Currency Markets Are Easy To Trade

I get the same response from people almost every single time I mention that I trade currency for a living. The vast majority have absolutely no idea what I’m talking about (well…certainly here in Mexico) or perhaps have “heard of such a thing”… but never imagined it was actually possible.

Trading currency is not unlike trading any other asset class – you want to buy low and sell high. In this case instead of buying gold with your money, or buying  stocks with your money – you are buying or selling “money” with your money.

Online I come across many “arm-chair investor types” who suggest that trading currency is a fool’s game, and that I will soon disappear into the sunset “broke and shattered” – the victim of over leveraged trading… and a blown up  account.

Have you taken a shot at trading gold / silver or equities in general lately? Oh ya? – Tell me…how’s that going for you hotshot? Making lots of money then are you? – Ridiculous.

Trading currency through November and December have been my most profitable months all year.

A quick peak at a chart I’ve recently been looking at  – while teaching my girlfriend how to trade. Can you spot the trend?

Trading Currency

Trading Currency

Currencies generally trade in familiar and  recognizable “trade patterns” and are well-known for long-term trend trading behavior. Granted, the money management side of it can be a challenge when first getting started – but anyone suggesting that “it´s way to risky” or “you’re gonna get killed” only needs to have a good look at the example above to clearly see this isn’t the case.

These days…currency markets are much easier to trade.

My girlfriend is doing quite well.

16 Responses

  1. Careydina December 18, 2012 / 8:09 pm

    Hi,

    Do you trade other currency pair like gbp/usd or eur/usd? I personally trade more in gbp/usd since 6 months ago, I gained but also loss. Gain loss gain loss… very tired on it. May have some opinion from you?

    • Forex Kong December 18, 2012 / 8:15 pm

      I do trade the GBP and EUR but not very often …especially against the USD – only in that…..the pairs don’t offer me the same “fundamental trade” as trading a known “safe haven” against a known “risk related currency….such as NZD/JPY for example.

      The EUR and GBP are difficult to “read” at times…as their “function” globally is not as cut and dry, as well considering they are th emost commonly traded pairs…..I often see suspicious activity (deep spikes/ stop hunts?) as virtually every “new comer” to forex has a tight stop and is trading in EUR /USD.

      I generally avoid that situation.

      • Careydina December 18, 2012 / 8:39 pm

        Hi kong,
        Which mean you are only trading NZD/USD? So gbp/usd you would not recommend me to trade if I want to trade in forex for long term?

        • Forex Kong December 18, 2012 / 8:56 pm

          I like to trade the commodity currencies against the safe haven currencies, but it is really up to you.

          I find that both the GBP and EUR are difficult currencies to “project” or “forsee” their long term values or trend – that’s all. I can´t recommend “which” currencies to trade but can really only tell / show what “I” am doing.

          I am sure many people have success trading GBP/USD and EUR/USD – but they are not my most profitable pairs.

  2. Careydina December 18, 2012 / 9:53 pm

    I see. So now you are trading in XAUUSD? I want to do forex trading in full time but I fund its not very stable perhaps I should have to learn to be not that greedy. Haha
    Well its really interesting to see that you have 95% profit. That’s really impressive to me 🙂

    • Forex Kong December 19, 2012 / 7:13 am

      Careydina.

      Actually as of last night I’m now at 101% for the year – and very pleased. I am a fundamental trader at the basic level ( always looking at macro trends, longer times frames, and also current news / monetary policy) but also have an extremely refined and accurate short term technical trigger which I am currently reading for commercial sale/use along with a paid service and suppport of the technology. Please stick around and watch for that.

      I have been trading short “JPY” for several weeks now with large gains, as well as of recently short the dollar against well – almost everything.

      • Careydina December 19, 2012 / 10:29 am

        Kong,

        I totally have no idea on community trade. I always check on the forex crunch website to see what’s the latest upcoming events for the week but sometime seem not that accurate and get confused too. How do you know all the fundamental news from? I wish to learn more but peoples who are around me all not experience in forex.

        • Forex Kong December 19, 2012 / 10:39 am

          It takes a lot of time and effort to get familiar with each individual countries monetary stance – and projected future monetary movements.Forex crunch offers times and dates – but not really enough fundamental background in order to fully understand a given central banks intensions etc..

          I would suggest that you look at forexfactory.com – as well stick around here at Forex Kong and watch how a given trade lines up with fundamental news/policy shifts.

      • Careydina December 19, 2012 / 10:37 am

        Btw, can I have your email, I would like to ask for advise from you more. If you don’t mind.

      • Careydina December 19, 2012 / 11:42 am

        Ok. You do give advise and tips here? How do you look at USD now? Cos risk on tradeso us bbeen weakened for days, will it rebound to 200 pips?

        • Forex Kong December 19, 2012 / 1:41 pm

          In this morning post I suggested that the USD will likely rebound – after such a quick fall over the past few days.

          The “number of pips” obviously depends against “which currencies”. For example today the USD has gained some 60 pips on the EUR but has barely moved 20 pips against the CAD.

          Without some idea of what these currencies represent – with respect to each individual countries relationship and policies, I would likly suggest you step back and do some research and reading before risking alot of money in the currency markets.

          My longer term view of USD is down – but short term – I do expect a small bounce.

      • Careydina December 19, 2012 / 9:02 pm

        Kong,

        Is community pair easier to trade than gbp/usd? I will check more in forex factory. Thanks for your advise!

  3. eddie torrez December 18, 2012 / 9:57 pm

    Kong if you want a good laugh check out this rating.
    cxoadvisory.com/14562/individual-gurus/gary-savage-tracking-smart-money/
    42% accuracy

    • Forex Kong December 19, 2012 / 7:19 am

      Its really too bad, and I do feel for the followers there. As well I find it difficult to imagine how one could expect much – when only considering trading like….2 or 3 stocks in one tiny sector, and only in one direction. Each to their own. I expect / assume things can’t be going too well now in light of the PM’s recent moves. Damn.

  4. schmederling December 18, 2012 / 10:49 pm

    kong – whats your take on the PM’s activity from your perspective…. seems to be taking a beating these last few days while the DXY is trending lower as expected. While other assets are receiving the expected MF, the PM seem to have been sidelined for the time being.

    • Forex Kong December 19, 2012 / 7:33 am

      Schmed.

      As a currency trader (with only a recent “delve” into the PM’s) I can’t get past all the talk of “manipulation” and speculation behind closed doors / shadow activity / price supression / garbage – in looking at the PM’s. The fact that they are not getting “much love” as the market rallies and the dollar dives fits into the same lil ol theory I’ve always subscribed too – markets will always look to confound and confuse, and fleece as many in the process as possible.This doesn’t look much different in general.

      One would have to assume that the entire planet ( on a purely “duh” fundamental level ) would have assumed “gold to the moon” in the face of QE to Infinity…so in the big boys eyes…Im sure this was pretty telegraphed. I’m just as guilty there – in suggesting to buy gold some weeks back – but certainly not my life savings.

      I still believe the fundamental story is intact – and that gold/silver and related stocks will move – but the “when” is certainly a challenge.

      Now that the dollar has taken a pretty solid fall – I expect some retracement, and it will be curious to see how PM’s move in coming days. My timeline is cool as a cucumber till mid march – as perhaps this ridiculous “fiscal cliff” story is still the thing that needs to be put to bed.

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