I wasn’t really planning on getting deep into this – this soon but as the name suggests – I do trade currencies, and I do trade currencies well. You can’t just pick a currency pair, pull up a chart and plan to trade it – as if it was a common equity. The volatility inherent to currency markets, coupled with the massive leverage offered by brokers is a sure-fire recipe for account liquidation – and the lack of good, solid “tradable” information available on the net ( in my view) is slim to none.
The currency market is designed (like no other if you ask me) to very quickly part the newcomer from his hard-earned dollars – with the promise of massive gains, and very little start-up capital. This could not be further from the truth. Anyone even considering opening a currency trading account with the piddly “get started now with 2K and a free 50k trading account!” – will be left with zero – likely before close of their first day trading. It takes extremely disciplined trading, and razor-sharp money management rules to successfully navigate the currency world.That, paired with extensive fundamental knowledge of the underlying, and a current bead on daily news flows globally – minimum.
Each individual currency pair exhibits it own unique characteristics that cannot be discounted or disrespected.Volatility in currency trading can wreak havoc on an account, and the leverage offered is so tempting to newcomers that in combination – accounts are likely wiped out daily. I wonder if the brokerages expect anyone to even make it through the first week – building their business models solely on the “minimum required deposit” to open the account – and in turn striping you of it.
In any case…we will certainly peel the onion here over the coming weeks – but as it stands my suggestion to you would be: Do Not Trade Currency – Until You Know How To Trade Currency.
A question….would you climb into a formula one race car, and hit the track against an armada of seasoned veterans – without first considering where the gas pedals and brakes are?…..I didn’t think so.