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- When Soros left the Bank of England with a SoreArse... a lesson
When Soros left the Bank of England with a SoreArse... a lesson
OK there's more than one lesson here, but there's one that I want to focus on.
Not much has gone on today that I think it important to write about...
So I want you to watch this video.
It's a video on George Soros' 'Breaking the Bank of England' trade.
The lesson to take from this is right at the beginning.
'That bet has been available for the last ten years and it only paid off at that particular moment.'
This is something to keep at the forefront of our minds whenever we are entering a trade...
'Are all of the elements that we need there?'
'What else might need to come into play to action this optimally?'
'Is there anything that can ruin our thesis?
I'll be critical of myself now.
I thought I timed the euro trade pretty poorly in retrospect.
It probably would have been better to action it closer to when the ECB meeting was.
Analysis is fine, but the analysis that I came to led to me getting chopped about and having to de-risk and re-add before it started to come to fruition.
Timing is everything, and as the video states, this trade managed to come about in only one week out of a whole decade.
Some trades are totally unexpected even on any window though.
Remember the Swiss franc de-peg?
I do, very sorely.
What we are trying to do as traders looking at macro, sentiment and technicals is mainly trying to piece together the best possible conditions on timing...
It's fine to hold a trade expecting the best, but timing is just as important as getting in at the right price...
Otherwise, your anxiety levels rise and you might end up missing the move altogether.