Reminiscences of a Forex Trader, Part 1

April 1st, 2022 by admin Leave a reply »

Forex trading is hot, hot, hot right now. And one of the biggest reasons why is that traders are using leverage to amplify returns by 200 times – where $1 controls $200 worth of foreign currency. The returns can be staggering.

For example, on British “Black Wednesday” of September 16, 1992, George Soros made a single day’s Forex profit of US $1 billion by short selling the Great Britain Pound Sterling.

At the time these kinds of profits were only available to large players.

But recently a major change in the way Forex trading is done has opened the trading desks to the little guy. The Internet has opened the door to the small investor into this $3.98 trillion daily market.

But Forex, or foreign exchange trading, has a reputation as “one of those” financial derivatives. And while much of its reputation is deserved, that doesn’t mean you shouldn’t be aware of Forex and its uses…

Forex Market Expert Thomas Fischer

Unfortunately, Forex isn’t only intimidating to the average investor – it can be downright confusing for even the shrewdest money managers. So I sat down with an expert on Forex, Mr. Thomas Fischer, to clear the fog around this hot topic.

Thomas Fischer, of Jyske Global Asset Management in Denmark, is a veteran of the interbank foreign exchange market with a 22-year profitable history under his belt. I was lucky enough to talk with him at the Investment 2009 Conference in St. Petersburg, Florida last March.

I sat down with him last week to get his thoughts on Forex for Investment U readers because of his relationship to the Oxford Club and Investment U and because Mr. Fischer trades in transaction sizes that are nearly unimaginable to us mere mortal investors.

He considers a “light” day one where he’s traded only $100 million in foreign exchange. And, he’s been so kind as to sit down for an interview

Over the next two articles I’ll get his thoughts on how he got started Forex trading, what traders need to be aware of, and some of the best ways to limit your risk if you decide to jump into this market.

What I’ve found most interesting, above all, is that much of the advice he gives about Forex trading can be applied to stock trading just as easily. A good investor is a good investor regardless of the security…


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