I'm going to assume that you already know the mechanics of the FX Trading Desk and you just want to make a profit. So I'll give you this trade for free - you can thank me later. DISCLAIMER: You could lose all your money if you follow my advice so don't come crying if you do. Follow the rules and you'll do ok but even then Iran or ISIS could do something stupid and make things difficult or bad. So beware. All numbers stated are effective to me in my account as of 7/25/2015. ZAR/JPY (South African Rand/Japanese Yen) 1. $1000 investment for 12 months. Think of this as a bank CD that you manage yourself. If you get better than 1% APY you win. 2. BUY (go LONG) 13,000 (13 micro-lots) ZAR/JPY. (Your entry point is nominally important here but as of today I consider anything lower than 9.90 a good entry point) A. Cost - $51.55 (pip value $1.05) B. Rollover about $ 0.42 per week. C. Place 2 separate Limit Orders. * 1 to sell 30 pips above your Cost Basis (this is Associated) * 1 to Limit Buy 13,000 more. 50 pips below your Cost Basis D. DO NOT use a Stop Loss order. 3. Do this over and over again each time your Limit Orders auto trip. Use the price alerts to email you when they do. This is a slow moving pair but it has the best return for the money. When it goes against you 50 pips your margin will be around - $53.00 and will double your position to 26,000 ZARJPY and you will begin getting about $2.10 a week in Rollover. Your cost will then be some $103.00 and you can change you auto trades again. To double LONG at 50 pips below and SHORT out at 30 pips above. What can you expect? You will not get rich but in 12 months time I expect that you will realize better than a 10% return on your $1000. Why? 2 reasons. First, you will be getting a daily revenue of about .06 on a 13,000 LONG position which is about $21.80/year. I expect that you would auto sell 3 times in 12 months for some $31.00 each ($93.00) in the year. This alone is $113.80 (11.38%). Actually, this is my conservative expectation, I actually expect that you would double a few times as well increasing the $31.00 sell out to $62 or $93. I also expect that this all would happen 6 or 8 times in the year but I'm trying to be conservative here. So, if you have ever wanted to actually make a profit in the FOREX market with minimal risk here you go. Of course, you can post your questions and I will field them as I am able. If you are not interested them by all means you can ignore this post. Cheers!
This thread gave me a headache, hahahaaa. Schemes like that is well and good as long as the economy or the exchange rate is stable. But considering that our currency sometimes become unstable that the exchange rate fluctuates then I might lose in the end due to the exchange rate factor. I guess this goes well for those living in the US because your currency is dollar.
Sorry for the headache. And yes, I am assuming US currency for the trade. not sure what currency you use but it's a solid investment strategy that I continue to use in my business.
What's the swap like with that pair? If it goes long then you will be stuck in a hedge but you will be in a positive because of the 30 pips. Now what is the current difference in the swaps? I never play that pair. I stick to the majors. The more I think about it, your method is sound. If the pair goes long, then you will collect positive swap and the locked in 30 pips. If it goes down south, then you will be -30 pips but by the end of the year you should be up because of the positive swap. Interesting analysis. I should look into other pairs with this strategy.
Josh, Heh, heh. I'm ignorant enough to not know what you mean by "stuck in a hedge". I guess that's what I get by getting my FX education at YouTube University. ;-) The swap? Is that Rollover? This is about $.06 on the Long per day of 13,000. I like this pair because it has the best ROI. It only costs some $50 for a $1.00 per pip return where as the others will cost a little more than twice that for the same $1.00 per pip. As you say, that after 1 year, even if the pair is -30 you will still be making the daily swap revenue. But the bonus is that this pair is so inexpensive that should it move -50 you will buy again doubling your position. This strategy is risky in many pairs but the ZARJPY is so slow moving that it's pretty safe. Anyway, I think this is one of those overlooked pairs. It's not a pair to get rich off but certainly a solid player in the FX portfolio. Cheers!
It makes any sense to me go short in a pair USD/CHF and set a stop loss. I´m I wrong or not? I´m practicing in a demo account following directions I found in youtube, etc. I lost money setting a stop lost. I appreciate any comment about it.
Hi Alejandro, I never use stop losses (against the advice of everyone who knows better) it simply does not fit my strategy. I've learned to have a set amount of loss that I will take as a worst case option (this is always manual) but my experience is that when I a set a stop loss the Forex god will sneeze and cause a blip In the chart that costs me money. So I personally never use them. Also, I only go Long or Short depending on which way the rollover pays me. I never put myself in a position to pay rollover, I've been stuck there and it cost me loads. Here's to our alma mater YouTube U!
My strategy in forex trading with hedging strategy, usually I am trade on major pair like as gbpusd or eurusd, but sometime also on eurjpy, most difficulties for me is how to make constant profit here, I am choose account free swap for islamic account on Instaforex broker, safe trade with low lot size more comfortable in trades rather than use with big lot size although only expected to obtain profit 10 pips .
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