January 13, 2008

Forex Trading Is for the Serious Only

In the marketplace for foreign exchange, there are players such as banks that need to participate, as they have to clear international deals and international currency transactions. This need to square off within one day is especially felt as there is a serious cost of carry and that margins need to be marked to the market at the end of each trading day. And I use that term loosely, as the sun never sets on the money market as the earth rotates, there is someplace somewhere on the globe that is just encountering sunrise at any given point of time.

This piece of wishful thinking has made many a trader's life unhappy, but at the same time, I know of dozens of rather disciplined trade-professionals who have built themselves a neat little fortune trading in these Dollars, and Pounds, and Yens, and Euros, and Rupees, and Cruzeros, and god alone knows what other currency. Well, the rise is going to be so little and over such a long period of time, that I will not be able to make any real trading opportunity based on my forecast. Read More Here

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