This has been across the news-wires a lot today. How George Soros and several other Hedge Fund types have been making serious profits from the weakening of the Yen over these last few months. This article is from Business Insider and you can read it here
What I found interesting is the comment from Green Light Capital’s David Einhorn – “We put the trades on about three years ago and the trade wasn’t fun for the first two years and number of months,”
As a private trader there is no way I could stand either financially, emotionally or professionally over 2 years of pain whilst I waited for a FX trade to go in my direction! I was surprised to read such comments to be honest. What do you think readers? Would you be able to / want to stand the heat for such a long period waiting to be proved right? It tends to go against everything I hold dear about trading – namely if you’re wrong find out quick and get out. I’m just always reminded of that John Maynard Keynes quote –” The market can stay irrational longer than you can stay solvent.” If you’re taking positions like that how do you know when you’re wrong and to completely get out? Perhaps its just a case of the size they were trading meant they had to hold on for dear life till the position turned around? I’m not criticising I’m genuinely curious!