I've been looking for a good way to make money, REASONABLY safely, while remaining in control, as much as possible, of my own funds.

I THINK I've found something that may be worthwhile, and I hope this is an appropriate place for it. If it's not, let me know!!!

re: interest paid on funds 'in trade' with a Forex broker.




I just did some quick figuring, and the interest in one place I've found currently at 9%/month, interest paid, on a Forex trade. Of course, there's quite a bit of volatility, but it's been working for me for months. Rough figuring, can anyone verify what $5.00/day off of $2000 is, percentage wise? (This can be verified and done by ANYONE.)
Jeff



Not just trading days. EVERY day. I know, it shocked me too.


But please, DO NOT trust me, check it out for yourself, and see if you come to the same conclusions that I have. If you don't, PLEASE, LET ME KNOW!!!!!
I desperately need something that works. Please - Pick this apart, analyze every aspect, find the negatives, along with the positives. What am I missing????? My financial future is on the line, and I can use the help.

This can be started for much less than $100.

Question is: DOES IT WORK? DOES IT MAKE SENSE???


I'm in control. Unless, of course, broker policy changes, or company goes bye-bye, which is ALWAYS a possibility, in ANY venture! (High yield = HIGH RISK!)

Incredible, yes, but it's been working for me for months. REAL funds in a REAL account with a REAL broker. Not sure to what degree larger funds would affect things, but see some possibilities...

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Short version: Oanda.com, sell trade on eur/huf. Interest on funds in trade is paid daily.
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Have to watch margins. Can be done on a demo account, works same as the 'real' account, and is good for 'getting a feel' for it. If you'd like more info, or if trading history/screen shots might help, let me know, and I don't 'doctor' anything. However, imo, the BEST way to 'prove it' would be to:
---find out yourself!!!---
DO NOT count on ANYTHING that I say, please, check it out on your OWN! There *IS* RISK involved. Best to know what you're getting into...

DO your OWN investigating. Please, if you find anything inconsistent, LET ME KNOW. I have real funds at risk here, and would appreciate any commentary.

You might try this, won't cost anything but time...


Open a demo account at Oanda.
Enter a trade (sell eur/huf). If I recall correctly, I have about 15,000 units in trade now, waiting for eur/huf to rise some more before I put more in...
Watch the interest, paid around 4:00 PM - 5:00 PM EST. Give it at least 2 days to receive full returns.



Now, I HOPE that this doesn't cause too many changes, as always, rates of interest are subject to change, and, I'm thinking it's POSSIBLE that if too many people/too many funds end up here, might be cause for a policy change.
One of the reasons that I haven't been too 'open' with this one so far, but...
What the heck, maybe this can help others, too. Also!!! I don't know how much volume it would take to influence the currency (HUF, Romanian, if I recall correctly).
(Gosh, I'd HATE to be partly responsible for destabilizing a currency, and it's clear I'm no Soros, lol!)

(fwiw, I have NO personal interest in the Oanda company, just learning to trade Forex there, and a friend (Thanks, pointed this one out.)

Oh - and, there's no 'commissions' or 'referrals' involved, I don't make anything, financially off of anybody else doing this, just thought I should clear that up. What I CAN use, is good critical thoughts on it. Please?

Don't know that much more about it, still investigating much in the Forex world.

Maybe something to consider?

Higher returns than a bank are possible. And, with a 'fair' degree of safety, it seems, although RISK is NEVER NEVER NEVER to be discounted! NEVER!!!

(The best part? NO work, no thinking, just watch margins as trade prices fluctuate!)


Actually, if I had it, I'd try it with 200k, that would APPEAR to give me the $200/day I'm looking for to retire on... But, that's a way into the future, yet, and it's also VERY likely that I'm 'missing something' on this, so I can use any and all help that I can get. More than that 5% or so/month can be made, in 'regular' trading. I've found that out, too, but the 'greed monster' can take it all if I'm not careful... (I made over 100%/month for 3 months, and lost it all in hours).



ANY information/opinions on this WILL be appreciated!!!
I like to go into financial decisions with the best/most accurate information I can, and I'd appreciate any opinions, questions, problems, suggestions, etc.
For what reason? My own self interest, of course! I want to make money as safely as possible!!!


Feel free to email me if you have questions or comments...

Jeff Valasek
jeff@valasek.org

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Y me?

It's an interesting thought, but i don't see it as risk free.
For one: At the moment Oanda is taking 100 pip spread from the trades made with EUR/HUF.
(HUF is Hungarian Florint, not Romanian currency as Jeff wrote)
That huge spread means that the one who sells EUR/HUF cannot pull out immediately without taking 100+ pip loss (which is quite a lot!) if the currency pair starts to move rapidly to unfavorable direction.

Your plan would definately work if the currency pair would be extremely stabile or if we would know for sure that it will continue to go down.

10% per month is nothing when it can be lost in few days because of sudden rise in EUR against HUF.

But i might be missing something in this thought.

It would be interesting to know what leverage you have been using and how close you go to the margins (how many pips loss do you afford to take before reaching a margin call).

I read Jeff's reply in TG: No stop loss used.
You seem to assume that the value will always come back.... Yes, they sometimes/usually do, but it may take years if sold at the vary bad moment.... You say that you have been doing this for months... well... the value has gone down since January so i believe it has worked... so far... but what if the price will go up right after the purchace and never return... there goes the "risk free" venture...

I see this as extremely risky.

Please explain a litle more about the idea. Like i said, i believe i miss something.

Actually, you're right on regarding the risk. I've had several questions about this, so I'll see if I can be more clear on the idea and the risks involved.
Jeff

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Y me?

It seems interesting, Jeff, I've not looked at the EUR/HUF charts, what sort of daily movements are we talking? If it's a 100 pip spread, how long till you have made 100 pips?

What happens if the price increases? Do you get negative interest?

ace

No. But you lose a lot of money and the margin call comes closer ...

Negative interest happens only if you sell a currency that has a higher interest rate than its pair or buy currency that has lower interest rate than its pair (not sure if that went right way around, but anyway i hope you get the idea.)
Here's a link to Oanda's page where the interest is explained:
http://fxtrade.oanda.com/fxtrade/in...lculation.shtml
and here you can see the current interest rates:
https://fx1.oanda.com/user/interestrate.html

The thing on this, at least what works for me, is to NOT think of it as a trade, but as funds put into a bank account. The idea is not to profit from the trade, although that helps, I closed one out last week for $40.00 profit, after making about $9.00/day on it for a couple months.

Anyway, the idea is that so long as the funds are 'in trade', interest is paid. To be honest, I'm not too interested in price changes, just keeping the funds in trade, to gather the interest. Yes, price fluctuations DO affect it, so you HAVE to watch the margins. I WAS running using almost 90% of my capital, and decided it was a little risky. Now, I'm around 50%, and have a LOT of room for price movement, while keeping the funds in trade (With a suitably low take profit point, to allow the interest to continue).

I'll see if I can put together a page that may explain it better, I've had several respond with questions... It DOES seem to work, but, as always, is NOT WITHOUT RISK!!!!!!!!!!!!!!!!!!!!

Jeff

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Y me?

Risk free IMHO, is only when you have made your money back and you're riding on profit


I've developed a system (being a Trading for many years now) using William %R, Momentum, Fast Stoch, Macd, Bollenger Bands, EMA10, 14, 24, 48, 100 & 200.
All these are used just as confirmations to find entry and exit points.

Other than using the above, I find pivot points, while calculating support and resistance levels going back on previous days/weeks/months.

A good week, I can make over 1000 pips. a not so bad week 400-500 pips. a bd week 50-100 pips, unless of course a trade is still waiting to turn around (I'm not perfect, but I do have the patience to wait for a trade to hit profit before closing it).

If you would like a hand there awty with working on more profitable trades such as. EUR/USD, GBP/USD, USD/JPY, UDS/CHF, CAD/USD, AUD/USD, GBP/JPY, EUR/JPY, etc, etc, as I can trade any of them at a blink of an eye by using simple mathematics and the laws of retracements.

Then just let me know

I've just gathered what you are doing. WOW, that is very risky, more so using Oanda, you'll only gain interest if you are going long. However, the longer you leave the trade in there, the more it's going to deduct from you when you close the trade.

I thought of the same idea when I first tried Oanda, thinking this was neat earning interest, I don't have to trade on a 1,000,000 unit lot

There was one day that I made a mistake on executing a trade, it took over a month to head back to where I bought it at, apparently I hit the trade right at it's highest high and never saw any hope of it going back to the opening price, which it did some time later on some Fundamentals pushing it to my opening price...Phew I thought, I closed the trade to regain my margin and balance. Then a shock of my life, I was deducted over $100.00 from the trade as I closed it. (It seems Oanda have thought about this).

You'll be better if you figured some technical formulas, you'll come out ahead way more than $5 p/d on $2000,00 investment if you let a trade stay open on long positions.
The studies I make are filled within 48hrs most of the time. Mind you I am for 100+ pip gains, but for someone that is possibly new to this industry, forex, then 20-50 pip gains would be surfice.
Make 5 profitable trades a day = 100/250 pips per day x 5 days = 500/1250 a week x $2-3 per pip... $1000-2500/$1500-$3750 a week doubling your opening balance each week.
But it comes down to consistancy. But I'm very sure that this can be made every month at minimum.

If you need some tips, I'll be more than happy to help another fellow forexer

"Played" with that system a while, still working, but eats capital like a pig.
So, as I get funds back from it, I move on to more 'technical' trading.

Still a LOT to learn...
Jeff

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Y me?

And, thanks, hope you don't mind if I take you up on that offer here and there. I'm still a 'baby' when it comes to Forex, but starting to understand better... Thanks for the tips, LOTS ot research ahead!!!

REALLY apprediate it!

(And, it looks like aud/usd might be excellent to take advantage of, for a newbie like myself. I've noticed it, just haven't 'played' much there yet...)

SO MUCH to learn!
Jeff

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Y me?

Thanks for the tip (aud/usd). Made about $5.00 in a few trades, using less than 1500 units. A good start, and might be a good place for me to learn in a 'safer' environment. I like the pip spread on it, too.

You've put out a lot to learn in those few lines of posting, appreciate the info!
Jeff

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Y me?

It's a pleasure Awty,

I don't want to see an eager Forexer losing out as they've just started.

Here's a little tip for you to consider, but first. Take note of the aud/usd.
Although it's a low risk Trade by ways of means cheap to execute a "long" or "short" position. Be aware that this is a slow mover. Once it starts moving, it'll keep on going while the other currency pairs go crazy. Then at some stage, it'll reverse. The key is to know when it's going to reverse (Retrace)... so lets give you and your viewers some helpful pointers.

Work off the theory, "What goes up, must come down - and visa versa".
On that note: Support and Resistance Levels.

These are VERY important to consider while Trading a very volitile Market.

I'm using the example looking at the Daily Charts here:

I will not go too far back or this post will be too big to consume, I'll go back as far as July.
These figures here are just approx values, they may be slightly different to what you are seeing on your charts, but close nonetheless.

July 18th = High of 0.7318
July 29th = Low of 0.6951
Calculate the pip difference = 367 pips.
Although this month has come and gone, and others that proceed it, we're only looking for patterns there that emerge.
Find 60-70% retracement values of 367 = 220/256
Add 220/256 to July 29th's Low = 0.7171/0.7207... we now have our possible exit point.
Lets move on to the next months HIGH's & LOWS

Aug 19th = High of 0.7235 (take note: after we added 220/256 to July's 29th's low, we received a figure of 0.7171/0.7207 - we're not far off that from our workings out, so we can safely say our workings are more or less on the boarderline of being correct).

To find the next low, take Aug 19th's High away from July 29th Low:
0.7235 - 0.6951 = 284 pips. Times this by 60-70% = 170/198
Subtract this 170/198 from 0.7235 to see if it's anywhere near Sept 8th's Low. Ans: 0.7065/0.7037

Sept 08th = Low of 0.6868 was the actual price. So by looking at these calculations, either way we look at this, we would have made a nice heafty profit if we executed these calculations back in July & Aug.

Next we try to find the next move for a New High:
Aug 19th = High of 0.7235 subtracted from:
Sept 08th = Low of 0.6868 leaves us with 367 pips gain, again. (nice coincidence)
Now we times this by 60-70% (retracement laws of support and resitance levels) = 220/256. Add this to Sept 08th's Low to give us a possible move to the upside for a Long Position = 0.7088/0.7124. Now we have our New High predicted calculation.

We next look at today's price for the Aud/Usd: 0.6959 (current price)... This a 91 pip move from Sept Low of 0.6868, does this mean we're in a mid-term movement of a possible High of 0.7088/0.7124???

That's a very good question. we have to look at our Indicators now to verify our findings.

I'm seeing mixed signals here with the indicators. We've see a 91 pip move already, this is approx 30-40% retracement of the previous move, which indicates if this Aud/Usd doesn't want to go higher, it's still in the downward Trend mode.

Personally I feel we may see a 0.6980/0.7000 to come before any turn lower, but don't count me on that, these charts here are not giving much away right now. Later I may know a little more. So I'd just keep my eye on this one for any other movements south, or north. And look at another currency using the same calculations as above.

Thanks, you've given me a lot of research to find out how this stuff correlates, you know... (I've been trading real funds for about 6 months, doing ok. I traded another account extremely 'high risk', got over 100%/month for 3 months, then lost it all. So, I figure shoot for in between, with better knowledge, and I'll be fine....
SO much to learn...

Seriously though, THANKS!

Jeff

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Y me?

I appreciate very much your honesty on all you said, but sincerely I think that one important thing needs a good Trader "patience and wisdom" once you have both quality you will be successful.


Thank you and good luck !!

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Stefania

How did you get on there Awty, have you managed to find something that works for you, or tried out my theory for finding entry and exit points?


Since my last post here, I've doubled my account approx 15 times over based on the formula above.

If you're still in need of some help, just hollar.

Hello:

I'd like some help on how to be a more effective Forex trader and I saw a few of your posts on this topic. How would I go about effecting these amount of returns?

Jay Torres

Well, it's going OK, but still have a lot to learn - the 'interest' strategy I posted above DOES have quite a few flaws, and the volatility is one of the big ones. I ended up 'sacrificing' a few trades, because I was cutting the margin too close. Living and learning,
Jeff

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