Importance of FX – Trading Gains when in Cash with Foreign Exchange Transactions

sq-currencies

I was pleasantly surprised looking at a private account I have, which is extremely small in net assets. It’s an account that is pretty much dormant, except when in January there were major moves on the CHF Swiss Franc, I decided to buy EUR, USD and GBP. The chart above shows what just that move did.

Interestingly that account did better than one I manage equities actively in. Nearly double as good to be honest.

I think I can use this insight to make a mental note that

  1. gains or losses can come from unexpected places
  2. just two three transactions a year can make all the difference  i.e
  3. you can be watching the markets out of the corner of your eye on a daily basis (end of day, not intraday) and still reap very large profits with very little “work”.
  4. work is mostly NOT entering into trades, but only reacting to major sentiment shifts

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