Predicting share price movements is difficult enough as it is. Anyone who claims otherwise is either a genius, a liar, or has been extremely lucky for a suspiciously long time.

But if you really want to make it extra spicy, just add currency fluctuations as an additional variable. Because why make life simple when you can make it complicated?

The larger the portfolio gets, the more the exchange rate decides to play its little games. Suddenly a nice gain in USD can turn into a disappointing result in SEK. I’ve experienced this several times. Stocks doing their job, while the krona is actively working against me. Classic.

On several occasions the SEK/USD volatility has been so wild that I’ve actually waited… or completely chickened out on certain acquisitions. Some were done later. Others were never completed.

Because apparently my risk tolerance has limits — and those limits are heavily influenced by how much the currency feels like messing with me on any given day.

I know I should be better at this by now. But here I am — still letting exchange rates stress me out like a true amateur.

Some people fear the stock market. Me? I fear the currency market more.

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This is a new post on the new dewlar.me blog.
You can find the old blog here:https://mrsdewlar.blogspot.com

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