It all started here, at home. I remember the blissful day when my dad bought me my first laptop and sent it all the way around the world from Thailand to Peru. I was 11 years old back then.
I remember he told me by phone: "Pedrito, this is an investment. And as such, it should bring you back some kind of income. Find out how."
|
I witnessed astounding events (even though most of the time I didn't notice they were serious stuff): the Great Recession, bubble policies, budget crises, super high gold prices (I tried to compel my mom to buy jewerly before it got higher; didn't work).
I don't know why but my mother didn't allow me to join the party. |
Gain experience
Peru is a mining country. It's no surprise its bourse is highly correlated with the price of metals. But, what exactly drives the price of metals upwards or downwards? At that specific time it was the Fed. So I jumped in a couple of trades and bet all my money in favour of a USD depreciation.
The outcome was staggering. My stocks value more than doubled in less than 3 months. I was the happiest man in the world... buuut...... the 2011 Japan Earthquake and Tsunami happened.
I just didn't know how to react. I had read that gold was a "safe-haven" asset. Wasn't it supposed to be bought as a result? The EPU was smashed and my stocks were losing value.
I wanted to jump off the trades as fast as I could... It wasn't possible. Peruvian stocks lacked liquidity (my stocks were the worst) so I was stuck. OK. I took a deep breath, but didn't change any position.
At least I was able to Break Even.
Have you ever heard about technical analysis?
It basically described two types of trading: news trading and sentiment trading.
After studying those concepts for a couple of months and adjusting them to my personal point of view, I finally developed my own strategies and rules. I couldn't believe it. I was half way through the dicey trek of success! I just needed consistency and a proper mindset to achieve my goals. |
- Short-term Sentiment Trading: Trading currency pairs, sometimes commodities, based on future expectations (short-term sentiment) confirmed by an established mid-term sentiment at the right time defined by the market cycle (this is related to trading sessions and volumes) with fixed SL (stop loss) and TP (take profits).
- Mid-term Sentiment Trading: Fundamentally, predicting mid-term sentiment trends based on fundamental analysis and trading them. No fixed SL or TP.
- News Trading: this one is a bit rare for me because I prefer trading the sentiment behind the release expectation (also I have an awful internet connection for high-volatile news trading scenarios) rather than trading the spike or the retracement of the news market reaction.