wassup guys - Forex or Stock market?
- Thread starter LemonAden
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Here's another investment tip, although not related to stocks:
Buy one or two high-profile, .com domain names with great type-in value in the 5 or 6-figure price range (depending on funds available for this). Any super-valuable domain name is not gonna lose its value anytime soon. In fact, value will only go up and there will always be eager buyers who will want it for a higher price than what was paid for. In the meantime, he will enjoy a nice trickle of ppc revenue from the type-in traffic with parking at a place like Sedo.
Buy one or two high-profile, .com domain names with great type-in value in the 5 or 6-figure price range (depending on funds available for this). Any super-valuable domain name is not gonna lose its value anytime soon. In fact, value will only go up and there will always be eager buyers who will want it for a higher price than what was paid for. In the meantime, he will enjoy a nice trickle of ppc revenue from the type-in traffic with parking at a place like Sedo.
i would rather help him get into forex than doing penny stock shit.
Good sites and good info.
I am thinkign about opening a forex.com account myself and trying to learn it, but realistically, how much $$ do you need to put in to actually make a profit from it??
Good sites and good info.
I am thinkign about opening a forex.com account myself and trying to learn it, but realistically, how much $$ do you need to put in to actually make a profit from it??
Aden,
first,dont "help him to get into forex" if you self dont know what you doing,dont want to sound bad,buts that just stupid.
Trading Forex isnt easy,dont believe what you see on the commercials.
its like everything in life,if you want do it good(earn money),learn your ropes.
First of,forex is VERY speculatively and volatile,coming in part from the no-regulation status(there is no exchange,no fixed prices,trading 24/5,OTC style,no rules on selling/buying like ie in the future market etc) and on the other hand from the big guys wich realy DOMINATE and PLAY the market.dont underestimate this,if you observe the charts long enough,you will start to notice the games they play,its just insane.
If you are serious about forex trading,give yourself time and learn the basics,
get a demo account(like you did) and trade virtual until you feel comfort and sure ,knowing what you doing and not just gambling.Learn about the big players(ie how central bank statements affect the market),observe how economic data releases affect(there are plenty important every day mostly) and what they actually mean,get your head around currency correlations and how they can help you in your strategy,how to do a fundamental and technical analysis,about the market opening times and the usual pattern they develope,how to setup a trading plan risk management,how stock and bond markets correlate with currencys,the same goes for commodities.
Whats about your broker? to trade successfully you have to understand actually how the system works,what are the differences between a market maker(ie forex.com) and a ECN,and the true interbank system.
I could go on with the list,but i guess you got the point
So if you are serious,invest the time,observe the market few hours a day,learn to read the economic data releases,read books and forums etc
and when you fell prepared,jump in SLOWLY.
Have in mind,if you trade stocks,you analyze corps.If you trade forex,you
analyze countrys,so everything economic related is your preferred lecture from now on
some starting points:
Forex Forum, Forex Calendar, Forex News @ Forex Factory - very good economic calendar and forum
Forex Street. The Foreign Exchange Market - good info resource
Investopedia.com: Forex Articles and Insight -get your basics up
Trade2Win Boards - goo trading board in general
Foreign exchange market - Wikipedia, the free encyclopedia - worth a read
Bloomberg.com - of course !
almost forgot,you will need also a live news service,very good one to start out is Trade The News - Live Audio Breaking News Analysis and Futures Calls sign up at fxcm.com for a mini account just to get the news plugin wich is provided by Thomson IFR one of the top names for live economic data.Also have in mind that you maybe need a charting software,depends on your broker,more research to do ;
And for last,a book i recommend to anyone who wants to dabbling forex:
Amazon.com: Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading): Books: Kathy Lien
if you need a few pdfs,you know who to pm
last word,be carefully with forex.com,they are a market maker and love to widen spreads,specially in volatile times,do a good research on brokers before you go with one,a good broker is the half way.
good luck on your mission
l
first,dont "help him to get into forex" if you self dont know what you doing,dont want to sound bad,buts that just stupid.
Trading Forex isnt easy,dont believe what you see on the commercials.
its like everything in life,if you want do it good(earn money),learn your ropes.
First of,forex is VERY speculatively and volatile,coming in part from the no-regulation status(there is no exchange,no fixed prices,trading 24/5,OTC style,no rules on selling/buying like ie in the future market etc) and on the other hand from the big guys wich realy DOMINATE and PLAY the market.dont underestimate this,if you observe the charts long enough,you will start to notice the games they play,its just insane.
If you are serious about forex trading,give yourself time and learn the basics,
get a demo account(like you did) and trade virtual until you feel comfort and sure ,knowing what you doing and not just gambling.Learn about the big players(ie how central bank statements affect the market),observe how economic data releases affect(there are plenty important every day mostly) and what they actually mean,get your head around currency correlations and how they can help you in your strategy,how to do a fundamental and technical analysis,about the market opening times and the usual pattern they develope,how to setup a trading plan risk management,how stock and bond markets correlate with currencys,the same goes for commodities.
Whats about your broker? to trade successfully you have to understand actually how the system works,what are the differences between a market maker(ie forex.com) and a ECN,and the true interbank system.
I could go on with the list,but i guess you got the point
So if you are serious,invest the time,observe the market few hours a day,learn to read the economic data releases,read books and forums etc
and when you fell prepared,jump in SLOWLY.
Have in mind,if you trade stocks,you analyze corps.If you trade forex,you
analyze countrys,so everything economic related is your preferred lecture from now on
some starting points:
Forex Forum, Forex Calendar, Forex News @ Forex Factory - very good economic calendar and forum
Forex Street. The Foreign Exchange Market - good info resource
Investopedia.com: Forex Articles and Insight -get your basics up
Trade2Win Boards - goo trading board in general
Foreign exchange market - Wikipedia, the free encyclopedia - worth a read
Bloomberg.com - of course !
almost forgot,you will need also a live news service,very good one to start out is Trade The News - Live Audio Breaking News Analysis and Futures Calls sign up at fxcm.com for a mini account just to get the news plugin wich is provided by Thomson IFR one of the top names for live economic data.Also have in mind that you maybe need a charting software,depends on your broker,more research to do ;
And for last,a book i recommend to anyone who wants to dabbling forex:
Amazon.com: Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading): Books: Kathy Lien
if you need a few pdfs,you know who to pm
last word,be carefully with forex.com,they are a market maker and love to widen spreads,specially in volatile times,do a good research on brokers before you go with one,a good broker is the half way.
good luck on your mission
l
The retail forex markets and the penny stock markets are a ripoff for the uninformed and uneducated.
The best money is in index options. Stock options can be manipulated if their volumes and open interest are thin.
My advice would be for your family member to not consider investing any money without several months of education on the subject. All brokers earn a living by commission and their best clients are those with "extra" money looking to make more. They will trade you into and out of everything under the sun. You might make some money on the trades. They will earn a commission on each trade every time until the money is gone.
The best money is in index options. Stock options can be manipulated if their volumes and open interest are thin.
My advice would be for your family member to not consider investing any money without several months of education on the subject. All brokers earn a living by commission and their best clients are those with "extra" money looking to make more. They will trade you into and out of everything under the sun. You might make some money on the trades. They will earn a commission on each trade every time until the money is gone.
jeez.. so much info and really appreciated. Thank you very much
I dont think he would be able to learn all of this so i guess he is going to do with his $$ what he wants to do.
I told him to just open a business with it.. like i am doing.
This affiliate marketing shit is great, but i got my music, and my cooking.. so in the next few months i am going to go .inc (jeremy helped me a lot with this info on how to do it).. Then im buying a little restaraunt (already have the menu). Im going to let Ami my roommate run it with my boyfriend derek and a few other friends, all while doing aff marketing, etc.
Then from there, gotta buy the house. SO much to do, so little time to do it
I dont think he would be able to learn all of this so i guess he is going to do with his $$ what he wants to do.
I told him to just open a business with it.. like i am doing.
This affiliate marketing shit is great, but i got my music, and my cooking.. so in the next few months i am going to go .inc (jeremy helped me a lot with this info on how to do it).. Then im buying a little restaraunt (already have the menu). Im going to let Ami my roommate run it with my boyfriend derek and a few other friends, all while doing aff marketing, etc.
Then from there, gotta buy the house. SO much to do, so little time to do it
If your relative is serious enough to put in many hours learning forex, i would choose that over penny stocks any day of the week. Due to its huge size, the forex market is the most efficient in the world, and lends itself well to technical analysis techniques - you can go to elitetrader.com or other trading sites, buy a ton of books about the subject, and do some serious studying.
try things out with some practice accounts, buy metastock or neuroshell, or tradestation, work on his strategies, and play around until he feels confident to put in enough money and play for real.
This is not an easy thing to do, and it is a FULL time job - trading is one of the hardest skills to master and if he isn't going to put his ass to work learning it then he might as well go to vegas and bet on black.
If he wants to learn without risking a ton of his cash, he can apply to be a proprietary trader at any number of firms (most deal w/ equities though). I did this for a while, and made some good returns (I put 5k down, spent months learning at a desk, traded 250k, ended up making 40k that year...though I didn't do well enough to keep at it too long)- but I also worked my ass off and viewed it as a job, not a casino.
It is very possible to make large returns as a trader - but not if you aren't willing to put in the work... then you are just flushing money down the drain.
If he's not, he should just build a well diversified and balanced fund - how much $$$$ did he get? After taking into consideration inflation, fees, etc - you should be able to take out 4% a year for life and have the portfolio keep its same relative value over time. For every 1M you have, that's an extra 40k you can take out a year...
try things out with some practice accounts, buy metastock or neuroshell, or tradestation, work on his strategies, and play around until he feels confident to put in enough money and play for real.
This is not an easy thing to do, and it is a FULL time job - trading is one of the hardest skills to master and if he isn't going to put his ass to work learning it then he might as well go to vegas and bet on black.
If he wants to learn without risking a ton of his cash, he can apply to be a proprietary trader at any number of firms (most deal w/ equities though). I did this for a while, and made some good returns (I put 5k down, spent months learning at a desk, traded 250k, ended up making 40k that year...though I didn't do well enough to keep at it too long)- but I also worked my ass off and viewed it as a job, not a casino.
It is very possible to make large returns as a trader - but not if you aren't willing to put in the work... then you are just flushing money down the drain.
If he's not, he should just build a well diversified and balanced fund - how much $$$$ did he get? After taking into consideration inflation, fees, etc - you should be able to take out 4% a year for life and have the portfolio keep its same relative value over time. For every 1M you have, that's an extra 40k you can take out a year...
Lemon,
Forex trading is for very seasoned investors who know what they are doing and make extremely big plays on high leverage. I can't fathom why you would want to anyone, either yourself or your relative, to try and "learn" this as a first method of investing. Out of the 30 posts in this thread so far, only a couple of the guys are being rational. Foreign exchange is not the kind of thing where you read a forum for a couple weeks and then start raking in bucks.
I'm begging you pretty pretty please start with Investopedia.com Tutorials: Building Blocks and the Basics of Investing and learn from there. If you must have the excitement of high volatility, there are plenty of crazy plays you can make in stocks, so don't think its somehow pussy investing. Really, when you sit down and think about the worlds most famous and successful investors, they were all disciplined and in stocks. Warren Buffet, Peter Lynch, Benjamin Graham, all stocks.
I know everyone wants to have some end-all get rich quick scheme but I'm sure half the people in this thread have never invested in their lives. Forex is just their plan to turn their first $1mm into $100mm or something like that. Please be responsible and put this money in a high yield savings account until you are comfortable enough with index funds and mutual funds.
Right now ING Direct is offering 4.50% APY and HSBC Direct is offering 5.05% APY. Insanely good for liquid accounts that are FDIC Insured.
Savings Account Information Page
HSBC Direct Online Savings Account
Forex trading is for very seasoned investors who know what they are doing and make extremely big plays on high leverage. I can't fathom why you would want to anyone, either yourself or your relative, to try and "learn" this as a first method of investing. Out of the 30 posts in this thread so far, only a couple of the guys are being rational. Foreign exchange is not the kind of thing where you read a forum for a couple weeks and then start raking in bucks.
I'm begging you pretty pretty please start with Investopedia.com Tutorials: Building Blocks and the Basics of Investing and learn from there. If you must have the excitement of high volatility, there are plenty of crazy plays you can make in stocks, so don't think its somehow pussy investing. Really, when you sit down and think about the worlds most famous and successful investors, they were all disciplined and in stocks. Warren Buffet, Peter Lynch, Benjamin Graham, all stocks.
I know everyone wants to have some end-all get rich quick scheme but I'm sure half the people in this thread have never invested in their lives. Forex is just their plan to turn their first $1mm into $100mm or something like that. Please be responsible and put this money in a high yield savings account until you are comfortable enough with index funds and mutual funds.
Right now ING Direct is offering 4.50% APY and HSBC Direct is offering 5.05% APY. Insanely good for liquid accounts that are FDIC Insured.
Savings Account Information Page
HSBC Direct Online Savings Account
i don't know how much $ your friend has, but I park my cash in a Vanguard Admiral Treasury Money Market. 5% yield or so, no state tax since it's treasuries and 100% liquid. There is a 100K min. for this one, but there are some other great Vanguard products out there with 3k and 10k minimums, with slightly higher fees. Good place to leave some $ when you don't know shit.
Exactly, there maybe more money in forex or penny stocks, but swimming with the sharks isn't really a good idea if you don't know very well what you are doing.
Those who earn huge money are so successful because there is a constant flow of newbies like your friend who are looking for a quick buck and end up with all money lost.
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