Apr 26

Dry Your Tears, FX Traders.

In Which Rogue Traderette Gets Her Agony-Aunt On.

Oh, how I laughed this morning!

I had the delightful pleasure of falling upon one of the most amusing WSJ articles ever.

But I tell you, my impression of FX traders has been dashed.  I can no longer consider them to be high-flying, sophisticated, sleek and professional because the sad truth is they aren’t.

They are the same as every other trader, except it is still possible they have better hair.

One thing that is blazingly apparent from this mornings article is that they certainly aren’t tougher. In fact, they are a big bunch of sooks.

I had thought that they were much more hardcore, because – unlike equity traders – I’d never heard them whinge about HFT; but according to another WSJ article they got it out of their system in 2005/6, way before my time.

Thank goodness for that.

So to my hilarious whingey FX friends featured in A Trader’s Lament, you may dry your tears because Agony Aunt Jess is in the house.

You can trust me, I'm wearing a brooch.

From The Article -

Any Excuse wrote -

“The EUR/USD is said to be so heavily optioned, locking the pair in a 1.3000-1.3500 range that it would take “the end of the world” to break to the downside. By the time you caught up with that it would be 500 points lower, making shorting the euro at 1.2500 useless!”

Oh darling I do feel for you.  Here, have a tissue.  Now, I realise this may be way out of your comfort zone, but have you perhaps considered not trying to short at 1.25?  No?  Here’s an idea – try shorting at 1.35, instead.

FX Has-Been wrote -

“The market isn’t wrong, it is just stupid!”

Well, perhaps.  The market is a wonderful reflection of ourselves and it would do you well to ponder on that for a while.

Stupid Sterling wrote -

“Sterling? Forget it…Sterling is 1.6000.”

Since 1986 the GBP/USD has had a solid base at 1.40, with resistance at 1.70 and 2 on its daily chart.

I know, it really is impossible to form any kind of trading idea from that.  Except perhaps, I don’t know…you could buy at 1.40.  Or something.

Randy wrote -

As far the South African rand goes, “I have no idea what to do with that.”

Randy, it’s going to be okay.  I know it’s surprising, but you don’t actually have to trade the rand.  Who knew, right?

I Like My Sleep wrote -

“You have to trade Aussie at night and it moves on Chinese economic data, which most traders deem suspect. Who knows if the figures from China can be believed?”

Who does know if China’s data can be believed?  More importantly, who cares?  Here’s a special secret for you – price doesn’t move on truth, price moves on perception.  And here’s another secret – it moves on other people’s perception, so unless you find economic numbers absolutely riveting you can pretty much give them up.  Hoorah!

Are You an FX Trader With Problems?

Email me, and I’ll be more than happy to help you ;)


Liked it?  Please subscribe over there (up a bit…up a bit.. Got it!) ->>

And follow me on Twitter, or Facebook.

Hated it?  Why not tell the world?  The share buttons are right below.

  • Gina Johnson

    Oh thats very optimistic. http://columbusstockcoach.com/ Great job!

  • http://www.manvspips.com Kejing Hou

    I forgot who it was that said it but it came from one of the Market Wizards book.

    The trader being interviewed essentially said that majority of ‘traders’ at banks aren’t real traders. They make money matching buyers and sellers and speculate the shit out of their earnings for the rest of the day. If they win, they’re the popular guy at the party that night. If they lose, they’ll blame the market for acting irrationally.

  • http://robertsweetman.wordpress.com robertsweetman

    Hi Jess

    I also read this article yesterday and experienced a very similar reaction.

    This comes under the heading ‘By the time you’re ‘x’ age you should have realised that life isn’t fair and that you need to take responsibility for your actions and therefore your results’

    Trading is hard… SHOCK HORROR! Poor babies…

    However my sympathy is somewhat lacking on discovering they have better hair than me.

    Thanks for another funny post