Safe Carry Trade For $100K ??? | Forex Factory

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Safe Carry Trade For $100K ???

  • #1
  • First Post: Mar 6, 2008 8:08pm Mar 6, 2008 8:08pm
[1] I have $100K USD (non-leveraged) wasting away in my savings account.
[2] I am very concerned that the USD will continue to fall.
[3] I am a total Forex newbie (never even used a demo acct. before).
[4] I'm looking for a smart, extremely safe strategy to safeguard my bankroll, and I don't/can't babysit it every minute/hour/day like an active Forex trader would.
[5] So I *think* I'm looking for a long-ish term carry trade with low leverage (2x? or 3x?).

Anyone here intimately familiar with safe carry trades?
How would you approach this specific situation?
Where/how should I focus my due diligence?
What's the safest/most trustworthy Forex service provider to work with?

Thank you... Anxious to read your opinions.
  • #2
  • Mar 6, 2008 8:23pm Mar 6, 2008 8:23pm
If you have 100K denominated in US assets, and looking for non risky investments, first identify a few currencies that have room to grow in the next few years, that would be good against your dollar denominated currency. For example, the INR currency has pretty good stability and economically robust and banks in the country are offering fixed deposit terms in the range of 9-10 percent. The canadian dollar is also something you may want to look into invest and its close to home, plus I believe you can get fixed deposit terms in the 5% range as well. Just to let you know, speaking from personal experience, alot of wealth management companies are recommending Aud and INR to their clients plus their high fixed dep. rates, because of the hit taken by alot of foreigners holding US dollar as reserves.
  • #3
  • Mar 6, 2008 9:54pm Mar 6, 2008 9:54pm
Thank you for the reply!

I was thinking about INR. It seems to be near a 5 year low vs. the USD. But where can I research more about the INR? You mentioned that it is stable and it has attractive interest rates... where can I read more about this?

Thank you.

Any other thoughts people?
  • #4
  • Mar 6, 2008 10:30pm Mar 6, 2008 10:30pm
I would not do forex unless you have time to manage account.

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  • #5
  • Mar 13, 2008 4:50am Mar 13, 2008 4:50am
Quoting Brainwrek
Thank you for the reply!

I was thinking about INR. It seems to be near a 5 year low vs. the USD. But where can I research more about the INR? You mentioned that it is stable and it has attractive interest rates... where can I read more about this?

Thank you.

Any other thoughts people?

You can research it yourself, google for analysis on the currency's pair or research the economic condition of the country. You have to keep in mind that you are not necessarily looking for too much of an appreciation of the currency but more of the interest compounded that will be worth more because I think India won't let their currency get too strong because it hurts their export industry and their IT industry. If you don't feel confident in researching yourself, you may want to consult a paid consulting service like the ones that provide commentary here in FF. You can try Kshitij, as they are from India and would have good access to data and if you follow their commentary you will see that they are pretty good in their thoroughness and analysis.

Regards,

Ron
  • #6
  • Mar 13, 2008 5:01am Mar 13, 2008 5:01am
Quoting Brainwrek
[1] I have $100K USD (non-leveraged) wasting away in my savings account.
[2] I am very concerned that the USD will continue to fall.
[3] I am a total Forex newbie (never even used a demo acct. before).
[4] I'm looking for a smart, extremely safe strategy to safeguard my bankroll, and I don't/can't babysit it every minute/hour/day like an active Forex trader would.
[5] So I *think* I'm looking for a long-ish term carry trade with low leverage (2x? or 3x?).

Anyone here intimately familiar with safe carry trades?
How would you approach this specific situation?
Where/how should I focus my due diligence?
What's the safest/most trustworthy Forex service provider to work with?

Thank you... Anxious to read your opinions.

I would recommend calling a broker that has a track record of over 1,000 trades and having them manage your account. FCM's (futures commissions merchant) also manage many accounts.
  • #7
  • Mar 13, 2008 5:25am Mar 13, 2008 5:25am
find a stock that is selling for pennies and buy it .
  • #8
  • Mar 13, 2008 5:29am Mar 13, 2008 5:29am
maybe you have to look to diversify your money?
A part in the forex a part in real estate and so on.
If yous eriously are thinking of investing it then you first have to take you time to search around for some good options.
  • #9
  • Mar 13, 2008 6:24am Mar 13, 2008 6:24am
Have you considered gold?

At least for 20 to 30% of the amount.

Physical gold that is, not trading.
  • #10
  • Last Post: Mar 13, 2008 9:14am Mar 13, 2008 9:14am
There is no such thing as Safe Carry Trade......All forex exchange trading has risk/reward ratio that is too high.
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