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Originally Posted by psytrader
I think that that type of leverage has its uses in the spot trade, and in real estate.
My suggestion, albeit untested, would be something more like 2 to 1 on a governmet secured bond of some sort in the UK. Skip the forex broker and do the real deal through a bank. Then again, I dont have any contacts at the bank of Japan so I cant help there.
When you use a broker youre buying a contract not the actual currency. When you have the actual currency on a bank wire and things go sour with the exchange rate. You will still have your real sterling to look for a new investment in the FTSE or some other method inside the UK.
EhhHem,...in short,...keep your currency real for longer term investments. If you get caught in a position where your cable cant leave the UK without losing value. You can still find an alternative cable denominated investmet to continue to grow with.
I like your thinking a lot. It is the stuff that wealthy people are made of. Find a cheap source of money and combine it with moderate returns. Warren Buffett started his fortune by harassing his family and friends to give him money to invest and then split the profit 20/80. The friends and family spent the 80 and he reinvested the 20,...the rest is history.
If foerx isnt the way to make it happen. Its not the end of the world, just the start of the search for a new source.
Keep us posted.
Regards
PSY
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Thanks for this bit of advise
Okay so this money can be used better in another better place.
My wife and I are planning around the world trip so I was also wondering what the optimal time frame would be to trade whilst on the road?