Hi!
With this article, I will start a series of posts about forex trading. My thoughts, my experiences, my results, ups and downs and investment opportunities.
I will start with my view on forex market, especially taking into account the fact that I am Zeitgeist movement and resource based economics advocate. So how do the two coincide you ask: forex (the evil epitome of market monetary economy) and sustainable resource based economy. When I watched an interview with Peter Joseph (Zeitgeist movement founder), I was very surprised to learn that he is former trader. Yes, he was trading the stock market. He said however that he quit trading because he despises the market economy and the main reason behind it and what many people mistakenly think is that they all believe that if you win it means that some poor souls loose. See that’s where they are all wrong, because it is not all linear and direct like that. There are several big participants on the market: Central Banks, Humongous and not so big corporations, Banks who operate from their own accounts as well as executing orders for corporations and Central Banks. Private traders’ and investors’ share of the market is so tiny that it doesn’t even worth mentioning. A major buyer or seller of the last resort is Central Bank. At times Central Banks don’t even care what is a currency rate because they perform interventions for many different reasons besides making profit out of it. We all know that they cannot care less because they print the money. Corporations who have export/import contracts do not really care what the rate is at particular moment in time because they either hedge their future contracts by buying selling futures, forwards, swaps and options or buy or sell at any current rate because they do it to pay or receive payment in foreign currency and that’s it. So What all of the above means? It means that the forex market is like an ocean and it is naïve to believe that your winning or losing position somehow corresponds to someone else’s. Market chews you and spits you out. That’s why I have no reason to believe that making money (if possible) by trading is somehow goes against my certain believes. It’s just the means of survival for me. I personally wait for the day Federal Reserve collapses because the planet is better off without money. No questions about it. But before it happens you just play it and if you win it means that you managed to squeeze something from this ginormous flow of corporate banking stream of money. That’s how I see it.
In future articles I will be more specific about trading and maybe go into my personal experience in trading and fund management.