Forex fun is for everybody

[sv2007]

Right now, the USD is strong compared to many other currencies. Would it be fun to exchange some USD to , say, CAD (canadian dollar); then when CAD increase relative to USD, exchange it back?

Now, instead of doing that and holding a bunch of CAD, how about buying Canadian CD equivalents) so your CAD at least earns some interest?

Sounds fun? Well, that's how I fisrt got into forex trading, which also gives decreased exchange fees and no worries about opening a Canadian (or UK or whatever) bank accounts. Nearly 24x7 trading.

Seems like folks are buying stocks without checking fundamentals; and funds without even knowing what they hold; so then why not try forex?

I remember a few years back when CAD was strong, seems every Canadian vacationer in Maui was looking to buy a summer home : )

It's a fun world once you jump in. Jump in blind, just like the stock market.

Do you think you are better than 50% of the people (yes, 75% of you will think so); if you are better than 50%, then you'll make money : )

[james.hendrickson]

Hey SV...what trading platforms do you use?

[sv2007]

TD Ameritrade Think or swim.
They've recently (a few weeks ago) raised the margin requirements for major currencys, making them less competitive for the more adventurous.

[bjl584]

I'd rather go to a casino and gamble than try to trade currency. There just aren't enough fundamentals that make a currency rise or fall to be able to make any intelligent trades.

[sv2007]

a lot of currency traders are gamblers; it moves very fast when they employ high leverage so many use highly technical trading methods compared to stocks.

However, you can also do it slowly, which is what I do. I have the reserves to hold almost forever if I wanted to. In a way, it isn't much different than a former co-worker of mine changing his USD to Indian rupees and deposit into Indian banks to get its high interest rates (I think he was tempted by the 8-10% rate bck then).

For brexit, I took a position against GBP mostly as a hedge my stocks in general; i.e. it's like buying insurance (you lose the money if you don't use it); and it paid off. (I wasn't about to sell my stocks, but wanted to mitigate)

I also play the options; which many traders think it is like a kindergarten version of forex, but that's also mainly because they leverage too much and moved into too technical. It is a direc hedge to many stocks.

[sv2007]

As for fundamentals, the most basic, is people believe in cycles.

Boom/bust its a phrase that's always around. And global currency is also very cyclic (if not even more so than stocks); I'm talking about the major currencies.

Who thinks USD/JPY will never go back to 115-120? I think 0 people; it's just a matter of when. For example if it goes there, is that a 10% ROI? This is not an advice ; it is a silly example from my 6 yr old.

In the som ways, I read on here many folks buying some fund, but they can;t even name their funds' top holdings. Is that buying on fundamentals?

Now, I posted the post as a funny post, not intended to sell forex, but on a serious note, maybe I should have included in the first post, forex isn't for people with not enough cash; I think to properly invest in it long term, one needs at least some min cash, much more cash than stocks and options. It is about holding power/time, the way I do it.

[sv2007]

I should explain a bit on the most basic of fundamentals as some on this forum may not have as much experience there. Why would somebody pick up a company like the indutrials right now? let's onlyt consider profit and stock price. Global econ isn't exactly booming. hence their profits low and stock prices low. taking a straight line, as we believing in efficient market when looking at fundamentals (otherwiise, we'd be talking value stocks), the strraight line will say it'll keep going down. But they buy because they know there's a cycle.

[james.hendrickson]

My moms girlfriend is really into trading Forex - she been doing a ton of simulation training with a company in Great Britain. I think the rationale is that the English have a longer trading history and are better at it than us Americans.

[sv2007]

My moms girlfriend is really into trading Forex - she been doing a ton of simulation training with a company in Great Britain. I think the rationale is that the English have a longer trading history and are better at it than us Americans.

While london is a major forex hub, trades placed in the us gets executed just a fast if not faster. It can get faster because of better Internet connection with your (more local) broker. Forex works differently than stocks where trading happen on an exchange (where being close to exchange can help); it is truely (more or less) decentralized and a people's market.

I offer one word of warning WRT simulated trades: take care to carry over whatever strategies that works over to real money. Otherwise, it is just wasted time.

And one last word of warning; I make it sound like fun in the original post, but forex when done in a careless manner (which is easy to do due to the low margin requirements) can seriously wipe out a lot of $ very fast. Keep a save margin buffer.

[james.hendrickson]

Okay my moms girlfriend called out the following companies for the training programs:

1. Jarratt Davis
2. James Edward
3. Maverick Trading
4. Apiary Funds

The fees each charge vary monthly. Apiary seems the worst of the bunch.

[sv2007]

Okay my moms girlfriend called out the following companies for the training programs:

1. Jarratt Davis
2. James Edward
3. Maverick Trading
4. Apiary Funds

The fees each charge vary monthly. Apiary seems the worst of the bunch.

Most people who trade forex use the non-commission trades (I also do that).

[scfr]

if you are better than 50%, then you'll make money

Not after factoring in the exchange fees, right?

[scfr]

My husband knows more about the exchange rate on one particular currency (that of his native country) than probably 97% or more of Americans.

He will allow the exchange rate to influence how he prices or times a business contract, or when he purchases a bit of currency to use on an overseas trip or to gift to his parents.

But he has no interest in currency trading for 2 reasons: 1) It would not be any "fun" for him. 2) Even with as much as he knows, he also knows how much he doesn't know.

[sv2007]

Not after factoring in the exchange fees, right?

Forex trading has a lot less fees than airport or CC or banks.
In forex, "exchanging" $100k USD into CAD, for example, costs $10, so .01%.
(Exchanging in forex means selling $100k USD for CAD).

[sv2007]

My husband knows more about the exchange rate on one particular currency (that of his native country) than probably 97% or more of Americans.

When I think forex, I think hedging. So I don't particularly focus on any specific country. For example, during brexit, I played GBP/USD; and if there's some interesting thing with EU, then I'd play euro against whatever I need.

However, this is not to say, people don't play individual currency pairs if they have detailed knowledge; but that may require very long-term planning. And this type of forex play may be the most familiar to most people since we all experience it when we travel.