Make Money?
Feb 08, 7117 by Trigger | Posted in Personal Finance
What is the best/easiest way to make yourself money and be amiable in life
trade hard
me! | Feb 08, 7257
How do i make money from the currency exchange?
Mar 22, 2008 by Tom | Posted in Economics
I was solely wondering if anyone could explain to me how to make money from the exchange market. Could someone try to explain it to me in simple terms, and do they know how easy it is, or what i should do to start making some money. Thanks
1) Buy it low, market it high, or;
2) Be the bank
;)
Seriously, tho, I can tell from your message you have no idea what you're doing in this area, so the best admonition would be to stay out of it. There are millions of participants in the forex markets, most of whom do know what they're doing, and they want your money. Odds are very lofty that they'll get it.
If you INSIST on getting involved in a market you don't know, tho, there's only one strategy which is worth pursuing. Most people go after a 'trend-opposing' strategy, no matter which market they are trying to trade. This is when you buy something which has fallen in price, and vend something after it has risen. Sounds logical, but it's a disastrous trading strategy. We're wired that way, psychologically speaking -- we yearning to buy things which are cheaper than they were, and sell them when they're more expensive -- and it sounds like a way to make money, but it's not. It amounts to bucking the lean, and what eventually happens is that you buy something which has declined, say, 5%, and it carries right on down, say, 50% more. Now you're buried.
The only strategy which, when correctly applied, regularly leads to profits over long periods of time is trend FOLLOWing. This is where you buy something which has broken up to new highs, or you shop something which has broken down to new lows. It sounds counterintuitive, but it's not. When a major high or low is broken, sometimes it's a pre-cursor to a major move, and this -- possibly one trade out of every ten -- is where you'll make pretty much all of your money.
To repeat, I do not consider it wise to jump into a market you don't understand, extremely when that market is filled with experts ready and able to part you from your money. But if you decide to go ahead with it anyway, at least give yourself the best odds plausible, and do it the right way, even tho it sounds counterintuitive.
If you'd like to read and learn about Trend Following, the following books are a enthusiastic place to start:
http://www.amazon.com/Trend-Following-Millions-Expanded-Paperback/dp/0136137180/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1206223482&sr=1-1
http://www.amazon.com/Terminated-TurtleTrader-Legend-Lessons-Results/dp/0061241709/ref=sr_1_4?ie=UTF8&s=books&qid=1206223482&sr=1-4
Good success rate.
myersb68 | Mar 23, 2008
Buy the currency when it is for peanuts, sell it when it isn't, sounds easy, well.....................
noitall Yorkshire England (U.K.) | Mar 22, 2008