Interest Rates
Trade Flows vs. Capital Flows
Economic Growth
Geopolitics
Mergers and Acquisition activity
Australian doller is resilient nowedays,
because RBA raised up the interest rate recently
and the trade flows and capital flow from foreign countries
seem to have been given good influence on her economic growth.
I cannot find any serious geoplictics problems
which may cause the degrade of AUD.
I haven't heard any large mergers and acquisition activity.
In conclusion, I predict AUD will keep its strength
as the number of risk taker is increasing.
Hi, guys.
Today, I introduce you an important saying.
"Little loss is better than little profit."
Unemployment rate
Balance of trade
GDP
RBA interest rate
Retail sales
Consumer prices
RBA quarterly monetary policy
If you start your foreign exchange,
one of the most attractive points is that you can set the leverage.
However, at the first stage, you don't know how much you can set up your leverage.
For example, x1, or x2 seems not to be attractive.
It's not so different from that you deposit your money into the local banks.
Meanwhile, if you use x50, x100, it's quite attractive
because you can operate a million doller with your actual 10,000 doller.
However, if the leverage is too high, you might lose your money at once
because the currensy prices move every day.
For example, suppose you bought 10000 AUD with your 9000USD (1AUD equals to 0.9USD)
and you use x100 leverage.
That means you operate 1,000,000 AUD.(900,000USD)
And if 1AUD goes down and equals to 0.89USD next day, what will happen?
1,000,000 AUD will be 890,000 USD.
That means you lose 10,000 USD.
Therefore, I never recommand x100 leverage
unless your asset is huge
because this blog aims to introduce safer and wiser investment.
Personally I think the upper limit of leverage should be X10 or X20 something
about AUD/USD.
In above case, if your leverage is X10, it means you lose 1,000 USD.
But this is relatively small part of your first 9000 USD
so you will not be forced to implement loss cut
and AUD might go up again on the next day.
I am not sure about AUD/GBP,
because GBP often fluctuates dramatically.
So even the leverage of X10 might be risky.
At the end of the day,
when you decide your leverage,
the most important thing is to check the past data
about your target pair (e.g. AUD/USD, AUD/EURO, etc.)
and clarify the safe leverage range against your margin deposit.
Next month, maybe RBA (Reserve Bank of Australia) will raise up the interest rate.
So I predict AUD may surge next month.
