One of the simplest ideas in investing is buy and hold strategy. This type of strategy is most frequent type of investing because most of the mutual funds are offering their products and services without any active management. Underlying assets are commonly stocks and bonds. In this article I would like to show you an alternative, how to use and adapt this strategy in currency market.
Safe o risky
Well, this is the dilemma. If we assume that all assets have different risk and all strategies have different risk profiles, there is always chance to make wrong decision. We cannot say that buy and hold is always risky strategy and we definitely cannot say that is safe as well. All these things depend on multiple factors as fair value of the asset, interest rate or yield, actual price, market condition and many others.
Why should I invest to the particular currencies?
I don’t know if there is any better and flexible market as a cash market. I don’t believe in never-ending bullish stock market. I believe in very serious and conservative way of investing. The way how to to create a fixed income. I don’t want to say that only forex is the best market. There is plenty of t…