The market can stay irrational longer than you can stay solvent. – John Maynard Keynes
Keynes not only revolutionalised economics, he was also a keen speculator. He was involved in the equity, property, commodity and, most famously, the currency market. His speculation in currency almost led him into bankruptcy and he had to borrow funds to to stay afloat. After a five year break he returned to speculating and died with a net worth of $30 million in today’s dollars.
I keep his timeless quote and his own initial failure in trading as an important reminder of the way in which the market can humble you. If someone with such an understanding of economies and the market could almost lose his shirt in forex trading, one has to be skeptical of one’s own abilities.
Yet, trade we must. And caution is the word.
I am currently trading in currencies. I am most interest in trading contracts for difference (CFDs) but for now I’m focusing on currencies. In time I will be revealing how my trades are doing in blog posts. Do keep reading.