@djsumdog@djsumdog.com @Saphiroth@fedi.getimiskon.xyz @getimiskon@fedi.getimiskon.xyz
Do you think I'm a genius? You probably don't. That's ok, neither does anybody else.
I'm not a genius, but a little while back, I scored over $160 in (imaginary) FOREX profits in a paper trading account, with an initial (imaginary) value of $10,000. I've since lost it, making overconfident, riskier trades after that; lesson learned.
I do believe that FOREX is, not an infinite money glitch, but definitely a loose change glitch that is available to retards like you and me. The whales in the FOREX market, who are actually moving the currency prices, are not profit-maximizing FOREX speculators or institutional traders; they are manufacturers and commodities exporters.
Think about it; if you are a grain exporter, you don't care about about the variations in currency values over hundredths of a cent, especially at 8 PM or midnight. You care about grain prices, fertilizer costs, and fuel and shipping costs; currency fluctuation is just a rounding error. Somebody else will profit from it, and you don't care who.
And likewise, even lenders and international bond brokers care more about interest rates, interest rate changes, and institutional creditworthiness more than they care about small fluctuations of the underlying currencies. They are leaving for us, pennies, on the table.
I hope and anticipate I'll have more bragging rights with paper trading profits in the near future.
RE: @djsumdog@djsumdog.com @Saphiroth@fedi.getimiskon.xyz @getimiskon@fedi.getimiskon.xyz
I've compared a bunch of different crypto exchanges, while trying to learn how best to monetize some idle GPUs. While doing that, I've come away with a renewed interest in FOREX and the securities and derivatives markets. The crypto market can't possibly hold a "candle" to FOREX candle graphs, and here's why:
- liquidity: there is a fuck-ton of USD being converted to and from JPY, CNH, EUR, and CAD at any given moment; not to mention more volatile pairs such as USDMXN. Bitcoin, on the other hand, moves when a whale moves it. FOREX is an entire ocean of whales.
- narrow spreads: not only do you have more choices of viable investments at any given moment, you can get them for cheap. If you buy 100,000 worth of USD in Euros, the bid-ask spread - the difference between what you pay and what you could sell for at that exact moment - is approximately 0.0002 Euros. One fiftyth of a Eurocent. How much does it cost to buy $100,000 of any other investment?
- margin trading: interest-free borrowing !! 🤯 FOREX brokers allow retail traders the ability to buy 10x or 100x what your own money can pay for, usually interest free. Margin costs are baked in to the bid-ask spread. Stock brokers allow margin borrowing, often at 0.75% or 1.75% APY - annually - for a debt that is paid off within hours or days.
How can they afford this? Because it's essentially a company-store credit for money you spend on-platform; and because they have the ability to liquidate your assets if you bankrupt your account, so the default risk is basically zero. It's almost-free money for them, and it's almost-free money for you.
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kuteboiCoder
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