I’m still trying to convince my dad to allow me to start trading live forex.
He constantly keeps making up alot of excuses why I’m not allowed to trade live. Today his excuse was this: “What happens if a currency devaluates while you are in a trade? you put me in debt”
So, I have some questions to you O’ learned ones.
*How often does devaluations/revaluations happen?
*How big are they?
*Are there any signs pre devaluation/revaluation.
*Does anyone have charts from such events?
I must admit that the idea is somewhat scaring me. But that is probably because I don’t have proper knowledge about it.
It’s possible that Pops has a few misconceptions about currency trading. Currency devaluations or revaluations are few and far between…unless you trade South American currencies. It’s far more likely that you would be caught on the wrong side of unwinding carry trades.
I think the last devaluations were in Romania in 2005 and in Argentina a few years before that. S.A. currency and debt issues are legendary. (Anyone want some Yankee bonds? Cheap!) I have no hard research to offer you.
Why do you need permission from your Dad? I mean I could understand if it was your wife giving you a hard time…
Because I’m underaged. I turn 18 in two months. Started trading stocks at my late 16, but i have found the potential for profit much larger here. (in the forex market)
It’s far more likely that you would be caught on the wrong side of unwinding carry trades.