Mary asks…
Is currency trading legal?
A guy who used to work with me quit his job & is living comfortably from making his $$$ through currency trading . He does next to nothing & claims to make good $$$. Could this be true? Is it even legal or he is just yanking my chain?
admin answers:
Its completely legal, but incredibly risky as well. Currency can be bought or sold just like stocks and bonds. For instance, a US dollar may buy you .5 GB Pounds today, but .4 tomorrow. If you use US currency to buy foreign currency when its moving in the right direction, and then sell while the swing is in your favor, this can absolutely be a profitable endeavor.
However, its extremely risky even for someone who knows what they’re doing, so I would absolutely not encourage this strategy to day-traders.
Michael asks…
How do i start investing in Foreign Currency.?
I was speaking to an old co-worker and he was telling me he traded currency at night after his day job ended. (That is when the foriegn makets are open) Would like to hear from people doing this currently and their opinon/advice on this. How much money do i need to start this, and possible websites to check out?….Thanks!
admin answers:
Philly,
Forex market or Foreign Currency Exchange market is one of the biggest trading market in the world with over USD 1.3 Trillion traded in a day. It is drawing attention ever since it is open to Online trading. Forex trading can be very profitable if you take your time to do a proper research, understanding various options and choose a system that works for you. The most used Forex trading system may not be the most suitable for your needs.
There are many different kinds of Forex Trading Systems and you need to know a few facts as mentioned below, before choosing and funding a system.
1. Testimonials: Is there anyone out there who is trying to sell a system and show you testimonials from the people who actually didn’t like the system? Highly unlikely. You should do proper research before indulging into a system that is completely new to you.
2. Profit: Do you want to work with a Forex Trading system that breaks even? Why? If you keep the money in your home, you will still break even, then why take all the hassles of setting up an Forex Trading account and do all the work. Really speaking, you should always do some research on how profitable a particular trading system is?
3. Drawdown: The maximum drawdown of trading system is defined as the greatest peak-to-valley drawdown in a trading system’s equity. Maximum drawdown gives us a measure of the survivability of the trading system.
4. Time to profit: The actual time it takes to achieve the results with a particular trading system. You should plan to have a long and profitable relationship with your trading system.
Try to use a trading system that let you open a Demo account so that you can practice and learn about Forex Trading without risking any money.
I have tried many of these systems in my quest to simplify my trading experience. I personally have found FreedomRocks to be the system that has worked for me. I have found no bad information on this system from anybody that has actually used it. I have found many skeptics and bashers but nothing from those that have actually tried at least the free trial they offer.
Below are a couple of links I have found in my travels around the web:
http://www.yourforexinvestor.com
http://www.babypips.com
Now as far as how much money you would need to gat started I have helped people get started with amounts ranging from $500 up to well over six figures. If you would like I could send you a spreadsheet of how to get started right with just $500 invested on a monthly bugeted basis. The spreadsheet will show you how that investment could easily grow to well over $240,000 within 60 months! Feel free to e-mail me and I will get that right over to you.
Bjwells@yourforexinvestor.com
To Your Success,
Brandon Wells
877-773-5345
Donald asks…
Will the Treasury Department classify China as a currency manipulator in its April 15 report?
The severe trade imbalance America has with China has cost us an estimated 2.4 million jobs. Currency manipulation by the Chinese government has artificially made its goods cheaper and ours pricier. This month, we have the chance to do something about it.
http://action.ourfuture.org/p/dia/action/public/?action_KEY=82
admin answers:
Unfortunately, the government has now postponed the report that may have labeld China as a currency manipulator. I know many people simply argue against this problem by stating that our own government manipulates the dollar. It is true, almost every country in the world regulates its currency.
The PROBLEM isnt so much that china manipulates its currency, the problem is that it has a fixed PEG to the US dollar. This peg is designed to specifically target the US economy. Countries normally control the supply of their currency and their intrest rates to cool inflation or stimulate growth. China doesnt do that, all they do is peg the dollar. They dont need to stop their manipulating their currency, they need to remove the peg. I like Obama so far, but his administration needs to grow a pair and put the pressure on China.
Daniel asks…
What caused the reduction of manufacturing jobs here in the U.S. over the years?
What really caused the loss of manufacturing jobs over the years? Is it due to the fact that countries such as china have under-valued their currency making it cheaper for U.S. firms to move their businesses abroad to create cheaper products? Or is it more due to international specialization and trade, where many manufacturing jobs were lost as a result of specialization by different countries such as China and Japan therefore making these industries become opportunity costs to the U.S.? Or is it a little bit of both?
admin answers:
Ronald made some very good points. I work in an American company in the office in China. The ONLY reason they are here is due to the high cost of remaining in the US. Cost of labor, insurance but the biggest reason is the looooooooong list of taxes imposed by government regulations.
Cut the corporate taxes by 15% and watch how many come running back home. Many job will come home.
For us, taxes alone increased the price we must sell for (if producing in the USA) by 200%. At that cost, we would not remain in business long.
Lower government spending, and the need for corporate bailout (corporate taxes paying the bulk of the spending)
David asks…
I’m going to stay in london in march for one month: Where can i find a temporary job?
I would like to find a job, especially concerning my favourite field: trading stocks and currency. Do you know any website dedicated to temporary jobs in london? (i hope to work for some hedge found)
Thanks for the help
admin answers:
It depends on what kind of experience you have in the field but generally I doubt you could get anything just for a month. If you are a student or recent graduate you can look at internship webpages but most serious companies want someone who will commit for 3 months at least.
Generally you would need at least a couple of weeks to get a job -interviews, call backs etc- and then at least 1 week to adapt to the new environment so that leaves you 1 week of doing anything useful for the company.
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