Currencies or Stocks – Who Leads Who?

By the time you hear that “stocks are going higher” I can assure you – I am selling you my shares. Right around the time your broker calls and suggests that “now is a good time to buy gold” guess what? – I’m unloading. Your T.V provides you with the exact information needed  – to empty your bank account and fill mine. The entire system is a complete scam and oddly….you still keep asking yourself – what am I doing wrong?

It’s bigger than you. You can’t win. Stop now. Give up. Don’t quit your day job and god help you if your wife finds out you just bought Apple. Well…..truth be known – you can win. Don’t give up ( but seriously…don’t quit your day job) and be proud of your recent Apple purchase.

Turn off your T.V and Internet for one week, then ask yourself – “do I really know what I am investing in/what I am doing?” Seriously… you really think you know what you are doing?

I like to use the analogy of boats on the ocean – where currencies are a gigantic cruise ship and U.S equities are a speedboat. Sure there are waves (in this case volatility) but it takes a long time to turn the cruise ship around, while the speedboat is already sinking. Fact of the matter is – currency markets are far more stable than equities, and it takes more than a rainy day and a little storm to put that cruise ship on its side.

Granted I think you can get a speedboat/license,  and be out on the water in a  in an afternoon  – where as… not every Tom Dick and Harry putz around in a cruise ship. Fair enough.

I promise you – keeping your eyes on the currency markets ( and not just the silly EUR/USD ‘cuz they’ve got you on that one too) should keep you one step ahead of the next guy.

Check this out:



2 Responses

  1. Jeannette Lord December 30, 2012 / 12:44 pm

    Hi Forex, I would like to take advantage of what you are saying; however, I am not sure what vehicles one would use. For example, would: buy AUD and short UUP be appropriate? I do not trade futures or overnight. I am also not familiar with the currency call signs for other countries you mention. Thanks, Jenny

    • Forex Kong December 30, 2012 / 2:00 pm

      Hi Jenny.

      It sounds to me that you are more up to speed / familiar with this stuff than perhaps you give yourself credit for!

      NZD is New Zealand – and you’ve already got AUD and USD. Throw in JPY (Yen) and perhaps CAD (Canadian dollar) as well as EUR (Euro) and GBP (Great British Pound) and you are set. In principal you’ve got the trade 100% correct although…..

      The UUP is not a favorite of mine – as it doesn’t provide the same kind of returns as one would get through trading in a forex account.

      If you are not able/interested in setting up a forex account then I guess it’s the best you can do. There are ETF´s for the majority of the major currencies but please keep in mind – you are still trading an ETF on (likely) the American stock exchanges so…….you know how I feel about that.

      Check out “FXY” in relation to my last couple weeks short the Yen (JPY). I assume you could have made sizeable gains in the ETF as well.

      I could go on and on and on but at least for now – I hope this helps. Just pop in again with whatever else you need to know.

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