Helmut Schmidhofer
 To be a banker would bore me.
To be an industrialist would stress me.
I have been a professional engineer and a futures broker,
however...
SPECULATOR - that's what I am!
A speculator is a person who is willing to take huge risks to make huge gains. There are many markets in which this philosophy can be practised, but two stand out:
1. commodity futures trading; and
2. foreign exchange trading (forex).
Why do they stand out? Because the LEVERAGE is unprecedented compared
with any other market.
What is leverage? Getting the biggest return for the least commitment.
Deposits so small that you either win many times the deposit, or go
bust!
So how do you WIN? By realizing there are millions of opponents
who also try to win.
Some of your opponents are highly paid professionals who MUST make money
for their employers.
They know every trick in the book, and more.
Unbelievably, you can beat them easily.
Look into the history of Barings Bank, the Queen's banker. Founded in
1762, it got wiped out in 1995 by its professional, Nick Leeson, who traded up a loss of
£827 million ($1.4 billion). That loss was yours to win because speculation
is a zero game - whatever someone loses, someone else has to win, less a bit
of commission or spread taken by the middlemen.
Or more recently, on 20 January 2008, Jerome Kerviel was hauled before his bosses
at Societe Generale SA to explain his trading positions, which caused losses of
€4.8 billion ($7.9 billion), by placing more than €50 billion ($82.2 billion)
in unauthorised futures trades.
But these are isolated cases. Generally, professionals simply try
to square their order book, locking in arbitrage profits. They don't care
what you, their opponent, is doing. More than that, they appreciate your
trade because without it they may not be able to square their book.
Should you become a speculator? Take stock of yourself and your assets.
If you are easily scared, don't. If you have risk capital and enjoy the
thrill of winning, do.
I have speculated in real estate and traded in futures from bank bills to pork bellies.
How is this for gearing - the face value of a bank bill is $500,000, which you could buy
or sell with a deposit of $500!
My advice - know what most know and anticipate your opponents' moves.
Then - know what few know, and follow the signals! Simple? Yes and no.
Simple if you are willing to learn what "most know". Simple if you are
willing to follow your hunch when the crowd is doing the opposite!
This site will try to teach you what most traders know. It will also
teach you how to read signals based on a little-known method of predicting
price movements, called SCHM for Spaced
Centred Harmonic Means.
The method is effective in all markets that are subject to cyclical
price movements. It is profitable with stocks and shares, bills and
bonds, deliverable and non-deliverable futures, and currencies.
The method is untested in CFDs (Contracts for Difference) but I suspect
it will be equally as effective.
Proceed to invest or speculate
|
