Let me present: the Turkish Lira carry trade.
Erdogan is a nice guy giving us free money if we invest in his dead currency.
There is probably bullish divergence here so I would wait either for resistance to get hit, or a break down, maybe an inside bar, anything to get that juicy juicy trade.
Against the euro the rate is even higher
I did not check with every broker, maybe rates are even better elsewhere.
Be sure to keep an eye on this.
If:
- You go short and it goes down you make heaps of money
- It goes sideways for a long while, which could happen it went down alot, you make heaps of money.
- It goes up you lose some. the risk reward does not need to be very attractive, if your stop is far away, it will probably take alot of time to get reached, and during that time Erdogan showers you in gifts :)
That carry trade is what made the thing explode (I think?) so there is this danger, but it exploded too much ....
It seems to be still interesting, just don't do it blindly and stupidly look for a trade that would be profitable on its own (50% odds and 1:1 good enough), selling a break or at resistance good enough.
I did not look at all the details maybe it is not as interesting as I think :p
Erdogan is a nice guy giving us free money if we invest in his dead currency.
There is probably bullish divergence here so I would wait either for resistance to get hit, or a break down, maybe an inside bar, anything to get that juicy juicy trade.
Against the euro the rate is even higher
I did not check with every broker, maybe rates are even better elsewhere.
Be sure to keep an eye on this.
If:
- You go short and it goes down you make heaps of money
- It goes sideways for a long while, which could happen it went down alot, you make heaps of money.
- It goes up you lose some. the risk reward does not need to be very attractive, if your stop is far away, it will probably take alot of time to get reached, and during that time Erdogan showers you in gifts :)
That carry trade is what made the thing explode (I think?) so there is this danger, but it exploded too much ....
It seems to be still interesting, just don't do it blindly and stupidly look for a trade that would be profitable on its own (50% odds and 1:1 good enough), selling a break or at resistance good enough.
I did not look at all the details maybe it is not as interesting as I think :p
