My friend made a killing the last 2 month trading options using fundamentals and more crazy profits planned in the next month with all these institutions failing. He has made just over 100% (10k to 20k). He used a combo of news and technical analysis.
For people that trade forex and options, is fundamental trading better with options?
He won’t know what to do once the market
picks up again. People like your friend will
suffer when the economy does well again.
That sounds interesting, so how did he manage to bag this good amount of pips, equivalent to between $10k and �20 k. (quite a big margin) what was the analysis? I�m fascinated by fundamental analyses and would like to have the chance to receive and comprehend the things, ideas, materials etc, that led you to do such a good business
Here’s a link to more information on FX Options:
Getting Started In Forex Options
Sounds like your friend caught the good side of one of the biggest moves in market history. Give him my congratulations, but he should be cautious from this point out as this financial crisis is a once in a lifetime event, which may not be over yet, but in normal trading conditions profits like that are not sustainable without risk of blowing out.
I trade options as well, but not on FX. There are very few retail brokers that offer FX options and those markets are very small and illiquid. The spread will kill you and getting in and out of a trade isn’t as easy on spot FX. The International Stock Exchange and Philadelphia Stock Exchange offers FX Options now, which is great because they are regulated, but it’s new and the market is still small, so same problems of liquidity and spreads.
The OTC FX Options market and options on FX futures contracts on the CME is pretty liquid, but access for retail players is difficult and the margin is high so be ready to bring big money to the table. In my opinion though, if you’re gonna trade currencies, Spot is the best way to go because of the spreads and superior liquidity, and for me I would only consider using fx options for hedging purposes only. Since I’m a speculator I don’t use’em… 
My opinion may change down the road if the market gets bigger on ISE or PHLX, but for now I love spot FX!
Sorry, ended up blabbing away.
A great thing about stock options is that they let you profit in any market. You can profit when prices are going up–and when prices are going down. Even in a volatile market, options let you ride the up-and-down roller coaster to your advantage."Investment without risk does not exist"
when you combine the explosive profit potential with the safety of �controlled risk� where, unlike most leverage instruments, you can never lose more money than you put up…
I�d like to say I consider myself a fundamentalist, I mean, I�m really into fundamental trading, although I also consider really important to combine with some or a lot of technical analysis, because as JohnyFX says, what happens then when everything is �back to normal�?
That my friend is the best way to do it. Why not to use both resources if you have them?
Yeah! I�ve found in the combination of both technical and fundamental analysis the best way to do it, I can try to interpret what my graphics are saying but I also follow up on the news and try to read the forecasts to see if all these matches and then make the best decision.
I know a little about forex and I opened my demo account some days ago, but seeing this lines going up or down I ask myself for the correct moment to get in, it�s kind of difficult more if you try to combine the news, the technical and the fear. Getting really fundamental or technical may take huge efforts
Yes, you�re right and also we can say doing all these you could earn a lot! Everything about fundamental and technical is in the web with a click you get it. Soon you will define yourself as a fundamentalist or any other denomination and have more credibility
I�m using these times of uncertainty in the market to my own benefit I like to think, we all Forex Trainees have an amazing opportunity here, as I�ve been speaking with some friends that know the subject well. This is the best time for us to get involved in the analysis of the markets, what�s going on, also go technical which will not be that accurate probably, but we�ll get a lot of experience in a short time due to the huge amount of events affecting the market which is not that usual, I�m speaking about the events in the world and also about the events that are reflected in the trading platforms, you�ll see a lot of things which in a regular market I guess you�ll have to wait longer.
Thank you for your words. I went to the web to see about fundamental and technical analysis. There are news everywhere but I�m interested to know about the world, economic world. I didn�t realize our economy could affect so much other countries, isn�t that weird? How can we affect people for example in Tokyo? Anyway, what�s the name of this man who talks about the interest rates every week? Here at US. Thanks that�s for my fundamental training.
Hey!!! Obama has shocked the economic world, yesterday it was calm but now, incredible�very good time to study fundamentals.
Let me ask about the guy of the interest rates, do you know him?
One of the most important news is the interest rates that central banks define as a reference to local banks. Now, a little investigation took me to find that Ben Bernanke as replace of Alan Greenspan took the leadership of the FED and as I understand any report that might give this person has the power to affect not only the American economy but the whole world economy. When announced the fall or rise in interest rates caused the fall or rise in the USD. However, it is important to note that the decline in rates expected boost growth in the economy, but the fall of USD directly affects the people which import merchandise because they receive less money for their operations with other countries. This is certainly not a contradiction? Or the situation is the opposite? If we expect the economy rise and when the price of other countries stuff go up the inflation goes up also and that doesn�t affect the economy?
Nice information, now do you think that Bush’s new election might have drastic changes, I mean, could this new leader’s decisions have a positive impact on our economy. I look forward to this. By the way I just read a little bit about this news, do you know of somewhere else where I can get detailed information about the subject?
Let me tell you that I�m out of the states and out here we all thought that the new President elect was Barack Obama, I didn�t even hear about Bush being a candidate again. LOL.
About the question which I guess you meant Obama, every president’s decision is going to have an impact on the economy, and USA’s influence most of the world’s economies, let’s hope he’s got good advisors in the matter.
My bad dear jejejeje yes I meant my dear Obama. I just hope that our new president is able to make some good moves and fix america�s bad image and financial crisis, of course there are a lot of other issues, like social and political. This guys seems to know its way, I really think he’s going to start with the change.
Well, �Change we need� was his chant of battle, let�s hope change comes, as we know they promise a lot to get there. I�m not against Obama at all, I voted him indeed, is just that now I�m seeing things out of the heat, and he�s not gonna find it easy.
Probably Obama�s election is not the answer everybody is looking for as a way out on the crisis. However it seems he will represent a lot of benefits when it comes to political communications with some other countries that may minimize the impact on this financial havoc.
This election is giving all of us many expectations but he can�t turn over this situation in just one moment. The way he starts could show up some of the next movement in the economy and also the �conversations� with other countries. Re-establish the confidence in the currencies is a matter of all governments not only in US.