Currency trading:

For your information: After opening a currency trading account with your financial institution, you are ready to trade. In my experience, the best condition to be in, for a currency investor, is to be mentally independent and free from the outside influencing factors, such as fear of losing money.

The market has no feelings and when investing into “currencies” you should not be influenced by your feelings. Instead, a decision to invest in the currency market to be LONG or SHORT (buy or sell) should be decided for a reason. In my opinion the important difference to be long or short in the currency market should be explained.

A long position;

A long position in the market is referred to as a position where the currency investor purchase a “contract” of currencies FIRST and sells this contract some time in the future.

(A CONTRACT is usually 10,000 units, Dollars, Euros or Pounds etc.) In order for the investor to make a profit, the currency has to increase in value, and sold before the currency declines in value. A short position;

A short position in the market is referred to as a position where the Currency investor sells a “contract” of currencies FIRST and purchases this contract some time in the future.

In order for the investor to make a profit, the currency has to decline in value, and purchased before the currency increases in value. As explained, it is possible to profit from an UP market as well as a DECLINING market.

Commentary: A case study to be long and short will be covered in
ATERNATIVE TO WORK PART (4) in the near future.

By: John W Middelkoop

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