can anyone explain fully about currency trading and is it better in your opinion to learn instead of the stock

Question

because the stock market is cool and all and im a college student investing a smaill amount but i wanna be well diversified in every aspect of bizness except mutual funs?

Answer 1

Currency trading is a good idea if, like the Rockefeller family you control a major bank and can force changes in the exchange rate. Don't need much of a change when billions are involved and the fluctuations are happening several time a day, and you know what they are going to be. Just the transactions are large enough to alter the rates. Pretty sweet, eh?

Answer 2

Okay, so you want to know what currency trading is and how it measures up to stocks?

The value of a nation's currency fluctuates for a wide range of reasons including shifting geopolitical climates, the performance of it's economy, government policies, and value of metals it's backed by.

Some people speculate on these events, then buy and sell according to what they think will happen. If a currency is backed by or pegged to gold, and gold rises in value, so will the currency.

Long term, I would stick with stocks. The stock market has nearly a hundred year history of moving upwards. Currency does not.

But, if you're considering day trading, stocks or currency exchange are both equally as lucrative.

Graciously
The Investing Sensei
http://www.investingsensei.blogspot.com

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Answer 3

Currency trading is a form of investing where you buy one country's currency, hoping that it will increase in value relative to another country. For example - if you buy 100 canadian dollars for $80 US today, and next week you can sell those 100 canadian dollars for $90 US, you've made $10. That doesn't allow for exchange fees, etc, but you get the idea. Unless you're very knowledgable of the market, or damned lucky, it's probably a good way to lose your shirt.