posted
The commodities market (i.e.; gold, silver, etc.) has always been a good barometer of Wall St. As a general rule of thumb, when commodities are bullish stocks are usually bearish and visa versa. It's no secret that stocks have been, at best, extrememly volatile all year. Some might say it's been a bear market for the small investor. "Look at the DOW", some will say. While the DOW has set new records, it's been the large institutions and professional investors that are primarily responsible for same. Not the little guys.
It's also noteworthy to mention that gold and silver have both found new support levels for the long term - not just a breif hike. For decades both languished at respective levels. Gold around $350 an ounce and silver around $7.00 with an occasional spike that lasted a month or so. This year both have doubled in price and stayed there. At the same time most stocks have been trading flat or fallen in value across the board. Especially during the massive May selloff.
The traditional x-mas gifts given to us by the MM's aren't in the offerings this year. Instead, they are pulling no stops at trying to part you with your money at a feverish pace. The dollar has reached close to an all time low on the FOREX, consumer confidence is waning, and the national debt has never been greater. China and the Saudis have been supporting our debt through treasury notes until lately when they stopped buying up the same. And OPEC is considering trading in Euros. A move that would sink the dollar like a stone in quicksand.
There's a reason why gold & silver are hot. They've always been a staple in bad economic times. During the great depression my grandmother bought groceries with silver coins as cash was worthless at the time. Our current debt levels cannot be sustained indefinitely. At some point the bubble is going to burst. And when it does the bottom is going to drop out. I've heard some predicting a depression before G. Dubya leaves office so maybe it's a good time to diversify into precious metals. Keep your eyes open and your finger in the wind. You don't need a weather vane to know which way the wind blows.
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to tell you the truth... FOREX is better then both the stock and commodities markets... for one it is a 24 hour a day market so you can trade in it whenever you feel like it and have the time.. you can also go short on FOREX with no restrictions unlike the stock market.. you can open a Play money account (think papertrading in real time)... you can open a mini account to try it out... only about 7 major currencies to keep track of as opposed to 9,000 stocks in 5 different exchanges.. and on and on... read the site below and click on Quickstart:
posted
I've been giving serious thought to the FOREX for many of the reasons you mention. So far I've been lucky in the market with LFZA and a few others. However, it's no big secret that the market is basically flat or bearish despite all the hype. Do you have to deal with MM's on FOREX or can you exchange direct w/o the middleman manipulator? Where/how do you open an account?
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the babypips site (www.babypips.com) i referenced in my previous post will answer all your questions but start with the Quickstart Guide... also they recommend like 4 or 5 brokers that are very reputable... If you want a book recommendation after you read the basics on the babypips site I highly recommend:
Beat the Odds in Forex Trading (How to Identify & Profit from High-Percentage Market Patterns) by Igor Toshchakov (L.A. Igrok)
-------------------- Let the world change you... And you can change the world.
posted
Also the leverage...You can 100:1 and sometimes 250:1
And with stocks on Margin, you need a least 50% of the total amount you want to buy.
With the forex you can buy $100,000 with only 1,000 dollars. If the value goes up 1% you double you money....Of course if the value goes down 1% you'd loose your whole investment. But their trading platforms are awesome, and you can have tight stop losses.
But it's easy once you know what your doing
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if your bankroll is only $1,000.. it wouldn't be wise to put it all in one currency pair... FOREX is like the stock market.. don't put all your eggs in one basket...
-------------------- Let the world change you... And you can change the world.
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