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Hey all,

I have recently been taking a look at currency trading all while playing around with it a bit. It looks very fascinating, and the potential for return is huge (and yes—the potential for loss is equally matched). I do not plan on jumping into a real account, and even still will be a micro account to start off with, until I double what I was given for my practice account (50k). Once I hit the 100k mark, I will move on.

This is something I plan on taking very seriously, and also taking my time learning. Diving head first into this is a sure way to fail, and I can see that.

Does anyone else currency trade as a hobby or side job? What resources did you use to master (or attempting to master 😊 ) the game?

Loved to hear anyone elses situation in this aspect.

Do you have any experience doing arbitrage for an iBank or hedge fund?  If not, I would take your 50K and invest it in bonds.  Though, given the market, you could probably buy the entire country of Iceland for 50K.

Loans in different currencies, especially Yen, were very popular on Iceland during the glory days of bank expansion. Suddenly people woke up and found that their new SUV had tripled in price. Cars are now being shipped out of the country to find buyers. Most with currency trading as a hobby or side job, using real money, are likely working hard to salvage the pieces of their life these days.

No, I do not have experience in that, but that is part of the learning process. The currency trading I am talking about is simply the selling (or buying) of a base currency for that of the exchange rate of another currency. Then hopefully if I bought, the rate is higher when I sell, or if I sold, the rate is lower when I go to buy back.

The mechanics are simple, the market is not 😊 Their are huge opportunities available in this area. However, it is not to be taken lightly either.

Though, given the market, you could probably buy the entire country of Iceland for 50K.

Naw, man. Iceland don’t pull no cheap tricks. Fo’ that you godda look behind the grocery store, man.

You honestly think you can read and time the currency markets better than the players with billions of dollars on the table and a pocket full of manipulating analysts?  Would you sit down at a pro poker tournament after reading the Dummies Guide to Poker feeling lucky? Sure, you could walk away with a win, but the odds are you’ll be lucky to keep your underpants. There are huge opportunities all along the Vegas strip, too. That does not mean the odds are in your favor. Apart from the potential $$$ loss, the bigger downside, imo, is the hunchbacked and shrunken figures you see stuck in front of slot machines while life is passing by outside.

Fella,

I do not need to perform better then them; I am not trying to generate a multi-million dollar empire from pocket change by currency trading. It is more then just a crap shoot though. If that is how one is playing the markets, then that person would be better off throwing the cash into a bonfire. Being informed, studying charts is a good place to start. It is also a skill that takes time to build. There is a reason for the practice account. If I can never double my money in that, obviously I will not be setting up a real account. If I do double my money in that though, it is aparent that I am doing something right…

Like I said, the odds are a game that I do not plan to play. I look, examine, analyze, and determine a sure thing. I expect to loose money; no doubt. It would be ignorant to think otherwise. Not every deal goes that way. Informed decisions, mixed with strategies and indicators can help reduce risk (NOTE: I said reduce, not eliminate). I am terrible at poker by the way, and I have no intention of playing it that way.

Also, I am very well aware of the fact dealing with a practice account vs live account as well.

That is what investing is all about though. You have to be willing to take chances, and losses for the bigger picture.

“Play like you practice, Practice like you play”

I currency trade with paypal, haha. I take what I get paid for my work (freelancing) and convert it to CAD. It’s very nice right now with the low Canadian dollar!

Based on your comments, I don’t think you should begin actively investing your money any time soon.  However, you do seem passionate, and if you are interested in this area, I suggest you either get a degree in economics/finance/mathematics, or try to get a job at an iBank.  That being said, in this climate, if you aren’t overly qualified or do not have any prior experience, landing a job is probably out of the question.

You need to understand, the concept of the successful day trader is a fantasy propped up by companies like E*TRADE that profit through your activity.  The fact is, if you don’t have the experience, knowledge, and CONNECTIONS, you will probably not do so well.  Again, if you have 50K to invest, I would put it in bonds and maybe place some in the hands of an experienced money manager that you trust.  It’s November 2008, jumping into currency arbitrage without any experience is suicide.

Also, just because you double the value of your ‘practice’ account does not mean you did something right.  It just means that you doubled the value of that account.  Be careful not to overlook luck.  The market is dynamic and a strategy that worked yesterday may fail miserably today.  If you are not properly hedged you will get f*cked.

I “echo” that. I sold all my stocks late last year. They would have been worth nearly half the amount today and the index has droppped by roughly the same. Last year a couple of ETFs based upon either bear or bull on the index emerged on the stock exchange here. They got very popular with both new and old day traders who appreciated the ultimate simplicty: up or down? (On the economic news here, they actually have a segment where a guy who works full time in a coffee shop gives advice on day trading.)  It was, in my view, setting up the last sucker’s rally for a market already in deep trouble. Insider investors picked up some of these pennies before they went dormant. The absence of buyers has accelerated the fall since. A while back, there was a moment with negative interest rates on US Treasury bonds. Investors were not even looking to make money, they would actually pay money to keep it safe. We can get a 7-8% return on a bank account here now (balance covered by the government in case of bank failure). It’s November 2008, and the choice is very obvious.

Loans in different currencies, especially Yen, were very popular on Iceland during the glory days of bank expansion. Suddenly people woke up and found that their new SUV had tripled in price. Cars are now being shipped out of the country to find buyers. Most with currency trading as a hobby or side job, using real money, are likely working hard to salvage the pieces of their life these days.

Yes they were pretty favored here in Iceland @ the time of prosperity.
Now things are not looking so hot, though for the common man that did not go heavy in debt, things are pretty much the same.
There is talk about taking up the $$$ here in Iceland and handing the European countries the finger so to speak. We of course feel for the people in Britain, Netherlands, Germany and elsewhere that might lose money on accounts owned by the Icelandic banks but let’s also not forget what country decided to use anti-terrorism laws against a friendly ally. One of Gordon Browns biggest mistake. Though I put partial blame on the authorities here in Iceland for not being clear about the issue from the start.

First poster but avid reader of these forums in search of knowledge about CI.

Halldór Örn Kristjánsson
Iceland