Does anyone have any opinions on Currency trading?

[gavinmccallister]

I was about to try it but it seemed to risky, sounds way too easy to make alot of money. Has anyone ever had luck with currency trading?

[jeffrey]

...and an easy way to lose a lot of money

I do sort of by default - living in Japan my salary fluctuates depending on the yen - dollar rate. The problem is that there are too many outside factors that can change a currency's worth in a day even if all the economic fundementals have been thoroughly researched - like a terrorist attack.

[jmjj215]

Get a lot of extra shirts - you're likely to lose yours! It's pretty much gambling for the single investor.

Jeffrey, notice the markets' resiliency to the unfortunate London attacks? Have the markets factored in this new worldwide terror threat? It appears that way.

[Bluezy]

I've lived in many different countries, so I say with knowledge to forego currency trading unless you fully understand the economy of the country of currency you want to trade in.

Political climates change on a dime, especially in developing third-world countries. And keep in mind that dictators rule many small countries, something that many people from the US have never been exposed to.

So unless you you experienced in other countries, I would recommend that currency trading be left alone.

Bluezy

[sfry]

If you want to try Forex trading then I suggest first of all you take an inexpensive course and get as much free information from the internet as possible. Then open a dummy account with a Forex firm and only trade virtual money. Concentrate on learning about technical analysis of charts that way you won't be at the mercy of fundamental events so much.

Currency trading is extremely difficult but yes it can be very profitable.

The most important thing is only use a dummy account with virtual money until you find out whether you are able to do it and, what is more important, whether you are prepared for the sheer hard work involved.

[mom-from-missouri]

We had good luck accidently while going to Canada once. We went, ate 1 meal out, camped overnight and came back the next day to the US. Traded our money back, and got back more than we went with. The American dollar went up over night. My kids thought it was neat, thought I could quit working, and we could just drive back and forth across the boarder several times a year for our income.
I know several people who have lost a lot of money trying to make money by trading. I don't think I would recommend it.

[VJW]

Gavin,

What everyone has already written is spot on in regards to trading currency futures.

However, if you had some inkling that a particular currency might move in regards to another, you could purchase currency OPTIONS. Your losses would be limited to the cost of the options.

For that matter, you could do a ‘straddle’, where you would sell a ‘Call’ and purchase a ‘Put’, thereby keeping your out-of-pocket cost very low.

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