Why Trade Foreign Currencies?

Question

Why Trade Foreign Currencies? Do You Know ???

http://www.forex-teach-newbies.blogspot.com/

Answer 1

To buy/sell in foreign markets.

Answer 2

It is necessary for international trade,export and import.Trading in Foreign Currencies is a good business were profits are very high.You must take buy/sell decisions correctly inorder to avoid loss on account of exchange fluctuations.It requires a lot of skills.

Answer 3

Actually my MIL made good money doing this. This is the best way I can explain it:

Let's say that today orange paper is worth $1, blue paper is worth $2 and green paper is worth $3. Don't by green paper today because it costs to much money, but there is no reason to believe that orange paper will be worth anything more than $1 for the next 6 months. So buy mostly blue paper and a little bit of orange paper.

Tomorrow, orange paper is worth $1, blue paper is worth $3 and green paper is worth $2. Buy green paper.

The next day orange paper is worth $1, blue paper is worth $4 and green paper is worth $5, sell your blue and green paper and you've now made a profit. 6 months from now sell your orange paper for profit when its worth $3.

Now imagine that orange paper is Canadian Dollars, Blue paper is US dollars and green paper is a Euro.

Its risky business, you really need to analyze a LOT of years of financial data to make predictions on ups and downs as well as watch a lot of news, not just money related.

In a year, my MIL and her team of 5 (2 traders, 3 analysts) initially invested $100 000 combined and ended the year with about $50 000 profit to each of them, though in that year at one point they were also down about a million US.

Answer 4

It is very profitable. My friend makes around 300 dollars a day with the softwares on the site http://www.forextradingreview.info

Answer 5

The great thing about trading currencies (Forex trading) is that you can make money regardless of the Economic cycle. While the stock market and housing might be falling in value, currencies continue to move up and down relative to each other. There is constantly opportunity to make a profit.