I had a plan in 2010 while I lived in Japan. If you go and look at the USDJPY… It was down in the low 70s. I was convinced that if I invested in that pair long, it would make me rich. Imagine going from 75 to 110 in 3-5 years with 15-20 lots! HOWEVER, I couldn’t stick to my plan. I over-invested and got very spooked with the market swings. I ended up taking a lot of losses. I’ve been on the brink and came close to losing it all 3 or 4 times. I have battled back several times. It’s been a long scary ride but I am in really good shape now from a balance, equity, and margin level standpoint. The best thing about my portfolio is that I am a Canadian living in Canada and all of my account is in USD. I am looking at 34% on top of my equity ATM.
I still have unfinished business but hope to cash out once I reach my goal. Then I will focus on other investment options without the craziness of forex!
Back to the USDJPY plan. Had I not ‘over-invested’ and had I stuck to my original plan (perhaps I should have done the math first), I would seriously be a wealthy SOB right now.
I mean look what happened! This is the monthly chart… Exactly as I called it - EXCEPT for all the fluctuation that my account couldn’t handle – at least psychologically!