Make Money Exchanging Currencies

BY
WWW.THEFOREXNITTYGRITTY.COM
Make Money
Exchanging
Currencies

HTTP://WWW.THEFOREXNITTYGRITTY.COM/FORE
X/MAKE-MONEY-EXCHANGING-CURRENCIES
The bottom line for the value of a given
currency is how much you can buy
with it

In fact, a relevant question is if you can
use your currency to buy anything at
all outside of your own country.

Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com

This latter issue is one that is faced by
people in many nations of the world.

This fact is why eighty-five percent of
all Forex trading includes the US
dollar as many minor currencies only
trade versus the USD.

So, you need to trade currencies to buy
things.

Can you make money exchanging
currencies?

Can you find a safe haven currency to
make money exchanging currencies
or at least not lose any purchasing
power?

And, when the opportunity arises can
you make money exchanging
currencies back to your home
currency when things are more stable
and the purchasing power of your
nation’s currency goes farther?

Flight from Forex Risk

The terrible situations in the Middle
East are a drag on every currency in
the area.

It is not a surprise that many choose
gold, Euros, dollars, Yen or Swiss
francs to preserve the value of their
family wealth and lifetimes of savings.

So, when things get bad in Iraq, Syria,
Lebanon, West Bank and Gaza,
Israel, Egypt, etc. those with money
often seek a safe haven currency and
protect their wealth as the local
currency plummets.

But, can you also make money
exchanging currencies?

This brings to mind the old stock
investing quote about investing being
the best when there is blood in the
streets. Every war ends, eventually.

Every civil crisis has an eventual
solution. These ends and solutions
may not be to the liking of everyone
concerned but eventually chaos
ceases and calm returns.

The smart investor looks for when
things are at their worst and buys
property, stock or currencies.

The point is that you can make money
exchanging currencies if you get out
before things get bad and return when
the currency has bottomed out.

The issues are fundamental and
technical analysis of for Forex pairs.
Fundamentals are what eventually
determine the value of a currency
versus the majors such as the USD,
GBP, EUR and YEN.

But astute assessment of market
sentiment can add greatly to profits as
other flee risk long after a currency
has bottomed out.

Where Will You Invest and Spend
Your Money?

Another issue if you want to make
money exchanging currencies is the
purchasing power of a given currency
it its own nation.

You can look at the gross national
product of a country in dollars or as
measured by purchasing power parity.

An example is the nation of Colombia.

Colombia has a gross domestic product
of $370 billion as measured in US
dollars.

But when measured by what your
money can buy in Colombia
(purchasing power parity) it has a
gross domestic product of $527
billion.

That is a 42 percent difference if you
are investing or purchasing a basket
of goods and services in Colombia.

For a retiree who wants to maintain a nice
standard of living it might be possible to
make money exchanging currencies or at
least increase purchasing power by
transferring assets to a nation such as
Colombia where the purchasing power of
the local currency gives you a 42 percent
advantage.

This latter example is not so much a
matter of foreign currency trading as
movement of assets but the point that
you can make money exchanging
currencies remains the same.

Make Money Exchanging Currencies

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Mehr von InvestingTips

Mehr von InvestingTips (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Make Money Exchanging Currencies