Foreign Exchange trading risks

"SEMBCORP MARINE (SCMN.SI) - Sembcorp Marine said on Wednesday it had agreed with BNP Paribas to settle a $50.7 million dispute stemming from botched foreign currency trades at its Singapore unit last year. Sembcorp said in a statement it would take a charge of about $30 million in the fourth quarter following the settlement. "


How many times have we read about huge foreign exchange trade losses incurred by companies who need to hedge against foreign exchange fluctuations, given that many receive revenues denominated in USD against costs which are often in SGD?

So, when even these big boys incur huge losses, with all the so-called expertise and resources at their disposal, what makes us, the small retail investors, think that we can do better than them and reap huge financial rewards and gain financial freedom, as claimed by so many advertisements by self-professed gurus (some with dubious doctorates bought from unaccredited universities)?

If it's so easy, why don't these gurus offer their expertise and simple winning formulas to the big companies and earn big time, and at the same time benefit our stock markets, so that for once, we read about huge foreign exchange gains instead of losses?

My advice therefore to all my friend and clients is to stay away from foreign exchange trading.

AIG sells private bank

The asset sale continues relentlessly even as AIG's government loans ballooned from the initial US$85 billion to US150 billion. Its assets were estimated at US$1 trillion before the credit crises and financial meltdowns and scandals hit the global financial markets, crippling and sending many once-venerated institutions to near collapse and bankruptcy. Its liabilities were estimated at US$1.4 trillion (i.e., approx $400 billion more than its assets), hence its near bankruptcy, as it faced difficulties to raise funds in the midst of the credit crunch.

Farrer Park Mediplex to open in 2010

Medical tourism certainly has a huge growth potential here, even as the U.S. and President-elect Obama begins to grapple with high healthcare costs and double-digit increase in health insurance premiums. I am still holding on to my Parkway shares, so I hope that this bodes well for its share price in the uncertain times ahead.