Should You Trade Currencies (Forex) Like Soros?

Money For the Rest of Us

J. David Stein

Investing, Investing Podcast, Business, Economics, Economy

4.5 • 1.4K Ratings

🗓️ 25 July 2018

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

#214 How the foreign exchange market works and how George Soros made more than a $1 billion shorting the British pound in 1992. Why currency trading today is more like gambling than when Soros made his billions. Why trading closed end funds can be more profitable than currency trading. Thanks to Wunder Capital and Blooom for sponsoring todays' episode. Use code DAVID on Blooom for your first month free.

For show notes and more information on this episode click here.

[0:35] David introduces the listener question for this episode, “Should You Trade Foreign Currencies?”
[2:24] Why David would never invest in Forex strategies
[6:56] How trading works on platforms such as Darwinex
[8:43] Investing through trading currencies is like gambling
[11:40] The George Soros story and how governments can balance the economy through interest rate control
[24:20] Betting against the exchange rate of foreign currencies isn’t reliable
[27:50] The benefits of investing in closed-end fund markets

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Transcript

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0:00.0	Welcome to Money for the rest of us. This is a personal finance show. It's on money. How it works, how to invest it, and how to live without worrying about it.
0:09.0	I'm your host, David Stein. Today's episode 214. It's titled,
0:13.8	Should you Trade Foreign Currencies?
0:16.8	A few weeks ago, I got an email from Alex.
0:19.7	He is one of the transcribers for my podcast and he mentioned in addition to
0:26.0	transcription services he trades foreign currencies he pointed me to his page on Darwin X, which is an independent trading platform,
0:37.0	tracks performance, risk, and allows you to allocate capital to other traders.
0:45.0	Garwin X is over a thousand traders whose strategies you can buy into and out of, just like stocks.
0:54.0	Alex wanted to know how long of a track record he would need
0:58.8	before I was willing to invest with him. He could be a very talented trader. His account is up 36%. The challenge's only been trading for less than 10 months and total capital that he
1:20.0	invested at least if I understand how the Darwin X describes it, seems to be less than
1:26.8	100 euros.
1:27.8	So he's just getting started.
1:29.8	He's made some good trades, but I told him I probably would never be willing to invest in his
1:39.9	strategy and it not because I was episode to explain why I was rude.
1:44.0	It's because I wouldn't invest in any foreign currency trading strategy.
1:50.0	And I wanted to do this episode to explain why.
1:54.0	Why I think we shouldn't trade for X as individuals
1:59.6	and an area of the market that if you do want to trade I think can be much more profitable and certainly has been more profitable to me as I have invested in it. I explore the DarwinX platform. It's quite impressive and I really
2:20.5	appreciate the transparency that you can you can see very closely how well a
2:27.4	trader has done what the performance has been how often trades have been successful, how much risk they've taken,
2:37.7	how much leverage they've deployed, and so lots of transparency. I also got on an introductory webinar that Darwin
	...

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