Enigma0
New member
Forex, as said, is a kind of gambling. So long as you have the discipline to only bet exactly what you can afford to lose, it can be as fun as the blackjack tables.
However, only buy calls and puts on currencies and commodities. Never ever 'write' a contract, for then your risk is unlimited. (So is the upside, but a single loss can see you living in a cardboard box - and your boat will be gone too. The creditors get everything; no protected items, unlike a bankruptcy.)
You only buy short-term out-of-the-money calls and puts, because those are cheaper contracts that usually expire with you 'only' losing what you put in, but when they do pay, they can pay big. I recommend only playing those currencies and commodities with which you're somehow familiar. Grain farmers now often do this, because if they plant wheat, then they may buy puts to balance their effective call.
An American guessing how a Malaysian Ringgit may move vis-a-vis the Euro is a mug's game. Although George Soros once made out like a bandit by shorting that currency and the Thai Baht.
However, only buy calls and puts on currencies and commodities. Never ever 'write' a contract, for then your risk is unlimited. (So is the upside, but a single loss can see you living in a cardboard box - and your boat will be gone too. The creditors get everything; no protected items, unlike a bankruptcy.)
You only buy short-term out-of-the-money calls and puts, because those are cheaper contracts that usually expire with you 'only' losing what you put in, but when they do pay, they can pay big. I recommend only playing those currencies and commodities with which you're somehow familiar. Grain farmers now often do this, because if they plant wheat, then they may buy puts to balance their effective call.
An American guessing how a Malaysian Ringgit may move vis-a-vis the Euro is a mug's game. Although George Soros once made out like a bandit by shorting that currency and the Thai Baht.
