As some of you might know, I am going to the UK to further studies. I've been doing the carnal sin of traders: Averaging down on the GBP. (at 2.06, 2.01 and 1.98)
Interesting conundrum I have here: Every time the pound drops, I theoretically lose money but am happier, because the cost of my education is dropping.
A friend of mine has said he'll visit the UK when the pound exchange rate reaches 1.8. I hope it goes there too :)
Hi Isaac,
ReplyDeleteWah! WAH!!! 1.8? Who is this friend of yours anyway? 1.8? I think I could be tempted. :)
Hi AK,
ReplyDeleteyou know who i'm referring to ;)
GBPSGD looks like falling into a bottomless pit. I have friends who keep buying GBPSGD as well, I can't imagine what will happen to their positions.
ReplyDeleteHello Isaac,
ReplyDeleteIf you are exchanging Sing dollars for pound at Arcade, then this "averaging down" is a happy affair. It's a bit like taking actual delivery of your futures position :) Like you have said, instead of being sad, you are happy that your future UK education and living expenses will be "cheaper and cheaper". Hip hip horray for Singapore dollars! (You are merely involved)
But if you have taken a highly leverage position on the GBP/SGD in the futures or spot market, I hope you don't speculate away your tuition fees! (I don't think you are committed.)
Hi Market Strategist,
ReplyDeleteWell, I hope it keeps dropping ;)
Hi SMOL,
your first paragraph sums it up nicely for me :)
I don't play the forex market, don't worry! hehe!
Gold is the most stable currency.
ReplyDelete