What, exactly, do currency speculators do, and why do we need them?

Question

Essentially, I know currency speculation is a good thing, as it can keep prices stable. However, I know very little beyond this....

Answer 1

Just invest in Forex trading using a trading system; ignore all this stuff.

Today alone I made over $800 in profit from one trade and in just minutes. EUR/USD; bought at 1.5596 and sold at 1.5677 - check the charts on DailyFX for proof of the numbers - today is the 25th of June. I could have made even more if I wasn't paranoid and clicked the magic button (it went all the way up to 1.568x).

What you do (and what I did) is make sure the trading system has a 60 day money back guarantee first; then make sure you can use a demo account. A demo account let's you play the trading game with "play money" so you can see if you can profit from the trading system without investing your real cash.

Use the demo account for 59 days and if you see you can make profit you keep the system and invest your real cash. If there's no profit to be made you get a refund and try another system; there's literally no risk when buying one.

If you're interested I found reviews of the top 3 Forex trading systems: http://forex-funnel.the-perfect-solution...

Answer 2

Let's say you are a speculator and you think the USD will drop and the EUR will rise.

You go to the Airport and you take half your paycheck and use it to buy Euros.

You store your Euros under the bed and you keep them there for a few years until the price of the USD drops to $0.50 EUR.

In other words, you keep your coins stored for a while until the price is right for you and you sell them.

We don't need speculators.

Currency speculation (Or any kind of speculation) is not a good thing because it keeps the prices high.

I suggest you to read more about Nelson Bunker Hunt and William Herbert Hunt if you don't know who they are.