Lesson Six
Free Course on Currency Investing
By
Gary Scott
Most investors are always alert for ideas on how to gain
profit. Yet few know much about currency investing basics.
The first rule of currency investing basics is to look
at risk as well as potential profit. Only when you face potential
rewards and risks, can you make a truly sound currency investing
basics investment decisions. This special report begins by
looking at ways to view currency investing basics risk. Then
future lesson look at what I have written about the Multicurrency
Sandwich over the past five years and some Multicurrency
history that goes back a decade.
This fifth lesson continued looking at currency investing
basics risk assessment data I sent my readers about currency
investing basics in 1993. this lesson continues.
The key I was getting across in that 1993 message
was if an investor cannot afford to lose at least part
of your original investment, then you should avoid this
opportunity. Be sure you understand the risks
and can afford to accept them before you use this tactic.
This currency investing basics lesson reviews how to choose
a ratio that suits your overall portfolio.
Currency Investing Basics Factors
There are numerous factors
to consider when looking at currency investing basics and
planning whether to make this investment at all and if so
at which investment to loan ratio.
Currency Investing Basics Factor #1: For
how long can you invest? This is not a short term get in
and out investment. You should plan to invest for at least
a year to let the spread work for you. Unless the borrowed
currency takes a sudden dramatic fall at which time you would
want to consider taking a quick profit, this is a one to
five year investment at the least. It could take two or more
years for the currency to gradually drift down to a point
where you wish to liquidate.
Currency Investing Basics Factor #2: How
is your staying power? The greatest risk in multicurrency
sandwich portfolio is that just after you have started the
borrowed currecny has a sudden unexpected temporary rise
versus the peso. If this should happen, can you afford to
put up an additional money? If you can do so and believe
the borrowed currency is overvalued, then you may want to
risk a higher loan to investment ratio.
Currency Investing
Basics Factor #3: How
much can you afford to lose? This is a speculation. You could
lose all your money. Do not speculate with savings that you
cannot afford to lose. Don't use your emergency funds. Don't
use the money you have set aside for your kids' college education.
Don't mortgage your house in the hopes that you are going
to make some great profit. Don't risk your pension.
The more important the need and the sooner the
need for that money will be, the lower the loan to investment
ratio should be.
Currency Investing Basics Factor #4: Consider
how you feel about taking risk. Some investors worry so much
about their investments that the stress and strain to their
nervous system is not worth any profit they might make. Stress
can kill you! Don't jump into this speculation if you are
going to worry about it every single day. Put your money
in some investment that feels safe to you instead.
Gary Scott
Join Gary Scott
and Jyske bank at an International Investing andBusiness
Course. Details are at GaryScott.com
To learn more about Gary
Scott go to GaryScott.com
To understand currencies
you need to understand countries
One way to use your dollars
is at Wgn.net/~nienhuis/
Understand currency risk
better
Jyske Bank specializes in
currency investing basics. Attend Jyske
investing seminars in Copenhagen. Details available from
Thomas Fischer
at FISCHER@jyskebank.dk |
