The ABC of Getting Rich - 1/4: Monetary Market - How to Make Profit? - Part 2/2

Day 719, 10:45 Published in USA South Korea by Master Of Brutality

This article is a part of "The ABC of Getting Rich" article series. The articles published so far:

1/4 Monetary Market - Part 1/2

The currencies of the world
Some of the currencies in the world are very stable, while some fluctuate a lot. You can do profits with practically every currency, but you should stay vigilant. It's a good practice to follow the currencies a couple of days before buying them, just to get acquainted. First buy currencies you're familiar with, then move on to more exotic ones. It may not be a good idea to buy currencies of very small nations, because there most likely aren't very many buyers around and your money may be "stuck" for a long time. Also, in very large countries, it may take a few days for the offers to be sold due to the sheer amounts of money. Here are a couple of examples of different currencies at the time of writing:

The US Dollar is rather stable, and a lot of people buy them on a daily basis. The bad thing with this currency is that the exchange marginal is miniscule. At the moment 1 gold = 40.27 USD and 1 USD = 0.025 gold. In other words, with one gold you'll be able to get 0.27 USD, so 0.00675g. Not a lot.
The Canadian Dollar, is a bit more "useful": 1 gold = 33.97 CAD and 1 CAD = 0.03 gold. Because 1 gold / 0.03 gold/CAD = 33.33 CAD, the exchange marginal becomes 33.97 CAD - 33.33 CAD = 0.64 CAD, which equals to 0.02g. So three times more than with USD. But as evidenced with the Japanese Yen example in the previous article, you can do a lot more.
The Pakistan Rupee has the rate of 1 gold = 71.99 PKR and 1 PKR = 0.017 gold. The exchange marginal is huge: 71.99 PKR*0.017 gold/PKR = 1.22 gold! So with one gold, you'd be able to get 0.22g. But first you need to ask yourself this: who of the 236 players in Pakistan would buy your offer? My gut instinct would be that there aren't that many willing, so don't waste your money. A much better way of working in the Pakistani currency market is if you manage to get your offer sold at e.g. 1g = 66 PKR, and then putting it for sale at the rate 0.016. That way you'd increase your chances of getting your offers sold and make 0.056g in the process.

Which one should I choose?

With a stable currency, you'll most likely end up with profit. However, it's not very probable you'll get larger winnings. An experienced monetary market invester knows which currencies fluctuate, by how much and where they're heading. That way they can buy them when they're cheap and sell when they're expensive.


Practical advice
-Currency exchange is a useful way of making small amounts of gold a day and it doesn't require a lot of time. If you check your offer a couple of times a day, you'll probably do fine.
-Often your competition lower their exchange rates by 0.001, so that their offer gets sold first. There's not much you can do about it - you can join the race and lower your offer if you have the time, or wait if your offer gets sold at a later time with a better rate.
-You can buy cheaper offers from the market yourself, and put them for sale at a more expensive price. However, be careful. Sometimes people do mistakes and they e.g. have the offer 1 gold = 0.025 USD, even though the intention was completely opposite. Buy those offers away before someone else does. If you want to make a friend, return the gold to him - he'll be very happy, trust me. You should always have small amounts of different currencies ready for these opportunities.
-Don't compete with national banks. The banks always have more money than you do (apart from a few players, but they probably don't need this guide), so you'll very likely end up losing if you try to buy the offer away from the monetary market. The country just happily adds more money to the market.
-Spread your investments, so that a sudden and unforeseeable market crash won't eat your whole fortune. Never invest more than you can afford to lose. Never invest with loaned funds.
-Try to keep a lot of how much you've sold and at which price. When the markets change, this helps you to avoid losses.

Welcome, prosperity!

Working the monetary market helps the economy
When you buy and sell currencies and someone buys your offer, you help the buyer. Otherwise he would've had to buy from someone else with a higher price. The more people there are in the currency exchange, the easier time companies have in getting the currencies they want. In other words, both win. You get paid for putting your money on the market for a while, the buyer gets the currency he wants at a better rate.


You may not be able to get big bucks with the currency exchange, but it's mostly a safe form of business. When you get more capital, your profits increase as well since you invest larger amounts. At first your capital may increase a bit slow, but when you get more money, so do your profits. Investing in the monetary markets is worth doing practically as long as you want - you'll eventually get bored of it. Then it may be time to move on to the options introduced in the next articles of the series "The ABC of Getting Rich". Until then!