I’ll do this “once” as to provide a touch more insight into how I trade.
Let’s look at AUD/JPY for example.
You can see in the chart below, that the pair has been trading sideways for near an entire month within a very tight “100 pip” range. To put that in perspective in “real terms” the difference in value of the Australian Dollar and the Japanese Yen has fluctuated “a single penny” over the past 30 days. Actually no wait….over the past 2 months! A single penny in exchange rate.
Let’s stop right there.
Can you imagine that with “all the news” and “all the hype” and “all the bullshit” you are inundated with every single days as to “The Taper!”, ” China Slowing!”, “Death Of The Dollar!” , “Stocks At All Time Highs!” “Market Crash Coming!” Blah blah blah….that the fluctuation between one of the highest yielding currencies, and that of the lowest yielding currency has moved…………a single penny?
And you’re completely underwater, can’t believe you’ve taken trade advice from a total stranger on the Internet, and sitting under your desk praying to god that “things will turn in your favor”.
A “single penny” in real world terms – and you’re already about to pull your hair out.
This is where you just step back a moment. You recognize you’ve got absolutely no business trading as large as your trading – and that frankly, you’ve got “no friggin idea at all” how currency markets / trading works.
Good. This is an important step as……hopefully now…..you’ll go back – start reading from the beginning, and get yourself caught up. It’s all here, and I’m always available to answer your questions.
I can’t tell you “how to trade”, but I can tell if “a single penny” on “a single day of trading” has you slamming your head into your desk – I’d best keep my positions small.