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  1. #1
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    Ever Considered Currency Exchange?

    Has anybody ever considered using currency exchange of foreign states as a source of income on the side?

    While the experts usually say it is too unpredictable to be worth it, I think there are some countries who's economic growth is inevitable.

    A couple of countries that come to mind are Iraq and China. Thanks to billions of US dollars, Iraq is transitioning from a country with almost no economy at all to one of the fastest growing in the world ( officially the 9th highest GDP growth rate) https://www.cia.gov/library/publicat...e=me&rank=9#iz

    China is an even better bet. China's economic expansion is unparalleled, and is projected only to increase.
    The last decade has seen China emerge as a global economic powerhouse, with astonishing growth rates averaging nearly 10 percent a year and large trade surpluses. Some economists say, by the middle of this century, China's economic output could match or possibly exceed that of the United States.
    http://www.wwenglish.com/en/voa/stan...8082027081.htm

    Well anyways, my point is some countries' economic expansion is a safer bet then investing in stocks here in America, so has anybody ever done it or are you currently doing it?
    "I think when the history of this period is written, people will realize a lot of the decisions that were made on Wall Street took place over a decade or so, before I arrived in President, during I arrived in President."
    Dubya

  2. #2
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    Re: Ever Considered Currency Exchange?

    I've mucked around with Forex on-and-off for 3 years now. I understand most principles of technical analysis and when I put myself to it I actually make money.

    But you don't seem to be talking about Forex as such. Most Forex traders don't look at long term goals like this; rather they look at anything from intraday trading to weekly trades. The Forex market is also leveraged. Most dealers will allow you to trade with $10,000 just by depositing $100. Again, that doesn't seem what you're talking about here. Rather, you appear to be suggesting a once-off investment on a 1:1 leverage basis.

    But if you're interested in speculative trading on the currency market, it's well worth checking it out. There are few things that provide the same thrills as watching the forex market during a highly volatile session while you've taken a position on the market.

    If you know what you're doing, you can really make money with forex. But it takes time to learn how to analyse the market. You seem to be suggesting long-term trades based on fundamental analysis. But mid-term and short-term is much better (whether you go technical analysis or fundamental) because it allows you to compound your takings. There are dealers that let you start off with just $1 and enter positions with lots as small as 0.01 of a cent. That makes for a very liquid access to the market and allows you to compound your winnings daily.

    A great forum to learn about forex is www.forexfactory.com. I'm there (I think I still am) by the nick of Lightkeeper.
    "I am against religion because it teaches us to be satisfied with not understanding the world" - Richard Dawkins

    "If you could rationalize with Religious people there would be no more Religious people" -Gregory House

  3. #3
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    Re: Ever Considered Currency Exchange?

    I gave the sight a look, but it was pretty much completely over my head.

    Thanks though.
    "I think when the history of this period is written, people will realize a lot of the decisions that were made on Wall Street took place over a decade or so, before I arrived in President, during I arrived in President."
    Dubya

  4. #4
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    Re: Ever Considered Currency Exchange?

    Quote Originally Posted by cdubs View Post
    I gave the sight a look, but it was pretty much completely over my head.

    Thanks though.
    Don't give up Cdubs. You can play these markets without having to become a day trader and without leveraging.

    Pick just one or two countries and research them. Look at their rates of inflation, their prime lending rates etc.

    You can do this based on near and short-term goals and don't have to check things except maybe once a day.

    Research what experets have to say about longterm trends. If analysts are expecting the dollar to grow weak against the Euro -- well there you go.

    Iit helps to:

    A) deal only in stable, developped currencies of stable developed countries.

    b) Have a well-trusted friend in another country you can work with.

    I once partnered witha Canadian friend and we made some very nice returns over an 18 month period playing the two countries' dollars agianst each other. When the Canadina dollar was particularily strong to the US Dollar, he wired his money to me and I put it in a US bank for him at published exchange rates minus the cost of wire transfer (I think like $15). When teh Loonie (canadian dollar) got weak again, I then wired him back his money to a canadian bank and also wired him some of my money which he put in a canadian bank. Over the course of one 14 month period he and I both netted about 20% returns....and technically, according to my accountant, did not have to report it because all we were doing was wiring our own money back and forth to each other....

    If you have a tatse for this -- might I suggest investing in precious metals?

    Last year I netted about 100% return in a years' time buying physical silver and holding it. I had thousands of ounces stashed in my safe at home and in my bank safe deposit box for a while.

    This is a market you can enter with less than $20 and is as easy as getting to know your local coin dealers or you can buy larger quantities online and have them shipped to you. Track the market though, lately it has been cycling in seasonal highs and lows, but things can and do always change. Silver has never been worth zero. Precious metals people have a saying: "To hold onto wealth buy gold. To generate wealth buy silver." Silver is usually a much more volotile market than gold.

    Also -- transactions of less than $10,000 remain private and are not reported to the IRS.
    "I've noticed that everyone who is for abortion has already been born" -- Ronald Reagan

    How can a moral wrong be a Civil Right?

 

 

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