hello everyone
as i am typing this eurchf had hit another all time historical low at 1.32800. i know many ppl dun realli bother abt it. everyone heard abt the greece debt default but who cares? rite? anyway so far away who bother? sigh.. haizzz i also wish i can dun bother lo. i cannot bo chap coz i am holding a lot of long posistions on the eur. in just 2 weeks euro had broke the previous historical low at 1.43004 and had drop a whopping 1000 pips to now 1.32800. this is almost 50% drop in value in just 1 month. this is realli crazy shit! and if eurchf keep droping like shit. my project lobo can really say bye bye already. haha ok enough of my headache. now lets talk a bit about why and wat happen to currency devalue.
ok we all know greece is in trouble. their streets are on protest and riots, civil servant paid cut. many ppl saying its going to spread to spain and french just raise their retirement age. when a countries people is in mass protest, you know the problem is very serious. now all these countires are using the currency EURO.
i dun realli know why currency devalue when a country is in trouble, but all i know is tat thats the way they handle their problems. lets see a good example was the russia ruble during 1998 crisis.
The Russian financial crisis (also called "Ruble crisis") hit Russia on 17 August 1998. It was triggered by the Asian financial crisis, which started in July 1997. During the ensuing decline in world commodity prices, countries heavily dependent on the export of raw materials were among those most severely hit. Petroleum, natural gas, metals, and timber accounted for more than 80% of Russian exports, leaving the country vulnerable to swings in world prices. Oil was also a major source of government tax revenue
On August 13, 1998, the Russian stock, bond, and currency markets collapsed as a result of investor fears that the government would devalue the ruble, default on domestic debt, or both. Annual yields on ruble denominated bonds were more than 200 percent. The stock market had to be closed for 35 minutes as prices plummeted. When the market closed, it was down 65 percent with a small number of shares actually traded. From January to August the stock market had lost more than 75 percent of its value. The ruble lost 70% of its value against the USD. Russian inflation in 1998 reached 84 percent and welfare costs grew considerably. Many banks, including Inkombank, Oneximbank and Tokobank, were closed down as a result of the crisis
what happen next?
Recovery
Russia bounced back from the August 1998 financial crash with surprising speed. Much of the reason for the recovery is that world oil prices rapidly rose during 1999–2000 (just as falling energy prices on the world market helped to deepen Russia's financial troubles), Another reason is that domestic industries, such as food processing, had benefited from the devaluation.
imagine this situation in layman everyday lives. last time i go malaysia buy pirated DVD is only SGD $5 for one. now for example SGD drop so low until i need to pay $7 for 1 DVD at malaysia. i confirm wont go buy DVD so often because it had become more expensive due to SGD devalue. now in long term malaysia export to sg will reduce becoz everything is more expensive. so extreme devalue is not good for the econmony in the long run. so this crazy eurchf drop must stop soon. how soon? when i also dunno.
ok now lets talk abt another currency, the eurgbp. just abt 1 year ago during my ill fated project "K grid". the situation was almost smiliar to now. i was trading the eurgbp i was having lots of short positions, but the eurgbp keep going higher and higher. (realli bring back sad old memories). then i remember many analysis was saying tat the eur and gbp is going to be 1:1. and i remember reading that the british is not going to intervened. well eurgbp go high high until almost 0.9+++, just enough to give me more white hairs and wiped out my K grid account. now almost 1 year passed, go look back at where eurgbp is now?? it is droppping low to almot 0.8+++. if i were able to tong my account that time i would had be able to surived the crazy eurgbp back then....
another quick example is the recent ausnzd, it had broke the historical high just recently and i was also sweating in my pants. take a look at where is it now? dropping down lioa lo.
now with Project Lobo i was able to handle the DD much better but still i am also stress lo.... even thought i say i not stress i only bluff bluff 1 la.. how can be not stress? wah lau so much money leh i saved in 1 year eating grass how can not be heart pain and stress????????? even i am typing now i am stress... but after i type this i will feel much better . need a place to let go. after i cleared my mind i will be able to handle this eurchf crazy drop!! i am much better to handle this kinda DD now as compared to last year and i know what to do heheehehehe...... realli lucky i never greedy when eurchf was up, i almost tempted to go on back the trades, now think back realli lucky lucky. anyway wish me luck guys to go thru this eurchf bullshit!!!! this time i really need LUCK !!!!! arrggghh go back must fix the 4 leave clover and pray pray !!!!!!!! if i were to be realli make it as forex trader in future i will be going thru this many times so i cannot be stress or kan cheong i must be clam and ride thru the stormz!!!!!!!!
