My father has been trying to convince me to start investing in forgein currency, and making a profit through exchange rates. I am extremely interested in what he is talking about, however my chinese is a bit out of practice and he only speaks chinese. therefore I am not 100% sure what he is talking about. I have spoken with one of his currency brokers ( I think thats what there called) and the language barrier was also a problem. So i was wondering if any of you could shine some light on this "currency exchange" thing, or point me in the right direction. I am heading to the book store later this afternooon to see if I can get a book on this.
PS his "currency broker" works for a large european company called GCI financial?

Thank you very much for your time.

Vince.

 

Hmm, you can theoretically make money dealing in hundreds of millions of dollars by buying and selling various currencies at the right time. What's the right time? Well, it depends on what currencies you're currently holding, and what's happening in the rest of the world. You can also lose your money in a hurry If it were that easy to make money, we'd all do it.

Here's a magazine you can read:

http://www.currencytradermag.com/

Some more stuff:

http://www.kshitij.com/fxthoughts/traderevol.shtml

http://www.amazon.com/gp/product/047156948...glance&n=283155

 

a friend of mine trades currency.

He uses this I believe http://www.forex.com/

he spends about 1 hour a day making trades, and the other 11 hours aday staring at charts, wave graphs, etc.

There are theories you can follow, like the elliot wave etc. It's a grind, but money can me made.

He works from 2am to 11 am, and sleeps the rest of the time. not sure that's neccesary, but it works for him.

 

Arbitrage works pretty quickly in forex; it's hard for an independent investor to make a decent profit, all the more difficult when you have brokers' fees to pay.

There are probably easier ways to make money.

 

do u know what % accuracy your friend achieves with his trades?

 

i think you can make more money at your day job. profit on exchanging money can be very minimal. you can also loose money exchanging money.

 

Sorry I don't. As an overall, I guess I could say he gets about 7 trades right for everyone that goes the other way on him.

He also plays it pretty safe, uses conservative stop losses, and takes his profit quickly as opposed to waiting for those few extra pips