Anyone trading FOREX?

[Guest Andrew]

Ollie and I both do it -

Anyone else interested in doing it - I have already lost a massive amount of coin trading on a large account - but have now moved onto a micro account.

Would be interested in sharing speculative investment tips on currency (so we can all benefit here)

I kind of have the hang of it now and Gross PL per day is at least 30%.

You can start a micro account for as little as $300 USD - FXCM.com

[Guest Andrew]

todays tip:

Bank of Japan hinting at rising interest rates - look to see NZ dollar yeild decrease and investors move out of the market - sell NZD/JPY

JPY up against USD and EUR also.

The NZD/USD is still hovering around the 0.66 mark and i'm unsure on what do do with it at this stage - high today so far is .6621 and low .6608

[bravo 34]

I know sh*t about currency. My wee investments (and I mean wee) are in managed funds (i.e managed share portfolio), mortgage backed funds, personal share portfolio, and commercial and residential rental property.

Would be keen to have a play on a virtual level until I get the hang of it and then maybe throw a grand at it.

Any virtual currency trading sites that are up to date with prices and work similar to the real thing?

but to answer the question - yes am interested.

Edited February 24, 2006 by bravomikewhiskey

[nz320i 0]

not an expert on investing but at the mo i am doing some, is this about buying money and selling with better exchange rates etc??

[Grant 4]

I have managed funds too. They have done ok over the last 3 years (after a period of them not doing so well).

My managed funds are really me E30 M3 funds, as this is what they are for when I go to the USA.

As far as forex is concerned, I am trading (gambling) on it at the moment and over the next 12 months or so (again, predicting a weakening $NZ against the $US). However this is more a form of saving $US prior to going over than a planned investment strategy.

Cheers

Grant

[E30stz 0]

Someone bought me $500 US shares in Eurodisney when I was born, they just went into liquidation I think it was, and they wouldnt give me my 25c worth of share pay out they said any sum that was below a certain mark would be donated to charity.. I dont know where I signed that away.

[Guest Andrew]

I know sh*t about currency. My wee investments (and I mean wee) are in managed funds (i.e managed share portfolio), mortgage backed funds, personal share portfolio, and commercial and residential rental property.

Would be keen to have a play on a virtual level until I get the hang of it and then maybe throw a grand at it.

Any virtual currency trading sites that are up to date with prices and work similar to the real thing?

but to answer the question - yes am interested.

fxcm.com lets you use the actual software on a mini account with $5000 USD starting. Real rates - real trading - to get a strategy happening.

I too have the majority of my money in a Westpac Managed Fund - the rest is in FOREX, NZX and some NASDAQ shares.

[318is 0]

I play with the Japanese Yen to NZD exchange rates.

Some good $$$$ to be made here if you do it right and have waiting power.

Dabbled in stock - made a little but no where as much as the Yen exchange.

I found the trick with stock is buy early and sell at IPO.... crazy prices to be had.

[Guest Andrew]

What are you using to trade 318is?

I'm pretty impressed with fxcm - they guarantee no slippage on limit/stop rates which is pretty handy in such a volatile market.

[318is 0]

What are you using to trade 318is?

I'm pretty impressed with fxcm - they guarantee no slippage on limit/stop rates which is pretty handy in such a volatile market.

Andrew:

I've been importing machinery ( heavy ) from Japan for a decade + now, and have been always watching for the 'right time' to send my NZD to buy said goods.

It makes a huge difference in buy price if you time it right, especially when you are talking JY 1000000 +

Answer to your question, I am my own broker. I trade myself, I have a 'shading account' with my bank as I buy a fair bit - which gives me a good discount on buying.

I keep that in an account earning interest ( in Yen ) and when I feel the time is right, exchange that into NZD'er.

Simple. No agent fees, no international fees etc etc. It's all good. Dosen't take much effort besides having the ching to start with and keeping an eye on the exchane rate.

Win win.

:bounce:

[Guest Spargo]

I have someone whom I see everyday at the bar. Word.

[shadowninja 0]

I would be tempted to put a big chunk of change on the USD/NZD. Most of the money market economists are expecting the NZD to depreciate by around 10% before the end of the calendar year.

Was thinking about putting $50-100K on it but will be in the middle of selling/buying a property & not sure how long I'll be holding a pile of additional debt in bridging finance (additional $650K mortgage borrowings @ cost of ~$5K per month intereest). If the house sells for a good price before the NZD drops below 0.640...

Not sure if I'd go for a direct purchase, or just buy options. At least with options your potential loss is limited to the cost of the option. Would consider bundling the currency transaction with another form of investment, I don't have a good handle on the US markets at the moment. I'd probably just leave it in cash or good quality corporate bonds.

The problem with small speculative trades is that any profit you make is usually eaten up by the fees. Day traders usually end up losing money that way.

[Guest Andrew]

HSBC daily speculation is saying a 0.6452 12 month rate for importers and 0.6487 12 month mid rate for exporters -

if that is the case the sell rate is currently at .6621 - a killings to be made on a 169 pip movement hah.

This is the deal that ollie and i use - just deleted all financial and account number details out. Markets don't seem to do much on Saturday.

[shadowninja 0]

BNZ economists expecting a rate of 0.580 by December.

[OLLIE 26]

I would be tempted to put a big chunk of change on the USD/NZD.  Most of the money market economists are expecting the NZD to depreciate by around 10% before the end of the calendar year.

interest rates will drop again and reckon it will be backup as high as it was last month by december.

i just cashed in on the huge drop it had against the us$ over the past month, f**kin primo.

out of interest what kind of return do you guys get out of managed funds?

i have most my money in a trust with an interest rate that floats between 8-10%, what do you think about that? i thought pretty good for very low risk, but may be wrong.

does anyone have a life insurance investment making the most of the loophole where you pay no tax on interest!?

Edited February 25, 2006 by OLLIE

[conrod 1]

Firstly, I don't trade FOREX, but have been thinking about getting into it, and am following this with great interest. I dabble a bit in property, and have recently started on the sharemarket, (hot tip- PLUS SMS- buy heaps of it!)

Anyway, I am heartened to see the intelligence level of some on this board extends a bit past"Yo niggaz whadda yous fullas fink of ma sakd BM on cromies'spinnas n'tints wiv da neons an da chopd springz?" :mosh:

cheers conrod :thumb:

Edited February 25, 2006 by conrod

[M3 Cab 0]

Over the past 5 years returns on the manged fund im in have averaged 14 - 15% per annum. The bulk of the fund is unit trusts, hedging etc but 10% of the fund is used to trade options. Rather high risk but when you factor that only 10% of the total fund is traded the potential loses are minimal. Aside from that main investments remain in property and morgage funds.

To anwser the question, would be keen. Always interested in diversifying

[shadowninja 0]

14-15% returns over the last 5 years is pretty good, as that should have included at least 2 years of shocking negative returns.

Ollie, if the expectation is for interest rates to decrease wouldn't you also expect the currency to dip?

I would also steer you away from the bundled life insurance products like the Whole of Life or Endowment policies. For starters they are a high-fee product, often the first 2-years premiums are all commission for the agent. Secondly they are difficult to determine what the investment component is vs the life premiums. Thirdly they have had generally poor performances, especially for those who try to cancel them in the first 5+ years (because of the commission structure).

First & foremost choose your investments based on the underlying assets & performance, taxation advantages should only be seen as an ancilliary benefit as the IRD can (and does) change the rules, and sometimes does backdates the dates they take effect.

[kiwi535 538]

I would also steer you away from the bundled life insurance products like the Whole of Life or Endowment policies.

my god do they still sell those things...i had a couple of them but that was back when there was hardly any alternative....good way to save some money for people who bought motorbikes at the rate i did...the plus side was you could borrow money at cheaper rates than anywhere else

[OLLIE 26]

I would also steer you away from the bundled life insurance products like the Whole of Life or Endowment policies. For starters they are a high-fee product, often the first 2-years premiums are all commission for the agent. Secondly they are difficult to determine what the investment component is vs the life premiums. Thirdly they have had generally poor performances, especially for those who try to cancel them in the first 5+ years (because of the commission structure).

couldn't agree more. what i was refering to was a purely 'investment product' using the 'life insurance vehicle' to avoid paying tax on interest, simply because you can.

this is a good topic, i can see myself and everyone else learning alot from it.

[shadowninja 0]

my god do they still sell those things...i had a couple of them but that was back when there was hardly any alternative....good way to save some money for people who bought motorbikes at the rate i did...the plus side was you could borrow money at cheaper rates than anywhere else

Haha yeah I got some AMP shares outta my old life policy that my folks started for me... paid for my lounge suite. Sold them at $24 a share shortly after listing.

Still, they were a p!ss poor way of saving really. Many would have been better off with the mattress approach. Seems like cheap borrowings until you realise it was your money all along. If you need life cover, take a term life insurance. If you want an investment, choose something that you have some control over and suits your risk profile.

[Guest Andrew]

Look at the kiwi dollar! Awesome - I sold NZD/USD at 6670 and closed my position at 6580 - hell of a profit on that - i'm hoping it drops another cent over the week.

I've got a buy order at 6590 and limited to 6600 again in case it peaks up again.

[Guest Andrew]

meant to attach

[shadowninja 0]

BNZ Expectations for FX rates NZD/USD

Mar-06 0.680

Jun-06 0.620

Sep-06 0.580

Dec-06 0.580

Mar-07 0.575

Jun-07 0.590

Andrew what kind of volumes to you trade in order to make a "good profit" on a one cent margin?