Andres "Andy" Pedraza
Just discovered Steem and very excited to be here. I figured I would post an introduction, as everyone else seems to be doing. Future posts will be related to one of a very few subjects that really interest or intrigue me, and I'll try to be active in commenting intelligently (as best I can) to others' posts and replies.
Background
I started out as a Computer Science major, and aside from a very successful 5-year freelancing stint building applications back in the day when companies were just starting their first forays into Information Systems, I have been employed continuously by Fortune 500 companies in one capacity or another. I was in the right place at the right time to leapfrog into higher and higher management positions within Corporate IT, eventually ending up in the IT Outsourcing business for one of the major players. Besides being well paid, it gave me exposure to several different industries as I was assigned ownership of them as clients. I've had high level roles at New York Stock Exchange, Euronext and Fannie Mae, among others. Close to 10 years ago, when the economy started showing signs of a huge bubble, and the 2008 crash looked more and more inevitable, I started exploring options to diversify my sources of income. I've done my share of Internet Marketing, Dropshipping, Fulfillment By Amazon, and a few other online ventures. They were, for the most, quite successful, but never (yet) to the point of fully replacing the very nice salary I was receiving.
Throughout the years, I first dabbled, and then more consistently operated, in different sorts of trading. Back in the late 90s, before the Internet and Telecom Bubble burst, it was extremely easy to make money trading stocks. The formula consisted of buying just about any new tech stock, preferably one no one even understood what they were supposed to be doing, hold it for 2-3 months, and sell it at 10 times what you paid for it. Those boom times never last, and 2000 came with a vengeance, but while they last, it's about the easiest way to make money possible. Good luck seeing this again within our lifetime.
Serious Trading
After my initial forays, and seeing as stock trading seemed to be dead, I started to really educate myself on trading. I quickly discovered options, commodities, futures and other derivatives. The beauty of these is that an educated trader can make good money regardless of whether the market is going up, down or sideways. The other beauty of derivatives is something called margin. As opposed to stock trading, where if I want to control (buy) $10,000 worth of shares I have to have $10,000 in my account to trade with. With a derivative like options, I can control the same $10,000 in shares with maybe just $1,000 of money in my account. That multiples my profit exponentially at the same time as it reduces my risk in the trade. That one realization made all the difference. It is one of the few real epiphanies I have had in my life.
Once I discovered foreign exchange trading (Forex), I was able to again exponentially increase my profit and minimize my risk. The margin on the Forex Market allows me to control $10,000 worth of currency with anywhere between $160 and $450. I can consistently double my money in very short periods of time with minimal risk. Now, it's all based on knowledge, education, risk management, attitude and a bunch of other things. I arrived here after years of trading and working at institutions whose business was trading. It's not something you can wake up one day, put $160 on a random trade, and come out with $500. But if you educate yourself, and it doesn't take long, it's not a difficult thing to do.
It allowed me the freedom of not worrying about the next round of layoffs, or the next downturn in the economy, or even who gets elected come November. And that, my friends, is true Freedom.
As you can see, Trading, Freedom, Options and the Forex Market are among my passions. Living a good life and having fun, are also high on the list. It's not the money, it's what the money allows you to do. In particular, I love traveling to exotic places without having to worry about the cost. It's a lifechanger.
What to Expect from Me
I will be posting things relevant to the interests I mention above, as well as the odd bit of business advice. For example, once you become successful, how do you protect your wealth? Hint: It can't be based on keeping cash in the bank. Cash isn't really worth anything. Cash is a symbol, and is worth whatever the government and or the market say it is worth. Many countries, formerly rich ones (Venezuela) have awoken one fine day to find that their strong currency is now worthless, they don't have enough to buy a loaf of bread even if they dig into the Savings Account, and there's no bread to be had at the stores, anyway. Don't let that happen to you.
Warren Buffett once famously said:
Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.
So educate yourselves. Be the one in the Rolls Royce. And stop listening to the people taking the subway. I'll do my best to help here on Steem. Own your future! And thanks for reading...
Looking forward to having you on steemit, @andyfx . Would you do everyone a favor and post a "verification" post? Picture, timestamp, etc.
Where do you primarily trade? Would love to hear more about your trading strategies & how you truly minimize risk.
Will this do?
Disclaimer: I am just a bot trying to be helpful.
I think that is acceptable.
I trade with FXCM. They are based out of NYC. Most well known brokers allow you to trade Forex, including eTrade, ThinkorSwim, and all the other major players. FXCM is for US-based folks. IG is a very reputable European one. Ultimately, picking a broker is key in that you need to pick a reputable one. Terms and conditions are pretty homogeneous. But don't pick a broker no one's heard of, even if they offer you exceptionally low trading costs. They might not be there tomorrow, and neither will your money. I'll answer the other questions soon, in a later post. Thanks for taking the time!
Hey Andy, I for one am glad you're here and will be looking forward to the information you share in the future. Cheers!
Glad to have you as a reader! And I posted a new entry into my embryonic Forex space this morning. Have you checked it out yet? It is at https://steemit.com/forex-trading/@andyfx/trading-the-forex-market-part-1
Welcome to Steemit. I would love to hear more of your ideas on trading and money.
Thank you! And you will, promise. I'll be adding to this constantly in two different ways: One will be general theory and application, as in giving folks the basic concepts and strategies that will allow them to be successful with as little pain (losses) as possible during the learning period. Second will be actionable trades; as I see opportunities in the market, and I place trades for myself, I will explain what I am doing and why. I'll also make sure I post a nice disclaimer when I do that, as in I am not responsible for losses, and all trading involves a certain amount of risk, and bla bla bla. :)
To the people who print out the cash (Fed Reserve...which is neither fed or has a reserve), it's not worth anything...but, to the people who have to slave away for it...it sure is. ;)
Well, here's the thing. Any fiat currency is more a symbol than an actual thing. Fiat currency is money that is printed at will, with nothing to back it other than the government's promise, plus the theoretical concept that it represents the productivity of a country and that's what you are accepting when you take a dollar bill in exchange for a service or a product. Around 60-70 years ago, currencies were actually backed by gold, silver or some other item of intrinsic value. So for every dollar that was printed and put in circulation, there was a corresponding chunk of gold or silver stored away some place like Fort Knox. Nixon fully removed that, and the US's currency became a piece of paper backed by nothing else than the government's policy to make good on that debt, plus the willing acceptance of most of the rest of the world into that illusion. So it is worth something to you when you earn it, and to anyone else when you use it to purchase something. But what you can purchase with it fluctuates constantly. And could go down to zero very easily if there is a collapse of the government or any significant unrest. So it's not really money, it's government debt. As opposed to an equivalent amount of gold, which has been accepted as money for most of known history on account of its scarcity and, I guess, how amazing it looks. If you had converted all your dollars into gold the day before Nixon took us off the standard, and held on to that gold, you'd be holding on to an insane amount of dollars today. Whereas if you held on to the actual dollars in paper currency, you wouldn't have much to show for it, and in fact, you would have lost most of the money since the purchasing power of $100 today is a pittance compared to those same $100 back when they were still backed by gold.
Definitely looking forward to learning from you. This one statement alone had my attention: "For example, once you become successful, how do you protect your wealth? Hint: It can't be based on keeping cash in the bank. Cash isn't really worth anything. Cash is a symbol, and is worth whatever the government and or the market say it is worth. "
Let's hear it! thanks
Thanks! I'll be looking at all the comments and hope to get many ideas for future posts based on what people want to know. Really appreciate the quick and awesome feedback!