Trading in Currency

Currency trading is not for the faint-hearted; it can be especially dangerous to your pocket book unless you have the capital and know-how.

Currency trading success depends on trends that can be suddenly reversed by events beyond your control. Quick changes can blip out your equity, when down payment margins are so small in commodity contracts.

Moreover, the value in a currency is not easily discerned, even by experts. A currency is valued in relation to another. Examples: The dollar, in relation to the British pound, the Euro, the Chinese yuan and the Japanese yen. Each can be temporarily overvalued or undervalued by volatile markets.

Any investor who would like to trade currency, should first become an expert in the intrigues of this highly complicated game. That means that one must first read all that he can about the subject’s mechanics.

That also requires knowledge of the futures markets and its intricacies. And once you feel you know the technicalities, do sessions of what I refer to as “dry-runs.” Make fantasy trades without real money just to see approximately how well or poorly you would have fared with actual investments. ( See the Earl J Weinreb NewsHole® comments.)