What to do if you bought currency at a high price?
During the crisis and strong dollar fluctuations, many of us try in every way to save our savings and run headlong to the exchange office. A kind of rush is created, cash is hard to find, and dollar rises. As a result, those who bought into the panic begin to get nervous, cursing everyone - the experts, the world government, Freemasons, aliens, but this is not the solution. If you bought currency is expensive, you need to act quickly and sensibly. We'll tell you how to use your expensive currency purchase to your advantage in the future.
The secret of Bestrate's success
Many people in a crisis continue to make the same mistakes, one of them is buying U.S. currency at a high rate. As soon as the dollar rate skyrockets to 28-29, we think it will exceed the 30₴ mark and start buying lots of currency. If this happens, the first thing to do is not to panic and rush to surrender the currency, it will lead to losses. You need to think carefully about every step you plan to take next.
There's a simple secret to success, based on the example of buying $400:
- first, buy a small amount of currency, for example $100 at a rate of 29;
- when there is a drop, we buy another $100 at the rate of 27.25
- calculate the average rate, it will be 28.125;
- the rate starts to fall again and reaches the level of 26.65, we buy again, but already 200 dollars at this rate
- calculate the average rate of three different indicators, it will be 27.388 for 400 dollars
- If the rate continues to fall, you can continue to buy more currency, it will help "erode the rate" of all the currency in hand. On the other hand you can wait for a strong bounce upward rate and sell all the dollars that you have in hand.
This kind of part exchange scheme allows you to either break even or make a profit. It's worth noting that many bankers and financiers use this method, so you can get a good effect.
It's worth noting that many bankers and financiers use this way.
Other useful techniques
After you buy a dollar you can't take it back, so it's important to take advantage of it and learn lessons for the future. Here are a few more interesting ways to reap the rewards:
- Buy stocks. The expensive dollars you buy may simply not go up in value, so some of the currency that's getting cheaper can be exchanged for stocks that are going up.
- Use a "monthly averaging strategy. If the rate is constantly fluctuating, you can buy or sell assets at average prices.
- Don't sell the entire "cutlet" at once. All financial transactions must be done in small installments (tranches). It is possible to break the whole amount into several parts.
- Diversification. Money should be held not in one asset class, but in several, such as stocks, real estate, business and others. You need to spread your currency across different assets and analyze different financial instruments.
You can also set limits for yourself, at which you know for sure you're wrong. For example, you buy at 29 and you say to yourself, if the buy rate is below 28, then I really made a mistake. And even better, if there is an opportunity to sell dollars to someone at a good price later. It is important not to miss the time and choose the right way to exchange.
Experts say that currency is getting cheaper because no one needs it, because oil producers have a huge drop in revenues, tourists do not need it, and the tax period makes the supply of currency excessive in the market.
There is always a way out, no matter at what rate and when you bought the currency. Use proven methods and don't make rash decisions.