Foreign Exchange (FX) trading is not everyone's cup of tea. I have been known to dabble in it, but I'm not hugely enthusiastic and I'll tell you why. Time. FX traders don't buy-and-hold currency as you might do with shares. You take a punt. It's a gamble, a bet. The market is massive and it's massively volatile and so you need to keep a very watchful eye on the charts and be prepared to move quickly. Moving quickly is not something I do well, not at my age.
I can hear the howls of protest from swing traders and trend followers around the world, but currencies bounce around all over the place and stop-losses get hit with alarming regularity, even when a currency is trending strongly.
So, if you think that sterling is in long-term decline (and I wouldn't disagree), how do you benefit from that trend without shorting the pound? Well, you could buy gold or, better still, buy a fund that follows gold mining companies. The other alternative is to buy companies that trade on the London Stock Exchange, but that make most of their money elewhere in the world. Don't just buy any old company - you still need to do some research and remember one of Warren Buffett's great sayings: “It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
By the way, please don't take this as advice - what do I know? I'm just passing on the benefit of my experience.
Trade well and take your time.
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