I am fascinated by anything with growth. I will never invent anything because I am not nearly smart enough, but I know what I like and I can spot a trend with the best of them.
I love stocks and always will, but for the last 18 months, FOREX is on my mind.
The e-broker business is played out. If etrade $etfc opens a new account, it came from Ameritrade $amtd , Schwab $sch etc… and viceversa. It’s a zero sum account business. Guys with ponytail’s and no other hair run online brokerages (remember Gateway in Computer Hardware?). If you watch any television, you see online broker ads all the time. When was the last time you saw a FOREX or currency ad?
You will. Let me explain…
The world really has shrunk, but the only true global market IS currencies. They are 24/7/365 and as Gordon Gekko might say… ‘LIQUID’ ! There are no bull or bear markets in currencies, just uptrends, sideways action and downtrends. The FOREX market is just getting started.
At Stocktwits we created a FOREX stream only so you can follow traders and links . It is just the beginning of FOREX features to come.
The last few months I have been immersed in learning about FOREX. I have not wanted to learn from the ‘PRO’s’ because I want to capture the excitement of the process myself.
I am a layman but based on the network of people in the stream, here is what I know about the FOREX markets:
1. 24/7/365 and liquid
2. Basically 10 trade options (talk about a trackable universe) and 4 that most people trade.
3. $500 minimum on account size
4. Insured now if you open account in United Kingdom
5. Mostly a Macro market which makes managing positions more manageable.
6. NO pennystockers or promoters…plenty of pikers of course :)
7. LEVERAGE of 200-1 (let’s face it, it’s fun to totally blow up in your first day)
8. EVERYTHING is measure in pips. A pip is a pip is a pip and it’s all based on your trade and account size.
9. MOBILE – I have run a hedge fund for 11 years and have never made a mobile trade. NEVER will. I would have no problem entering a FOREX trade from my iPhone if I could.
There are Tens of Millions of FOREX accounts to be opened and I am going to be part of the boom. Period.
If you have ideas on who I should read, follow and invest time with, chime in with comments and links.