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Money makes money

  • #1
  • First Post: Oct 29, 2014 2:48pm Oct 29, 2014 2:48pm
Hello everybody,

To be honest, I'm tired of trading discussions, patterns, complaining and so on. I don't want to discuss if it is possible to make money in financial markets. As sir Ford said: “Whether you think you can, or you think you can't--you're right.” This is my dogma and if somebody tells you it isn't possible - it's not for that person. Let's accept her/his belief.

In this thread I'd like to share my ideas and knowledge about making money in general. Not any special trading system which makes you millionaire in several years or even months. I don't know any (if you know about any, please feel free to PM me and I'd be more than glad to become one). I'll show you simple and very powerful principles. Keeping it simple should be one of those principles. I'll talk about two sides of the equation - revenues and expenses.


I'll post something when I'm in the mood. It can be couple of times a day or even once a month. Let's start today only with this short post. If you have ideas to share about making money by money this is the right place to share it.

Have a wonderful days and don't focus only on money. Money is a means to enjoy life according to your expectations. Maybe you don't need as much money to be happy as you had thought before. ...

Good luck my friends!

Adam
Lose small, win BIG
  • #2
  • Oct 29, 2014 9:13pm Oct 29, 2014 9:13pm
I fully believe in having your $$ work for you. Some vehicles I use:

  1. LendingClub.com - Personal & IRA (P2P Lending)
  2. Prosper.com - Personal (P2P Lending)
  3. Fidelity.com - Personal & 401k
  4. BullionDirect.com / Local shops - Buying physical precious metals
  5. Forex last, buying cheap/shorting overvalued currency pairs

ForexOrderFlow.com Return This Year: 11.3%
  • #3
  • Nov 2, 2014 12:21pm Nov 2, 2014 12:21pm
Introducing myself. Nothing interesting what could make you happy or rich, just my story in few words.

So many people are trying hard to be rich. How much do you need to be rich? Do I know why I do a business, investments, trades and so on? Let me introduce my (never-ending trading) story a little bit. I was 15 when I discovered some books about investments (yeah, Kiyosaki). I liked idea of passive income. It looked to be so easy, but I had no idea how to do it. As time has been passing, I turned 16 (so old, right?) and read almost every book about making money. Of course, my mind had been so inocent and I had no fucking idea how to make money. I discovered forex (you can't imagine what shit you can find by googling how to make money). Forex seemed to be easy way how to get rich. Soros could make millions. It must be easy and I can do it as well. My ignorance had only one limit - sky.

When I turned 18 I could open my first real account. My knowledge about markets was the same as I know about diffusion now. My english level was slighy above zero and there were no books about trading in my language (slovak). I was forced to learn english in order to learn about markets...

I was 21 when I saw first results. Well, I wasn't loosing trader at least. There were loosing and winning period being slightly in black numbers. Good for me. I was happy. As I improved my english I could study more. Much more. Hedging, statistical arbitrages, triangular arbitrages, price action, programming, testing, developing, optimization, financial markets principles, etc. It was very useful and I loved to learn and I still do....

Let's skip to nowadays. I'm 23 old. Still young and inexperienced in my eyes because my knowledge is still portion of I'd like to learn. The most important knowledge I gained during my several years journey is money can make money.

You need only money, knowledge and experience. I hope you had noticed irony in word ONLY. To make 300-500€ monthly can be really easy and believe me that 500€ can be a lot when you live in cheap country. For you living in Czech republic (I live there) can make living. To live in Spain is not so much, but your income is limited by your money, knowledge and experience...

Keep learning and be patient. We can do it. It can take a plenty of time (7 years for me, oh fuck... maybe too much) but why not to give a try?

Hopefully it is not too boring to read. Next time some practical stuff.
Lose small, win BIG
  • #4
  • Nov 2, 2014 12:46pm Nov 2, 2014 12:46pm
To make 300-500€ monthly can be really easy and believe me that 500€ can be a lot when you live in cheap country. For you living in Czech republic (I live there) can make living

So 500E/monthly is enough to live in Czech Republic?
  • #5
  • Nov 2, 2014 1:13pm Nov 2, 2014 1:13pm
Quoting Unabletrader
To make 300-500€ monthly can be really easy and believe me that 500€ can be a lot when you live in cheap country. For you living in Czech republic (I live there) can make living So 500E/monthly is enough to live in Czech Republic?
Depending on your costs. Room in shared flat is around 200€. Public transportation around 20€. Food is quite cheap. In restaurant you pay 4-8€ for pizza, 1-1.5€ for draft beer. Tax when trading derivates is 15%. I spend 400€ on average. On the other hand, if you have a job here your salary will be probably not more than 1.000-1.200€.
Lose small, win BIG
  • #6
  • Nov 2, 2014 1:23pm Nov 2, 2014 1:23pm
Quoting ProsteJa
{quote} Depending on your costs. Room in shared flat is around 200€. Public transportation around 20€. Food is quite cheap. In restaurant you pay 4-8€ for pizza, 1-1.5€ for draft beer. Tax when trading derivates is 15%. I spend 400€ on average. On the other hand, if you have a job here your salary will be probably not more than 1.000-1.200€.

Ok thank you.

I was thinking about going to live in Portugal or Eastern countries like Poland and Hungary.
  • #7
  • Nov 2, 2014 1:30pm Nov 2, 2014 1:30pm
Quoting Unabletrader
{quote} Ok thank you. I was thinking about going to live in Portugal or Eastern countries like Poland and Hungary.
Life is quite similar as in France (I assume so as I used to live in Spain) but mentality is different. I think it is worth to give a try for some period to see if you like it or not. I think Poland, Czech republic, Slovakia, Hungary will be very similar. Slovakia and Czech republic are almost the same for living. Hope you find the right place for you ...
Lose small, win BIG
  • #8
  • Nov 2, 2014 2:03pm Nov 2, 2014 2:03pm
Hello,


Unabletrader, You have mentioned Poland. I'm from this country so some information for You

You can rent whole 3-room flat for 150€
With all costs (energy, water, heating etc.) it's less than 250€ (why so cheap? Most of people have a salary not bigger than 2000PLN = less than 500€).
Beer in a shop = 0.8€, in a pub = 1.2€
Big pizza = 7€
Cinema = 4-5€ for one adult person
Public transport is quite cheap, even with polish salary, for example bus from Silesia to Krakow (100km) = … 2€
You can also buy 600 squaremeters of land for 30 000€ (in a nice place), and build a quite big house for 80 000€ on it

On the other hand:

- probably the hardest language to learn for foreginer
- 23% taxes
- some products have the same price as in the rest of the EU
One liter of fuel = 1.2€
Cheeseburger in McDonald = 0.8€
iPhone 6 Plus 16 GB = 760€

Greetings
  • #9
  • Nov 7, 2014 4:28pm Nov 7, 2014 4:28pm
Debt. Pre-article

About very powerful (if you know how to) and very dangerous (if you don't know how to use it) tool. Everybody knows what debt is but only small percentage know how to use it properly and make it powerful tool. Many people borrow money from banks paying interest. Most trades use leverage- basically it is debt.

What is really difficult to understand for me is what people think about debt and borowing money. For most people I know is okay to borrow money for buying a car but to dangerous to buy stock shares. When I buy shares (or some different product) I can make money or I can lose money. But when I buy a car I'm pretty sure I'll lose money. Value of the car automatically decrease by 25% just by using it for the first time. I'm trying hard to understand them, really....

In next post I'll show you debt power. Hope you'll be so amazed as I was when I discovered this weapon.

Have a nice weekend ladies and gents.
Lose small, win BIG
  • #10
  • Nov 7, 2014 5:11pm Nov 7, 2014 5:11pm
Quoting ProsteJa
Debt. Pre-article About very powerful (if you know how to) and very dangerous (if you don't know how to use it) tool. Everybody knows what debt is but only small percentage know how to use it properly and make it powerful tool. Many people borrow money from banks paying interest. Most trades use leverage- basically it is debt. What is really difficult to understand for me is what people think about debt and borowing money. For most people I know is okay to borrow money for buying a car but to dangerous to buy stock shares. When I buy shares (or...
i'm on the same page can't wait for your next posts
  • #11
  • Edited 8:56pm Nov 7, 2014 5:52pm | Edited 8:56pm
Quoting ProsteJa
I'll talk about two sides of the equation - revenues and expenses.
Perhaps you belong in the US Equities, or "Balance Sheet" or maybe even "Income statement" side of the forums...

Forex Factory is a place for TRADERS. Not investors. There MAY be some investors here at this place, but they are, in my opinion, the minority.

If you want to talk "real" investing, I personally think this thread should be moved to another section, the "rookie" section.

Here's a fact for you: Currencies don't report to any governing agency, they are not "regulated" by the SEC, BoE, FSA, or anything like that. They are not obligated to report income statements or balance sheets or any of that crap for that matter. And if I got the name wrong, my apologies, it has been a few years since I've studied the stuff...
Please check out my blog at https://from-zero-to-hero . net
  • #12
  • Nov 8, 2014 1:41am Nov 8, 2014 1:41am
Quoting smash1820
{quote} Perhaps you belong in the US Equities, or "Balance Sheet" or maybe even "Income statement" side of the forums... Forex Factory is a place for TRADERS. Not investors. There MAY be some investors here at this place, but they are, in my opinion, the minority. If you want to talk "real" investing, I personally think this thread should be moved to another section, the "rookie" section. Here's a fact for you: Currencies don't report to any governing agency, they are not "regulated" by the SEC, BoE, FSA, or anything like that. They are not obligated...
Hi Smash,

I'm trader. Now I use EAs more than discretion trading but I'm still trader. I'd rather talk about general stuff that can show you real part of this business. I've spent years and years thinking that trading is easy money. And it is NOT at all. It is possible to make nice money in the forex (or whatever financial market) and there is some stuff nobody talks about.

It most cases, it is the basic stuff where you need only common sense but it must be shown people. We all know about it but don't use it because we hadn't seen it could be used.

I'll talk about trading later on as well. But first I'd like to show those principles that can support your trading. For example, how to fund your account when you don't have enough nest-egg. I started to trade with 100 EUR and I wasn't able to fund my account to make some money. I think everybody will experience some difficulties funding trading account. Imagine that I'm able to save only 200-300 EUR monthly. How long it would take to fund 50k? Too much. But there are ways how to speed it up. It is not convenient for all, of course. But it is possible.

And this is the stuff (and other I consider interesting) I want to show other people. I'm not interesting in showing others how supports and resistances work, when to open a trade, when to close it, how to optimize it and so on. There is a lot of good stuff in the forum about those topics.

If it should be moved it can be moved...

Adam
Lose small, win BIG
  • #13
  • Nov 8, 2014 1:44am Nov 8, 2014 1:44am
Quoting vladutz112
{quote} i'm on the same page can't wait for your next posts
Hi Vladutz,

If you'd like to share something please feel free to do it. Every thought is welcomed in this thread

Enjoy your weekend.
Lose small, win BIG
  • #14
  • Nov 8, 2014 2:23am Nov 8, 2014 2:23am
In my country i saw some people living with half a dollar per day in there most best days they spend one dollar
So that is 30 $ per month if they lived best all month they live in new buildings for free gaurding it with little money as 30$ per month for anew house orba building so they already made there living from sleeping good passive income
The family man works dailly and makes about five dollar dailly it is all his money he buy cigartebgoncinema buy drink foor one dollar or one and a half h keep three dollars to his otyher family expenses
With a country like this why risking trading this market and loosing thousands i rather keep my money life is soncheap we just dont apperciate it or all good people behind that we move by our greed to haveba ferrari 80% of drivers can not drive or know to drive some owners too
The bottom here forex is a very risky market as the first step is that you lose your money you send it to broker
Making a living from it is not acceptable as it is not garanted in safty and profit
So better to find a country like my country
All have a nice day
focus while relaxed to see better
  • #15
  • Nov 8, 2014 2:28am Nov 8, 2014 2:28am
Quoting orabi
In my country i saw some people living with half a dollar per day in there most best days they spend one dollar So that is 30 $ per month if they lived best all month they live in new buildings for free gaurding it with little money as 30$ per month for anew house orba building so they already made there living from sleeping good passive income The family man works dailly and makes about five dollar dailly it is all his money he buy cigartebgoncinema buy drink foor one dollar or one and a half h keep three dollars to his otyher family expenses...

Good point mate. Thank you.
Lose small, win BIG
  • #16
  • Nov 8, 2014 2:59am Nov 8, 2014 2:59am
Greetings from Dubai.

500€ is nothing - not even rent of your house. At least (for studio flat) you need 1000€. And this is for the areas not expensive.
  • #17
  • Nov 8, 2014 6:46am Nov 8, 2014 6:46am
Quoting hammadshahir
Greetings from Dubai. 500€ is nothing - not even rent of your house. At least (for studio flat) you need 1000€. And this is for the areas not expensive.
Here where I live it is enough 500eur per month with all expenses included. But it really depends on your locality. I used to live in different countries and costs were very different. As I mentioned above, to live, for expamle, in Spain (close to Tarragona) I would need around 1.500€ to have the same life quality as here I have for 400€ and all services are on the same level. Only weather differs so much
Lose small, win BIG
  • #18
  • Nov 9, 2014 3:23am Nov 9, 2014 3:23am
Quoting Unabletrader
To make 300-500€ monthly can be really easy and believe me that 500€ can be a lot when you live in cheap country. For you living in Czech republic (I live there) can make living So 500E/monthly is enough to live in Czech Republic?
Yes,300-500€ enough. but some times it really hard to make that. still i am doing struggle to make that amount
  • #19
  • Nov 9, 2014 6:12am Nov 9, 2014 6:12am
Back to the debt or how banks make money and you can as well.


In advance, I'm really sorry for such a simplyfying of the subject but I want you to realize how money can be made. Imagine you have 1.000$ and you lend it with 10% interest. In one year you get 110$. Pretty simple, right? How much do you make if you lend 100.000$? It is 10.000$. It's nice money, isn't it?

But I don't have so much money. How I can do it? Do you know?

This is basically how banks make money. It's very simplyfied (so so much simplyfied). They borrow money from central bank let's say for 0.25% and then lend it to you for 2.5%. If you borrow 10.000$ they make 2.25%. It is 225$. You still can continue in this chain. You can borrow money from bank for 2.5% and if you are able to make let's say 100% you will make 97.5%. It is 9.750$. There is a risk you should be able to pay. For example, monthly payments to bank and then you can pay the rest money from your profit.

Is there any risk? Of course, there is a risk. You should be able to calculate whether it's worth it.

Find the ways how to do it!

Keep in mind it is risky and you should take this risk only when you are pretty sure it is for you and you are able to pay it and it doesn't affect your financial situation negatively.

Good luck
Lose small, win BIG
  • #20
  • Nov 9, 2014 8:32am Nov 9, 2014 8:32am
Quoting ProsteJa
Hi Smash, I'm trader. Now I use EAs more than discretion trading but I'm still trader. I'd rather talk about general stuff that can show you real part of this business. I've spent years and years thinking that trading is easy money. And it is NOT at all. It is possible to make nice money in the forex (or whatever financial market) and there is some stuff nobody talks about. It most cases, it is the basic stuff where you need only common sense but it must be shown people. We all know about it but don't use it because we hadn't seen it could...
No problem Prosteja. I'm sorry if I came across as rude or harsh, because that was not my intent.

Personally, I can't stand to look at balance sheets, income statements, blah, blah, blah, or any of that crap

All I need is a few good-looking charts, and I'm off to the races...

Anyways, I won't judge anymore... I'll let the admins decide what to do with this one! I imagine they will keep it right here.

I suppose it would also be interesting to see your thoughts about ways to "accelerate" your bankroll.
Please check out my blog at https://from-zero-to-hero . net
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