I was pleasantly surprised looking at a private account I have, which is extremely small in net assets. It’s an account that is pretty much dormant, except when in January there were major moves on the CHF Swiss Franc, I decided to buy EUR, USD and GBP. The chart above shows what just that move did.
Interestingly that account did better than one I manage equities actively in. Nearly double as good to be honest.
I think I can use this insight to make a mental note that
- gains or losses can come from unexpected places
- just two three transactions a year can make all the difference i.e
- you can be watching the markets out of the corner of your eye on a daily basis (end of day, not intraday) and still reap very large profits with very little “work”.
- work is mostly NOT entering into trades, but only reacting to major sentiment shifts