Today's Stock Market Crash: Mr Reasonable

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. :wink:

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. :slight_smile: :sunglasses: 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.

Sorry, got a phone call :blush:

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.

No worries. :wink:

$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.

I’ve opened a DEMO account twenty minutes ago, I’ll make a thread on currency trading so we can discuss this more there. :wink:

Forex.com says

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 :smiley: China is more volatile, so they require more margin.

Let’s move this discussion of currency trading to this thread here as this thread is primarily about global economic collapse. :laughing:

viewtopic.php?f=3&t=193958&p=2698069#p2698069

Post all your latest posts there and we’ll talk there as I have a feeling that I have a lot to learn from you. :wink:

All that is good advice, but UNP was $70 in 2016 and is now almost twice that. It doubled in 2 yrs and could suffer a correction. He could be sitting on loses for a while. True, he still gets the dividend. But yeah that’s the thing to do if your eye is on the long term.

I don’t think you’re understanding the nature of computershare. It’s not a trading platform. It’s a transfer agent that handles direct stock purchases from companies who offer those kinds of plans. So it’s not an account that you trade in. It’s strictly buy and hold until you want them to mail you a check. No instant execution, no margin, none of that. He doesn’t even have 100 bucks to throw into the game, so his best bet is to start saving money by buying shares and holding them and letting the dividend drip. Then once he’s got some money he can think about betting against the dollar. I mean…I’ll bet him 100 bucks on whatever he wants. He doesn’t even really need an account of any kind for that.

Ameritrade has no minimum to open an account, so he could do a money market checking attached to an individual brokerage and at least get better than basic savings interest on his balance while he gathers up cash and gets ready to make a move. He can trade a bunch of ETFs without fees there if he holds them for 30 days. But the same problem exists for him with such a small amount of money. If he pays 7 bucks commission 2 times on a buy and on a sell with 100 bucks in the game, then he needs to see more than a 14 percent gain to beat the taxes and fees if he’s even going to make enough money to buy a soda.

He should just be saving, and buying and holding old school blue chips without paying any fees is a good way to do that.

I suspect it’s in all cases, but I haven’t verified it. I know there is no oil etf that matches the spot price exactly and some are better than others.

Yeah I like index funds.

They got overleveraged. Risk management is #1!

Yeah trading currencies is the hardest thing on the planet. There is more money there than anywhere else and highly competitive.

Dollar cost averaging over time is a good idea. Yeah man, you have the right plan.

Yes, don’t eat your seed crop, as Molyneux says when discussing the difference in r/k selected people.

You’re right, I had no idea. That’s seems like a great thing!

Maybe you guys should work something out.

How many times do you mention something being boring on here? That’s such a trickling of money that it won’t hold his attention.

Yes, get rich slowly. getrichslowly.org/

You have the right idea, but I think he wants to gamble on the dollar because of all the youtube videos he watched.

Well actually because I believe very soon China and the BRICS nations including Russia are about to give the United States along with the dollar a run down for its money especially since recently the yuan has become gold backed. What does the United States have, bitcoin? :laughing:

Then let him open an ameritrade and throw 100 bucks at a bearish dollar etf. If it takes more than 30 days for the dollar to tank, then he’d have held it for 30 days and avoided commissions, thus fucking over the bank and getting to watch the world burn. It’d be a hell of a day for someone with his view.

I’m not sure what the gold backing really means. Every country has foreign currencies in reserve and gold is just another one of those.

I’m short the USD against New Zealand and long the USD against Australia because that’s the way the interest rates are set to my benefit and it hedges me. I’m long the USD against the yen for the interest and short the EURNZD for the interest. I offset the EURNZD short with a sizeable EURUSD long because I’m pretty sure the euro can only go up as the ECB tapers. I hedge that with a GBPUSD short, which pays interest, and of course the USDJPY long.

USDRUB (russia) pays a good interest, but requires too much margin to hold it. USDZAR (south africa) pays a lot of interest too.

So I do a lot of fiddling lol

Yeah that’s a good idea, but probably wouldn’t make much at 1:1 leverage.

Yeah, I am definitely bearish against the long term prospects of the American dollar.