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forex trading

  1. For all the investment chat on this site, one key area that seems to have escaped most punters is that of exploiting forex movements.

    In themselves, they have probably created as bigger losses on wall street for the aussie/kiwi investor as has the drop in actual share prices.

    Almost single handledly they are driving the movements in gold.

    And if anyone was serious about a low risk approach to investment, they could always attempt to do what I've done - borrow in US, and invest it in high yeilding commercial property (or bonds or whatever).

    The trick is (he say's optimistically) to be able to swap out any USD (or other currecncy debt) quickly into another vehcile i.e. AUD debt at the right moment, and this can be done by having floating loan or FX overdraft.

    But it's not rocket science. A window of about 6 months and a focus on the fundamentals is most of what's needed.

    But even just trading currencies has to be a better bet than trading equities. I mean countries are somewhat more stable in terms of rouge directors, poor disclosure, mis-reporting, insider trading, market beat-ups etc. And they don't go doing 10 for 1 swaps and or issueing millions more shares at the drop of a hat. (they just print more money :).

    Of course, it's not all squeaky clean, but the approaches to technical analysis theoretically apply equally well to currencies as they do to equities, and studying the fundamentals is arguably even simpler - i.e. trading surpluses, GDP, interest rates, inflation, population movements, taxation regimes, stability of governments etc.

    Just my thoughts. I'm happy with trading in a 6 month window and following countries rather than equities, and my only trouble is in convincing local banks to lend to me in foreign currencies.

    (Any US investors out there want to invest in kiwi commercial property using local expertise?)

    sigh.

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