As far as eventually failing to track the underlying commodity, sure…in some cases. But if you bought QQQ a few years ago, or at just about any time since then, then you’d be in the money on it right now. UWTI tracked oil very well, but got shut down because it was dangerously volatile, if I’m remembering correctly it was one of those that moves the same as the underlying commodity buy with increased volatility or beta. So great for getting in and out…it seemed, but people were losing their asses left and right trying to time the market.
Tell Zero the truth…for a variery of complex reasons, forex trading is a bad idea, especially for the risk-averse. I just want him to go to computershare and start DRIPs for XOM, LMT, UNP and SO. Then in a few years he’ll have the money to actually make a rent check without having to look for a massive short term price move in whatever he wants to buy.
Zero, a 100 percent gain is hard to find in between rent payments. So even if you had an extra month’s rent to throw into something and you found a 100 percent gain, you’d just have a month’s rent. If you put 100 a month, 25 a week into something that appreciates and pays good dividends and is safe…then over time you’d have 10 months rent saved up, and you would only need to find a 10 percent move in whatever you’re buying on a monthly basis to cash out and have some free rent.
Am I making sense here? The first step in being a capitalist exploiter of things who profits off nothing and lives for free and is a lazy piece of shit who gets away with financial murder…is to have some capital. Save money dude. Stop letting politics and emotions prevent you from doing that. Just get 100 a month into the bank and play the game. You’re young. You can’t even conceptualize the difference that it can make in your life to do whatever you have to do to get that capital.
So, understanding the basics of currency trading starting out with say $100.00 is it very difficult understanding daily market fluctuations or rotations doubling your money overtime?
Computershare has no-fee DRIPs for a decent number of safe dividend stocks and allow for purchases of fractional shares. All you need is a basic checking account, a routing number, an account number and however much cash you can afford to put in.
I’m a possible socialist trader and investor not a capitalist! If I ever became a millionaire or billionaire which I highly doubt it (love the thought though) I would devote some of my money to social causes and political activism that I believe in.
Yeah, I know what a dividend is and percentages of return rates are.
Last time I checked banks are still at a historic low rate of return with money deposited.
That’s why you don’t deposit money into a savings account. You buy shares of the oil and electricity companies, and the train and missile companies. You think they’re going to be building a lot of F35s in the near future? Buy LMT. You think the american oil industry is going to get richer? Buy XOM. You think they move oil and missiles on trains? Buy UNP. Like electricity? Buy SO. They’re at a low right now so the yield is high. By holding those shares, instead of putting your money into a shitty savings account at .5 percent interest, you’ll average a significantly higher return, especially if you let them pay you the dividend in shares instead of cash…because the next dividend check will be bigger because you’ll have more shares.
It’s like when the bank charges interest on interest on a credit card. They use compounding to fuck people. When you take your dividend in shares and then next quarter they have to pay you a dividend on a dividend, you’re compounding on them and you’re fucking them.
If you had money to put in a savings account at JP Morgan bank, you’d be smarter to buy shares in JP Morgan. What do you think the smart bankers do with all that money that dummies put into savings accounts?
Everyone who’s using money to make money is a capitalist. Doing that isn’t bad in and of itself. No poor person ever built a homeless shelter. Politics is a game you can’t really even play if you don’t have some money, so start putting money into those stocks on computershare, don’t pay any fees, make them give you shares instead of cash for your dividend, and get in the game. No one’s telling you to go take crazy risks…ironically, you’re wanting to take the extreme risk of forex trading. I’ll bet you everything I have that you will lose your ass in a heartbeat trading currencies…I’m willing to make this bet because the odds are heavily in favor of that ending up being the case.
You have a kid right? Go to computershare and start buying shares of walmart or mcdonalds or cocacola and put them in a custodial account with you as the custodian for your kid. Put 50 bucks a month into something. You’ll have complete control of it until the kid turns 21 or until you die whichever comes first. Once you got some skin in the game it becomes a lot easier to stay interested and follow the facts about how it all works. Maybe in a few years you get that up to a few grand and can roll it into a brokerage account and make some moves and put the kid through college. Maybe the kid gets a scholarship and you can put the kid in a house. 20 or 30 years of 50 or 100 bucks a month with dividends reinvested is the key to making your kids never have to be poor.
Yes, all of that sounds rather nice until you start losing money because you invested poorly where you then end up owing other people or institutions money. :-"
Since you’re still around perhaps you can help me out with some information, for instance I know you have to report investments doing your taxes, right? Is that just with stocks and bonds? Do you have to report profit gains with currency trading filing taxes in the United States? The IRS is a son of a bitch.
I don’t see how I would lose my ass trading currencies, when the value of currency you’re holding goes up you merely exchange it for a return profit. Seems very simple and straight forward in comparison to other trading or investment schemes I’ve looked into prior.
Also, I would diversify holding a variety of currencies as strict contingent. For me this would be primarily American dollars, Chinese reminbi (yuan), Russian ruble, and Japanese Yen.
[Perhaps Australian, Canadian, and Brazilian currency as well.]
What would you call a capitalist that takes some of their money or profit and invests in nationalist/ socialist causes?
You’ll lose your ass trading currencies because there is significantly less regulation in those markets and the volatility can come out of nowhere. Almost everyone loses their money there. That’s just how that goes man.
You can’t end up owing the bank money by buying and holding stocks. It’s not a poor investment to put money into infrastructure by buying companies that have been around 100 years and have raised dividends and kept on making money through 100 years worth of political and financial turmoil. If you think that oil, electricity, trains, and weapons or war are going to cease to be profitable, then I have no idea how you came to that conclusion. You can’t possibly think that.
You’re making this more complicated than it really is. It’s actually pretty boring stuff. You get a checking account, you go to computershare, you click and buy shares in oil, trains and missiles, you select the option to be paid your dividends in shares, and you draft 50 bucks a month into each one. Then you never look at it again. Just leave it alone.
Then in some time, you’ll go and look at it and realize that you’ve got some money now. Then you can worry about all the complicated stuff.
Sure, but if you understand volatility having the ability to look at both long term or short term approaches of currencies (something of which I think that I understand in terms of macroeconomics) I’m sure of it that I can make a handsome profit. I will tell you what, if I experiment with a little bit of money here and there on Forex where I lose my ass as you call it I’ll be the first one here to admit it publicly in your presence where you can take a victory lap by telling me that you told me so. If however I end up making a lot of money trading currencies I want an apology from you for being wrong.
I really don’t want to invest my hard earned money in western military imperialism, quite the contrary I want to make a profit hedging or investing against it. I want to invest with my values, ideals, and principles intact. Not even with money will I betray my own principles.
You still haven’t told me anything about tax information regarding profit informing filing taxes in the United States. Give me a quick run down on that you being a man of experience on the subject.
Query: If there isn’t a hard market correction in the United States or the western sphere of influence internally I suspect that joint international trade by both China and Russia will undermine the dollar abroad in international markets externally. Either way there will be a hard correction on the United States economy whether it is from internal unsustainable components or external ones from foreign powers like Russia or China overtime. To this I will be watching both segments very closely.
$100 is not enough, that’s the minimum before a margin call is issued to sell you out. This is why you need to play with the demo account to get a feel for how it works.
fxcm.com/uk/forex-trading-demo/ Just fill in bs info and download the demo. The base currency is pounds, but you can pretend it’s dollars.
This is where you’d actually have your account and the software sucks in my opinion forex.com/en-us/
FXCM is lightyears better.
I’m not sure the minimum amount to open an account, but realistically you’d need at least $200 to keep that position on if it went somewhat against you. I mean, what’s your plan? Do you intend to hold it through hell and high water or are you going to cry uncle at a certain loss? When do you admit you’re wrong?
You need a lot of money to hold your position. You need dry powder. The #1 thing is risk management! Warren Buffett said when the tide goes out you see who is swimming naked.
Like right now if you, say, thought the stock market were going higher, you’d take a small position in hopes of that, but what if it goes down instead? What do you do? Sell at the bottom where it starts to go back up? Or buy more and have the downtrend continue lower? Sometimes it seems that whatever you do, the market will do the opposite. It can make you think someone is watching you lol… and they are… those computers - algos - know what positions you have and probably how far it would need to move to break you. There’s a LOT of money in forex and I guarantee there is shenanigans. As Oliver Velez puts it, “It’s the most competitive sport on the planet with the most money at stake, so don’t think you’re going to waltz in and take food from their plates.”
Anyway, you need a plan of action. The big guys take the opposite side of your trade, they buy all the way down and sell it back on the way up because they have unlimited funds at their disposal. You don’t have that luxury.
The problem with that though is he’d need $2500 to open the account with margin just to have 2:1 leverage and only expect to make 1-5% at best. And from this lofty position in the market it seems to be a lot of risk. I’m not sure if he could open a cash account with $500. Used to be able to. But the amount of return wouldn’t make it worth bothering, imo.
I think the only reason he is doing this is that he wants to bet against the USD. He just wants a bookie to take his bet.
The minimum initial deposit required is at least 50 of your selected base currency. However, we recommend you deposit at least 2,500 to allow you more flexibility and better risk management when trading your account.forex.com/en-us/support/faqs/popular-faqs/
I think you’ll have to scan your DL and power bill or something and email it in. Then fund your account with a debit card. They used to take credit cards pre 2015 lol
I think you’d need at least $200 to put the USD/UNH short on and hold it. If it moves against you, the software will sell you out when it hits $99 and that’s what you will have left. You can make it back though since it only takes $20 to place a EURUSD trade China is more volatile, so they require more margin.
If I ever became a millionaire or billionaire which I highly doubt it (love the thought though) I would devote some of my money to social causes and political activism that I believe in. 
China is more volatile, so they require more margin.