I didn't trade recently (I don't have enough money in the account!) but today I transferred another A$1,000 into the account so I can trade next week if an opportunity arises. I'm a bit wary of AUDvsUSD forex, although I may short the AUD if it still relatively high on Monday - apparently the latest rise is based on speculation that the Reserve Bank may raise interest rates at next week's meeting. I think this is unlikely, which should result in a still pull-back after the announcement on Wednesday morning. Then again, I could be wrong as usual ;)
The real reason I've topped up my trading account is to try to short the HongKong33 if (when?) the current bull run ends. Given the huge gains in the past 2 years, and the sudden 6% drop this week in reaction to the Chinese government raising brokerage fees in an attempt to cool the market, I expect that there will be a substantial correction in the HK index in the near future. The market recovered this weeks drop within a couple of days, so the speculators are currently still very bullish, but there's a limit to how long such a bubble can inflate. The trick will be to not set a short position too early and lose all my trading capital while the bull run continues.
Enough Wealth
1 comment:
I followed your lead and opened a CMC FX account. It's a lot of fun and certainly is a good distraction from studying. I can't help but think that short term currency speculation is a little like a casino that never closes.
Post a Comment