Forget about your ancestor’s traditional way of buying and selling Fortune 500 stocks on the Dow Jones or Nasdaq. Move over 401k and Pension, the 24/7 worldwide Foreign Currency Exchange has arrived. The term is on every website and every blog. It’s Forex- The Foreign Currency Exchange.

So what is traded? Currency. All types of currency from many major nations including the US Dollar, Euro, GB Pound, and the Australian dollar. Literally every second, the rates change and can fluctuate depending on one major breaking news story. That’s the problem.

From the many Forex traders I know, every one has every major news source website refreshed on their browsers(yes I said browsers-multiple) and currently looking for a countries economic strength or weakness. Actually, I had a fake play money account and was watching my friend’s Forex screen and was instructed to buy 1000 AUD. Shortly after, about 2 minutes, I had made a profit of 35 AUD and quickly sold. Even though this was play money, it became very addicting. Think slot machines and a cocktail! I asked my friend why I was to buy and sell quickly and he showed me a link on an online news website saying that Australia’s Prime Minister was pulling troops out of Iraq. It’s amazing that such a simple news article can be worth so much in traded currency.

Once the news breaks, its all speculation on what a currency price might do. If you ever download and register for a free account on a Forex trading platform, you’ll be amazed at how quickly the prices fluctuate. Literally every currency trader I know has every major newspaper from around the world delivered to their front door and begin to trade one the entire paper has been scavenged through.

The Forex Market is the mos heavily traded market in terms of amount of money transferred which is around 1.3 Trillion dollars per day. Warren Buffet made some of his fortune from it with the Chinese currency? Will you?

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Filed under: Alternative Income, Investments, Portfolio Income