Wow – markets crash, bombs explode!

16 April

Just woke up to see waterfall crashes on all markets and read about the bombs exploding at the Boston Marathon. Wow – what the hell is happening all around us!

I am lucky I was flat through this, and a bit unfortunate that I didn’t take all the short signals!

I will add to this post later … I need to go out right now…

4 hrs Later … I’ve lost my train of thought so I’m not adding anything more here 😉

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2 thoughts on “Wow – markets crash, bombs explode!

  1. danny

    Hello, I’ve recently come across your blog. I very much respect your posting of losses and gains. It really seems legit and on that note, if it really is I was hoping you’d share your broker. I am going full time next year (having a years worth of bills paid in advance) with between 10k-15k. I currently have a very small account with Oanda, but have experienced platform issues and crazy things with them in the past. On my hunt for people who are actually ACTUALLY FOR REAL making a consistent profitable gain it seems like all the brokers are scumbags. It’s very discouraging and makes me feel like “what’s the point of funding an account if they’re just going to screw with your positions and steal your capital anyway?”

    I know truly successful traders are rare, especially on the forums it seems, but it’s like I can’t find any legitimate person to speak to. Everyone that makes those short posts of “I haven’t had any problems with them” doesn’t really help. I’m just tired of feeling like it’s pointless you know? Can you help me out with your broker experiences please?

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    1. ZenFXTrader

      Danny, good luck on your new chosen path – it would be nice if you updated me occasionally with your progress. There are very few serious full-time private traders around! You can email me at zenfxt (at) gmail dot com.
      Re your question about brokers: In the past I have avoided answering such questions publicly as I didn’t want to give the impression I am spruiking one broker or another. I’ve decided I don’t need to be so careful, so I am taking my previous private answers and adding them to this comment reply for all to see. Before pasting those replies, I’d just like to add that many newbies obsess too much over spreads, which is really not a big issue if you’re profitable as long as you are not scalping for 5-10 pips. 2 pips out of 5 pips is 40%, a huge deal; but 2 pips out of 50 is only 4% and out of 100 pips is only 2%. The trader should consider the spread a part of the cost of doing business and just work that into his trading.

      Here’s a reply I made to Sumeet on 27/3/2013:

      Hello Sumeet,

      My account is not large! I actually trade only CFDs, not large enough to trade with a bank. If your trades are upto $500 / pip, ie 50 lots, I guess even a CFD broker can handle that. My understanding is that banks need a minimum of $100/pip (10 lots) trades.

      As for CFDs, I use IG markets because I like their user interface and charts. They are good except not in the USA – I think they have stopped supporting clients in the US, as most brokers also have. Another CFD broker similar to IG is CMC markets. I have heard good things about Saxo Markets, and also CitiFX, although the spreads may not be the lowest. But unless you are scalping and have like 20 pip trades, the spread hardly matters in the overall picture. All brokers are cheats, they will cheat you whenever they have a chance. But at least in terms of money being secure UK based companies are relatively safe. In terms of executing and transparency I like Oanda. I have an account there and have traded with them in the past. They seem to be in my experience the broker with high integrity and best execution. But their interface sucks, so I don’t currently trade their platform. When my account gets big enough I plan to use Dukascopy, who I think is the most trustable broker. I am about to test out their demo platform in the next few weeks, I am afraid their user interface may not be so good.

      Here’s another reply to John on the same topic:

      Hi John,

      thanks for the comments. Re brokers, my account is small. I currently use IG Markets, and I also have an account with Oanda but don’t use it actively. A few weeks ago I had a post on brokers where I laid out my opinion of brokers (try searching ‘brokers’ in the tags). Essentially, you’ve got to accept that the broker is your enemy and not your friend. It is in their interest that you lose money, so they will do everything legally possible for you to lose money. It is the trader who has to protect himself. There’s no point whining about brokers’ antics. But more often it is the market itself that takes your money, your broker is just a small part of that process. The market is a very efficient mechanism to separate you from your money.

      Having said all that, I use IG because I like their platform, the user-interface, and that they are a reasonably large, well known UK listed company. Some years ago I noticed random stop hunts pretty often, but in the past 3-4 years I haven’t seen deliberate stop hunts (where price on other platforms doesn’t agree with IG prices). So I’d say that they don’t deliberately chase your stops. (Btw, I rarely, if ever, use hard stops). Their margin policy is pretty nasty – oanda is better in execution, spreads, data integrity, but Oanda’s user-interface sucks.

      I don’t know anything about IB, not having used their platforms at all, but have heard some not so good experiences of other traders on the web.

      Once my account reaches a comfortable level I might switch to Dukascopy. From all my research so far I haven’t got any negatives against Dukascopy, only that their account opening procedure is somewhat difficult. I haven’t seen the latest version of their platforms, but I suspect the user interface might not be so well-designed. However the platform appears to be close to a professional bank platform and my money feels more secure with them. Haven’t heard or read a single negative story about Dukascopy relating to client funds.

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