Hello, I've been lurking on these forums
for a while, trying to learn more about yachting and in particular living aboard
a boat while traveling the world.
I just created this account in hopes of setting the record
straight when it comes to currency trading, or any speculative activity, before an unsuspecting person loses their entire life savings. I don't want to sound like a cynic, but trading anything
is speculating, or better put, gambling. Most would laugh at others who go to a casino thinking they can make a quick buck and leave; yet this is precisely what is being discussed here, only worse.
There are only two ways to win this game
1) Having inside information
2) Being lucky
I think the first is pretty self explanatory. Unless you get information which nobody else has access to or you get it before it's public knowledge you're at a disadvantage. The second is also self explanatory. If you're feeling lucky, go buy a lottery ticket or go to the casino and put it all on your favorite color.
Speculating in currencies, equities, commodities, etc. is a relatively complicated endeavor and knowing more doesn't improve your odds of 'winning.' No matter what you do, you're always gambling on interest rates, inflation, weather
conditions, geopolitics, etc. However one thing all of those have in common is costs. The people making the money are the people that enable your trading, who sell you the software
, who create the market systems. Don't even fool yourself in thinking you can win in a game where the big boys play
. Speculating is no different than the Gold Rush, where the only winners were the people selling shovels (look up Samuel Brannan). Read this very eye opening piece by a Nobel Prize winner in Economics and a professor of Economics at Stamford, William F. Sharpe: Arithmetic of Active Management
Now, I saw a few people write that they want to take classes on how to trade. Again, this is no different than buying
any 'get rich quick' infomercial video. Classes about trading can actually be had for free by someone pedaling their products in helping you find your riches. If you want to take classes, take classes about investing, not trading. The basics are usually covered in macro and micro Economics classes available to most High School
and College students. Better yet, read a few books
(I can recommend many). Just think to yourself, if there were a system out there that constantly had a positive return that beat the market, the person who created such a system would be a fool to sell it.
There is a big distinction between investing in something (owning something for the long-term) and trading things hoping for short-term gain. The only way to make a quick buck is to invent something which doesn't exist, improve on something before someone else does, win the lottery or do something illegal. If you need cash flow while you're away sailing the world then consider buying
Just remember, you can make money when the market goes up, when it goes down, when it stays flat only if you know what it'll do in advance (which nobody has been able to do for an extended period of time, I repeat, NOBODY
). There are no rewards without risks and taking risks doesn't guarantee rewards.
I'm sorry that my first post had to be so sobering, but I felt the others, who advised against this, were being too conciliatory. I hope I saved someone some hard-earned money, even if it makes me look like a jerk.