Forex
- Thread starter Mirage
- Start date
This is the place where you trade foreign currency right, based on if you think a currency's value is going to change vis-a-vis another one? For example, if you thought the Canadian dollar was going to take a dive, this would be a good place to make such an investment.
Seems pretty risky to me, as currencies change so quickly and frequently. I don't know if I'd consider it a good choice for long-term investment, but I bet you could make some money at it if you were willing to risk an investment short term and turned out to be right.
Wish I had some experience with it, but I don't. I seem to recall someone posting about having traded on ForEx though ... maybe they can wade in and tell us their experiences. It would be intriguing ... I'd like to make some quick and easy cash.
Seems pretty risky to me, as currencies change so quickly and frequently. I don't know if I'd consider it a good choice for long-term investment, but I bet you could make some money at it if you were willing to risk an investment short term and turned out to be right.
Wish I had some experience with it, but I don't. I seem to recall someone posting about having traded on ForEx though ... maybe they can wade in and tell us their experiences. It would be intriguing ... I'd like to make some quick and easy cash.
FOREX is good for both long and short-term trades. You can easily pick long term trends with moving averages in forex, I prefer to trade short term myself.
Andrew, many trades go pay well to hold over night because of the interest. If you buy euro against the dollar you will be borrowing USD from a bank and paying the interest ask rates and putting it into a EU bank and earning the bid rates. If these rates even differ by .25% you at 100:1 leverage that is 25% a year. At 400:1 you're looking at doubling yearly. At 400:1 however, 25 pips will put you out for good. 25 pips =.0025 or 1/4 of a cent
Andrew, many trades go pay well to hold over night because of the interest. If you buy euro against the dollar you will be borrowing USD from a bank and paying the interest ask rates and putting it into a EU bank and earning the bid rates. If these rates even differ by .25% you at 100:1 leverage that is 25% a year. At 400:1 you're looking at doubling yearly. At 400:1 however, 25 pips will put you out for good. 25 pips =.0025 or 1/4 of a cent
Hmmm .... interesting discussion. Guess I won't get much for any of that Mexican money or Canadian money I picked up in my travels on spring break :lol:
Seriously, this is interesting. So in effect you're using timezone advantage to some extent? Or are there procedures in place to stop that from occurring? I'll go to investopedia to check it out, but if anyone wants to comment, please do. This sounds as risky as day trading to me, but having done neither, I don't know.
Since it's a bunch of banks involved in all the trading of currencies (if I am understanding the procedure correctly), are there enough banks involved to make it something that is free from being used or abused????
Seriously, this is interesting. So in effect you're using timezone advantage to some extent? Or are there procedures in place to stop that from occurring? I'll go to investopedia to check it out, but if anyone wants to comment, please do. This sounds as risky as day trading to me, but having done neither, I don't know.
Since it's a bunch of banks involved in all the trading of currencies (if I am understanding the procedure correctly), are there enough banks involved to make it something that is free from being used or abused????
Stockbroker, thanks again for helping in my education (maybe I should take out a student loan and pay you something 
.... well, maybe if I ever get a hot stock tip, I'll share.
I think the forex is way out of my league for now, but it's sure an intriguing concept. I see lots of ads for people willing to act in the forex for you, but I doubt I'd trust anyone other than myself, especially when minutes are important ... kind of like sniping an eBay auction (which I guiltily admit I have done on occasion, but I figure if Weird Al can do it, so can I ... my apologies for the obscure musical reference ... see the Poodle Hat CD if interested ... there's a great song about addiction to eBay).
I'm going to keep this one on the backburner in my mind for now, but thanks again for the advice and info. Have you ever traded on the forex yourself? If so, any further advice?
.... well, maybe if I ever get a hot stock tip, I'll share.I think the forex is way out of my league for now, but it's sure an intriguing concept. I see lots of ads for people willing to act in the forex for you, but I doubt I'd trust anyone other than myself, especially when minutes are important ... kind of like sniping an eBay auction (which I guiltily admit I have done on occasion, but I figure if Weird Al can do it, so can I ... my apologies for the obscure musical reference ... see the Poodle Hat CD if interested ... there's a great song about addiction to eBay).
I'm going to keep this one on the backburner in my mind for now, but thanks again for the advice and info. Have you ever traded on the forex yourself? If so, any further advice?
My only suggestion is to learn more about technical analysis. One of the best books that I can recommend is Technical Analysis from A to Z Second Edition by Steven Achelis. I trade forex for a living, trading is a lot harder when food on the table depends on your results. :lol:
The most important thing to forex is money management. This goes for everything. All systems are profitable with money management.
The most important thing to forex is money management. This goes for everything. All systems are profitable with money management.