It has been 2 months I didn't write any blog. I am preparing Hedge Fund business proposal to some of the 'big boys'. Now, the terms of Currency (FX) Market is different. You might heard GDP, NFP, Carry Trade in FX Market, but now the new terms are controlling the speculators mind; QE, 'Currency War', China and more.
Bare that in mind, China has the biggest USD reserve in the world. So any speculators want to 'attack' RMB or Yuan, it is not as easy attacking RM, Bath, Won or other developing countries currency.
Strange but true, every 'advanced economic' want their currency devalue, yes... this is how China can experience the GDP growth for the last 2 decades. The simple term is 'Export'! If you have a weak currency compare to other, relatively your export become cheaper and demand will increase. The so-called 'imbalance of global economy' is all about the 'value' of the currency of each country.
USA! The powerhouse of 'printing money' will bully other by pushing down their own currency to 'balance' their economic, and buying theirs own bonds via the unofficial world bank, Fed Reserved. All the major pairs will become stronger then USD. China being the only country that will keep their currency 'slowly appreciate' against USD. China have their very strong views which I totally agreed. If RMB is appreciate too fast, the China economy will be in turmoil, it will cause the society imbalance and thus affect the world economy.
Sunday, October 10, 2010
Wednesday, August 18, 2010
Fundamental Views - USD/JPY
The articles from WSJ which I strongly agree. Fyi, I hold big position in the pair of JPY.
Time for Japan to Get Tough
By Katie Martin
It’s time for Japan to stop playing Mr Nice Guy.
The country has been holding back from currency intervention for months, but the case for action is becoming overwhelming.
After all, why not intervene? The yen is clearly far too strong. It hit a 15-year peak against the dollar last week and remains elevated on a trade-weighted basis, or simply by comparison with other regional heavyweights like the yuan or the won.
And this is clearly hurting. Just take a look at the gross domestic product data released earlier Monday. Japan’s economy grew by a seriously floppy 0.1% in the second quarter of this year. Economists had predicted a rise of 0.6%. Wobbly exports are a big reason for this weakness, and the strong yen has to take part of the blame as it makes Japanese products more expensive abroad.
What’s more, the rise in the currency is completely out of whack with economic fundamentals. Japan has a massive debt burden, no growth, interest rates at zero, a deflation problem, grim demographics… you name it.
Traders have been buying the yen but not because they are positive about Japan’s prospects. No, it’s largely down to its role as a perceived safe haven, and even that makes no sense. The yen is not safe. It just tends to climb when markets get the heebeejeebies, because Japanese accounts are traditionally enthusiastic investors in overseas assets. When they get frightened, they sell up, buying yen in the process. Other traders, rationally enough, piggyback on this to make a nice little return. That doesn’t make the yen safe, it makes it a bet on safety.
So, here we have a currency that has snapped its link with reality and is causing damage to its economy. That’s reason enough for other countries to stop the rot. Why haven’t the Japanese authorities acted already, either by selling yen or by easing monetary policy further?
Some reasons make sense. One is that, at the moment, monetary policy is not in further easing mode. Intervention rarely works unless it’s in synch with the path of interest rates.
Another is that, while the yen’s climb has grim repercussions, it is not, in itself, disorderly. It’s not yet rising at the sort of pace which clearly calls for an official hand to slow it down.
The last main obstacle, though, is widely seen as the most significant, and it is also arguably the weakest: it lacks international support. Japan does not appear to have the go-ahead for a zap on the yen and, as a good global citizen fully signed up to the international mantra of freely-floating exchange rates, it appears to feel obliged to let the market do its work, for good or ill.
By Katie Martin
It’s time for Japan to stop playing Mr Nice Guy.
The country has been holding back from currency intervention for months, but the case for action is becoming overwhelming.
After all, why not intervene? The yen is clearly far too strong. It hit a 15-year peak against the dollar last week and remains elevated on a trade-weighted basis, or simply by comparison with other regional heavyweights like the yuan or the won.
And this is clearly hurting. Just take a look at the gross domestic product data released earlier Monday. Japan’s economy grew by a seriously floppy 0.1% in the second quarter of this year. Economists had predicted a rise of 0.6%. Wobbly exports are a big reason for this weakness, and the strong yen has to take part of the blame as it makes Japanese products more expensive abroad.
What’s more, the rise in the currency is completely out of whack with economic fundamentals. Japan has a massive debt burden, no growth, interest rates at zero, a deflation problem, grim demographics… you name it.
Traders have been buying the yen but not because they are positive about Japan’s prospects. No, it’s largely down to its role as a perceived safe haven, and even that makes no sense. The yen is not safe. It just tends to climb when markets get the heebeejeebies, because Japanese accounts are traditionally enthusiastic investors in overseas assets. When they get frightened, they sell up, buying yen in the process. Other traders, rationally enough, piggyback on this to make a nice little return. That doesn’t make the yen safe, it makes it a bet on safety.
So, here we have a currency that has snapped its link with reality and is causing damage to its economy. That’s reason enough for other countries to stop the rot. Why haven’t the Japanese authorities acted already, either by selling yen or by easing monetary policy further?
Some reasons make sense. One is that, at the moment, monetary policy is not in further easing mode. Intervention rarely works unless it’s in synch with the path of interest rates.
Another is that, while the yen’s climb has grim repercussions, it is not, in itself, disorderly. It’s not yet rising at the sort of pace which clearly calls for an official hand to slow it down.
The last main obstacle, though, is widely seen as the most significant, and it is also arguably the weakest: it lacks international support. Japan does not appear to have the go-ahead for a zap on the yen and, as a good global citizen fully signed up to the international mantra of freely-floating exchange rates, it appears to feel obliged to let the market do its work, for good or ill.
Friday, July 30, 2010
Amateur Vs Professional Investors
Last night during one of our casual meeting, I was asked by one of the amateur Forex Player where would the Euro heading to? My answer to him.." Goldman Sachs (GS) said it will reach 1.35 but they have revised it twice the projection since early this year. If I tell you it will reach 1.35 but Mr. Market turn other way round, you will curse me. if I am right, you may not remember me."
Professional traders will never ever ask this kind of questions. Regardless where the market move, we look for right time to strike. One of my team mate always related trading forex to sports. I agree his point of views." Lin Dan is a world class badminton player, he know when is the time to smash, drop short, long ball etc in the tournament, but sometimes he make mistakes too." This apply to all the sportsmen. Trading Forex apply the same concept, even you are the best trader, once a while market will not syn with your mind.
Many amateur players think they learn some technical analysis skills and try to play professionally. My advise to them." If you think trading is so easy, anyone can become millionaires by reading this type of books. Ironically, most legendary traders like Mr. Soros and Jim Rogers don't even know how to read chart but they can 'create' the future chart pattern. I hope all the amateur players get my points here.
Professional traders will never ever ask this kind of questions. Regardless where the market move, we look for right time to strike. One of my team mate always related trading forex to sports. I agree his point of views." Lin Dan is a world class badminton player, he know when is the time to smash, drop short, long ball etc in the tournament, but sometimes he make mistakes too." This apply to all the sportsmen. Trading Forex apply the same concept, even you are the best trader, once a while market will not syn with your mind.
Many amateur players think they learn some technical analysis skills and try to play professionally. My advise to them." If you think trading is so easy, anyone can become millionaires by reading this type of books. Ironically, most legendary traders like Mr. Soros and Jim Rogers don't even know how to read chart but they can 'create' the future chart pattern. I hope all the amateur players get my points here.
Monday, July 26, 2010
A Flaw Market.
If you are a Forex Trader and rely on economic news, you will find the whole market is a flaw deception. Some gurus and data will tell you certain currency will go up or down, the data really make sense for you to follow their thoughts.
Once you are confirmed the so called fundamental point of views. You enter the trade and the market start go against you. Huh? Sound familiar for those who follow the fundamental.
I agree with one of the gurus view that currency basically is a flaw deception. Trader and Speculators who are experienced would not follow the news instead have their own thoughts. In many ways, Forex trade 24 hours and almost 7 days, millions of participants with different motives buy and sell the pairs of currency. Some of them are pure model fund, other may be speculation or for hedging purpose. The so called intrinsic value of the currency always depend on the political and economic situation. When Europe hit by sovereign debts, people start selling Euro and buy USD. Once consider as save haven of currency players is no more safe when the news start pop out the double dips possibility in US. The different perception created by big boys will change the market sentiment and the direction of the currency.
I strongly agree the points of view below;
Bloomberg 27 July 2010:
“Foreign exchange is the world’s biggest fruit and vegetable store, with millions of people playing it 24 hours a day,” Goldman Sachs Chief Global Economist Jim O’Neill said on July 21 in a radio interview with Tom Keene on Bloomberg Surveillance. “Anybody who thinks they can get foreign exchange right all the time should be in a lunatic asylum.”
Once you are confirmed the so called fundamental point of views. You enter the trade and the market start go against you. Huh? Sound familiar for those who follow the fundamental.
I agree with one of the gurus view that currency basically is a flaw deception. Trader and Speculators who are experienced would not follow the news instead have their own thoughts. In many ways, Forex trade 24 hours and almost 7 days, millions of participants with different motives buy and sell the pairs of currency. Some of them are pure model fund, other may be speculation or for hedging purpose. The so called intrinsic value of the currency always depend on the political and economic situation. When Europe hit by sovereign debts, people start selling Euro and buy USD. Once consider as save haven of currency players is no more safe when the news start pop out the double dips possibility in US. The different perception created by big boys will change the market sentiment and the direction of the currency.
I strongly agree the points of view below;
Bloomberg 27 July 2010:
“Foreign exchange is the world’s biggest fruit and vegetable store, with millions of people playing it 24 hours a day,” Goldman Sachs Chief Global Economist Jim O’Neill said on July 21 in a radio interview with Tom Keene on Bloomberg Surveillance. “Anybody who thinks they can get foreign exchange right all the time should be in a lunatic asylum.”
Thursday, June 24, 2010
Everyone like fiat currencies...
In the midst of world cup, my favorite team Argentina is doing very well... Today the fiat currency /money conquer the financial world. The strongest nation will define the rules of money works.
From wikipedia:
From wikipedia:
The term fiat money is used to mean:
- any money declared by a government to be legal tender.[1]
- state-issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard.[2]
- money without intrinsic value.[3]
The term derives from the Latin fiat, meaning "let it be done", as the money is established by government decree. Where fiat money is used as currency, the term fiat currency is used. Today, most national currencies are fiat currencies, including the US dollar, the euro, and all other reserve currencies, and have been since the Nixon Shock of 1971.
China is the last victim fall under the U.S. 'trick' to accept the US fiat money/bonds. Once again, do you care money without intrinsic value that rules the financial world? I think everyone love to see millions of USD even it is only paper that declared by USA government to be legal tender. The fiat currency also provide a playing ground for people to play with it which has created the world largest transaction financial market: FOREX Market.
Monday, June 7, 2010
Good News Or Bad News?
The wonderful things to trade forex market is no matter it is good news or bad news, you can make money out of it. Forex is unlike other market, it is the most liquid market in the world. If you are at the long side and plan to shift to short side, you can do it in a second. Bad news or good news will push your position to profitable instead of losing.
When market go against traders, it normally make them feel uneasy. Few rounds of major mistakes will wipe of their accounts. Unless you have big fund to play with, don't ever fight with Mr. Market. Good or bad news will drive each pair of currency up and down, everyone love to short Euro at the moment of my writing. In fact, I am making good money by shorting Euro, the bad news make the market move drastically. However, if you follow your desperation and emotion to sell Euro, you may end up losing money. Why? Any sudden good news may turn the market another way. When ECB announced the rescue package of nearly USD 1 trillion on the weekend, Euro was limit up more then 300 points. Anyway, it went down with no turning back until this moment. My point of view here is other aspects play the role beside just follow your emotion.
When market go against traders, it normally make them feel uneasy. Few rounds of major mistakes will wipe of their accounts. Unless you have big fund to play with, don't ever fight with Mr. Market. Good or bad news will drive each pair of currency up and down, everyone love to short Euro at the moment of my writing. In fact, I am making good money by shorting Euro, the bad news make the market move drastically. However, if you follow your desperation and emotion to sell Euro, you may end up losing money. Why? Any sudden good news may turn the market another way. When ECB announced the rescue package of nearly USD 1 trillion on the weekend, Euro was limit up more then 300 points. Anyway, it went down with no turning back until this moment. My point of view here is other aspects play the role beside just follow your emotion.
Wednesday, May 26, 2010
The Volatile Goldmine - Forex Market
I have stopped writing blog since early this month. I focus most of my time in the volatile environment. Most of the amateur players were knocked down during this period. On the 6 of May 2010, I consider that day was a Tsunami in Forex Market. If you are in the wrong positions and no risk management in hand, your equity will be wiped out in a matters of hours. I was slightly affected but quickly take action to encounter it. Dow Jones Index dropped 1000 points in just less then half an hours. Anyway, it was a good experience for me to weather the perfect storms.
If you are looking Gold in the volatile Goldmine, you need to well prepared or else you will be end up nothing. Forex market is not for everyone, you must be prepared for the worst and bring back your equity level. I see a lot of amateurs boast about themselves on the return they can make. For me, a real professional forex player is the one who can bring back the account if they experienced draw down. From here, they can make money consistently again. Most of the forex players have the draw down syndrome which eventually burn their accounts.
If you are looking for treasure in Forex Market in long term basic, make sure you equip yourself before starting this volatile games. I just like to play the game and if I lose, I will fight back and win again. That is one of the reasons make the games so exciting. I just loving it.
If you are looking Gold in the volatile Goldmine, you need to well prepared or else you will be end up nothing. Forex market is not for everyone, you must be prepared for the worst and bring back your equity level. I see a lot of amateurs boast about themselves on the return they can make. For me, a real professional forex player is the one who can bring back the account if they experienced draw down. From here, they can make money consistently again. Most of the forex players have the draw down syndrome which eventually burn their accounts.
If you are looking for treasure in Forex Market in long term basic, make sure you equip yourself before starting this volatile games. I just like to play the game and if I lose, I will fight back and win again. That is one of the reasons make the games so exciting. I just loving it.
Monday, May 3, 2010
Forex Market : A Zero Sum Game
What is a Zero Sum Game in financial market? Basically it is a game that consist of equal sellers and buyers. Gordon Gekko in Wall Street movie once said “It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.” He is absolutely right! In Forex Market, one side is buying and one site is selling a pair of currency. The middle man (Forex Broker) will collect the tiny but huge in volume spreads is always the winner. They act like bookies in the football bet.
In Forex Market, more then 90% of the losers will transfer the money to 10% of the winners. The rules of thumb is simple: Greed and Fear make the whole market up and down, 90% players which don't know how to control the emotion and other aspects in the game will be knocked down by 10% of the professional players. One of the top 5 currency traders say 'There are rules in this game, if you don't know, better stay out of it!'.
You will ask ' Is the 10% winners win all the time?" The answer is 'NO!" Even the best traders in the world have the draw down period. But most of the time they are winner and some of them WIN BIG when the opportunities come.
For me, a typical hedging currency trader. Sometimes I win big (40-80% per month-The odds is on my side) and consistently 5-25% every month. On the drawn-down site, I experienced 15-25% , but only in a small scale of my overall portfolios (less then 5% of all). I will fix it back to the beginning level before attempting bigger leverage. My advice to FX trader, "Don't increase or maintain the leverage level on your account when you lose, you will be out of the game if you do!"
In Forex Market, more then 90% of the losers will transfer the money to 10% of the winners. The rules of thumb is simple: Greed and Fear make the whole market up and down, 90% players which don't know how to control the emotion and other aspects in the game will be knocked down by 10% of the professional players. One of the top 5 currency traders say 'There are rules in this game, if you don't know, better stay out of it!'.
You will ask ' Is the 10% winners win all the time?" The answer is 'NO!" Even the best traders in the world have the draw down period. But most of the time they are winner and some of them WIN BIG when the opportunities come.
For me, a typical hedging currency trader. Sometimes I win big (40-80% per month-The odds is on my side) and consistently 5-25% every month. On the drawn-down site, I experienced 15-25% , but only in a small scale of my overall portfolios (less then 5% of all). I will fix it back to the beginning level before attempting bigger leverage. My advice to FX trader, "Don't increase or maintain the leverage level on your account when you lose, you will be out of the game if you do!"
Saturday, April 24, 2010
Too Big to Fail.- USA
If you read financial news, you will discover the phrase "Too Big To Fail". What does it mean? Basically, it means if some giant financial institution or country monetary fails, it will create catastrophic for the whole nation or the world.
In Forex Market, political and economic events force the price movement heavily. For the last 6 months, Greece dominated the FX market news. Everyone know Greece has a lousy and unmanageable debt which drag EURO down to bottom and no people wonder why USA have more then USD 12 trillions debt but still consider the most powerful economic nation of the world. Visit this link and you will be shock!! http://www.usdebtclock.org/index.html
Why? The answer is USA is really too big to fail! The whole economic debt and financial web are spiraled by USD. China and other large nations are holding USD dominated papers. If USD value go down, so will these nations assets. Most of the developing countries still rely on the export to USA
Do you still think USD value will go down to drain? In the next 30-50 years, it is impossible!!! By the way, I am not supporting USD but only telling you the facts.
In Forex Market, political and economic events force the price movement heavily. For the last 6 months, Greece dominated the FX market news. Everyone know Greece has a lousy and unmanageable debt which drag EURO down to bottom and no people wonder why USA have more then USD 12 trillions debt but still consider the most powerful economic nation of the world. Visit this link and you will be shock!! http://www.usdebtclock.org/index.html
Why? The answer is USA is really too big to fail! The whole economic debt and financial web are spiraled by USD. China and other large nations are holding USD dominated papers. If USD value go down, so will these nations assets. Most of the developing countries still rely on the export to USA
Do you still think USD value will go down to drain? In the next 30-50 years, it is impossible!!! By the way, I am not supporting USD but only telling you the facts.
Friday, April 9, 2010
Forex (FX)- Another Asset Class
Most of the investors are familiar of Stock (Equities) Market, Bonds, Options, Future Market or any other derivatives think Forex is only an alternative investment. Forex market offers high reward and passive income if you know how to deal with it. I always heard people who lose money in Forex Market shy away from it and refer FX as a high risk investment. Indeed, I agree with them because they are using high risk way to look for unreasonable return.
In FX market, some people ask me whether I use margin or not. I told them I use 'controllable margin' which I can define the risk and reward accordingly. I don't treat FX market as Casino as most of the players do, I look at it as Gold Mine. Beside risk management, I like to hedge my position once mistakes are made. With all the risk management elements in place, I will make my move and look for opportunities to strike.
Why FX is consider the most valuable asset class in my investment dictionary? Firstly, it is the most liquid asset you have. Heard of 'Cash is KING'? it is! With plenty of cash in hand, it will increase my bargaining power in any business deal. In fact, one of Warren Buffet's investment philosophy is looking at company with strong net cash flow which can offer lucrative dividend to investors. Secondly, I can shift my asset classes instantly. If I foresee certain country in trouble, I will sell their currency and buy those with strong economy fundamental. It increase my return within days. Third, by accumulating cash, I have freedom to transform it to another asset within second. I can buy anything with cash in hand. Those who own property and other asset will have trouble to sell it if they need cash urgently. I contend FX consider as the most ultimate asset class in my portfolio.
In FX market, some people ask me whether I use margin or not. I told them I use 'controllable margin' which I can define the risk and reward accordingly. I don't treat FX market as Casino as most of the players do, I look at it as Gold Mine. Beside risk management, I like to hedge my position once mistakes are made. With all the risk management elements in place, I will make my move and look for opportunities to strike.
Why FX is consider the most valuable asset class in my investment dictionary? Firstly, it is the most liquid asset you have. Heard of 'Cash is KING'? it is! With plenty of cash in hand, it will increase my bargaining power in any business deal. In fact, one of Warren Buffet's investment philosophy is looking at company with strong net cash flow which can offer lucrative dividend to investors. Secondly, I can shift my asset classes instantly. If I foresee certain country in trouble, I will sell their currency and buy those with strong economy fundamental. It increase my return within days. Third, by accumulating cash, I have freedom to transform it to another asset within second. I can buy anything with cash in hand. Those who own property and other asset will have trouble to sell it if they need cash urgently. I contend FX consider as the most ultimate asset class in my portfolio.
Thursday, April 8, 2010
Formula 1 = Forex Market
Imagine you are the Formula 1 driver, what is the feeling when you ignite the start button and all the 5 red lights turn off one by one? Forex market is the venue for investors who look for good return. Some investors who look worry when they see their account balance drop. I told them, if you want to look for so-called fix income return, Forex market is not the place. To make money in Forex, it is same like other market, you need time. Even the best F1 driver cannot win straight all the tournaments from Bahrain, Melbourne, Malaysia, Shanghai....... and back to Abu Dhabi.
Look at the last week Sepang race, all the top guns not even qualifed for the top 5 poles. They also make mistakes, sometimes the weather will make them lose focus too. Trading Forex is like driving F1, sometime we are too confident on some trades and lose focus on minor but fatal mistakes. The only way to rectify the problem is using time to 'drive' professionally and patiently to cover the loses. One of the F1 drivers, Lewis Hamilton know about this and will do whatever to get the point in the end of the day.
Once mistake made, I will use my passion and 'drive' patiently to build up the account again. Like F1, there are always another country's currency for me to 'race' again. So no need worry, sometimes power of attraction will make things worse.
Look at the last week Sepang race, all the top guns not even qualifed for the top 5 poles. They also make mistakes, sometimes the weather will make them lose focus too. Trading Forex is like driving F1, sometime we are too confident on some trades and lose focus on minor but fatal mistakes. The only way to rectify the problem is using time to 'drive' professionally and patiently to cover the loses. One of the F1 drivers, Lewis Hamilton know about this and will do whatever to get the point in the end of the day.
Once mistake made, I will use my passion and 'drive' patiently to build up the account again. Like F1, there are always another country's currency for me to 'race' again. So no need worry, sometimes power of attraction will make things worse.
Thursday, March 25, 2010
Paradigm Shift
In Forex Market, paradigm shift can determine the direction of the market. The fundamental of a country's economic will give strong impact to the market. However, fundamentalists have their own judgement and argument on the economy. It often conflict each other.
After Lehman Brothers (http://www.lehman.com/) trigged the worst financial crisis in the world, all kind of 'gurus' give their opinions and assumptions on the outlook of the economy. You name it, all type of shapes; (W, V & U).
When the paradigm shift, so do the forex market direction. Speculation on the the economy recovery push up USD/JPY, interest rate become the 'big topics' for the traders. However, when Fed say the economy is still fragile and economy is not in 'inflation' for the near future, the paradigm shift again.
To trade Forex effectively(I mean making money consistently), I prefer taking psychology aspect that affect the paradigm shift. Forex market unlike stock market that allow you to see the company financial statement, but you need to read the country financial statement. Ironically, USA has the worst financial statement in the world but USD is still doing well recently.
When paradigm shift, Big Boys have their own agenda to deter the market direction. If you look at psychology aspect, some big boys who miss the train will 'twist' their previous views and support the current trend! Some who used to support EURO now talking differently. I guess their paradigm have shifted along with their new positions in EURO!!! This is the financial world.
After Lehman Brothers (http://www.lehman.com/) trigged the worst financial crisis in the world, all kind of 'gurus' give their opinions and assumptions on the outlook of the economy. You name it, all type of shapes; (W, V & U).
When the paradigm shift, so do the forex market direction. Speculation on the the economy recovery push up USD/JPY, interest rate become the 'big topics' for the traders. However, when Fed say the economy is still fragile and economy is not in 'inflation' for the near future, the paradigm shift again.
To trade Forex effectively(I mean making money consistently), I prefer taking psychology aspect that affect the paradigm shift. Forex market unlike stock market that allow you to see the company financial statement, but you need to read the country financial statement. Ironically, USA has the worst financial statement in the world but USD is still doing well recently.
When paradigm shift, Big Boys have their own agenda to deter the market direction. If you look at psychology aspect, some big boys who miss the train will 'twist' their previous views and support the current trend! Some who used to support EURO now talking differently. I guess their paradigm have shifted along with their new positions in EURO!!! This is the financial world.
Monday, March 22, 2010
Mr. Market is Always Right! (All The Time)
When you trade FX, don't blame the market (Mr. Market), he is always right! You should blame your judgement and other aspects. You as a trader will never can beat the market all the time, the moment you think you can, you are doom! I repeat, Mr. Market is always right.
As my account size is growing bigger, I tend to blend fundamental and technical analysis(TA) in my trading which can accommodate Mr. Market. However, sometimes, it is difficult to match the 2 criteria and it need to match with the psychological of Mr. Market. Intuition always conflict with TA and make you stop the execution. Well, to conquer the emotion, I will hedge my position which is limiting me for the huge profit. Anyway, to manage a growing accounts, I will separate it into few categories to fulfill the Mr. Market movement. I know he is always right.
As mentioned earlier in my previous articles, there are few types of traders in the market which initially will 'flight' each other to form 'Mr. Market' which is always right. To fit your own character into Mr. Market's mind isn't an easy task. The conflict of mindset will make you feel like machine.(The sad part is; we are not machine.)
It is 355am (+800 GMT, Monday. 03/22/10), I am setting a game plan which can fit Mr. Market movement for the coming week. I will be heading to the 'Modern & Forbidden City' this coming Wednesday and back to KL on 31 March 2010. The great thing about travelling is you are away from the screen (noises) of the market which will distract your game plan. I will be monitor market only twice a day during my vacation.
As my account size is growing bigger, I tend to blend fundamental and technical analysis(TA) in my trading which can accommodate Mr. Market. However, sometimes, it is difficult to match the 2 criteria and it need to match with the psychological of Mr. Market. Intuition always conflict with TA and make you stop the execution. Well, to conquer the emotion, I will hedge my position which is limiting me for the huge profit. Anyway, to manage a growing accounts, I will separate it into few categories to fulfill the Mr. Market movement. I know he is always right.
As mentioned earlier in my previous articles, there are few types of traders in the market which initially will 'flight' each other to form 'Mr. Market' which is always right. To fit your own character into Mr. Market's mind isn't an easy task. The conflict of mindset will make you feel like machine.(The sad part is; we are not machine.)
It is 355am (+800 GMT, Monday. 03/22/10), I am setting a game plan which can fit Mr. Market movement for the coming week. I will be heading to the 'Modern & Forbidden City' this coming Wednesday and back to KL on 31 March 2010. The great thing about travelling is you are away from the screen (noises) of the market which will distract your game plan. I will be monitor market only twice a day during my vacation.
Sunday, March 14, 2010
The Big Boys Games.
When you step in Forex Market, you are joining billions of participants with different kind of mindset and perception. All of them come in with one mission; making money for themselves or their company. Generally, they are 2 types of players, professional (mostly are winners) and novice (mostly are losers) participants.
The velocity of the market will transfer the 90-95% of losing site to 5-10% of winning site. Frankly, after trading more then 3 years in FX, I see a lot of participants come out of the market and blaming Forex Market as 'Casino'. Somehow, I agree. But I need to emphasis those loser are players and those winner are house of the casino.
I am a fan of few reputable economist and 'think out of the box' hedge fund managers. I would like to call them 'Big Boys", they have billions of dollars to become house of the casino. Having said that, they are not necessary winners all the time, but annually they show positive return between 12-250% percent. One of the reasons they can win BIG is by having 'good friends' in the circles and see the loop holes in each country/nation economy. They plan carefully during the secret meeting. Once the deal is on, they make the market move very fast. If you are not in circle, you will feel shock to see forex market movement. The speed will 'kill' all participants which do not believe their views. Once damage is done, they collect the chips of all players and move to another country.
As I am still not qualify to join their group, I only use my skills to observe the velocity of the Forex Market. By building up my 'figures', one day I believe I will join the "big boys league".
The velocity of the market will transfer the 90-95% of losing site to 5-10% of winning site. Frankly, after trading more then 3 years in FX, I see a lot of participants come out of the market and blaming Forex Market as 'Casino'. Somehow, I agree. But I need to emphasis those loser are players and those winner are house of the casino.
I am a fan of few reputable economist and 'think out of the box' hedge fund managers. I would like to call them 'Big Boys", they have billions of dollars to become house of the casino. Having said that, they are not necessary winners all the time, but annually they show positive return between 12-250% percent. One of the reasons they can win BIG is by having 'good friends' in the circles and see the loop holes in each country/nation economy. They plan carefully during the secret meeting. Once the deal is on, they make the market move very fast. If you are not in circle, you will feel shock to see forex market movement. The speed will 'kill' all participants which do not believe their views. Once damage is done, they collect the chips of all players and move to another country.
As I am still not qualify to join their group, I only use my skills to observe the velocity of the Forex Market. By building up my 'figures', one day I believe I will join the "big boys league".
Monday, March 8, 2010
Friends, 'Bullets' and Skills
In any financial market, it will move up (bull) and down (bear) or sideway. Forex market offers your the both way if compare to stock market. No doubt, stock market offers you short selling but generally it is only apply to certain counters and professional traders.
When you have 2 ways to play around, either you can win or lose consistently (burn your account). When I trade forex, I seldom think of one way instead of thinking 2 ways. I think this prevent me to make huge return on this conservative strategy. For the last few months, if you are a high risk taker, Euro will generate an awesome return just by betting one way. I tend to stay conservative in my trading. I rather build up the portfolio and compounding from it consistently than taking huge risk. Ironically, someone ask me to take high risk and generate high return. If you have the 'big bullets' for me to 'flight' in the market, I might do it. To take high risk in Forex Market, you must have a lot of capital to set up the games plan before entering the market. If you think by having less then USD100K and try to win big in Forex Market, then I must learn from you. Unless you have close friends with 'big bullets' who are willing to share information with you, then chances to hit the 'jackpot' might be there. If you are purely base on skills, it is better to play safe. Generally, I advise those with less then USD20K for investment, stay out of the Forex Market unless you are happy with a very small return.
To stay long in the games, I prefer build up my 'bullets' first, then automatically 'good friends' will come along to flight for the bigger battle. As for the trading skills, each day I try to sharpen it.
When you have 2 ways to play around, either you can win or lose consistently (burn your account). When I trade forex, I seldom think of one way instead of thinking 2 ways. I think this prevent me to make huge return on this conservative strategy. For the last few months, if you are a high risk taker, Euro will generate an awesome return just by betting one way. I tend to stay conservative in my trading. I rather build up the portfolio and compounding from it consistently than taking huge risk. Ironically, someone ask me to take high risk and generate high return. If you have the 'big bullets' for me to 'flight' in the market, I might do it. To take high risk in Forex Market, you must have a lot of capital to set up the games plan before entering the market. If you think by having less then USD100K and try to win big in Forex Market, then I must learn from you. Unless you have close friends with 'big bullets' who are willing to share information with you, then chances to hit the 'jackpot' might be there. If you are purely base on skills, it is better to play safe. Generally, I advise those with less then USD20K for investment, stay out of the Forex Market unless you are happy with a very small return.
To stay long in the games, I prefer build up my 'bullets' first, then automatically 'good friends' will come along to flight for the bigger battle. As for the trading skills, each day I try to sharpen it.
Wednesday, March 3, 2010
Politics, Psychology & Participants In Forex Market
Is politics playing an important role in Forex Market? Yes, it is. Economy policy of a country is controlled by politicians. If the political stability of a country is out of control, then if will affect the country economy and thus its currency.The pound has tumbled to a 10-month low as fears grow the UK will have a hung parliament in the forthcoming election.The currency fell 1.7% to drop below the $1.50 level against the dollar for the first time since May. It has lost 7% against the dollar this year.
Then what, it create a negative sentiment and affect the participants psychology. When you look at the GBP/USD chart, you will notice big boys had been dumped the pound since early of 2010. They know when the time is right, political news can become their agenda to suck the novice traders money. Once news is broken, people start to sell, they start to take profit. Basically this is the games plan that had been set up.
Before cable (GBP) become victim, EURO get the hit. Big Boys rule out the EU possibly break up due to unwillingly German bailout Greece. Participants panic once news break out, and big boys seeing the account become bigger...again, same pattern occur.
My questions to you, which political issues will be raised up by big boys before they dump the news through media? If you know, Forex is a gold mine to make money.
Then what, it create a negative sentiment and affect the participants psychology. When you look at the GBP/USD chart, you will notice big boys had been dumped the pound since early of 2010. They know when the time is right, political news can become their agenda to suck the novice traders money. Once news is broken, people start to sell, they start to take profit. Basically this is the games plan that had been set up.
Before cable (GBP) become victim, EURO get the hit. Big Boys rule out the EU possibly break up due to unwillingly German bailout Greece. Participants panic once news break out, and big boys seeing the account become bigger...again, same pattern occur.
My questions to you, which political issues will be raised up by big boys before they dump the news through media? If you know, Forex is a gold mine to make money.
Tuesday, February 23, 2010
PIGS
The famous 'PIGS' appear in the forex market since early of this year. It affected the Forex Market like storm, Big Boys who knew the problem sell the EURO since November 2009. Interestingly, they only come out the acronym 'PIGS' which catch the world attention late December 2009.
For those who new in Forex Market, 'PIGS'=Portugal, Ireland/Italy, Greece, Spain. Greece is the first target of the media because of the nation debt due soon. The amount of 2.6% of the total of Euro GDP isn't a great number but enough create a havoc and fear in the market. The EUR/USD dipped from 1.51 to current level at 1.35 clearly show that Big Boys are the one who can control the market direction. EU nation slammed the big boys/speculators for overblown the issues but cannot take any stern action. The self reinforce process keep the EURO sliding. It shows the power of the big boys.
Out of the 4 countries, Greece actually is not create a huge problem but Spain is more severe if the fiscal problem is not contended. Even overall sentiment for Euro is negative, please don't simply sell Euro if you don't know the games well. It may burn your fingers easily if you enter the wrong time.
I start to look into fundamental aspect and blend it with TA to enhance my trading skills, the results is even greater then purely depend on TA. Of course, psychology aspect still playing an important roles in my trading strategies.
For those who new in Forex Market, 'PIGS'=Portugal, Ireland/Italy, Greece, Spain. Greece is the first target of the media because of the nation debt due soon. The amount of 2.6% of the total of Euro GDP isn't a great number but enough create a havoc and fear in the market. The EUR/USD dipped from 1.51 to current level at 1.35 clearly show that Big Boys are the one who can control the market direction. EU nation slammed the big boys/speculators for overblown the issues but cannot take any stern action. The self reinforce process keep the EURO sliding. It shows the power of the big boys.
Out of the 4 countries, Greece actually is not create a huge problem but Spain is more severe if the fiscal problem is not contended. Even overall sentiment for Euro is negative, please don't simply sell Euro if you don't know the games well. It may burn your fingers easily if you enter the wrong time.
I start to look into fundamental aspect and blend it with TA to enhance my trading skills, the results is even greater then purely depend on TA. Of course, psychology aspect still playing an important roles in my trading strategies.
Thursday, February 11, 2010
The Ultimate Money Making Machine- Forex Market
I always refer Forex is an ATM or Money Making Machine. Why? It can generate at least 3-25% per month average return to me. To some of my prospects who have the mindset like 'Ah Long', they want 10% per week. I quietly told my business partner if they have this kind of return and can prove to us, we would very happy to park the money with them. Ironically, most of them still come back to us in the end of the day.
Please don't treat Forex market like casino, it can be a casino if you are using excessive leverage and simply trade. If you are lucky, you may strike few round with more then 100% return. But in long run, I can guarantee you will lose all your money. Greed and Fear kill all the novice traders!
When I place a single trade, I have my hypothesis and methodology to support it. Forex is a volatile market, it is like driving F1 on the circuit and you need to stay focus no matter how. Sometimes, I admit I make mistake and lose control and it will result a viral negative impact to my accounts. I cannot sleep well and thinking somethings are wrong, the rhythm of the market cannot syn with my brain and soul. I quickly find out what had happened. (Recently, when Euro under attacked, I was keep thinking the fundamental and technical pattern have ran away. Speculators wrecked the Euro by following the trend. Even I hedge my positions but the market make me feel very uneasy)
To turn Forex market into your money machine, you will experience all kind of market conditions. As long as you are in control, you will sense and feel the market is right or wrong. When you have proper risk management strategy in place, sometimes you can make 25-50% return in a month. When you lose control, you will occur loses. (In my cases, it is always a hedge loses and will turn into profit in long term.) I only need to stay patient and wait for the right moment to strike. The good news for me is my accounts are growing and I already set up more and more money machines. One day, the machines will generate money to me, my business partner and my clients in every second.
Please don't treat Forex market like casino, it can be a casino if you are using excessive leverage and simply trade. If you are lucky, you may strike few round with more then 100% return. But in long run, I can guarantee you will lose all your money. Greed and Fear kill all the novice traders!
When I place a single trade, I have my hypothesis and methodology to support it. Forex is a volatile market, it is like driving F1 on the circuit and you need to stay focus no matter how. Sometimes, I admit I make mistake and lose control and it will result a viral negative impact to my accounts. I cannot sleep well and thinking somethings are wrong, the rhythm of the market cannot syn with my brain and soul. I quickly find out what had happened. (Recently, when Euro under attacked, I was keep thinking the fundamental and technical pattern have ran away. Speculators wrecked the Euro by following the trend. Even I hedge my positions but the market make me feel very uneasy)
To turn Forex market into your money machine, you will experience all kind of market conditions. As long as you are in control, you will sense and feel the market is right or wrong. When you have proper risk management strategy in place, sometimes you can make 25-50% return in a month. When you lose control, you will occur loses. (In my cases, it is always a hedge loses and will turn into profit in long term.) I only need to stay patient and wait for the right moment to strike. The good news for me is my accounts are growing and I already set up more and more money machines. One day, the machines will generate money to me, my business partner and my clients in every second.
Monday, February 8, 2010
The Speed and Rules Of Forex Market
As far as I consider, Forex market is the fastest moving market around the world. I am saying this by assuming leverage is taken into your trade. Most speculators will use leverage to accelerate the speed of forex market. It will create tremendous fear for most of the traders when Big Boys make the move. The self-reinforce and self fulfilling process making it runs like roller coaster.
For most of the novice traders, the market will suck up their account fast. Ironically, most people play forex like high return and treat it like casino, it end up they lose all the money. For experience traders, calculation is very crucial in determining the survival in Forex market. We don't expect making 100% in a month, but instead look for opportunities to come. Once mistake is made, we will hedge or cut lose immediately. I personally don't like to cut losses but instead apply hedging methods. It is all depend on the trader psychology aspect. Patient is another element for successful traders but sadly most of the people come in Forex market want fast results. The faster you think you can make money, the faster you will lose. Other side of experience players will easily knock you down when you lose control.
No trader is perfect and win all the times, in fact I feel worry when I strike 9/10 of my trades which give me an awesome 40% return in first 2 weeks of January 2010. I start worry when I will be making mistake and sometimes feel over confidence when placing the trade. When the ego comes and rules are broken, you are in trouble. (I write this based on my personal experience and dare to challenge those who want to see what I have explained) Do you know why Non Farm Payroll and Unemployment Rate of US is being released on Friday? Simple, it gives time to calm down the market and the participants.
Thursday, February 4, 2010
The Mindset Game : Forex Market.
Recently, I tend to write psychology aspect affect a Forex trader. If you had more then 3 years and did well in Forex trading, your would become less emotional. In the other word, you also have shape eyes and conscious mindset. In fact, experience winners like volatile and vicious market, (the highest beta & alpha) , the better.
Conscious mindset assert confidence to a Forex trader during any market environment. We have shape eyes like eagle flying high above the sky hunting for victims (novice traders) on the ground. Novice traders tend to cut losses and panic during the crisis, we tend to stay clam and cool. It is not easy when you see the trade fall into red, your mindset will change. Your brain will consistently tell you to do the wrong things. The more you think, the more mistakes you make. Noise from the media take away your consciousness. I always remind myself to stay clam and look for opportunities to strike when the market is in viscous form.
Do you know why casino is always the winner. Assume there are 6 players on the 'black jack' table, 2 are winner, 2 are average and 2 are loser. In the end of the games, the house will win, why??? Simple, the house have the highest probability to win! Luck will never count if your are the house! It only apply to players.
In Forex market, big boys who have the bigger capital and handful of resources act like the house. In casino, when the house lose, they may need to give payout to 5 playes. But if they have double aces or good cards in hand, you will see they sweep all the chips from the players side to theirs. The same concept apply to big boys in Forex Market.
To become the house in Forex market, you need big capital, resources, good friends and experience. For me, forex market is like the Super Mario games, you need to go from level to level. The highest the level, the toughest things you need to overcome before you can save the princess.
Conscious mindset assert confidence to a Forex trader during any market environment. We have shape eyes like eagle flying high above the sky hunting for victims (novice traders) on the ground. Novice traders tend to cut losses and panic during the crisis, we tend to stay clam and cool. It is not easy when you see the trade fall into red, your mindset will change. Your brain will consistently tell you to do the wrong things. The more you think, the more mistakes you make. Noise from the media take away your consciousness. I always remind myself to stay clam and look for opportunities to strike when the market is in viscous form.
Do you know why casino is always the winner. Assume there are 6 players on the 'black jack' table, 2 are winner, 2 are average and 2 are loser. In the end of the games, the house will win, why??? Simple, the house have the highest probability to win! Luck will never count if your are the house! It only apply to players.
In Forex market, big boys who have the bigger capital and handful of resources act like the house. In casino, when the house lose, they may need to give payout to 5 playes. But if they have double aces or good cards in hand, you will see they sweep all the chips from the players side to theirs. The same concept apply to big boys in Forex Market.
To become the house in Forex market, you need big capital, resources, good friends and experience. For me, forex market is like the Super Mario games, you need to go from level to level. The highest the level, the toughest things you need to overcome before you can save the princess.
Friday, January 29, 2010
Euro Under Attacked!
If you trade Forex, you will notice that Euro is under attacked now! I would like to say it is a second round. Read and listen to the recent news on EU, everything is bad and negative. The 'sentiment' index in my trading dictionary indicate it is far below negative level. Bloomberg, CNBC, Reuters, CNN etc play important role to create the fear in the market. Dr. Doom, Soros and other big boys start giving negative comments on Euro zone! It is a bit funny and ironic why they only make the comment now and not during the Euro at the highest level few months ago. Think Again!
The first round of profit taking has just completed recently. I was thinking it will rebound back to at least half of the level on the position I hedged. Sadly, my prediction is wrong. They (Big Boys) whacked the pair again, Greece decent bad debt become big topic, then Dr. Doom start to talk about Spain monetary system and the negative stories continue. Overall, financial media become their source to channel the 'fear' to all the novice investors. If you are a rational player, look at US problem, it is far severe then the Euro Zone. However, the market is always act irrational which is controlled by the Big Boys.
The Forex market is a vicious arena, the big boys will make you to believe their views. They have the 'bullets' to control the games. If you are not big enough to fight them, you will surrender in the middle of the games or even knock-down completely.
As I am still at the early stages of the games, I prefer stand aside and watch the game carefully. Once the opportunities come, I will make my move.
The first round of profit taking has just completed recently. I was thinking it will rebound back to at least half of the level on the position I hedged. Sadly, my prediction is wrong. They (Big Boys) whacked the pair again, Greece decent bad debt become big topic, then Dr. Doom start to talk about Spain monetary system and the negative stories continue. Overall, financial media become their source to channel the 'fear' to all the novice investors. If you are a rational player, look at US problem, it is far severe then the Euro Zone. However, the market is always act irrational which is controlled by the Big Boys.
The Forex market is a vicious arena, the big boys will make you to believe their views. They have the 'bullets' to control the games. If you are not big enough to fight them, you will surrender in the middle of the games or even knock-down completely.
As I am still at the early stages of the games, I prefer stand aside and watch the game carefully. Once the opportunities come, I will make my move.
Wednesday, January 20, 2010
What is moving the market? Answer: Psychology of the Participants
When you observe stock market, Forex, commodity and other market charts, you see the trend up,down or flat. Plenty of money could be made if you know what is moving the market. The simple answer of the phenomena; Psychology of the participants/players. Oxford dictionary define the term psychology as:
1.the scientific study of the human mind and its functions, especially those affecting behaviour in a given context.
2. the mental characteristics or attitude of a person.
3. the mental factors governing a situation or activity.
I prefer the definition of No.3 in the context of Forex Market. In Forex market, there are many types of participants. It ranges from Big Boys to small ants(novice retail investors). When Big Boys move, you need to pay attention. It can be fake or real move, if you mental cannot catch the real one, you are in trouble.
Most people easily get distracted when they read news, listen to rumors or even just by simply look at the real time chart. The greed and fear always play in this games, emotions start to control mental. Next, mental will send the flaw signal to the nerve thus you will start to make mistakes. In the end of the day, you lost control of your emotion. The rest is history, you burn your account!
The rules of thumbs say 90-95% players lose money in Forex Market. Do you know that 90-95% money actually transfer from the losing side to winning side. Many people ask me how to make money in Forex.
I always tell them in 3 simple steps. 1. Learn how to lose money first. 2. Learn how to NOT losing money.
3. Learn how to become winner. If you don't know the basic rules of the games, read back my previuos articles. If you think this is not your games, then stay away. I don't want you fall into the 90-95% group.
I gone through a lot of 'experiments' and end up basically emotionless when I listen to the news, look at the charts or even execute the trade in the most volatile environment. I almost take control of the market psychology. I say 'almost' since every trader has imperfection. Sometimes, "trading is not how many mistakes you make, but the matter is how much you can make!"-Hope you get it.
1.the scientific study of the human mind and its functions, especially those affecting behaviour in a given context.
2. the mental characteristics or attitude of a person.
3. the mental factors governing a situation or activity.
I prefer the definition of No.3 in the context of Forex Market. In Forex market, there are many types of participants. It ranges from Big Boys to small ants(novice retail investors). When Big Boys move, you need to pay attention. It can be fake or real move, if you mental cannot catch the real one, you are in trouble.
Most people easily get distracted when they read news, listen to rumors or even just by simply look at the real time chart. The greed and fear always play in this games, emotions start to control mental. Next, mental will send the flaw signal to the nerve thus you will start to make mistakes. In the end of the day, you lost control of your emotion. The rest is history, you burn your account!
The rules of thumbs say 90-95% players lose money in Forex Market. Do you know that 90-95% money actually transfer from the losing side to winning side. Many people ask me how to make money in Forex.
I always tell them in 3 simple steps. 1. Learn how to lose money first. 2. Learn how to NOT losing money.
3. Learn how to become winner. If you don't know the basic rules of the games, read back my previuos articles. If you think this is not your games, then stay away. I don't want you fall into the 90-95% group.
I gone through a lot of 'experiments' and end up basically emotionless when I listen to the news, look at the charts or even execute the trade in the most volatile environment. I almost take control of the market psychology. I say 'almost' since every trader has imperfection. Sometimes, "trading is not how many mistakes you make, but the matter is how much you can make!"-Hope you get it.
Wednesday, January 13, 2010
The FX Market is "the conspiracy of the rich"
Recently I read Robert Kiyosaki (RK) latest book. The title sounds catchy(this guy always use catchy title and turn his books to multi millions dollars business). When I finished chapter 1, I contend his views and related it to Forex Market.
Well, do you know greenback (USD) is backed by thin air. Yes, after 1972, USD is no more backed by Gold and it is backed by nothing. The so-called US economy is backing USD. The term "money" change to "currency" and every country use its currency to compare each others. This magnificent fusion of this process created the largest capital market in the world. Speculators take these opportunities make millions and billions of dollars. How? Simple, they use the "economy value" of each currency to define the rate of transaction each day.
Forex market is controlled by the rich. The rich have the power to influence government, media to move the so-called economy value. US government is the BIG BOSS to determine the movement of currency market since most of the world currency pair with it. It is easy for Uncle Ben to make money in FX market but he is just a US government servant who is obliged by law. I believe there is a group of unseen hands behind Federal Reserve to direct their policy. Who are they? They are the 'ultra rich' in the world. I am very sure most of you heard of Rothschild and the Gangs.
Back to RK book, we only need to equip ourselves to take advantage of the BIG BOYS move. The EUR/USD had a volatile move in the last 2 months has demonstrated my views. Before Christmas and Holiday season come, they take back huge profit what they have created since early of the year 2009. I warned this in my last articles of 2009. Look at EUR/USD now, I always remind myself that trading FX is like searching gold in the jungle full of wild animals. I always look for the strong rangers and follow them to the gold mine. Sometimes it is hard to catch the rangers footsteps, so I need to be extra careful before following the right path. Occasionally, we like to stop by river and fishing. (No a bad start for me, 300 pips profit in 1 week.)
I end this article with a famous quote;
"Let me issue and control a nation's currency and I care not who make its laws"-Amschel Rothschild, 1791.
Well, do you know greenback (USD) is backed by thin air. Yes, after 1972, USD is no more backed by Gold and it is backed by nothing. The so-called US economy is backing USD. The term "money" change to "currency" and every country use its currency to compare each others. This magnificent fusion of this process created the largest capital market in the world. Speculators take these opportunities make millions and billions of dollars. How? Simple, they use the "economy value" of each currency to define the rate of transaction each day.
Forex market is controlled by the rich. The rich have the power to influence government, media to move the so-called economy value. US government is the BIG BOSS to determine the movement of currency market since most of the world currency pair with it. It is easy for Uncle Ben to make money in FX market but he is just a US government servant who is obliged by law. I believe there is a group of unseen hands behind Federal Reserve to direct their policy. Who are they? They are the 'ultra rich' in the world. I am very sure most of you heard of Rothschild and the Gangs.
Back to RK book, we only need to equip ourselves to take advantage of the BIG BOYS move. The EUR/USD had a volatile move in the last 2 months has demonstrated my views. Before Christmas and Holiday season come, they take back huge profit what they have created since early of the year 2009. I warned this in my last articles of 2009. Look at EUR/USD now, I always remind myself that trading FX is like searching gold in the jungle full of wild animals. I always look for the strong rangers and follow them to the gold mine. Sometimes it is hard to catch the rangers footsteps, so I need to be extra careful before following the right path. Occasionally, we like to stop by river and fishing. (No a bad start for me, 300 pips profit in 1 week.)
I end this article with a famous quote;
"Let me issue and control a nation's currency and I care not who make its laws"-Amschel Rothschild, 1791.
Tuesday, January 5, 2010
Forex Trader New Year Resoultion
Is a bit funny when I look at the seasonal FX traders resolution, my resolution is pretty simple; set up a hedge fund company which focus on Forex, Options, Futures and Stocks market. It may seems a bit risky market if you don't have trading experiences. Basically, all investments are high risk if you don't know what you are doing.
Back to other investment instruments, I like to hedge whether in Forex, Options, Futures or stocks. In fact one instrument related to other. Using Options and Futures to hedge spot Forex; in my opinions is not feasible since the premiums is too high and Forex indirectly provide you the high leveraging and hedging tools. As for stocks market and options, I prefer covered calls which I can collect premiums even the rate of return is lower if compare to buy call(high risk). 3-4% per month is not a bad return and you still can keep the shares you own.
Anyway, 2010 will be a good year for hedge fund industry, in fact every year is good year since hedge fund control both site of the market. Mr. Soros earn USD3 billions personally in the worst year in financial crisis! So do many famous hedge fund managers.
Back to other investment instruments, I like to hedge whether in Forex, Options, Futures or stocks. In fact one instrument related to other. Using Options and Futures to hedge spot Forex; in my opinions is not feasible since the premiums is too high and Forex indirectly provide you the high leveraging and hedging tools. As for stocks market and options, I prefer covered calls which I can collect premiums even the rate of return is lower if compare to buy call(high risk). 3-4% per month is not a bad return and you still can keep the shares you own.
Anyway, 2010 will be a good year for hedge fund industry, in fact every year is good year since hedge fund control both site of the market. Mr. Soros earn USD3 billions personally in the worst year in financial crisis! So do many famous hedge fund managers.
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