Currency Trading/Investing
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02-09-2013, 10:08 PM
Currency Trading/Investing
I have a personal friend thats trying to get me into this, as i can tell hes doing very well with it. He offered to give me 50k to start off. His older brother does it as well, i was wondering if anyone had any prior experience to this or knowledge of it. Pros and cons please

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02-09-2013, 10:15 PM
RE: Currency Trading/Investing
Predicting the short-term behaviour of crowds (and that's what a currency market is) is a fool's errand. And if you're in it for the long term why not invest in something less volatile?

I wouldn't take the risk, but you're free to. But no, actually, if you're careful, you can be pretty conservative and come out all right. Not that you're going to beat the guys who devote their lives to automating the sort of split-second trading that accounts for the vast majority of market transactions these days.

Conclusion: take his money and then pay him a commission to handle it for you.

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02-09-2013, 10:44 PM
RE: Currency Trading/Investing
My brothers trade currencies, and do well with them. But unless you've traded something else, don't even think about it. Currencies are an easy way to lose a fortune. You have to wait for a secular trend, (a market "driver" either up or down), and a trend in the same direction. (For example when the Euro was going to hell last year, was an easy time to make dough). The good traders know everything there is to know about two or three of the pairs and stick to them. They resemble stock trading, but there are significant behavioral differences. Some respond to specific news reports, and events, predictably. Most of them trade most actively when the US is sleeping. The best thing you could do, is sign up with a firm that lets you trade a "mock" account, (usually 50K), and see how you do with that. Don't use real money, until you know you know what you're doing, over a period of time. You can also automate it, so you don't have to waste your time watching it all day. Be picky about what spread you pay, if you actually do it. Some companies are rip offs. Most big firms have links into a platform called "Metatrader", for which there are many programs written to manage the trading. PM me, if you want more info. DON"T USE REAL MONEY, until you practice with fake money.

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Those who were seen dancing were thought to be insane by those who could not hear the music - Friedrich Nietzsche
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02-09-2013, 11:48 PM
RE: Currency Trading/Investing
Wait wait wait wait, back the crazy train up here.
Your friend is just giving you, a teenager, $50,000 to invest..?
What kind of rich ass life do you live son? I'd be lucky to borrow $5 from a friend...

Your ideal solution would be to accept this money and than deposit it into my bank account.

Failing that you're probably best sticking with low risk long term investments. To be successful with quick short term investments you need to know the market well, or at least it helps, so you can make educated guesses (don't be fooled, it's always a guess as you can't know for sure the future. Be skeptical of anyone promising 100% guaranteed returns, promptly slap them in the face and walk away).
Do you know the lingo? ie: Do you know what gearing is? If not you'd better learn.
And for the love of god remember the golden rule, don't put all your eggs in one basket..!

I don't know much about currency exchange, but you really missed the pooch on that one. When the US was voting to raise the debt ceiling or not the exchange rate here was dollar for dollar.. Now it's about $0.85 US cents for $1 NZ dollar. Basically if you brought $50,000 NZ dollars (for $50,000 US dollars) and waited a week you could have sold those NZ dollars for $57,500 US dollars.
This is the general idea of currency exchange. You need to know the numbers though, what's a good value exchange rate, what's a bad value exchange rate and than it's just a matter for by low sell high.
Don't be disillusioned though, it's still a gamble, any investment you do is a gamble.

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03-09-2013, 10:17 AM (This post was last modified: 03-09-2013 10:22 AM by JAH.)
RE: Currency Trading/Investing
earmuffs, reminds me of something I realized several years ago about betting on american football. I would pick all games every week against the spread, I did this for a few years. I am not going to take the time to explain here what the spread means you can look it up. I would also point out that picking all games is foolish as some are clearly better choices than others, but that is not the point. I generally did well with a winning record for the year, at least I don't remember but one year I lost. But the amount of money one had to put at risk to make money was phenomenal. I must point out I did not make actual bets this was for my own amusement.

earmuffs example is a good one. $50,000 us dollars at risk for a profit of $7,500 us dollars is very much like what I realized betting on american football would be. A considerable amount of money at risk for a substantial short term profit, but that must be considered in light of the fact that some time you will put that considerable amount of money at risk and take a substantial short term loss.

I suspect that most who make a good salary at currency trading do it by taking commissions putting other peoples monies at risk.
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03-09-2013, 10:46 AM
RE: Currency Trading/Investing
This sounds a little too much like a pyramid scheme to me. I would stay away from it. If it sounds too good to be true it usually is.

" Generally speaking, the errors in religion are dangerous; those in philosophy only ridiculous."
David Hume
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03-09-2013, 10:49 AM
RE: Currency Trading/Investing
(03-09-2013 10:46 AM)KidCharlemagne1962 Wrote:  This sounds a little too much like a pyramid scheme to me. I would stay away from it. If it sounds too good to be true it usually is.

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His friend wants to give him some money so he can invest too.
There's nothing pyramid scheme about it...

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03-09-2013, 10:55 AM
RE: Currency Trading/Investing
(03-09-2013 10:49 AM)earmuffs Wrote:  
(03-09-2013 10:46 AM)KidCharlemagne1962 Wrote:  This sounds a little too much like a pyramid scheme to me. I would stay away from it. If it sounds too good to be true it usually is.

[Image: dafuq-is-this-shit.jpg]

His friend wants to give him some money so he can invest too.
There's nothing pyramid scheme about it...

Call me cynical but when the rubber meets the road I doubt that 50K is going to be there for him to play with. I see money being taken and the need to recruit others. I could be and hope I am wrong.Drinking Beverage

" Generally speaking, the errors in religion are dangerous; those in philosophy only ridiculous."
David Hume
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29-09-2013, 07:19 PM
RE: Currency Trading/Investing
You can all call your congresspeople and tell them thanks for being idiots.
Thanks to their predictable idiocy, and the impending government shut down,
the dollar/yen gapped down/opened lower this evening, just as we expected, and paid for next semesters tuition. Big Grin

Thank you Jebus.

Insufferable know-it-all.Einstein
Those who were seen dancing were thought to be insane by those who could not hear the music - Friedrich Nietzsche
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