Itâs pathetic how these message boards are rife with: is there any people that truly make any money from the markets or do full time traders even exist? Upon closer inspection it appears to be a reflection of a personâs incompetence that such a question would even be asked. Take a moment and examine other professions, for example, an accountant, a civil engineer, a voice coach, and so onâ¦. How silly it would be to go into a public forum of a particular profession and state: do any of you make consistent money in your profession or do you even exist? And if itâs true, can you provide a copy of your check stubs dating back 1 year? How pathetic that would be. And in line with the incompetence matter that permeates trading forums. The pattern Iâve noticed repeatedly is that many do not want to admit failure. A level headed person will simply reason that he does excel in this profession and will thus focus his energy in another profession where he will be more adept. End of story. I have two cousins that are engineers. I recall vividly when they were attending school in Northern California, that they were incredibly diligent in their studies. The word problems contained within their textbooks was out of this world, it clearly required that a person use their brain to the fullest. One of them has reached a point where other engineers now seek his input on large scale projects. And yet what I see in these trading forums is very often the opposite, the road that will lead to riches with little effort. I can already hear it. âI just need this one indicator that will change my bad fortune, and everything will be OKâ. When in reality and in all likelihood a trader may find it helpful to study diligently in order to overcome what vexes him.
it's just something to keep your eye on, especially when you are out performing in stocks, or end up too heavy in cash. Yes, I personally trade fx, but I wouldn't recommend that for everyone, but I would recommend that everyone has a currency component to their portfolio. For a while, it was just as simple as keeping 10% in GLD, but those days are gone. No big deal at the moment. I'm betting on a stable dollar, 78 to 83. just something to keep in mind all I am saying is from 2013 onward, returns should be dollar adjusted
I hear ya, I have been asked, "How is the exchange rate going to affect you in any way shape or form?" and that's a hard one to answer
However, quite relevant to me. I spend in Canadian dollars, but invest in US dollars. Actually, I do this on purpose. I consider this a recession hedge since during a recession there is always a rush out of the Canadian dollar into the US dollar. Therefore, I may be losing on my US trades but when converted to Canadian dollars my losses are somewhat mitigated. In the meantime, when times are "good", its unlikely the Canadian dollar will exceed par by that much.
when I started trading forex, I had a lot of money sitting in cash. I thought it was just sitting there, safe as milk. and I began to see how everyday it is moving there is no such thing as cash anymore you are either long or short the dollar
Yes, and when I go long on the EUR/USD, I am indirectly going long on the USD/CAD pair since I spend in Canadian dollars.
I know, it gets crazy doesn't it? Takes a big mind to put the whole thing together I struggle with it every day but if you are keeping score in cad the lady asked if it is possible to make money?
Perhaps, it would make more sense to simple go long EUR/CAD, but then my broker only allows me to hold a currency account in US dollars, but then I'm going long the US dollar again. I think we're both overthinking this Oldtime.