Inflation Saga
LESSON #3: Inflation Saga
Inflation is the worst form of TAX. I call it TAX because the Gov. prints money instead of increasing the TAX to avoid losing popularity - political agendas, funny right?
Central banks change the basket of inflation goods often to show as least as possible. US gov. says inflation is around 7% now but actual inflation with the old basket is around 19% now.. many who claim to know inflation, don’t even know the oldest trick in the book.
I'm demonstrating an average 15% a year and it makes a $100,000 income of yours into $14,765.58 after tax or the stuff you can buy with $14,765.58 now, you will have to spend $75,000 10 years later.
You can't save your ass with debt base assets no matter what. Only Crypto can save you. Gold looks like shi* comparing Bitcoin
If you want to hold the money for your old age you don't have an option but Bitcoin (or a rock-solid Crypto).
You’re in someone else’s game, and you’re not supposed to win. I try to help, but can’t help you all. 🧙🏾♂️
Gold & Inflation
LESSON #2: Gold & Inflation
Gold responds to month-to-month inflation data but on average it does not change much with inflation. You do not buy Gold and use Gold because your local currency is down by 10%.
The primary reason, there is a huge gap/spread between buying and selling spot gold. Spread is around 30-40% . You will always pay 10-15% more from the market price for spot gold and brokers will pay you 15-20% less and when you sell Gold you + you need pay taxes and even capital gain taxes. So using Gold is not practical in any regular trouble time.
However, if there is a risk of collapse of the economy where people can lose 100% value, such as in Iran or Turkey, people use Gold as currency as everybody recognizes Gold's store of value. Gold is only good when there is a total collapse. Gold will be volatile and will have upside pressure in a bad economy for sure but the inflation rate usually doesn't matter that much.
Gold is also highly undervalued by manipulation. We never got out from the Gold standard in the real world but on papers. Countries still see how their economy is priced in comparison with Gold prices. So how do you add more currency to the system without drawing any attention and claim your economy is doing well? The answer is simple, you add shi* tons of currency to the system and control Gold price, everybody will think your economy is doing great. But when the tide is gone you will see who is naked!
Gold cannot save you from inflation, it will help you when there is a collapse but your Gov. will definitely take it away from you, they’ve always done that throughout history. Even the US took all the gold owned by the public and made it illegal to own gold when they messed up last time.
Dollar & Inflation
LESSON #1: Dollar & Inflation
DXY has a very minimal relation with inflation in the long run, so does the gold.
Dollar is a global fiat currency, all international loans and business is transacted in Dollar.
During the sudden shutdown in 2020, everybody panicked and sold their stocks & other assets, in doing so buying dollar by selling that asset. So all of a sudden the market saw a shortage of dollars and thus dollar-prices spiked up. Multinational corporations and countries also had to force buy dollars as they needed extra money to fight Covid and avoid losses in their local currencies. Govs. needed to buy as much dollar as possible so they didn’t have to pay way more later to pay off their loans.
All of that happened very quickly so the FED had no choice but to print trillions of dollars in order to solve the liquidity problem. Getting your currencies stronger too quickly causes deflationary risk as well.
Once the FED added liquidity, the dollar price normalized and also too much printing pushed it down as well. However, other nations printed 5X more of their local currencies than the FED (e.g Canada).
Putting this into perspective, the dollar is shi* and it is designed to go to zero in 60-90 years time. But other currencies are 5 times worse. So dollar price will increase against other fiat currencies but against property and non-inflation assets it is crushed.
Trading is risky, Beware of this before starting your trading career.
Trading is risky and profitable at the same time, so many people enter the market without understanding the market structure properly. you can lost all your money in trading and can go broke to the point of not being able to afford a meal for your self.
Many individuals join forex trading because of the lifestyle they see on other successful traders and because of this they feel they can become a millionaire within few days
Random trade without proper analisis is what most new traders are doing because they don't want to be Idol they just open a position without proper analisis.
WARNING: Risk Management is the key to financial freedom in trading. Don't risk what you can't afford to lose and don't trade the market if you don't have a good strategy
How to avoid scam shitcoins
In cryptocurrencies there's a lot of scam project beware of this. If you haven't fall victim to any Glory to God almighty for you. I'm writing this out of experience.
(1) Before you invest in any project firstly visit www.coinmarketcap.com
(2) WHO ARE THE FOUNDERS: In this process it simply means that you should look for the profile of the owners of the projects (WHO ARE THE FOUNDERS) look for the names of the PEOPLE involved in the project. After that go ahead make research about the founders and look out for the founders handles on social media if they are verified or not.
(3) WEBSITE: Look at the website if it's well organized like other top site's. most scam project they rush everything and you can spot out many errors on the site if you do find errors on the site it's a sign not to invest
(3)ROAD MAP: This is very important before Investing in any project look for the roadmap by visiting the WEBSITE.
(4) LOCK LIQUIDITY : DON'T invest without checking for the liquidity of the project.
why you should learn how to trade 👇👇
(1) not affected by pandemic like Corona virus
(2) you have no boss
(3) paid base in performance
(4) you can start small
(5) spend minimal time each day
(7) you can't get laid off
(8) you're the boss
(9) you can take days off whenever you want
Life changing knowledge
If you're new in trading i want you to know this keywords
(1). don't be in hurry to make profit
(2). trade in Demo till you master your strategy
(3). live below your expenses
(4). have a positive attitude
(5). whenever you took a lost don't trade for the day cause if you do you will end up losing more
(6).wake up 4am in the morning monitor the particular chart till you see a good set up before you open a position
(7). try as much as possible to protect your account from blowing best way to do this is by using minimum lotsize.
(8). trade not to compite with anyone
(9). consistency is the key successful traders didn't just get rich overnight it's a gradual process so give your self some months grow your trade account gently
BTC will topple to 30,000k$ This move is to usher new Investors in.
(1). NOTE. As you can see in the chat below the risk to reward ratio is what matters most, don't risk want you can not afford to lose.
(2).TO ENABLE NEW INVESTORS IN: the price will fall to approximately 30,000k$ this will reduce the buying price in exchanges and increase the price in USD
If you're not greedy you will be a consistent profitable trader.
(1). Always take profit 10 to 15 pips to hit your TP Target and watch the chat after taking profit.
(2). Don't trade during news event if you're not a professional trader. The spikes during news are always very huge it can blow small Accounts
(3). Use 0.01 in 50$ Account to 100$ Account. Use 0.02 in 200 $ Account use 0.03 in 300$ Account
(4). Don't be in hurry to make millions from the forex market
(5). don't open multiple positions
(6). Risk management is the key to success assume you don't have any more money if you blow up the account so do everything possible to keep the account save in other to achieve that goal use proper risk management, risk 20 pips to make 50 to 60 pips profit.
See you in blues
Start profiting forever when you set a goal
(1) Know that when ever you open a trade the market makers knowswhere we put stop loss
(2) You don't need to open multiple positions in your account if you're not a professional trader yet
(3) You need to set a goal rules for your self
e.g. to make 5$ everyday = $155 in a month etc. stick to one goal and don't increase your lot size till after 5 months of consistent profit.
(4) Use one strategy : Don't jump from one strategy to another stick to one profitable pattern don't trade till you see that setup
Don't quick
see you at the top 💯
Few things you need to know as a forex trader
(1) Whenever you profit take note on that chat take note of the setup
(2) how was the setup formed and don't trade until you see such setup. If you lost in a trade take note of what happened and don't trade such setup again
(3) don't open random trades
(4) don't trade Asian sessions
(5) always put your SL 15 pips risk little and TP 30 to 50 pips
(6) Don't aim too big you can't make millions over night with a small account
(7) close trade that's about to hit you're TP. Note when you profit someone is losses always take profit and look for another setup the next day
(8) don't open any position after making profit for the day close chat take a walk and trade the next day. Do this and see your trading life change. Since yesterday I haven't opened any more position I'm on EU till nextweek that will save my time and I won't be looking for entries on other pairs. I pray we all succeed and lastly open a live account. Live account helps you control your emotions I'll emphasis more about emotions so you don't close your trade when you're not supposed to.
@Vicefx
