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Staying on course, still the same set of spreads, they must be using some form of Algorithm to execute these trades simultaneously.
Wednesday, September 10, 2014
Forex Trading Day 5
Staying on course, still the same set of spreads, they must be using some form of Algorithm to execute these trades simultaneously.
Tuesday, September 9, 2014
Sunday, September 7, 2014
Friday, September 5, 2014
Forex Trading
A friend recently introduced me to a company that manage Forex trading through their team of traders using one of their recommended Forex Brokers. This friend showed me the daily track records of the traders, which is phenomenal in the electronic era. Of course it's easy to achieve fantastic returns during our floor trading days.
After some convincing from this friend, I decided to put in a small amount to test it out even though I am not a great supporter of Forex Brokers. The risk is definitely there, though account can start from as low as USD 1,000 to start off. I put in an amount that I can afford to write off and still able to sleep well, that's important for any investor who wish to invest in any instrument; bonds, stocks, unit trusts or managed funds. A note from my experience is not to trust unit trust, almost all underperformed and funds that charge management fees even though they losses money for the account.
There will be a 30% performance fee charge at the end of the month only when they make a profit for the account, and losses will be carried forward to the next month. I find this reasonably fair. Account can be stop and closed anytime as desired by the investor and funds withdraw out as requested. No penalty, that's very good. Daily statement from the Broker will be emailed to the investor.
Statement received from the first day of trading, no idea how they trade to make money with such small profits as scalping is so difficult nowadays. I am still skeptical. I suspect they are doing some kind of a spread trading.
Minimizing such small losses on the second day is rather hard to achieve in the volatile Forex market. I was told the traders had many years of Forex trading experience and trades are transacted during non figure nights using 7 proprietary indicators when the markets are more stable. Well, they are not going to reveal what strategies and why a particular set of forex pairs were chosen. Maximum cut lost will be capped at 7% per day and all trading suspended if the account lose 30% of the capital, awaiting further direction from the investor.
After some convincing from this friend, I decided to put in a small amount to test it out even though I am not a great supporter of Forex Brokers. The risk is definitely there, though account can start from as low as USD 1,000 to start off. I put in an amount that I can afford to write off and still able to sleep well, that's important for any investor who wish to invest in any instrument; bonds, stocks, unit trusts or managed funds. A note from my experience is not to trust unit trust, almost all underperformed and funds that charge management fees even though they losses money for the account.
There will be a 30% performance fee charge at the end of the month only when they make a profit for the account, and losses will be carried forward to the next month. I find this reasonably fair. Account can be stop and closed anytime as desired by the investor and funds withdraw out as requested. No penalty, that's very good. Daily statement from the Broker will be emailed to the investor.
Statement received from the first day of trading, no idea how they trade to make money with such small profits as scalping is so difficult nowadays. I am still skeptical. I suspect they are doing some kind of a spread trading.
Minimizing such small losses on the second day is rather hard to achieve in the volatile Forex market. I was told the traders had many years of Forex trading experience and trades are transacted during non figure nights using 7 proprietary indicators when the markets are more stable. Well, they are not going to reveal what strategies and why a particular set of forex pairs were chosen. Maximum cut lost will be capped at 7% per day and all trading suspended if the account lose 30% of the capital, awaiting further direction from the investor.
Monday, April 28, 2014
Tuesday, April 22, 2014
My Daily Meal
It's been a long time since I last update as I find nothing much to share on trading except maybe on some traders who have busted their accounts last year. I see no point in adding salt into wounds. It's probably the same old lessons about Money and Risk Management. Trade within your means.
Trading is no longer lucrative, it's plenty of hard work and every trade is almost a gamble. In my opinion, I always believe the big boys are manipulating the market and with advance technology using sophisticated machines, most traders hardly stand a chance of making it.
During a chat with a Fund manager, he revealed that he pity the small players, as he knows some of these big boys, only a few exceptionally good traders are able to make money. (He is referring to the stock market)
I am hanging up my Jacket, instead of trading, I am looking at investing, having a view over a longer term horizon, it's just too stressful starring at the screens and not necessary able to make some decent money. There is no more edge and the cost of trading is high.
I have been approached with many type of business proposals which I have turned down, risk taking is no longer my cup of tea any more. I am looking for something to do, to occupy my time instead of playing Candy Crush the whole day, it can be quite addictive.
I found something recently that fit what I intend to do, small investment in an upcoming Internet Business, relatively low risk to make some daily income for my meals by working 20 minutes in front of the computer. Starting small to see how it goes and sharing it to grow.
This is not a get-rich-quick scheme. I am testing the water with a weekly update.
For those who want more information on this, do drop me a mail at dailymeal4u@gmail.com.
Trading is no longer lucrative, it's plenty of hard work and every trade is almost a gamble. In my opinion, I always believe the big boys are manipulating the market and with advance technology using sophisticated machines, most traders hardly stand a chance of making it.
During a chat with a Fund manager, he revealed that he pity the small players, as he knows some of these big boys, only a few exceptionally good traders are able to make money. (He is referring to the stock market)
I am hanging up my Jacket, instead of trading, I am looking at investing, having a view over a longer term horizon, it's just too stressful starring at the screens and not necessary able to make some decent money. There is no more edge and the cost of trading is high.
I have been approached with many type of business proposals which I have turned down, risk taking is no longer my cup of tea any more. I am looking for something to do, to occupy my time instead of playing Candy Crush the whole day, it can be quite addictive.
I found something recently that fit what I intend to do, small investment in an upcoming Internet Business, relatively low risk to make some daily income for my meals by working 20 minutes in front of the computer. Starting small to see how it goes and sharing it to grow.
This is not a get-rich-quick scheme. I am testing the water with a weekly update.
For those who want more information on this, do drop me a mail at dailymeal4u@gmail.com.
Saturday, December 7, 2013
What happen to this Trader?
On the 6th January last year, I briefly shared about this Trader who reviewed to me that he made 3000% return in 2011. I was impressed by his performance, from S$20k to S$600k, an amazing feat that is only common for floor traders in the past. Of course I still do hear of the occasional trader that make those type of money now, but it's rare.
I came to know this trader through an AFACT event, exchanges phone number and he would call me regularly to seek my opinion of the market. I told him that I am a very short term trader, my view of the market is short sighted and I am not good in forecasting, don't let what I said affect him. He would then let me know about reports, figures that might affect the market and then his one sided view of where the market is going.
He made his money shorting the market, and probably because of that, his opinion is skewed towards having short positions. As I probe into how he managed to make his money, I realized that he averages on good and bad positions and ride them. Luck was with him that he survived one that nearly stopped him out and later made a killing. He focused and only traded one contract, Simsci and revealed that his biggest position was holding more than a 100 contracts. I have never done that in my entire life.
I warned him about the perils of overtrading, money and risk management as I have been through it before, losing big time. He assured me that he traded smaller position and attended various courses on trading, trying to find the holy grail. Whenever he was caught with a position, he would call me for my opinion and tried to convince me with reports and figures that the market should go the way of his position. Of course, they were mostly short positions. As time went by, I find it rather annoying as it affect my short time view as well.
After knowing the benefits of being an Sgx member, he joined as a member to get preferential rate and enjoyed much lower commission. His trading time frame started to get shorter as he got closer to the market and began executing his own orders, spending long hours till the market closes at 2.00 am. I warned him that short term trading is getting very tough with the Algos dominating it with their speed and very much cheaper commission to flip the market, confusing all the click traders.
I warned him about taking care of his health too as he should be around my age, the way he traded is definitely stressful to me. While I am getting out of short term trading, this guy jumped into a pool infested by crocodiles!
Despite all the warnings from me, he continued trading and would called me about making some money here and there. I was never envious of his exploits and would congratulate him for his good work always with a warning to be careful as I can hardly make a living scalping.
I don't know this trader well, met him a few times during some AFACT events whereby he would chat me up. He kept to a very low profile.
I was relieved when he stopped calling me and I noticed that he didn't attend any more events. I thought maybe he might have been caught short when the Simsci started shooting up, probably he might be shy to admit his mistakes. I left him alone. I messaged him and wished him a Happy New Year but there was no reply, I called him recently and his phone was out of service.
I came to know this trader through an AFACT event, exchanges phone number and he would call me regularly to seek my opinion of the market. I told him that I am a very short term trader, my view of the market is short sighted and I am not good in forecasting, don't let what I said affect him. He would then let me know about reports, figures that might affect the market and then his one sided view of where the market is going.
He made his money shorting the market, and probably because of that, his opinion is skewed towards having short positions. As I probe into how he managed to make his money, I realized that he averages on good and bad positions and ride them. Luck was with him that he survived one that nearly stopped him out and later made a killing. He focused and only traded one contract, Simsci and revealed that his biggest position was holding more than a 100 contracts. I have never done that in my entire life.
I warned him about the perils of overtrading, money and risk management as I have been through it before, losing big time. He assured me that he traded smaller position and attended various courses on trading, trying to find the holy grail. Whenever he was caught with a position, he would call me for my opinion and tried to convince me with reports and figures that the market should go the way of his position. Of course, they were mostly short positions. As time went by, I find it rather annoying as it affect my short time view as well.
After knowing the benefits of being an Sgx member, he joined as a member to get preferential rate and enjoyed much lower commission. His trading time frame started to get shorter as he got closer to the market and began executing his own orders, spending long hours till the market closes at 2.00 am. I warned him that short term trading is getting very tough with the Algos dominating it with their speed and very much cheaper commission to flip the market, confusing all the click traders.
I warned him about taking care of his health too as he should be around my age, the way he traded is definitely stressful to me. While I am getting out of short term trading, this guy jumped into a pool infested by crocodiles!
Despite all the warnings from me, he continued trading and would called me about making some money here and there. I was never envious of his exploits and would congratulate him for his good work always with a warning to be careful as I can hardly make a living scalping.
I don't know this trader well, met him a few times during some AFACT events whereby he would chat me up. He kept to a very low profile.
I was relieved when he stopped calling me and I noticed that he didn't attend any more events. I thought maybe he might have been caught short when the Simsci started shooting up, probably he might be shy to admit his mistakes. I left him alone. I messaged him and wished him a Happy New Year but there was no reply, I called him recently and his phone was out of service.
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