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Wednesday, March 23, 2011

Looking into Trading


So I woke up early today and saw that I had emailed myself some great websites on trading in the Forex Market. So I did what any logical person would do, I started a virtual trading account on FXtrade and started trading! I quickly realized that unless you're day trading, which is when you borrow money to trade extra amounts to make more money when the different currencies go up against whatever currency you bought against, it can be quite boring. The reason is because if you're only going to be trading your own money then you're going to have to buy in wait for the currency you bought to go up. I invested into XAU/USD because it was the only one that had a long term trend of going consistently up. Let me just tell you that I'm a complete rookie at this to the point where I had to look up what the heck XAU/USD was to begin with. It turned out to be GOLD!!!
This made a lot of since to me since the american dollar has always gone down compared to gold. What was amazing to me was how fast it was going up. It was going up faster than the rate of inflation which means that I was making money just by buying and holding on to gold. I essentially made money without doing anything. No labor, no service, just a simple switch of currencies and boom, I made money.
Which brings me to my next point, I think it's amazing to make money in the market, whether it's in the stock market, Forex market or whatever market. You might here a lot of people telling you to save, save, save but in reality what you should be doing is invest, invest, invest! You might be thinking that it can't be that simple. and it isn't, there is a lot of studying and learning to become a good investor but the pay off can be tremendous, that much I know. I also know that you can lose your butt if you take too many risks.
So before I go into this crazy, super long tangent about different strategies on trading, which I have been reading for the past two day and have read a few books on in the past, I want to make it clear that there is not way to make millions on any market in any reasonable amount of time unless you have several hundred  thousand to start. On the other hand you can make millions over time, careful planning and careful investing.
I'm a sucker for trying to make money quick but it truly does take money to make money in the trading industry. That being said, the only way to make any kind of real money in today's world is to either get lucky with a job and hope to not get fired, get really lucky and win some kind of gambling winnings, lotto, etc. or start your own business and make it succeed. There's a lot of free tools out there now that you can use for your business too.
In my honest opinion, I believe that even if you work for a company or win the Lotto you should still start your own little project. It will at least give you something to fall back on.

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