE MONEY" which will "fake increase" the stock market and thus down your gains.



    For a short position keep an eye out for the AUD/USD at a $0.61 level and BUY ... hold until it peaks to $0.63 ... then continue .... there are so many facets here to go into ... it's an interesting investing concept and I believe it to be much safer than the stock market as you can pretty much enter and exit whenever you like short of Friday - Sunday ... so if at say 2 am you decide i don't want to hold this position anymore ... you just close it.
  • gavmasterflashgavmasterflash
    I'm gonna bust out my econ notes and get back to ya'll about this. My teacher told me it's a very easy and relatively safe way to make money. Bascially, you can make money both ways, just like ant said. You can "bet" that a currency is going to go down, or up and profit from either one depending on how you bet.

  • gavmasterflashgavmasterflash
    One currency that has really taken a nose dive is the South Korean won. It was around 1,000= $1 this summer now it's something like 1,500= $1.
  • arch_8ngelarch_8ngel
    Ant - you're talking about day trading. If you're going to day trade (especially on margin), there is more money to be made on the general stock market and it's moves are easier to predict than currency fluctuations.



    Also, realize that trading on the margin sets you up for MASSIVE losses once you make a bad pick. There is a reason that the suicide rate amongst day traders is so high. A very few of them regularly make a lot of money, but you COULD lose everything do what you are doing. And the odds of that happening are much higher than the odds of your continued success.
  • gavmasterflashgavmasterflash
    Looks like the Euro would have been a good one to put your money on, especially now against the USD and the British pound.
  • jonebonejonebone
    I'm going with arch on this one... there are much better ways to invest money IMO but after all it is your money. If you feel that you can accurately predict the rise and fall of the dollar (or other countries currency) then go for it. Far too risky for me...
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