Good read. It’s a long one, so be prepared.
I know every name mentioned here. Being a currency trader, the realities (not most peoples distorted perceptions) of monetary operations and the global system are of highest importance. Some dismiss these people as quacks, however all of them predicted problems with the euro. One man in particular, predicted it before the Euro was even implemented. Of these economist I follow Mosler more than the others. He’s a fact’s guy with ties to Wall St. (Having worked Wall St. most of his life) and the Federal Reserve. If you’re willing to set your politics and/or current beliefs aside, Moslers teachings/understanding of the US/Global monnetary system is a breath of fresh air, minus the politics that usually comes with such discussions.
Why You Should Abandon Stocks For Forex
1. The stock market is slow and boring.
Substantial price movements that take days or weeks in the stock market can happen in a matter of hours, even minutes in some cases, in Forex. Do I trade stocks? Sure, but it sure as fuck is the most god awfully slowest form of trading I’ve ever experienced. If I put all my screen time into stocks i’d fall asleep at my desk every day.
2. It’s fun to make fun of foreign officials and their funny accents.
Let’s face it. Anyone that isn’t American talks funny and can’t be taken seriously. OK, i’m just kidding, but it really is fun to make fun of them.
When was the last time you had your entire order filled in under one second? Probably never. So long as you’re not moving multi billion dollar lots, odds are you’ll get filled instantly on both the buy and sell side.
4. Less Limitations
With my arch nemesis Dodd-Frank in place, it’s not quite as free as it used to be. However, it’s still less restrictive than the requirements for stock trading. If Romney should repeal anything, it should be Dodd-Frank. That’s how much I hate the whole Dodd-Frank thing. Thanks to Dodd-Frank you can no longer open overseas accounts. Now you actually have to pack up and move to some hut on one of the various South Pacific islands if you want to avoid Uncle Sam.
5. 24 Hour Market
While brokers tout it as “trade anytime you want”, it’s not. Well, it is, but it’s pointless to short term trade the “off hours” because nobody else is and price stays flat for the most part. The good part is watching the pre-market hours and having the ability to make and act on a decision before everybody else decides to do the same.
Why You Won’t Trade Forex
1. You’ll get murdered
Trust me, you will. I was murdered once or twice. The all mighty Xenu, however, granted me new life. It’s taken me 8 years to conjure up the ability to pick future swing high/low points with sniper like accuracy (I’m usually within 10-15 pips). I use nothing but a price chart. Indicators are useless in Forex, but you’ll find all sorts of people use them. All they’re doing is slowing down your decision making process while guys like me made their move long before you. If you’re using indicators, you’re paying me, literally.
Speaking of getting murdered, and this is totally unrelated, I thought I was about to get 187′d in Detroit a few weeks ago. Some extremely intoxicated homeless man walked up to me in the middle of Greek Town and fucking hugged me. Why? I don’t know, but my first thought was “Is this guy about to shove a knife in me?” and I promptly pushed him off of me. Note to self. Turn in your god damn concealed pistol license paperwork!
It’s more volatile than walking into a room full of gunpowder on a dry winter day with static cling all over your nicest suit. For most people the kind of volatility in Forex is enough to send them running away screaming. If you can embrace it with open arms and have the ability to remain cooler than an iceberg in the Arctic, it might be for you.
3. It will drive you insane
Let the volatility get to you and you’ll wind up an extremely intoxicated homeless man hugging random people on the street. It’s not uncommon to have a successful trade quickly turn against you and stop you out. Stay on those stop losses and move them to break even! It’s disappointing, sometimes down right depressing to watch your profits dry up all together. Breaking even is better than losing, so in a way you’re still winning if you break even.
Buy this and memorize it. Soft Currency Economics 2
Finally… Some common sense.
No, The United States Will Not Go Into A Debt Crisis, Not Now, Not Ever
This buy is a god damn’d roll of the dice, but i’m taking it anyway at only 20% of the usual position size. I’ll gamble, but conservatively. There’s a few things going for the long side here. Mostly, the sell orders above have been filled and there’s an accumulating stack of buyers around 0.8100-ish. How do I know this? Experience. I’ve seen order flow like this before and 9 times out of 10 the short sellers get their ass handed to them on a silver platter with a side of go fuck yourself.
Contrary to QE mythology the USD will grow huge testicles in the future, which is why I consider this a gamble. Laugh it up now, QE – stocks will go up for eternity, heathens. Your day is coming. There’s a problem with sparking an economy mostly dependent on spending. Shit is too expensive and nobody wants to spend. How do you solve that problem? Jack the value of your currency up so shit becomes less expensive. Mostly, Oil and other commodities have to come down for a real recovery to happen in the good ol’ U.S. of A.
Good day, gentlemen.
I posted this in a private forum I belong to as an example of playing the supply and demand game. This is literally a picture perfect example showing the process behind the method. There are many like this, the EURUSD having the most in the last year or two. Supply and demand can be eerily accurate, as seen here. So accurate, when you understand it, it gives you total confidence in your trading decisions. How many can say that?