Thursday, March 19, 2009
This is Art
EUR/JPY, 1m, Today
This, my friends, is art. Things are nice and calm the whole day, and all of a sudden, the currency pair whipsaws all over the place like a maniac. In the ensuing insanity I got stopped out of a trade. When I checked to see if it was a good time to enter again, the bid-ask spread had ballooned to a yawning 27 pips. Usually, it's 4. 27 pips means you need your trade to make 27 pips before breaking even. On a good day I make 60-80 pips. 27? You gotta be kidding. At least I walked out of this one with 2. Damn whipsaws. At least it's still a profit. I can't imagine how many people got screwed over in those few minutes.
One thing I've learned in my short trading career is this. Be patient. You don't win big in the blink of an eye. And, have the courage to wait things out, even if the situation looks like the biggest FML moment in your life. More lessons some other time when I'm feeling all worldly and wise and in a mood to dispense crap to you.