On 7th September 2015 Citi recommended going short EURJPY at 132.75 and were stopped out the next day at 134.15
Everyone gets trades wrong. Getting it wrong is fine as long as you get it wrong, the right way
Citi pumped EURJPY shorts and were spectacularly blown out of the trade the next day. Some might see that as one of the big boys getting a deserved kick in the nuts
The fact of the matter is that losses are part and parcel of trading. The hard part is coping with a loss and minimising that loss in the first place
Whether Citi had a howler doesn't matter. Where they win is that they had a plan and they stuck to it. They knew their risk and they knew their reward. They didn't trade and then think about their risk, and find themselves 200 pips offside and wondering what they should do. They didn't pick a trade on the toss of a coin but put together a list of reasons they thought the trade would pay off
They followed the rules and were disciplined in the whole process. They lost but can move on without looking back. Ok, any customers who followed their trade might have a different view but they would also have lost within set parameters. Again, their profit and loss would have been managed appropriately
Having a plan is the most simplest thing to compile before trading yet so many people don't do it and find themselves lost at sea
Trading can be as easy or as hard as you want to make it. What road would you rather go down?
