1 pip in EUR is 100$, 1 pip in JPY is 840$ when trading JPY. Let say the avarage true range is somewhere between 0.6 - 1.8, that is 60-180 pips. The largest change was 156 pips in the last one month period.
Interest rate in Japan 0.25% as of today. In USA, 5.25%. So if we borrow JPY for .25% and loan it 5.25%, that is 5% profit. Now counting 1:100 leverage, that is 500% profit per year. Not bad! And you can do this trade with Forex.
Unfortunatly, brokers might, and in fact do, pay interest a bit different than using the interbank rates. Naturally, they don't have own interest in mind.
So a little experiement: In 3 hours, 14 minutes, 6.2838 profit in interest was the result of my experience with 1:30 levarage. So in 1 day, let's say, it is possible to realize about 20 USD profit on 10.000 USD with 1:30.
I can set up this trade and hedge it against price fluctuations for the price of the spread. Sounds like a 0 risk trade with a 20 USD guaranted.
Unfortunatly, 1 pip is over 24 USD with 1:30 levarage. So 2 pip (the usual spread) is 48 USD. Using 1:100, 1:200 levarage would not improve the risk/reward ratio.
Unfortunatly, the cost of setting up the trade exceeds the guaranted profit.
The question remains, however, can you set up this trade so you do not need to close it overnight? If this problem can be sloved, this would be an excellent trade to set up.
The problem really is
1 day: 46.642608.
1 year: 17024,551. On 10.000 USD on 1:30 levarage.
Delta Phenomenon, Adam Theory
Adam Theory and Delta Phenomenon is a very simple tool, altough entire books written on it. You just mirror the graph on the current point (on the point, not on line) and use it as the resulting picture as a future price (graph) forcast. That is all to it - on the basic level.
Delta Society International supposed to be some secreet sociaty of 70 rich people who used this model. Anyway, as usual with many methods... there is a romantic story behind it provided and much less back-testing data provided on the workability.
Delta Society International supposed to be some secreet sociaty of 70 rich people who used this model. Anyway, as usual with many methods... there is a romantic story behind it provided and much less back-testing data provided on the workability.
Data Providers
The following are the most known data providers. (They are listed as supported by TradeStation):
Bloomberg
Reuters
Tenfore
eSignal
Bloomberg
Reuters
Tenfore
eSignal
Making money with funds
A good fund doubles its value every 5-6 years.
(A mutual fund, diversified investing into growth stocks).
(A mutual fund, diversified investing into growth stocks).
Pull-backs
About 40% of stocks will pull back at its initial investment point. Sometimes even on big volume (scary).
Is is important you have a planed stops. And you use those stops.
Again, this is a game I would play differently on Forex.
Is is important you have a planed stops. And you use those stops.
Again, this is a game I would play differently on Forex.
What to invest?
Invest into something you understand.
It is easy to get pulled into foreign stocks, foreign real-estate, close-end ufnds, low-price stocks, market hypes, penny stocks, options, futures, golds, bonds, junk bonds, tax-free securities, real estate, spread betting, neighbour's business, commodities, lottery, pilot games, etc.
The basic idea is this: there are always opportunities.
Do you really understand the area you are getting into? If the answer is no, you should not!
It is easy to get pulled into foreign stocks, foreign real-estate, close-end ufnds, low-price stocks, market hypes, penny stocks, options, futures, golds, bonds, junk bonds, tax-free securities, real estate, spread betting, neighbour's business, commodities, lottery, pilot games, etc.
The basic idea is this: there are always opportunities.
Do you really understand the area you are getting into? If the answer is no, you should not!
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