I'm tired of charts and magic indicators that doesn't work so in the coming days I will attempt to use the fundamentals to build a long term portfolio. Below you can see the currencies I am interested in trading.
AUD, CAD, COP, CZK, EUR, GBP, HKD, HUF, ILS, ISK, JPY, MXN, MYR, NOK, NZD, PLN, RUB, SGD, SEK, THB, USD, TRY, ZAR
I will combine high interest rates with low interest rates and if there isn't a big difference in interest rates I will combine a negative current account balance with a positive current account balance. I will not sell japanese yen or other currencies that often have periods of deflation and except from MXN I will not make a trade where I buy the currency of an emerging market and sell the currency of a developed market. I don't have enough money to trade but I will build a hypothetical portfolio and update this thread each month.
Update
I have decided to open a demo account with alpari and the list of currencies is reduced to 11.
AUD, CAD, EUR, GBP, JPY, MXN, NOK, NZD, SGD, SWE, USD
Carry trades That I want to buy
AUD/USD, AUD/CAD, NZD/USD.
Carry trades that I want to sell
USD/MXN, EUR/MXN, GBP/AUD, EUR/AUD, GBP/NZD.
Short current account trades
USD/JPY, GBP/JPY, EUR/JPY, CAD/JPY, USD/SGD, GBP/SGD, EUR/SGD, CAD/SGD, EUR/SEK, GBP/SEK, USD/SEK, EUR/NOK, GBP/NOK, USD/NOK.
I didn't find any buying opportunities where I combine a current account surplus with a current account deficit.
All of the current account trades have an interest differential of less than 2 % And the carry trades have an interest differential of at least 2 %.
AUD, CAD, COP, CZK, EUR, GBP, HKD, HUF, ILS, ISK, JPY, MXN, MYR, NOK, NZD, PLN, RUB, SGD, SEK, THB, USD, TRY, ZAR
I will combine high interest rates with low interest rates and if there isn't a big difference in interest rates I will combine a negative current account balance with a positive current account balance. I will not sell japanese yen or other currencies that often have periods of deflation and except from MXN I will not make a trade where I buy the currency of an emerging market and sell the currency of a developed market. I don't have enough money to trade but I will build a hypothetical portfolio and update this thread each month.
Update
I have decided to open a demo account with alpari and the list of currencies is reduced to 11.
AUD, CAD, EUR, GBP, JPY, MXN, NOK, NZD, SGD, SWE, USD
Carry trades That I want to buy
AUD/USD, AUD/CAD, NZD/USD.
Carry trades that I want to sell
USD/MXN, EUR/MXN, GBP/AUD, EUR/AUD, GBP/NZD.
Short current account trades
USD/JPY, GBP/JPY, EUR/JPY, CAD/JPY, USD/SGD, GBP/SGD, EUR/SGD, CAD/SGD, EUR/SEK, GBP/SEK, USD/SEK, EUR/NOK, GBP/NOK, USD/NOK.
I didn't find any buying opportunities where I combine a current account surplus with a current account deficit.
All of the current account trades have an interest differential of less than 2 % And the carry trades have an interest differential of at least 2 %.
If slaughterhouses had glass walls, everyone would be a vegetarian!