Trader on BBC "Goldman Sachs" Runs the world. , page 1

reply to post by woodwardjnr

As someone involved in finance and trading, and I cannot agree more with what this man is saying. It's widely known throughout the financial sector that things are going to fall, and hard. However, it's not exactly scary, it's actually exciting. I have been waiting for things to fall apart again since they did a few years ago with the collapse of the housing market, there was great opportunity to make a lot of money in that scenario. The majority of people don't understand how our financial systems work. Most people understand that if you buy a stock, you are buying "stock" into a company, and effectively by doing so, you're of course investing in its future. So naturally, you don't want to see the market start a downward tumble, because that puts your investment in jeopardy. However, there are ways to hedge this using the "magic" of derivatives, and it isn't hard either. In fact, I only trade derivatives, I haven't actually "owned" a stock in years. Why? Because there is so much MORE risk in owning something that you don't have much control over. The market is heading into its death throes. Last week there were some substantial drops across the board, in both equities and commodities. Typically, in uncertain times, when equities (think private firms) are having a hard times staying afloat, one can rely on commodities (think gold, silver, oil, etc.), because it's something one can "hold" on to – it's tangible. What's happening though is that there is so much uncertainty that everything is in a downward spiral and it's directly correlated to fear. If you're trying to ride out the market right now and hoping it will turn around, I'm warning you, there is a lot of risk to that. By just buying stock you're only able to move in a linear direction without much control, but if you start looking into how to perform hedging strategies, like spreads, you have a lot more insurance that wherever the market will go, whether it decides to sink into a freefall or explode drastically upward, you can make money with it. If you're at all interested in what I'm saying, read further into trading derivatives. There is a lot of potential out there if you know where to look.

If you have some free time or are genuinely interested in reaching financial freedom and security, I recommend starting with something like this. Someone had mentioned the Khan Academy in another thread and I really believe that these videos are incredibly informative, easy to understand, and straight forward.

edit on 26-9-2011 by Resonant because: (no reason given)