money

[ccl]

i was wondering if one could make money based on the fluctuations of the dollar vs. another countries currency since it goes up and down. Would this be a feasible investment? I know someone has thought of it and i was curious about it.

 

[callipygian]

i was wondering if one could make money based on the fluctuations of the dollar vs. another countries currency since it goes up and down. Would this be a feasible investment? I know someone has thought of it and i was curious about it.

Hopefully you are not thinking about this:

http://en.wikipedia.org/wiki/Forex_scam

And thinking about this:

http://en.wikipedia.org/wiki/Arbitrage

 

[ccl]

i was thinking more of the buy money weak vs. the dollar and hope it gains against the dollar and increases in profit. i know some people here got burned with the new iraqi dinars. but they havnt lost much at all, just didnt do any research when they came out.

chris

 

[ChefJJ]

i was wondering if one could make money based on the fluctuations of the dollar vs. another countries currency since it goes up and down. Would this be a feasible investment? I know someone has thought of it and i was curious about it.

Yes. Currency trading is "young" when compared to trading equities (stocks), but there is a market for it. I find it to be much more volatile than the stock market FOR THE MOST PART because politics an such can play a big role in the international currency market.

Until the gold standard was ditched in 1971, and ultimately the rest of the world's currencies tie to the US dollar, there was no money to be made by trading currency. But now, other nation's currencies do not have a fixed value to the buck and can change at any time, thus creating relative value to other currencies.

 

[ccl]

is it worth while to try? The only people i know are the ones buying new iraqi dinars at cheap value, they didnt go up like they thought, but they were ill advised from KBR contractors

chris

 

[shadroch]

People that bought Euro futures must have made a killing. While it was supposed to par with the dollar but almost immediately dropped 20%. If you bought it at 80 cents,you've pretty much doubled your money.

 

[RG1]

I dabbled in currency trading before I found blackjack. But then I realized, in my opinion, blackjack is easier and more fun than ForEx.

These are the sites that I used.

http://www.oanda.com
http://www.fxcm.com

I recommend reading this before getting started:
http://www.amazon.com/Day-Trading-Currency-Market-Fundamental/dp/0471717533

I watched the markets for months, crunching numbers and watching world news and couldn't get a read on it. I was thinking short-term day trading though. I recommend starting with one currency pair, like USD/Euro or USD/British Pound and focusing on that.

That said I know a guy who made $60k in one month trading. He started with $4k and the $60k month was his 3rd trading, putting him over $100k profit. He lost $40k in his 4th month though.

 

[moo321]

is it worth while to try? The only people i know are the ones buying new iraqi dinars at cheap value, they didnt go up like they thought, but they were ill advised from KBR contractors

chris

No. Don't even try it. In general, Stocks>=Bonds > Cash > Commodities > Currency trading.

Why? Stocks generally appreciate, and pay dividends. Bonds pay income. Cash investments pay a little income with no risk. And commodities are beatable if you're a ninja.

Currency trading involves large commissions, and really can't be beaten. Or if it can be beaten, the returns would be much smaller than a good stock or commodities trader.

 

[ChefJJ]

No. Don't even try it. In general, Stocks>=Bonds > Cash > Commodities > Currency trading.

There it is. Currency trading is profitable when you use other people's money :grin:

 

[N&B]

Over the last 6 years one could have bought and Held Euros for a nice gain. But this futures scam is just a waste, FOREX or not. Buy and Hold. Same for Gold Platinum and Rhodium. Hard assets people, hard assets.

 

[moo321]

Over the last 6 years one could have bought and Held Euros for a nice gain. But this futures scam is just a waste, FOREX or not. Buy and Hold. Same for Gold Platinum and Rhodium. Hard assets people, hard assets.

Yeah, you can call medium to long-term gains or losses in currency, usually based on interest rates. But don't try to day trade currency: you want to buy bonds in that currency, then sell the bonds off when they appreciate vs. the dollar. That way you're getting bond interest.