Trading Forex is Akin to Deliberating a Relationship
Three months ago, I lost about N50,000 in a day.
I was livid with myself so I went to bed and laid there for over 8 hours.
Sleeping. Didn’t want to wake up to reality.
When bad things happen to me, I don’t like waking up; sleep becomes more seductive.
Eight hours later — or was it twelve? — I got tired of sleep and woke up; I went to fix things.
That’s Forex for you: You can make a lot of money in a day and you can lose a lot of money in a day.
I don’t do Forex on a normal basis where you talk pips and analyze charts.
I’m the street guy who does Forex because his company deals in global trade with currencies like dollar, yuan, dirhams and pounds.
Last week, the exchange rate took a nose dive.
I had clients’ funds in naira; they needed to be converted into dollar.
The naira was so weak it plunged against the dollar. I was mad at the naira.
I called up my phone’s calculator and did an estimate. A rough one.
I’d have done smooth but that would mean looking at the balance sheet and profit and loss statements. I was scared.
I don’t do rough except I know smooth will show me results I may not be able to handle at the moment.
I didn’t do smooth. Never did. Don’t think I’m going to.
Rough showed me some crazy figures: I was going to lose more than I lost 3 months ago.
I was scared. Petrified.
It sucks; I know.
Call me Courage the cowardly dog. Perhaps an appropriate title considering I’ve got few titles these days.
Despite fear, I had to make two decisions from the two wheels Forex runs on.
Forex Runs on Two Wheels; Pre-Relationships, Too:
- Wait — for the naira to appreciate but risk it depreciating further and losing more money.
- Move — change the naira and lose the figure I see in the rough.
In romantic relationships, this translates to waiting to make the jump with the right person even when you think the time is wrong (by the way, I really think time is an illusion).
In which case, you stand to lose the person. Possibly so!
Or, moving towards the jump with the right person even when the time is right or wrong.
In which case you stand to be so happy or get heartbroken-later-in-the-near-or-distant-future-or-never but.. Calculated risk!
Three Months Ago:
Three months ago, I waited. And then, I lost about N50,000 in a day.
Earlier this week, I moved. And then, I didn’t suffer a loss. Okay, I did: less than N4,000.
Not that bad!
This post isn’t about moral correctness, if you think it to be so.
There’s no right or wrong here.
It’s about going with a wheel and dealing with the consequences of your trip-with-the-wheel.
There: Not complicated.
If the naira plunges again, I may just sit on the fence (third wheel…oh dear!) and deny myself the ability to wait or move. Then, suffer the consequences.
I may just…
Can’t a guy sit on the fence anymore?