Tradefair & Financials
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26 Jun 10
19:50
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22 Sep 05
Dow & Nasdaq
Would you say currency movement make these trades much less optimistic ?
If i aimed to gain 8% on the stock but i also think the dollar would strengthen from 1.5 to 1.54 so say 2.7% ish in that timeframe , and how much would the Forex rate erode ?
I'd be looking at around 8% gain / 3.5% loss , worth the risk ?
I have no opinion on the Nasdaq apart from the stock
Would you say currency movement make these trades much less optimistic ?
If i aimed to gain 8% on the stock but i also think the dollar would strengthen from 1.5 to 1.54 so say 2.7% ish in that timeframe , and how much would the Forex rate erode ?
I'd be looking at around 8% gain / 3.5% loss , worth the risk ?
I have no opinion on the Nasdaq apart from the stock
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Yes. US technology stocks get savaged every fortnight. No downside to selling $ at 1.50. If the rate "should" be 1.54, the market is certain to over-react and may push it to 1.67. That is my amateur view, but if wrong, the rate won't be falling to 1.44 soon, making it a win or draw bet imho.
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Cheers .. so my basic thought process would be about right then & not really worth the risk-reward
It brings an interesting concept to me when the dollar was like 1.33 to wade in on strong US stocks though  but I guess the stock then weakens to a fair degree also (though still v profitable) ?? |
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If you buy 12 shares when the exchange rate is 1.33, you have to buy another 3 at 1.67 to maintain the same sterling value tho.
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