Author Topic: Currency speculation: Organization?  (Read 1346 times)

Sjalabais

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Currency speculation: Organization?
« on: October 24, 2015, 02:26:32 PM »
I currently hold a German -account and a Norwegian NOK-account. These two enabled my best speculation ever, when I during the financial crisis of '07-'09 expected the smaller currency to fall and the bigger one to be a safe haven. I made 30% in 18 months.

So...knowing this is risky business, I sort of want to set up a certain amount for currency speculation. When the ruble collapsed earlier this year, I considered it crystal clear that it would go up again. After all, it's not a democracy. So Putin ordered government controlled entities to prop up the ruble, and it jumped 20% within a very short time, we're talking weeks. I couldn't benefit from that, because my bank wouldn't let me open a ruble account.

Basically, I wonder if anyone else is following currencies here? Do you earn money? How do you organize this stuff - do you open accounts in different countries? How do you determine if your money will come back, especially when dealing with...difficult countries?

brainfart

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Re: Currency speculation: Organization?
« Reply #1 on: October 24, 2015, 06:38:29 PM »
You don't need bank accounts. Easiest way is buying bonds.
If you like gambling there are insanely leveraged products available. Like gain 5000% or more during one year, or lose all invested money.

brainfart

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Re: Currency speculation: Organization?
« Reply #2 on: October 24, 2015, 06:48:18 PM »
Google forex trading.

steveo

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Re: Currency speculation: Organization?
« Reply #3 on: October 24, 2015, 09:13:49 PM »
I trade forex. If you want to try it I recommend OANDA for the best spreads and they seem to be honest.

You though sound like you want to bet on fairly exotic longer term trading opportunities. I'm not sure where or how you can do that.

I don't earn money off it. I've come out about even over 5-10 years trading. I probably take a position once per year. There are lots of dodgy operators in the business. Once the company I was trading through went bust. I just got most of my money out prior to them defaulting.

Sjalabais

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Re: Currency speculation: Organization?
« Reply #4 on: October 25, 2015, 07:46:16 AM »
Thanks a lot for the tips so far. Forex seems to be very short-term, with 40% of trades maturing within four days, 80% of the total within seven days. To me it seems more reasonable to bet on long-term trends rather than trying to outsmart the markets within a few days. It's also a pity that I just realized that a capital gains tax of 28% applies in my country. I'm also unsure about the trader's role - with proper accounts, you'll actually own something; albeit at lousy bank rates.

@steveo, why do you keep forex trades if you don't earn much off it? Hedging?