This blog has been a confessional journal of my efforts to overcome the obstacles on the path to consistent trading profits. It’s been a great journey and its still ongoing. I’ve learned a lot about the markets, the crowds and about myself. Today, I’m confident that I can earn an average of at least 5% per month on a consistent basis, with little effort. But the irony is that in the process of reaching this stage I’ve exhausted my funds! I have no serious money left. Ideally I should be managing at least a few $100k’s account at which level the trading profits become meaningful. I will have to raise that money from others. However, I don’t move in the same circles as millionaires or rich businessmen/women – if I did, I would pitch my skills/experience to them. I reckon I would be able to persuade someone to let me manage a decent sum of money.
I am confident of my ability to read the market and make consistent profits. Therefore, I have decided to trade my way up from a low 4 figure account and see how far I can take it. If I can sustain the work and the pressure long enough, my account should get into 6 figures eventually.
Along the way, to help me build up my account, I’ve decided to offer my trades as a trade-signal service via a closed twitter feed. I know – all signal providers are crooks. I say that myself! I might be a rare exception. I am offering a fair service for a very reasonable cost with no lock-ins. It’s the best option for me in my situation. The monthly fee will be less than coffee money for most traders. Success will require good execution.
I’ve tried to be as fair and up-front with followers of my trade signals service as possible. Here are the key features of my service:
– Not aimed at novices, rather aimed at reasonably experienced traders.
– no extravagant promises. Markets are fickle, the world is full of uncertainty and risk. I let them see my downs as well as ups. I just hope my followers realise that the only result that matters is profit at the end of the month, or at worst, not a big loss.
– trade execution remains completely the subscriber’s responsibility.
– I will not make money off my subscriber’s trades, unlike many signal providers who make money via broker partners. I don’t care what broker or platform the subscriber uses.
– No useless commentary, only trades.
– You can stop your subscription at any time. No minimums, no lock-ins.
I plan to tweet my trades under the handle @zenfxtrades. For the first 3-6 months the tweets will be free and open to anyone interested. At some point I will stop the free tweets and ask followers to subscribe. Another twitter handle, @swingfxtrades, will re-tweet my trades with some delay (to show potential subscribers what they’re missing 🙂 ).
Performance will be reported monthly on the ‘Performance Page’ together with a log of all tweets showing the trades tweeted in real-time.
I have just entered an order to go long UJ at 102.92, about 2 pips below the current price. I am sure it will get hit soon; as of this writing my platform is showing a price of 102.94. I’ve kept the size really small, just to have some skin in the market at the FOMC event tomorrow.
Long $3/pip USDJPY at 102.92.
Edit 13.30 gmt:
The price moved away and hasn’t looked back. It is now hovering near 103.01. I am keeping my order as it is.
Edit 13.36 gmt:
Order got executed. Long UJ $3/pip at 102.92. SL at 102.52.
The market is dead calm – the calm before a huge storm!
But things are definitely bubbling beneath the surface of this blog. A couple of weeks ago I posted that the blog would be going private. I haven’t done that yet. At this stage my ideas are still evolving, hence I am leaving things as they are for a few weeks.
My first passion is trading; I really want to see if it’s possible to reach the holy grail of high, consistent profits, month after month in the markets. I imagine that it is relatively easy to make 5-6% per month consistently. But I am aiming higher. Based on my experience and observations, forex markets should allow a return of 10-20% per month consistently. I want to try to achieve this and see if I can overcome the obstacles along the way.
Along with trading, I am infected with the urge to teach, to share my knowledge. So I am considering some sort of educational / skill building offering, that will be consistent with my trading activity. Not online videos or online seminars. I don’t believe they are an effective learning medium. Something personal, face-to-face. The other benefit of the personal education is that I will have a chance to meet with like-minded traders, some with a passion for the markets like me. These ideas are swirling around my head and will come to fruition in the new year. I am trying to work out how to fit my blog within the new plans.
If any of my regular readers have any ideas or suggestions feel free to post them in the comments or by email to me.
The shorts I entered last Friday afternoon were briefly in profit earlier today, but it was a mixed deal when I closed them a few minutes ago.
USDJPY: closed short at 102.93, +22 pips
GBPJPY: closed short at 168.12, -24 pips
EURJPY: closed short at 141.87, -27 pips.
At the same time, EURUSD has presented an excellent short opportunity again near 1.38. I have entered a new short as follows:
Short $8/pip EURUSD at 1.3782, SL at 1.3817.
I missed the boat on closing out earlier. I was out in a meeting at the time of London open when most pairs reversed. [Note to self: do not schedule any activity around London open!] I was hoping for a bounce in early NY which did not materialise. My profits in GY & EY have turned to losses, and my 100+ pips in UJ was reduced to around 50 pips. I’ve also closed the AUD short at a good profit, I think it has fallen plenty for one week. We may get another opportunity to go short next week.
USDJPY: closed long at 103.15, +50 pips.
EURJPY: closed long at 141.60, -22 pips
GBPJPY: closed all longs at 167.88, for -180 pips (2/pip) & -67 pips (5/pip)
AUDUSD: closed short at 0.8930, +123 pips.
Now short as follows:
Short USDJPY $8/pip at 103.15, SL 103.80
Short EURJPY $8/pip at 141.60, SL 142.30
Short GBPJPY $5/pip at 167.88, SL 168.80
I am still long a tiny order ($2/pip) this pair from 169.68; I expect this pair to eventually go past 170 and the small position size lets me easily withstand the swings of this pair.
Now my system has generated a long signal here, and I am adding longs here.
Long $5/pip GBPUSD @ 168.55, SL at 167.95. This increases my risk a bit, but it is still manageable.
The Euro is still got a lot of buying pressure, keeps looking upward. I have therefore closed the EU short at 1.3795, -9 pips.
Meanwhile, EJ has given a buy signal and I am long EJ as follows:
Long $7/pip EURJPY at 141.82. Extreme SL at 141.15, but I would look at the action if it touches 141.40.