Forex Commentary

3 Responses to “Shares, commodities, options, emini’s, forex?”

1. poonky on February 28th, 2010 at 12:45 pm

   I admire your enthusiasm, and don’t get me incorrect I’m not trying to place out your flame. But place it this way if you learnt about every one of these financial instruments you’d already be working as an investment banker. As you say it’s a slow build, so take it one step at a time.

   Shares are a excellent place to start. There are many overlapping concepts and theories between these instruments. Once you get a firm grasp of shares, then expand into other financial territory. A excellent place to start for basic information is wikipedia.

   Set up an online share trading account with a discount broker first. It’s free (unless you place a buy/sell order obviously), and it gives you access to company announcements, historical price charts, valuation multiples.. amongst other useful information. You need to keep up to date with the financial news and know what’s happening in the global markets to make informed decisions. Depending on what country you’re in you can google up a list of online brokers. If there’s something on there you don’t know (beta, PE, PB, EBITDA, ROE…), look it up. Practice is the best way to go about it.

   There are also free practice trading accounts available online. It’s like a replica of the stock markets, but without playing with real money. So there’s nothing to lose.

   That’s more than enough to keep you occupied for the moment. When you’ve done that, come back and I’ll clarify more ;p
   References :

2. exactduke on February 28th, 2010 at 1:35 pm

   Most of the things you mentioned: commodities, options, emini’s & forex are for advanced investors & not for rookies. And not for the average joe/jane sixpack investors. I would probably start with a course on general investing, including accounts at the bank, & the stock market. This might also include individual stocks and mutual funds.

   But other than shares, the average investor doesn’t need the rest of the things you mentioned. They are just too complicated & perilous for the average investor. 75% of the people that actively trade the market lose money. By the time taxes & trading costs are included, that figure rises to 90%.

   Build yourself a diversifed portfolio using mutual funds & let the market take you higher. The rest of the things you cited: commodities, options, emini’s, forex, make your broker money, and NOT YOU.

   References :

3. James K on February 28th, 2010 at 1:44 pm

   You can start in Forex easily – by using the free guide that you can download from http://www.forexfromscratch.com

   Hope this helps?
   References :

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