Investment Management Companies

[Katanga]

Vickyd

I agree with the previous post. You should be doing your own research on ccy trading and this is an area where no one person or company can give you advice that is based on something you could not find out by researching even on the web.

CCy trading is thought of as an easy way to make money and a safe way way but again in the current turmoil in the markets no one can deal with the volatility. No one would have guessed 2 weeks ago that the NZD would drop 3% against the JPY. It happened, all in one day, yesterday. Now all those people with the carry trades would lose 50% of the supposed interest rate arbitrage they thought they had.

If you are going to make a living out of ccy trading then do your own research, put up bigger stakes and remember the 8bips does erode your capital away if you don;t watch the markets carefully all day long.

Good luck !

[vickyd]

I'm not saying I didn't do my homework or anything - or the fact that I'm angry. In fact, the research that I conducted on my own was a bit contradictory and decided to give this company the benefit of the doubt. And thankfully - since I had made a personal policy of only risking a small portion of the total amount, I got out in time. I made it a note that if my total loss got to HKD 20k (which isn't much in currency trades for those of you who know), I'd get out. The reason was because I was only buying 1 or 2 contracts at most, and this company was wrong time and time again. That just proved to me that they were just shooting darts instead of performing any conclusive reasearch/analysis on various currencies.

[sarpesius]

You need to do your homework to be a currency trader!! If you lose, it's your own fault (sorry!) :-)

That is like saying she has to get a medical degree before going to a doctor.

[freeier]

to be fair, look at the currency market the past few days.
if fed has to step in with a rate cut, i guess its extreme enough.

if u are losing in the past few days, just live with it, cut loss and move on... personally i won't blame anyone for advise that cause me to lose money!

its simply crazy out there!

[taihunggao]

That is like saying she has to get a medical degree before going to a doctor.

Well, maybe - but having a cold and trusting the doctor to do the right thing is like buying an authorised bond fund. Entering currency markets on your own account, or on blind advice, is like operating on yourself in comparison, and yes I would want a medical degree, or at least the Cliff notes, before attempting any self-surgery!

[taihunggao]

That just proved to me that they were just shooting darts instead of performing any conclusive reasearch/analysis on various currencies.

A dart will beat any currency prediction model out there. This was mathematically proven by Meese & Rogoff in the 1980s... many people say it still holds today, especially for short-term models. If they were shooting darts you might have gotten better advice :-)

[beachball]

Sorry to hear about your negative experience, vickyd. For the avoidance of doubt, what you are talking about appears to be an investment/currency trading advisor and broker, not an investment management company. The latter would hold and manage (hence the name...) your funds, while the former just handles (and suggests) trades.

And to clarify - the investment managing entity is a company - and not an individual. Hence, it is not possible for them to use 'company money' (or that which is owned by their partner-level executives) to invest in the market

That is not correct. Regardless of whether it is an individual or a company, he/she/it can engage in proprietary trading (i.e., investing for their own account). In fact, why would you want to follow the recommendations of somebody who is not willing to "put their money where their mouth is"...

as it is in some cases considered insider trading as well.

There is virtually no insider trading in the currency markets (with the exception of situation involving central bank/government decisions on interest rates or (in some cases) exchange rates).