Foreign exchange trading - how best to get into it...
Discussion
Jockman said:
The best advice is not to get into it unless you >really< know what you're doing.
Is that from a 'don't buy shares unless you know what you are doing' mantra... or a special exclusion just for FX?I always thought FX was considered another recommended asset class aside shares, rare metals, bonds and cash?
JaredVannett said:
Is that from a 'don't buy shares unless you know what you are doing' mantra... or a special exclusion just for FX?
I always thought FX was considered another recommended asset class aside shares, rare metals, bonds and cash?
Shares buy you a fraction of a company, a going concern that is selling products or services with the intention (and often actual track record) of delivering a profit.I always thought FX was considered another recommended asset class aside shares, rare metals, bonds and cash?
A foreign exchange transaction is a net about which currency in the pair will appreciate relative to the other. “Getting into” it is putting on a pure bet.
It is not really an asset class at all, it is what your assets are denominated in.
You seem sceptical of the general view from professionals that it is best avoided by amateurs. Is there any particular reason for thinking that way?
It probably falls into a similar class of advice as not giving yourself a tattoo if you don’t know what you are doing and not stitching your own parachute from a guide you found on the web.
James_B said:
JaredVannett said:
Is that from a 'don't buy shares unless you know what you are doing' mantra... or a special exclusion just for FX?
I always thought FX was considered another recommended asset class aside shares, rare metals, bonds and cash?
Shares buy you a fraction of a company, a going concern that is selling products or services with the intention (and often actual track record) of delivering a profit.I always thought FX was considered another recommended asset class aside shares, rare metals, bonds and cash?
A foreign exchange transaction is a net about which currency in the pair will appreciate relative to the other. “Getting into” it is putting on a pure bet.
It is not really an asset class at all, it is what your assets are denominated in.
You seem sceptical of the general view from professionals that it is best avoided by amateurs. Is there any particular reason for thinking that way?
It probably falls into a similar class of advice as not giving yourself a tattoo if you don’t know what you are doing and not stitching your own parachute from a guide you found on the web.
I do see your point about it not being an asset class and basically a bet vs shares.
All my questions are from an intent to learn more about finance
Edited by JaredVannett on Wednesday 22 August 01:21
JaredVannett said:
On the contrary... i'm asking if the advice is coming from a professional viewpoint or a 'cautious carol' ... eg... "ohh I wouldn't do that if I were you, I once read an article about it on the daily mail etc". I don't personally know 'Jockman', so was curious where his point was coming from.
I do see your point about it not being an asset class and basically a bet vs shares.
All my questions are from an intent to learn more about finance
As a professional my view is that you are likely to make gains and losses with a distribution that is very close to the one you’d get if you tossed a coin to make your decisions.I do see your point about it not being an asset class and basically a bet vs shares.
All my questions are from an intent to learn more about finance
Edited by JaredVannett on Wednesday 22 August 01:21
If you do give it a try then please make sure that you are brutally honest with yourself about your trading P&L. Many people who are losing manage to convince themselves otherwise by remembering the hits and convincing themselves that the misses are obvious in retrospect and will be avoided next time.
Gassing Station | Finance | Top of Page | What's New | My Stuff