While developing my GDI business, I am doing some investing in an area previously untapped by the conscious public. It’s called Forex…and it’s very cool.
The Forex market, the buying and selling of foreign currencies against one another, is a $ 4,000,000,000,000 (trillion) daily market,operating 5.5 days per week, 24 hours per day. It’s much more,however, than just buying and selling. It reflects the mood and will of the world, as reflected by the rates of exchange between the dozens of currencies making up the market. It reflects the global conversation, and anyone can be part of it now, starting with as little as $ 1.00.
Fortunes can be made in this market, albeit fortunes also can and have been lost. I’ve been trading for a number of years now. I’ve had good days and bad, but it is soooooo addictive and sexy. There’s nothing cooler than pulling up your trading platform online and seeing the blinking lights of the currencies, as they reflect the shifting of global awareness. Billions and billions of dollars moving around the world in split seconds. There’s something fascinating about buying the Australian dollar against the US dollar at 3AM in anticipating a rate decision by the Reserve Bank of Australia. Or buying the Singapore dollar against the euro as the as the EU situation deteriorates. You’re right in the middle of EVERYTHING. You’re part of the world’s evaluation of itself, its risks and interpretation of what’s safe and what’s not. It’s heady stuff.
The profit potential is incredible for this reason: Let’s say you trade the US dollar against the Swiss franc.
The dollar deteriorates one percent against the franc overnight. Okay, big deal, you might think. Here’s where it gets good. If I invest, let’s say, $ 1000, a one-percent gain is only ten dollars. When trading forex, however, you can access the all-important power in life that is LEVERAGE. In this case, you can leverage your trade by as much as 50:1. Sooooo…. one percent lift is actually 50 percent! Fifty percent of $ 1,000 is $ 500,overnight, over lunch, or in just a couple minutes, in some cases. I was fortunate to get in on a great EUR/CAD trade earlier this month(selling the euro while buying the Canadian dollar) that appreciated eight percent. Multiply by 50. Do the math.
It should also be noted that the other side of the coin is that one can lose this amount too with leverage. So you increase your probabilities of success by knowing the market and how to minimize risk.
Only risk capital should be used in trading forex anyway, any but I feel it should be part of anyone’s entrepreneurial activities (I treat it like a business). There are no blogs to write. No ads to place. No bothering friends with an MLM opp. No frustrating conversations with people who just don’t “get it.”
It’s just you………….and the pulse of the world.
I’ll be writing more on this in subsequent blogs. It’s a terrific complement to any other business opportunities one considers.