This year’s US Presidential Election was very dramatic from the capital market perspective.
Before noon on 09 November 2016 New Zealand time NZDJPY shot months high to 77.87; and it was thought that Clinton was getting ahead and should be the winner. While that’s also my thought and I was pretty confident that the 4x NZDJPY Longs should hit the TPs at 78.00 in no time…then shit happened and around noon NZDJPY free-fell to 77.00, 75.80, …, 73.90!!!
After Trump declared victory NZDJPY rebounded and recovered all previous losing ground up to 77.91 high on 10 November 2016 8am. As per my record I’ve made very handsome profits 3 times; the first round up till 77.87 (Long); the next free-fell from 77.81 to 74.70 (Short); and the last one from 74.20 to 77.80 (Long). This is a great game – not only because I profited handsomely, but more importantly it’s the lesson I learnt from it, and this is priceless.
Here’re 4 lessons I’ve learnt and wanna share with you guys:-
Lesson #1 – Always have Plan B
Shit always happens. When things go against your will your exit plan (if you have one) will always save you. That’s why whenever I trade I always have my trades hedged, ie bet on both sides – up and down. At worst scenario I can protect part of my trade if I guess it wrong; the best part of this is that I can possibly win twice and thus double my profits.
Lesson #2 – Learn from previous mistakes
I always hear people saying how many years of experience they have on certain things, eg. an “experienced” FX trader boasting about his 20-year experience in the industry. What he did not mention is how much money he made or lost from his 20-year career. To me, making same mistakes over and over again and never learnt from them is just a waste of time. These add numbers onto “experience” instead of “value” and thus a trash.
Lesson #3 – Be objective, trust no body but yourself
Before the Election the markets had a consensus that it’s gonna be very volatile and so to play safe investors or traders were urged to park their capitals within safe haven assets, ie Bonds and JPY. This may be good advice to many people if their goals are “play safe, not to loose”; but it’s a bad idea for others whose goals are “take opportunities, to win and to profit”. But how to be a winner? Please refer to Lesson #1 and #2.
Lesson #4 – Walk the talk, Take Action!
No matter how big and beautiful your dream is, if you never took action the dream is still a dream. Before the Election quite a few friends of mine always talked about their plans and strategies to make huge bucks from it; when the Election was over and we met up to discuss, many of them did not make or loose – they did not make their move!!! This is the difference between an average and a master.
Many so-called experts make their living by talking; many real winners make their profits by doing.
For your interest, here’s my Blog detailing my plans and strategies before the Election, along with my trading results after.