Once again John - I did not see that you had replied until now.
OK - for what it is worth - and for everyone that was wondering:
I lost - again - big time - BUT - it was once again through my impatience.
I kept saying to myself ‘the ZAR cannot get stronger - buy USD’ - it did and it did and it did and it is now at around 7.2000 to the USD.
I would have been a rich man (at least covered my losses) if I had just hedged my positions when I started making huge losses BUT started getting scared when the losses started mounting started getting margin calls and so closed all my positions when I could not take it any more and lost most of my margin. Had I not done this I would be making a fortune in one direction and a loss in the same direction but the ZAR will not stay at 7.2000 for long and I would have made in the other direction as well.
Anyway - the point is - I don’t think that I was wrong to try and profit out of this pair (although I have now learned my lesson) - my nerves and b*lls are obviously still in the design phase of the project!!!
Let the record show though - I was at least right about one thing - the ZAR went from 7.4500 to 7.2000 in three days!!!
After saying all of this and looking for redemption - I know me too well - I’ll be watching my beloved pair for when the USD starts getting strong and the ZAR weakens again (and hopefully I’ll be able to post a message with the title ‘Hey - I’m Rich!!!’).
I must just tell you that it amazes me that the ZAR is considered an ‘exotic’ currency - there is nothing exotic about it. Our economy is in a better state than most and it can only get better with the way things are here in South Africa.
And the above statement is not a contradiction of everything I said above it - the ZAR has been steady between 7.4000 and 7.45000 (if you consider that steady) for absolute ages now - the only reason for the sudden change was USD weakness.
Feel free to comment!