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My "How To" Article

I get asked a lot of questions about investing in the Monetary Market, and I'm writing this article to try and clear up some of the more common misconceptions about eInvesting, or as I suppose it should be properly called, eSpeculation.

My personal investment strategy is just one of many different ways to invest. I'm not really going to get into other investing methods, as I have my own problems with each of them. So, please don't troll me with "this way is better" comments, I'm good at what I do, I'm sure you're good at your method.

My method is based entirely on the value of a currency when it is selling for gold. As in the offer you must have gold to buy with. The one that looks like:

ImaeRepplayer-der ---- 100 PLN ---- 1 PLN = 0.02 Gold

If I write this article like I think people are idiots, sorry, it's not meant to sound that way, I just want to make sure we're clear on everything.

In Theory

The theory is simple, buy low & sell high. Find a currency that you think you can sell back at a higher price, buy it, then post an offer of that currency going for a higher rate than what you bought it at.

In practice, you need to remember a few things more than this in order to not get stuck with some worthless currency.

Do This!

The most helpful thing you can do for yourself is get to know about what a currency is usually worth. I cannot stress how stupid you will feel for buying BAM @ 0.03. You should know before you buy it that it tends to sit around 0.021 - 0.022. I don't care that there are 5 offers above it going for 0.04 and 0.05, run away!

Invest in several different currencies. Do not, for the love of God, put all your money in the nice shiny ultra low CZK going at 0.007 because you saw it yesterday at 0.008. You don't know for sure that it's going to come back up, or even if your offer will get bought. Maybe it will take 2 weeks to get back to 0.008. Who knows these things? I could condone it if you bought some though. (This is an example BTW before someone goes looking for this CZK.)

Make yourself a spreadsheet so you can track all this. It really blows when you get ready to post an offer and you can't remember if you're posting it higher or lower than what you bought it at. Besides, wouldn't you like to know how much you made off of a sale? docs.google.com will hook you up with a spreadsheet if you don't have Excel.

If you want to know if something is going to keep rising, or keep dropping, then keep watching it. If you see that 5 minutes ago there was a lot more ITL up there, then buy some yourself, maybe it's going to go up more. If you see 10,000 of something going at 0.01 across 20 offers, don't think that it's going to go up too fast.

Pay some attention to the media. If the Latvian Government is spamming multiple countries to sell 70,000 LVL, don't expect this to rise. Poor Latvians, I can't believe they did this to the LVL.... I understand you need gold to run a country, but you're also going to need it in the future, so please try to pick the LVL up off the floor, dust it off, and get it back up there with the LTL and EEK.

If you can't sell something, and it's been like, a week or so, don't despair. It's ok to sell for a loss. You really should at least be able to break even, but if you have to sell for a loss, then ok, don't sweat it. This is why you didn't put half your gold in this currency. You'll feel much better after freeing up the gold that was locked up in that so that you can move on to future profit.

Think about the consequences of regions getting taken over. If you see that Turkey just lost a region or two to Greece, then expect that the TRY is going to go down, and the GRD is going to go up. This is why:
All of the people that decide to stay in those regions, and all of the companies in those regions, are not going to need TRY anymore. What are they going to do with all that TRY? Sell it for Gold. Hence the price drop from everyday people wanting to get rid of their TRY fast.
All of those same people and companies are now going to need GRD. So, we see a lot of GRD get bought up.
This is what just happened to the Romania and Hungary.

Be Realistic

Don't think this doesn't take time and patience. Because it takes lots. And don't expect to make huge amounts of gold off of every sale. Aim to make 0.1 gold profit from each sale, which translates into selling 100 of w/e for 0.001 more than you bought it. If you can trade a larger amount for gold (as in more than 100), or if you can sell it for higher than 0.001 more (as in bought at 0.008, sold for 0.01) then you can make this number a lot bigger. The real key here is to do 20 or 30 of these transactions in a week. Small transactions equal fast sales, and a more fluid market for everyone. Ever see someone put up an offer of 5000 of something, blocking that currency up for a week or more? Those guys are assholes. Don't be like them.

If you really want to set goals for yourself:

http://www.erepublik.com/en/article/nwc-trading-report-week-ending-543-802001/1/20

Again, I'm Not Trying To Talk To You Like You're An Idiot

If anyone manages to come up with some interesting questions about specific techniques, I'll help you out, but not on the comments. PM me.

I like to help people with their problems, so even if you still have a question that you think is stupid, I don't mind answering it, sometimes you just have to explain things in a different way to get it across to some people, and I understand that.

If 5 people benefit from this article, I'll be happy. Good luck eInvestors, and Happy Trading

- Enoch Root