Re: Shorting the US dollar
the dollar has been on a rampage in recent months. buffet has been getting crushed on his short position, though he likes to buy and hold. the 100:1 leverage sounds large but you need to remember that in forex you are dealing in pips. reduce the lot size and each pip can be brought to $1.
the dollar is likely to increase in the coming months as it has in the past few months. bernanke, once in charge, could cause it to fall depending on what he decides to do regarding inflation.
the upside to shorting the dollar is that when if finally comes down you will make money. it would be best to wait for the initial decline and then hop on the train, this way you wont get stopped out when your margin runs out.
if you are new to trading currencies use something simple like forex.com. the spreads on the majors are at most 5 pips (i think, i dont use this company).
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10-30-2005, 08:53 PM
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