I was a big fan of Larry Williams when I started trading. I guess I have read all of his books. In this video, Larry shares few nuggets of trading wisdoms. Enjoy and have a good weekend.
Spot FX trading with Interactive Broker rethink
OK, first of all ,this post is not meant to point out any fishy scam of retail FX broker like this one. Price feed and trade execution of IB are mostly flawless, I have no complaint about that, at all. Yes, the learning curve is steep in order to master the trading platform, TWS. To be honest, I hated it at first, however, after spending time watching IB webinars, and playing with the platform, I found the platform to be pretty stable and reliable.
Now, back to spot FX trading with IB. I found it to be a little bit troublesome, and, maybe, painful. IB charges commission for every trade. This is fine. The painful part of it is, if the underlying currency of the traded currency pair is different from your account base currency, you will have to convert your P/L manually back to your account base currency. And, yes, the conversion is considered as a new trade, and commission is charged. For example, you have just traded USD.JPY, and your account base currency is AUD, then you will have to convert your P/L in JPY to AUD once the position is closed.
Try making a couple of trades in IB paper account, and have a look at your account balance, you will understand what I am trying to say.
Well, overall, the commission might still be considered as low, but the whole process is a hassle. I am not sure if there is any workaround for this issue that I might be missing out. Shoot me a comment if you are an experienced spot FX trader with IB.
A broker with good reputation, financial strength, solid platform(provided you know how to use it), and easy access to any market in the world, I feel comfortable trading with IB, however, for spot FX trading, I am rethinking now…..
Trade of the day 20 Jul 2010: $GBPUSD short
This is a pretty straightforward trade. Looking at hourly chart, cable was coming to a resistance level and price rejections was observed. I went short around 1.5283 (though I wanted to get 1.53 as entry..but..anyway..). Two profit targets were achieved with last portion of position was closed at 1.517 level. Potentially, cable might head to 1.51. Well, let’s see.
Here is the CHART!
Reading: Trend forecasting with technical analysis
Thanks to Jay, the lonely trader for sharing this finding on scribd.com. Enjoy reading!
Trend Forecasting With Technical Analysis
Disclaimer: I am not the publisher of this book, this book is available on scribd.com and it is shared on this blog by using the sharing functionality provided by scribd.com.
[Update 17 July 2010]: After this blog post was tweeted, I received an reply from Andrew
A little bit of value in there, but the majority is a setup and pitch for Vantagepoint. Murphy’s intermarket book much superior.
Trade of the day 12 July 2010: $EURGBP Short
My internet connection has been extremely unstable and crappy today. I am in fact taking additional risk by continuing trading 🙂 . Anyway, this is a pretty straightforward technical trade. EURGBP was hanging around Friday’s high, with failure to make it above 84 level. Short position was entered at 84, two profit targets were achieved, while the last one was taken out by the abusive price action around New York noon. The details of how I managed the position, you might want read my previous post on trade management.
Here is the… CHART!
Trade of the day 09 July 2010: $EURUSD Short
I shorted EURUSD at 1.27. If you have a look at hourly or 4-hour chart, a bearish rising wedge was formed. After observing EURUSD struggled at 1.27, I pulled the trigger. And, what a day. 3 profit targets were hit.
Here is the CHART!
Have a great weekend!
