Wednesday, November 17, 2004

How I Learned To Stop Worrying and Love The Death of The Republic

"More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other, to total extinction. Let us pray we have the wisdom to choose correctly." -- Woody Allen, Without Feathers.

UPDATE: Walk through a currency trade here.

Trading with RefcoFX is one way to make money from the comfort of your own home and likewise it is a terrific way to send yourself into complete financial ruin within a fraction of a second. Currency trading is not for the faint of heart, but I find it a fascinating subject and thought I would post a brief article here about it.

A great time to have entered the market and started betting against the US Dollar was around August of 2000. Most currency traders were fairly certain Gore was going to lose and the market bet that Bush (the assumed winner) was (a) incompetent and (b) would run massive budget deficits and (c) the Dollar would weaken and potentially face an eventual collapse. While an actual collapse has yet to take place, the descent is starting to get breathtakingly steep. Market moves that used to take years now happen on an almost weekly basis, and this is scary as much as it is a time of opportunity. It also the delta between the wolves and the sheep – and I have always been inclined to try and be the former rather than the latter. The sheep in my opinion, by the way, are over in the equities market prepping for yet another fleecing. But I digress…

The risks in this game are in equal proportion to the level of opportunity and trading currencies are an even faster, more horrific way to lose your shirt than day trading. This means approach with caution – lots and lots of caution.

Refcofx makes it easy to “play” currency trader. If you are interested in trading currencies, or just want to learn about it in a hands-on kind of way, go HERE and then click on “Open Free Demo” account. They have a very-cool Windows based trading program that is a neat way to learn about what is taking place today in the world of currency exchanges, and the news program you can install with the program is worth the trouble of opening a demo account.

I personally believe the Dollar is going to have its share of ups and downs, but given the purges at the CIA and The State Department combined with the staffing up of incompetent Bush cronies across the board – the situation speaks for itself. Foreign governments are also between a rock and a hard place; a falling Dollar can hurt as well as help depending upon how events are managed. In that light, this means this type of investing is frought with horror and risk.

If you decide to dabble with a mini account that you can open with just $300 – plan on losing that $300 in a Las Vegas minute. This is serious stuff. It moves faster than a casino, but unlike gambling you are dealing with actual fundamentals rather than pure chance.


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