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Disclaimer: The material written on this site are entirely opinions of my own and is not meant to be taken as investment advice of any sort. Please read my full disclaimer at the bottom of the page before proceeding.
I was watching a video by Dr. Marc Faber who publishes a monthly newsletter titled "The Gloom, Boom and Doom Report". Here's the video:
My opinion?
I believe that the US government has not handled this crisis in the best possible manner with TARP and the bailouts simply because repaying debt with new debts will not work as the new debts carry with it costs of financing as well.
Theoretically, at the end of the day when push comes to shove, the only way to "repay" such debts will be through defaulting. Which brings us to the other side of the fence, the people that say that US is "too big to fail" (sounds familiar?). The amount of corporations and countries dependent on the US dollar is huge simply due to the fact that USD is the choice currency for trade due to its "stability". This means that if the US fails, many other countries will also be in trouble as they hold US reserves. Therefore, in a way it is in their best interests to not let the US fail. Question is, will there be one day where these countries no longer want to bear the burden of holding US debt? China has already instructed their banks last year to stop lending money to US banks.
Another alternative for the US that is the least desired would be finding a country to go to war with. During war time, the US will be flooded with massive contracts ranging from the purchase of weapons, ammunition, the rebuilding of buildings and infrastructures, security, fire fighting, food, supplies etc. Besides the billions of dollars of contracts during wartime, it also serves as a distraction for the people's economic woes.
Will US President Barack Obama carry the country through this tough period? Honestly I don't know but for the sake of many people, I do hope so. Til then, I recommend that you and I arm ourselves with some knowledge of what to do just in case something unexpected happens.
-Leo
Jan 14, 2010
Jan 13, 2010
Starting Forex: Falling in Love and Getting Your Heart Broken
Hey guys,
As a forex trader, I always enjoy chatting with other people about currency trading. These people could range from professional traders who can make thousands of dollar a day to young and excited 'fresh meat' who have just entered the vast world of forex trading.
The Old Traders
One common factor is very prevalent when I speak to forex traders who make good money day in and day out i.e. They all have either lost money OR had blown an account when they first started their journey in forex trading (someone I know told me he lost USD 250,000!).
The Bold Traders
On the other hand, some of my conversations with forex beginners, I deduced another fact i.e. If they had luckily (or unluckily?) made some money while trading a demo account or even a live account, this small form of 'victory' makes them feel on top of the world and that they were born to trade forex. After a period of time, these people would then somehow proceed to the category of "have lost money" and/or "have blown an account".
What can I deduce from the above?
The possibility of making very good money coupled with a lot of amazing marketing out there draws people into the forex markets day by day. Forex beginners are very prone to believe that forex trading is easy only to discover the water is deep once they are in the pool. Once they realize that forex trading is NOT as easy as it seems, some lucky ones will pull out of the market while the unlucky ones will continue to gamble away their money (I know someone who has kept trying for 10 years!). Those that do not give up and continue on learning will find that forex trading is just like any other business. You need to dedicate your time, money and effort to be able to reap the excellent rewards that your relationship with the market provides.
You will get your heart broken when you blow up that account. Grief if you must, then get up, get over it and continue on your journey to be a successful forex trader.
Happy Trading,
Leo
As a forex trader, I always enjoy chatting with other people about currency trading. These people could range from professional traders who can make thousands of dollar a day to young and excited 'fresh meat' who have just entered the vast world of forex trading.
The Old Traders
One common factor is very prevalent when I speak to forex traders who make good money day in and day out i.e. They all have either lost money OR had blown an account when they first started their journey in forex trading (someone I know told me he lost USD 250,000!).
The Bold Traders
On the other hand, some of my conversations with forex beginners, I deduced another fact i.e. If they had luckily (or unluckily?) made some money while trading a demo account or even a live account, this small form of 'victory' makes them feel on top of the world and that they were born to trade forex. After a period of time, these people would then somehow proceed to the category of "have lost money" and/or "have blown an account".
What can I deduce from the above?
The possibility of making very good money coupled with a lot of amazing marketing out there draws people into the forex markets day by day. Forex beginners are very prone to believe that forex trading is easy only to discover the water is deep once they are in the pool. Once they realize that forex trading is NOT as easy as it seems, some lucky ones will pull out of the market while the unlucky ones will continue to gamble away their money (I know someone who has kept trying for 10 years!). Those that do not give up and continue on learning will find that forex trading is just like any other business. You need to dedicate your time, money and effort to be able to reap the excellent rewards that your relationship with the market provides.
You will get your heart broken when you blow up that account. Grief if you must, then get up, get over it and continue on your journey to be a successful forex trader.
Happy Trading,
Leo
