Manages Parisian Family Office. Began Wall Street, 82. Founded investment firm, Native American Advisors. Member, White Earth Chippewa Tribe. Was NYSE/FINRA arb. Conservative. Raised on Native reservations. Pureblood, clot-shot free. In a world elevated on a tech-driven dopamine binge, he trades from Ghost Ranch on the Yellowstone River in MT, his TN farm, Pamelot or CASA TULE', his winter camp in Los Cabos, Mexico. Always been, and will always be, an optimist.

Wednesday, August 03, 2005

Foreign Exchange.........

Recently there has been some media coverage on the pitfalls of small investors to be "day-traders" in the foreign currency exchange markets. The slick ads you hear and see on television are just that. Slick to allow for a faster separation between day traders and their money. I had the pleasure of reading Victor Neiderhoffers timely retort to those who engage in such activity and thought it worth sharing. I have never traded in the FOREX markets and have no intention to do so between now and forever.
"I have found that the best way to analyze the dollar/yen, dollar/euro, Southeast Asian currencies, the rand and the other components of the baskets generally used to track the movements of foreign exchange is that whichever way you have a position, the markets will move in an opposite way, as the banks would have that position and the banks at the end of the year must make $50 billion-$75 billion a year on their trades. So every dollar you invest must be dissipated at a proper rate into their firmament whilst leaving you with hope. I could elaborate further concerning the bid-ask spread, the running of stops, and the total irrelevance of which side you take. Victor Neiderhoffer"

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