I have been studying economic cycles more than a decade already. Over that time, I have held key positions in brokerages, research firms and banks and traded almost everything from equities to currencies.
Of all possible assets that I have my hand into, let me tell you that there is only ONE place – currency markets – that offers you opportunity to consistently creating wealth. Liquidity is high, huge and it dwarfs stock and bond markets combined.
This market is not complicated as many of us tend to believe. It is simply the act of trading one currency for another, governing by a set of economic principles.
Unlike other markets, like commodities, equities, real estates etc, there is always a bull market in currencies. You trade by buying and selling one currency against another. Like a see-saw, when one is going down, the other one has to be going up.
Given the size of FX market and so many participants, it is almost impossible for any one to corner the market. It is a level playing field for everyone and there is no issue about insider trading. Unlike stocks, one exposes to possibility of insider trading, cooked books and other corporate shenanigans.
FX market is always running 24 hours, no force shut downs. Stocks and futures can be shut down temporarily. No matter what happens, it was the only market in the world that wasn’t affected after the 911 attacks that closed stocks, bonds and commodities market across the globe.
This market is purely market driven – interaction of demand and supply and that is how prices are determined.
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