Martinghoul
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Well, I don't think it's necessarily a function of whether you're retail or not. The point, I think, is that the ccy mkts that you look at are often driven by the rates mkts (especially now, during this period of unprecedented macro volatility). That means that, if you're involved in a trade like GBPUSD, it can go against you as a result of stuff that is happening in a different mkt that you're not necessarily following. Unfortunately, that is our current reality that we all have to deal with.What a stunningly useful response. There are we retail traders piddling around with nothing more pressing than price levels and lines to concern ourselves with, while the reality of the wider trading world totally dwarfs our little universe with its complexity and richness.
How would anybody such as myself as an individual retail trader ever get into the flow of the fundamental data and human factors such as you have explained to us here? The awareness of who the players are and who's feeling the pain and under what circumstances and the likely result of of implied and unmet expectations. Is it possible other than by working in a professional environment?
To be honest, even if I had been aware of the issues you describe I wouldn't have known how to trade it and I wasn't in a gbp trade at the time, but I certainly would have given the event far more attention than I did based on my erroneous determination that nothing likely to change would mean no major move in spot sterling.
Thanks again for your expansive reply.
I, for one, have no idea how to trade it. I just sort of grin and bear it (or stop out, if that's called for). Ultimately, IMHO, it just comes with the territory. If you're trading, drawdowns are a reality and there's really nothing you can do about it.