Dear Financial Voice Reader,
I’ve been asked by a reader about how it is they can profit from what is happening with the Euro. 5 Steps to Profit from the Euro Crisis:
1. Understand FX is like buying and selling anything else
Take EUR/USD – it has a value eg 1.100 Dollars to the Euro. To profit from this you can buy at one price and sell at a higher price. Or you can sell at a higher price first, in expectation the rate will fall – and you buy back cheaply later. You do it all online, or over your smartphone app that your broker has, and click to buy, click to sell. Simple
2. Understand it is quick to start
For a start you can open a broker account in 3 minutes with small sum in it, eg under £1,000. I use http://etx.tradermind.com Of course, bet too large and you could lose all your money, and then some!
3. It is not difficult to do
There is this notion that these things are difficult. One of the most amazing things was how my family members picked up trading, from the shopkeeper, to the retiree, to the school teacher. They would look at charts of currencies and quickly get an idea of direction. They would bet small amounts and that was it. They were self-taught.
4. Take a course
If you want more confidence, take a course – it’s a great investment. Mine are the best anywhere in the world of course – www.trading-champions.com
5. Take a view
So how do you decide when to buy and sell? You look at the charts. You see the trend. And that is the easiest way for beginners to get started. You pick how many pounds you want to make for every point the currency moves. And you click. That’s it.
In trading online, people make it more complicated than it is. It can be. If you really want to know GDP figures and those things. But ultimately, even the most sophisticated traders will follow trends. Some will trade around news, but for beginners, trend following for momentum in a price is easiest. As you gain practice, you can then ask more detailed questions, like when should I take profit? When should I take a loss?But for most people the simplicity of trading is hugely seductive. Oh, and in the UK, you can do it tax free through brokers such as http://etx.tradermind.com – not often the Government let’s you dodge tax is it? It’s perfectly legal, and all the brokers are UK regulated with UK bank accounts. That means the UK Government also gives protection to the accounts too. Alpesh Patel
