- Personal Finance
Investing In Foreign Currency For Novices
Like many I have often thought about entering the world of stock trading. To be one of those that has unlocked the secret of making money from it. Upon educating myself about stocks, bonds and forex exchange I have determined the following. It is very difficult to make money in transactions unless you are really well educated in what you are doing and even then you could still lose your shirt. Much like many did in the market meltdown in late 2008 and early 2009.
That being said there are long term investments that I found much easier to make a choice on than constant buying and selling of many stocks on a daily basis. Buying and selling currency for example can be very lucrative in the long term. How is this done you may ask? Well that is what this article is all about.
There are live programs these days offered online so that you may follow currency fluctuations in real time so that you can buy and sell again and again in an effort to make money. It has been my experience that if you have a knack for it you can make money doing this but within the last few years the markets have been horribly erratic and the chance of even a fairly well educated trader making money has dwindled.
My method of choice is the make one or two physical purchases and wait for long term return. For example at a point in the past before the first US/Iraqi war the Iraqi dinar was once valued at more than double the US dollar. Mainly due to the fact that Iraq is extremely rich in oil. After the first US/Iraqi war the dinar fell due to sanctions and the war to about a third of the dollar. After this past US/Iraqi war the Iraqi Dinar fell incredibly to a factor of more than 2000 Iraqi Dinar to 1 dollar.
At that point I purchased 1 million Iraqi Dinar. Why because Iraq was at it's lowest economically just after the war and as the country rebuilt it's infrastructure and it's economy rebuilt the Dinar became worth more against the dollar. Checking it even now my initial investment has almost doubled. The Dinar is now worth 1167 to 1 dollar. As progress continues the value of the dinar will undoubtedly rise and most likely at a faster pace. The oil reserves will inevitably strengthen their economy and the violence will eventually completely subside.
If the Dinar were to return to pre-war levels when the value of the dinar was at 1 dinar = 2 dollars I would become a millionaire from spending $500. The key idea is to find a foreign currency that you can purchase very cheaply from a country whose currency you know will appreciate greatly. I the case of the Dinar I may have to wait several years, maybe a decade but eventually this long term investment will really pay off.
If you think that this might be something your into doing check some of the sales on Ebay currently for the Dinar below. Thanks for reading.