← Autodidact Archive · Original Dissent · Eendracht Maakt Mag
Thread ID: 7323 | Posts: 4 | Started: 2003-06-13
2003-06-13 18:36 | User Profile
I've been following several international currencies over the course of the past year, and I've noticed that the market is extremely volatile, and potentially, extremely profittable. For example, the exchange rate on the Rand has gone up from ~13 in September 2001, to ~8 right now. Its obvious that some shrewd trading could bring in huge profits to anyone willing to take the risk. On the other hand, currency is volatile, sometimes much more so that the stock market, and unlike the stock market, there is no guarantee of all the ups and downs averaging out to an annual gain of 11%. I have some money burning my pocket and I'd appreciate experienced advice on what to do with it.
2003-06-13 20:08 | User Profile
Just to clarify, when a small trader takes a position in the currency markets it's called speculating, not investing.
Now, if you think you know more about the currency markets than the big banks and large speculators, to the degree that you feel confident you can take their money away from them, then by all means go for it. But consider this: The exchange rates at the close of the markets today were exactly where they should be given all the information available to the market participants. Unless you have access to insider information unavailable to the other speculators it's highly unlikely that you would be able to generate a forecast for next week's price changes that would be any better than random.
Fear, greed, ego, and illusions - this is what drives small traders, and small traders are what the big traders feed on. The market always channels money from the many to the few.
Hope this helps.
2003-06-13 20:11 | User Profile
The best thing to do is convert your dollars to Euros. The Euro is soaring and the sky is the limit.
2003-06-13 20:22 | User Profile
*Originally posted by heritagelost@Jun 13 2003, 14:11 * ** The best thing to do is convert your dollars to Euros. The Euro is soaring and the sky is the limit. **
Hmmm... that's an interetsing idea, but I am interested in more high-risk, "boom-or-bust" type enterprising at the moment. The Euro seems fairly stable-too stabl;e for me :D .