You may be familiar with the idea buying and selling shares on the stock market to make a profit. The aim is to buy when prices are low and sell when prices are high. Did you know that you can also trade with foreign currency? I am currently keeping an eye on the exchange rate, to see if I can make a profit.
To get a feel of the market and to find out if currency exchange might work for me as an investment, I am going to pretend to trade. I have assigned myself a fictitious sum of money, and am us-ing an online currency converter to convert the money into another currency. Then, I simply check the exchange rate daily and record what the investment is worth. Over time, I will see if my investment is making a profit.
Another area I have been researching is historical exchange rates. It is easy to view these online to see recent highs and lows in the market. Once I complete my analysis, I am hoping to be able to identify trends, such as a time of year when exchange rates are normally high, so I can take ad-vantage of timing when I begin to trade.
While I may be lucky to gain some profit quite quickly, I know that it can sometimes take months or years to see a return on the initial investment. The Australian dollar exchange rate can be quite stable for months at a time, only fluctuating within a few cents. Before I trade, I will need to take any applicable fees into consideration to make sure I'm not losing money in the end.