How Much of Your Portfolio Should Be in Cash or Forex?

When building or managing a portfolio, one of the most overlooked but crucial components is your cash and FX (foreign exchange) allocation. While many investors focus on stocks, crypto, or real estate, holding the right amount of liquid assets can significantly enhance your financial stability, flexibility, and overall strategy.


Why Cash and FX Matter

Cash provides liquidity. It allows you to take advantage of opportunities quickly, cover unexpected expenses, and weather downturns without panic selling. FX (foreign currencies like USD, EUR, or JPY) can serve as a hedge, especially if you’re exposed to international assets or geopolitical risk.


General Guidelines Based on Investor Type

1. Long-Term Investors (Passive Strategy)

If you’re primarily focused on long-term growth with a buy-and-hold strategy, a smaller cash allocation is typical.

Portfolio SizeSuggested Cash/FX Allocation
<$100,0005% – 10%
$100,000+2% – 5%

Purpose: Emergency liquidity, buying dips, or portfolio rebalancing.


2. Active Traders and Speculators

If you trade crypto, stocks, or CFDs, you need more liquidity to remain agile.

Strategy TypeSuggested Cash/FX Allocation
High-frequency trading5% – 20%
Swing trader10% – 30%
CFD/multi-asset trading20% – 40%

Why more cash? To manage margin, fund trades quickly, and handle drawdowns.


3. Conservative/Wealth Preservation Investors

Age and risk appetite affect how much cash you should hold.

Age GroupSuggested Cash Allocation
Under 405% – 10%
40–6010% – 20%
60+20% – 40%

Purpose: Reduce volatility, maintain access to funds, and protect principal.


When to Increase Your Cash/FX Position

  • Anticipating a market downturn or recession
  • Planning for a large purchase or investment
  • Experiencing high portfolio volatility
  • Preparing to rebalance or rotate assets

Rule of Thumb

“Keep enough in cash and FX to sleep well at night, but not so much that inflation eats it away.”


Final Thoughts

Your ideal cash or FX allocation depends on your goals, timeline, and risk tolerance. Revisit it regularly, especially in changing market conditions. Liquidity is power—but too much can be a drag on growth.

Need help figuring out your ideal allocation? Organise a free consultation with Swap Hunter to ensure your portfolio is optimized for both opportunity and protection.

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    📊 Market Calm Before the Storm: Why Swap-Hunter Thrives in Uncertainty

    As markets await U.S.–China trade talks and critical inflation data, Swap-Hunter’s trading system gives you the tactical edge to profit—no matter the volatility.


    Global stock markets opened cautiously this week, with U.S. futures hovering near flat. For many traders, this signals indecision. But at Swap-Hunter, this is where our trading system shines.

    Whether it’s geopolitical risk, inflation uncertainty, or headline-driven swings, our system thrives on structure—not speculation.

    🌍 What’s Moving the Market This Week?

    • U.S.–China Trade Talks (June 9) – High-level negotiations resume in London.
    • CPI and PPI Inflation Data – Key indicators ahead of the Fed’s June meeting.
    • Fed Rate Decision (June 17–18) – Rate cut speculation building.
    • Geopolitical Risk – Domestic protests and National Guard deployment add market tension.

    🔄 What This Means for Traders

    While traditional systems wait for breakouts or trend confirmations, Swap-Hunter works within the noise. Our system capitalizes on:

    • Flat Markets – Ideal for range-bound swaps and intraday structure plays.
    • Volatility Surges – Our setup detects liquidity zones that react to news-based momentum.
    • Institutional Footprints – Identify where real volume is being deployed—not just where price moves.

    📈 S&P 500 Snapshot

    The S&P recently reclaimed the 6,000 level and is now just 2.3% off all-time highs. Rather than chase tops, our system monitors rotational liquidity and traps.

    S&P500 Rotation Zones

    Example chart: Rotation zones identified by the Swap-Hunter system

    ⚙️ Why Swap-Hunter Is Built for This

    Markets are not always trending. In fact, they spend most of their time consolidating. This is where Swap-Hunter’s rules-based, volatility-adaptive system gives you:

    • High-probability setups in quiet markets
    • Dynamic risk management around key macro events
    • Real-time structural edge vs. reactive trading

    ✅ Your Next Move

    Don’t sit on the sidelines while others guess the outcome of this week’s data and talks. Trade with structure. Trade with precision.

    🔗 Join Swap-Hunter today and start trading the markets with confidence—whatever headlines come next.


    Tags: U.S.–China Trade, CPI, PPI, Fed Meeting, Trading System, Swap-Hunter, S&P 500, Market Structure

    US Job Data Cools Less Than Expected in May – What It Means for Markets and Workers


    How to Trade Forex and Jobs Data with Swap Hunter

    In a surprising turn, the latest US job data suggest that the labour market is more resilient than analysts had projected. According to the recent payroll data, US nonfarm employment increased by 139,000 jobs in May, slightly lower than April’s revised figure of 147,000 but higher than the consensus estimate of 130,000.

    This unexpected uptick challenges earlier concerns of a sharper slowdown, amid fears of new tariffs and broader economic headwinds. While the pace of job creation has softened, the labour market continues to send mixed signals that demand a closer look.

    Key Highlights:

    • May Job Growth: +139K (vs. 130K expected)
    • April Revisions: Downwardly adjusted to +147K
    • Unemployment Rate: Steady at 4.2%

    Sector-Specific Trends

    Employment growth wasn’t evenly distributed. Some industries fared better than others:

    • Healthcare, leisure and hospitality, and social assistance showed steady gains, signaling continued demand for services and care-related roles.
    • Manufacturing and federal government jobs experienced a decline—potential early signs of budget tightening or shifting production dynamics due to supply chain constraints and tariff concerns.

    This pattern reinforces the notion that while the US job engine is still running, it’s shifting gears.

    What This Means for Workers

    For job seekers, the positive news is that the unemployment rate remains stable, and key service sectors continue to hire. However, those in more cyclical or government-tied industries may want to stay alert to shifting priorities and potential policy changes.

    Implications for Markets and Policy

    Wall Street had braced for a sharper pullback in hiring, so this report could bring temporary relief. Still, policymakers at the Federal Reserve will likely keep a close eye on wage trends and broader economic indicators before making any interest rate adjustments.

    If the economy continues to tread this fine line—neither overheating nor collapsing—it may lend weight to the case for a “soft landing” scenario, which economists have debated for months.

    Final Thoughts US Jobs Data

    May’s job data serves as a reminder that economic momentum doesn’t vanish overnight—it tapers, recalibrates, and shifts. For businesses and workers alike, staying flexible and responsive to these trends will be crucial in the coming months.


    Stay tuned to Swap Hunter for regular updates on the economy, job market trends, and how these shifts impact your career, investments, and day-to-day decisions.

    Have thoughts on how these trends could affect your industry? Drop your insights in the comments or connect with us on social media.


    Successfully Trade Swaps in Forex

    Being charged Swaps by your Forex Broker

    Swap Hunter will Make Money from Swaps in Forex

    Retail Forex investors are not aware of Swaps until it is too late. Mainly due to a lack of information and education.

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    Low Interest Rates on your Savings?
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    https://www.youtube.com/watch?v=0svvAd98ik0https://www.youtube.com/watch?v=k98sxle4lKo&t=272s

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    Swap Hunter analyses and calculates the overnight interest you will be paid by the broker for holding your trades.

    Our Swap Hunter Indicator Trading System measures the strength of correlations between assets in order to hedge the risk of the market. This provides additional safety & security on trading positions.

    Due to the versatile nature of our trading system, you can use multiple strategies in order to suit your level of risk appetite, experience and level of investment. 

    We also offer fully managed solutions for people who do not understand or have time to analyse markets, 

    What is Swap Trading? 

    Or, Carry trading as it is also know as. It is simply when you buy a high interest rate currency against a low interest rate currency and your broker pays you the overnight interest rate differential. The unique thing about the Swap Hunter Trading System is that we use hedging strategies to lower your risk significantly to highly volatile markets. 
    We hedge correlated assets and earn interest every day.
    Beat the low and negative interest rate environment.
    Check out this video from one of our partners, FXTM to explain further.

    https://www.youtube.com/watch?v=vzCFwTwQ4Ts

    Try Our One Month Trial

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    Recommended Brokers.

    Low Interest Rates and Negative Interest Rates Explained.

    How do negative interest rates affect my savings?

    Swap Hunter Trading System eliminates these problems for savers.

    https://www.youtube.com/watch?v=pX3_3NMZa0k/?partner_id=4905901

    Low Interest Rates at the Banks.

    Low Interest Rates on your Savings?
    Swap Hunter have Developed a Trading System that Generates Daily Interest on Trading Positions in the Forex, Stock and Commodities Markets.

    Outperform Low Interest Rates offered by your Bank by using the Swap Hunter Trading System.

    https://www.youtube.com/watch?v=0svvAd98ik0https://www.youtube.com/watch?v=k98sxle4lKo&t=272s

    Low interest rates at the Banks getting to you yet? Well it looks like it will only get worse. 

    Central Banks continue to cut Interest Rates to fuel the stock market mainly because of the Coronavirus pandemic. 

    The time to find a way to make your money work for you is now. 

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    Get Paid Daily Interest on your Trades and Investments.

     

    Whatever your asset preference: Forex (FX), Stocks, Commodities, ETF’s or Indices our MT4 Indicator analyses and calculates the overnight swaps for your trades.

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    Due to the versatile nature of our MT4 Indicator, you can use multiple strategies in order to suit your level of investment, experience and availability.
    We also offer a fully managed solution using copy trading, social trading and PAMM/MAM accounts.

    What is Swap Trading? 

    Or, Carry trading as it is also know as. It is simply when you buy a high interest rate currency against a low interest rate currency and your broker pays you the overnight interest rate differential. The unique thing about the Swap Hunter Trading System is that we use hedging strategies to lower your risk significantly to highly volatile markets. 
    We hedge correlated assets and earn interest every day.
    Beat the low and negative interest rate environment.
    Check out this video from one of our partners to explain further about Swaps.

    https://www.youtube.com/watch?v=vzCFwTwQ4Ts

    Try Our One Month Trial

    Register Here

    Recommended Brokers.

    Low Interest Rates and Negative Interest Rates Explained.

    How do negative interest rates affect my savings?

    Swap Hunter Trading System eliminates these problems for savers.

    Lower the risk of Online Trading with the Swap Hunter Trading System

    The Swap Hunter Trading System generates interest on your trades every day.

    By simultaneously buying and selling correlated assets (hedging), will lower the risk of online trading.

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    And your broker will be paying you overnight Swaps instead of charging you Overnight Fees to hold on to your trades.

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    Long-term, short-term, experienced and non-experienced investors who are new to the market can also benefit from the Swap Hunter Trading System Managed PAMM account option.

    Watch this You Tube video to see a more visual demonstration of the Swap Hunter Trading System.
    Lower the risk of Online Trading with the Swap Hunter Trading System

    Check out our various Swap Hunter Trading System Videos.

    The Swap Hunter Trading System has the Correlation Matrix. It will show you which assets to open a hedge trade on. Sorted in order of the strength of their correlations. It calculates and shows you which assets are offering the highest overnight NET Swap payments.

    Swap Hunter Makes it Simple for you.

    Lower the risk of Online Trading with the Swap Hunter Trading System.

    So many MT4 traders do not calculate how much they lose from overnight fees/Swaps on their trades.
    They are not informed by about trading “With the Swaps”

    Swap trading or Carry Trading is very advanced. We have some very advanced, institutional level investment strategies that we can teach you and provide continual trading support, or we can look at our managed portfolios.

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    Check out our different software licence packages for the Swap Hunter Trading System here.

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    Stock Market at All Time Highs

    When is the right time to start selling the Stock Market at all time highs?

    S&P 500 Past 10 Years

    Stock Market at All Time highs. We are witnessing the longest BULL rally in 100 years. Many economists say this is due to loose monetary policy. Quantitative Easing and now the introduction of Interest Rate Cuts being used to stimulate growth are a major cause of the stock market at to be at all time highs. Also an incredibly strong labor market in the United States is also a cause of this historic rally. With the U.S. at full employment.

    US-China Trade Deal Phase one has been reached and this is another market positive. Some say it is just a political move in preparation for the US 2020 Presidential election. It will take some pressure off US farmers and middle Americans who are a large chunk of Trump’s political base. But world famous economist Mohamed El-Erian is slightly more pessimistic than the White House would have us believe. As you can read in this CNBC article.

    It is difficult to use technical analysis in order to choose an entry point to sell the markets. As there is so much geopolitical and fundamental news to digest and analyse. The news headlines are coming in thick and fast. And sentiment is changing all the time.

    How can Swap Hunter help you with this unpredictable scenario?

    Carry Trading is the solution, but the way our software does it is unique. We do not just trade in one direction when using the Swap Hunter software. We hedge correlated assets and play the interest rates differentials of currencies in order to gain Swaps every day. We are hedging so we can lower the overall risk of the market. Our goal is to provide our clients with full support and education in order for them to generate more interest than the Banks.

    WANT TO FIND OUT MORE? CLICK HERE

    Watch our videos on YouTube for further explanation on how to use our software.

    Hit us up on our Social media pages: Facebook Twitter

    Subscribe, Like or Follow in order for a FREE 30 minute consultation.

    Negative Interest Rates Environment.

    How do I Earn Interest on my Savings in a Negative Interest Rates Environment?

    Negative interest rates is a policy in which cash deposits and savings suffer a charge for storing at a bank. Rather than the conventional idea of receiving interest on your hard earned money.

    Instead of receiving interest on deposits, depositors must pay regularly to keep their money with the bank.

    This negative interest rates environment is intended to encourage banks to lend more money. This is not the case. Banks are not able to charge interest on the loans to small to medium enterprises or individuals. Therefore eliminating the opportunity to make any return/profit on the loan.

    So what do the banks do?

    They hoard cash. they only lend to major corporations in order to prop up an artificial economy and stock market through share buybacks. This is where corporations simply buy their own shares to boost the value of the stock.

    This is all a side effect of low and negative interest rates and quantitative easing. Introduced by the central banks after the Great Recession of 2007/2008. Incidentally share buybacks are at the highest level in history!

    Key Points – The Problems

    With negative interest rates, funds you deposit in a bank incur a storage charge. rather than earning interest.

    Negative interest rates can be seen during deflationary periods when people or institutions are inclined to hoard money, rather than spend or lend it.

    Negative interest rates are meant to be an incentive for banks to make loans during a period in which they would rather hoard funds.

    Key Points – The Solutions

    How do I get better interest on my savings?

    Swap Hunter is a unique and revolutionary trading tool that focuses on supporting new & experienced investors with our unique Carry Trading software & strategies. Watch our easy to understand videos.

    With today’s low and negative interest rate environment, our mission is to provide individuals, companies and institutional level investors with better returns than the banks can offer.

    We offer training and education on how to use Swap Hunter through webinars, seminars and 1 on 1 training sessions.

    We also have fully managed solutions for individuals who lack experience or who simply do not have the time to spend learning how to trade.

    The good news is that you do not need any prior trading or investing experience to generate interest on your savings using our software. We will teach you how to do it.

    Register your details on our site for a FREE consultation. Or get in touch on Facebook or Twitter.