Making a profit off investing in currency

sw33t_r3v3ng3

Is it possible to make a profit off buying currency and then selling it when it becomes more valuable? I've never done anything like that but in theory it should work shouldn't it? if it would work how would one go about investing in currency? I'm assuming not to go to a bank due to all the charges.

KD11

Yes its possible. Its called Forex trading and its not easy money. Its hard work and requires a lot of research and practise before you ever make a trade. Even then you will more than likely lose your account. If you are serious about it though it is worth looking into.

sw33t_r3v3ng3

KD11 wrote:

Yes its possible. Its called Forex trading and its not easy money. Its hard work and requires a lot of research and practise before you ever make a trade. Even then you will more than likely lose your account. If you are serious about it though it is worth looking into.

Why do you say it isn't easy money? What are the difficult aspects of it? I hope to research this over the coming months if not years (if that's what it takes) Why would you lose your account?

KD11

Because its extremely difficult to predict the markets. 90% of traders on forex will blow their accounts. Its good that you are willing to put in the research though. Check out Babypips.com to start with. They have a good school section on their site.

Tugboats

KD11 wrote: »

Because its extremely difficult to predict the markets. 90% of traders on forex will blow their accounts. Its good that you are willing to put in the research though. Check out Babypips.com to start with. They have a good school section on their site.

This blow their accounts nonsense gets banded about too much. All you need is risk management. Risk no more than 1% on a trade and it's doesn't matter what you trade you won't blow an account.

sw33t_r3v3ng3

KD11 wrote:

Because its extremely difficult to predict the markets. 90% of traders on forex will blow their accounts. Its good that you are willing to put in the research though. Check out Babypips.com to start with. They have a good school section on their site.

Tugboats wrote:

This blow their accounts nonsense gets banded about too much. All you need is risk management. Risk no more than 1% on a trade and it's doesn't matter what you trade you won't blow an account.

Is it possible to predict rises and falls in currency?

dasdog

sw33t_r3v3ng3 wrote: »

Is it possible to predict rises and falls in currency?

Have a look at the indexes, indicators and reports for tomorrows events.

https://www.tradingfloor.com/calendar

These along with events such as interest rate cuts/raises, currency pegging, political changes along with the speculation (manipulation) by major banks drive the currency exchange rates. There is also a herd mentality.

Have a look at what the Fed's address to Congress did to US Dollar yesterday (google "Yellen") or stick on Bloomberg now. Central bank semantics and sentiment also plays a key role. It's not easy to predict and takes a lot of time, morning noon and night, if it is to be played and initial capital of €15-25k to start with IMO. And that's money you should not have to rely on.

smash

Tugboats wrote: »

This blow their accounts nonsense gets banded about too much. All you need is risk management. Risk no more than 1% on a trade and it's doesn't matter what you trade you won't blow an account.

Opening a trade leaves you in immediate negative equity because of the spreads. On high leverage trades you'd be 12-20% negative. Even on low leverage you're negative and waiting even longer for the pips to move in a direction that suits you. Even look at recent activity on EURUSD and you'll see that the market is very unpredictable. It's currently dropping below a support line even though there was good EUR data released this morning.

This is how a lot of people blow their accounts!

Watch EURUSD after lunch and see the movement when the US data is released: http://uk.investing.com/economic-calendar/

smash

If you'd looked at the EURUSD pair I mentioned above, you'd have seen it fall through the floor over the last hour and a bit. Even to the point where it's put those on low leverage buy positions in trouble.

dasdog

smash wrote: »

If you'd looked at the EURUSD pair I mentioned above, you'd have seen it fall through the floor over the last hour and a bit. Even to the point where it's put those on low leverage buy positions in trouble.

Core CPI figure appear to have done it. Made a reasonable amount on the way down but lost more than I made trying to catch a swing above the 1.1270 resistance. Cut my losses there thankfully as EUR broke below 1.12 briefly and could again. Reaction has been very bullish so far.

I'm more focussed on existing positions which turned very sour since Yellen's address. USD/JPY (aiming for 120+) and AUD/USD (0.775-) would do very nicely. It has been some reaction, I'm hoping the momentum doesn't turn when Asia opens as aside from Durables and the CPI figures there wasn't much else to go on and AUD has been very stubborn even with Iron Ore falling and their bad CAPEX figures overnight.

Tugboats

smash wrote: »

Opening a trade leaves you in immediate negative equity because of the spreads. On high leverage trades you'd be 12-20% negative. Even on low leverage you're negative and waiting even longer for the pips to move in a direction that suits you. Even look at recent activity on EURUSD and you'll see that the market is very unpredictable. It's currently dropping below a support line even though there was good EUR data released this morning.

This is how a lot of people blow their accounts!

Watch EURUSD after lunch and see the movement when the US data is released: http://uk.investing.com/economic-calendar/

You can trade without being involved during High Impact news releases

Tugboats

smash wrote: »

If you'd looked at the EURUSD pair I mentioned above, you'd have seen it fall through the floor over the last hour and a bit. Even to the point where it's put those on low leverage buy positions in trouble.

How they are in trouble? With risk management they lose a trade and move onto the next one

Last week I shorted Euro at 11445 making about 225quid on the trade
Today I bought Euro at 11275 and I lost 125

smash

Tugboats wrote: »

How they are in trouble? With risk management they lose a trade and move onto the next one

Last week I shorted Euro at 11445 making about 225quid on the trade
Today I bought Euro at 11275 and I lost 125

It depends on the size and leverage of the trade, and a lot of currency pairs got hit today so even diversifying your portfolio went tits up if you were betting against the dollar or betting on the euro. I spent an hour looking at trades opening and hitting SL within seconds, and others opening and closing with a low TP for fear of the rebound.

For EURUSD in particular, people knew of the long term bearish target of 1.1100 but didn't expect it to break through 1.1275 for long before a bounce back. Extending purchase SL's to 1.1240 looked good for a lot of people but it cut through it like a knife through butter. Even now at the bottom end of 1.1200 there's not much bullish activity and I think people are waiting for the Swiss to throw another lump sum into buying Euros to give it a slingshot but they don't need to right now.

Still though, this was caused by speculation and rumours of the cost of the new Greece deal and not just the US figures which were released.

Tugboats

smash wrote: »

It depends on the size and leverage of the trade, and a lot of currency pairs got hit today so even diversifying your portfolio went tits up if you were betting against the dollar or betting on the euro. I spent an hour looking at trades opening and hitting SL within seconds, and others opening and closing with a low TP for fear of the rebound.

For EURUSD in particular, people knew of the long term bearish target of 1.1100 but didn't expect it to break through 1.1275 for long before a bounce back. Extending purchase SL's to 1.1240 looked good for a lot of people but it cut through it like a knife through butter. Even now at the bottom end of 1.1200 there's not much bullish activity and I think people are waiting for the Swiss to throw another lump sum into buying Euros to give it a slingshot but they don't need to right now.

Still though, this was caused by speculation and rumours of the cost of the new Greece deal and not just the US figures which were released.

agree but i wouldn't be opening a portfolio of fx positions as a long term investment nor would i recommend it. If you're quick,nimble and plan well its a very safe way of trading in the short term in my opinion.

Also buying and selling retail stoplosses can be very profitable

P_Cash

I trade the forex, didn't think many in Ireland chased that game. This 1% risk of ur account is only half the story, and is why people lose it all. I mean someone putting 500/250€ into a trading account with rules of 1% risk per trade, so what they have 2/5pip stop loss?
If ur using 1% rule, then put 4k in the account at least.

Me, no id put 500€ in to it starting with a 10% or so risk, that way ur trades are getting some room. But only when uve done the below first;

Trade demo 6 months
Stick with max 2 pairs, they all move the same time anyway, moves worth catching.
Aim for min 100 pips per month
Treat each one like ur first born
You'll find you will earn a lot more
Only after 6 months profitable trading go live
Stick with 4h and 1h charts
Remember, u want part of a move, not all
For a small move on a 5 min chart Ull get 5 or 10, but a move on a 4hr gives 50 60 70
Draw horizontal lines on a 4hr
Wait for the mkt to come to you.

You should average 40 points a day no bother.
When u get comfy, and ur trading balance is now big enough so ur risk is only 3-4% per trade, use 2 lots

This week I'm 116 points up. Eurusd gbpusd only traded.
Last week was 195.
Total trades taken this week was 19. To give u an idea,
Aim to not be in the mkt to long.
It's all in the entry

Good luck

P_Cash

sw33t_r3v3ng3 wrote: »

Is it possible to predict rises and falls in currency?

Follow, don't try to predict. Let it tell u where it's heading, jump on for the ride, jump off before the station though.

sw33t_r3v3ng3

Must really research this more it'd be interesting to get the hang of eventually!

sw33t_r3v3ng3

Also thanks everyone for the info so far!

Tugboats

P_Cash wrote: »

You should average 40 points a day no bother

Absolute nonsense. A no bother 200pts a week would make you trading God. How long have you been making a no bother 40points a day

P_Cash

Tugboats wrote: »

Absolute nonsense. A no bother 200pts a week would make you trading God. How long have you been making a no bother 40points a day

Lol, u missed the word average.

25 a week would make you wealthy if u traded with good skills, compounding etc, increase the lots as your account grows.

Started fx in 2003

Tugboats

P_Cash wrote: »

Lol, u missed the word average.

25 a week would make you wealthy if u traded with good skills, compounding etc, increase the lots as your account grows.

Started fx in 2003

If an average of 40 a day is "no bother" how are we back to 25 per week now? I trade with a 10k account. Do you recommend I risk 3-4% of that per trade?

P_Cash

Tugboats wrote: »

If an average of 40 a day is "no bother" how are we back to 25 per week now? I trade with a 10k account. Do you recommend I risk 3-4% of that per trade?

40 is what i seem to be avg, as u thought it a figure to have a holy grail or something, i tell u 100 a month can do this, with proper money skills, in 5 yrs time ud have a nice account.

10k account, std lots u mean, ? 3/4% risk, yes sure, but that depends,

Say u had 35k capital in the account, built up to it like, so at this stage risking 3/5% of this would be 1,700. So for me that's putting 20 lots on.

Nothing changes from the time of the account been 3k in capital or 35k, only lot size.

P_Cash

If u meant ur account had ten k in it,
id be trading with lots of 4.

P_Cash

I think the misinforming on risk mgt is because people get chewed up on a % number, forgetting that u have 2 variables to go with this, account balance, and lot size.

I typically fold for a loss of -20 , the odd time -40 . But i stay clean out of the mkt and wait for another set up

dasdog

OP it's very generic advice but information soakage is something I've been at for years with economics and have traded shares infrequently since 2008 without a loss to-date but its important to take heed of the more seasoned.

https://www.tradingfloor.com/posts/boy-scouts-motto-of-be-prepared-is-a-salutary-lesson-for-traders-3794439

I'll contradict that by admitting I jumped in to fx a few months ago with no practice, beginners luck most likely which is a quite common occurrence. A dedicated thread would be interesting. A 56% chance of the bank of Australia cutting rates on Tuesday?

smash

Tugboats wrote: »

Absolute nonsense. A no bother 200pts a week would make you trading God. How long have you been making a no bother 40points a day

You could make well over 40 points today no bother. Buy EURUSD at 1.1215 100x TP 1.1280 SL 1.1115. Then sell at 1.1281 100x TP 1.1206 SL 1.1381.

1.1285 is the resistance now. Still though, it's a risk no matter what.

Realistically you should be aiming for 10% return a month. I had a run of good weeks/bad weeks with high leverage trades so last week I withdrew some funds from the account after I got it back to a good balance. I'm glad I did now.

For ever odd

Looks like Austrian bank Heta is going to burn bondholders on March 6 and 20, what impact do you guys think this will have on the Euro?

lostboy75

post reported

rayself

lostboy75 wrote: »

post reported

Hi why is my post being reported I am only suggesting a place to make profit investing in currency which is what the thread is about??

Gordon

No referral links allowed I'm afraid, please don't respond to this post here, if you like, send me a PM to discuss.

Gman1987

Hi all, just wondering what demo trading account would ye recommend? also what live account would ye recommend?

For ever odd

Ger1987 wrote: »

Hi all, just wondering what demo trading account would ye recommend? also what live account would ye recommend?

Try a demo that doesn't have a time limit on it.

After you find your style (it can take a while), try a live account that allows 10 or 20 cent bets and progress from there.

Good luck.

4068ac1elhodqr

Any views on the various Sportsbooks offering around 175-180% returns on financial forecasts of simple 'rise or fall' on current popular fx combos.

Not leveraged or anything so no unexpected sting. Just a simple case of forecast up/down on targets (<0.00001%) choose from few hours to few weeks.

Usually they also offer same deal with gold/silver/oil etc (averages 173-178% ROI) with expires of around one day/week.
Ideally you'd want 200% as it could go either way, particularly with hourly/daily forex.

Oil seems a safer bet, as once it bottoms out (if not already) surely can only go one way over an average period (week on week), pending wider complex (but readable) geo-political contextual factors of course...

For ever odd

Ariella Handsome Visitation wrote: »

Any views on the various Sportsbooks offering around 175-180% returns on financial forecasts of simple 'rise or fall' on current popular fx combos.

Not leveraged or anything so no unexpected sting. Just a simple case of forecast up/down on targets (<0.00001%) choose from few hours to few weeks.

Usually they also offer same deal with gold/silver/oil etc (averages 173-178% ROI) with expires of around one day/week.
Ideally you'd want 200% as it could go either way, particularly with hourly/daily forex.

Oil seems a safer bet, as once it bottoms out (if not already) surely can only go one way over an average period (week on week), pending wider complex (but readable) geo-political contextual factors of course...

Is that through a bookie like paddy power or through a broker offering binary bets?

4068ac1elhodqr

via bookies* so any Joe can avail of it fairly easily without having to get on the phone to any pin-stripped suits.
*The bookies probably use other 3rd parties to manage-own the actual software, books maybe just take a commission slice.

The one I looked at isn't leveraged, just a straight trade, think some turbo is offered but 1 day/week/month is plenty enough.
Think some popular bookies pulled their earlier trader/financial trading as folks were making significant 'leveraged losses'.
If you know with some certainty the next day is going to be +/- from current well that's a 180% or so easy return.

sw33t_r3v3ng3

Thanks everyone so far for the advice! Much appreciated.

For ever odd wrote:

Try a demo that doesn't have a time limit on it.

Does the demo require payment if any sort? Where can I try the demo?

For ever odd

Ariella Handsome Visitation wrote: »

via bookies* so any Joe can avail of it fairly easily without having to get on the phone to any pin-stripped suits.
*The bookies probably use other 3rd parties to manage-own the actual software, books maybe just take a commission slice.

The one I looked at isn't leveraged, just a straight trade, think some turbo is offered but 1 day/week/month is plenty enough.
Think some popular bookies pulled their earlier trader/financial trading as folks were making significant 'leveraged losses'.
If you know with some certainty the next day is going to be +/- from current well that's a 180% or so easy return.

Never met a poor bookie (sorry Ivan). As a professional gambler once told me, if you still have acount after six months close it, your doing something wrong. If you are doing it right they will close the account for you.

The very best of luck to with it though, let us know how you get on with it.

For ever odd

sw33t_r3v3ng3 wrote: »

Thanks everyone so far for the advice! Much appreciated.



Does the demo require payment if any sort? Where can I try the demo?

Lol, no payment for a demo. Fx is hard, maybe read up on it for a few months