8 - Trading...it's a family thing
In the late 1990’s I pretty much specialized in 1 trade.
*If you’re just getting started with trading, take note.
You can be a successful trader by specializing in a single trade!)
My masterpiece trade was…. Drum roll please…
Shorting the Japanese Yen
The Japanese economy was in trouble and shrinking every quarter.
The only thing the BOJ could do to stimulate the economy was to ease interest rates.
And as we know lower rates reduces demand for the currency… and thus the currency drops..
For the better part of 3 years, I put the same trade on month after month.
Here’s a funny story .
Wait.. what.. How can shorting the Yen be funny ... ?
My wife was at work in an examining room with a patient.
The patient’s cell phone rings and he insists he MUST take the call.
Patient: Yes I want to buy 1,000 shares of ….blah blah blah
Lisa: Oh you’re buying stocks...
The patient then turns to Lisa, and in the most condescending tone says...
‘Young Lady… what do you know about the stock market?’
Try to get a visual …
A 60 something year old man, with a cell phone in an era when only the really important people had cell phones...
And Lisa a 25 year old Female! Discussing the financial markets.
Lisa: "Actually I’m short 10 contracts of the JPY with a 121 strike price.
Lisa: You see the BOJ is set to announce interest rate policy tomorrow and with rates already at 1.% the only they can really do is float the currency."
About 30 minutes later Lisa can clearly overhear her patient from the waiting room.. on his cell phone … saying “ what do you know about the Japanese Yen…?
Go Lisa ! I was so proud
Trading… it’s a family thing