TraderGav.com

Gav's trading blog - Perseverance, Consistency, Confidence

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A note to my friends

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I have a group of friends who recently lost some money in stocks markets. (Ok, let’s blame the market, if it makes you feel better.) To my surprise, they are rushing into currency trading now, and heck, live accounts. I can see the fire on their head. “I am going to make a killing in Forex market”.

They are my friends. So, I don’t wanna be the one to discourage them. (You know, I am such a kind man. :o: ) If, by chance, they read my blog, I hope this post shows them some light.

My question to them, or you , if you are in the similar situation. What makes you think that you lost money in stocks market but you are able to earn from currency trading?

Which is the root cause of the loss? The market? or the trader?

Think. Keep the answer to yourself, not me. Simply because….I don’t care.

Nothing for Monday

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I am not sure what did you see in the market now. Anyway, I don’t really care.. :-p

I can’t find any decent setup in currency market on Monday. There are broken trends, and too early to call a reversal as well. So, I ended up with no action on Monday.

This might be another ‘waiting’ week. Since we have high impact events on the line , FOMC meeting, Non Farm Payroll report (Unemployment report) etc. Watch out.

Hey Aussie, is that a bottom? uhm…

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Some people are talking about bottom of Australian stocks market. Started from mid-December ’07 , we were seeing lower highs and lower lows forming. This is a downtrend, no? Well, looking from weekly chart perspective, we have in fact broken the last low (around mid August 07). OK, breaking the previous low doesn’t mean we are going to see a downtrend, but it gave a sign of weakness and uncertain of current trend.

So, is that a bottom? You might be right. But, I am not jumping into it. It looks more like a bear bull trap to me at the moment. Maybe I am blind? uhm…

Here is the ……CHART of S&P/ASX 200

[photopress:ASX20025Jan2008.jpg,full,alignleft]

Forex Aussie Analysis See Video NOW

Today’s Coffee thought

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Something for you to think about.

Does working out in gym help your trading? Some people say regular exercise will help trader staying sharp. Well, I think it should be true. I don’t know.

But, the weight training teaches trading. How many times when you hit the gym, watching those big guys training then try to put on another 20 pounds on weight for your bench press? I know watching them is inspirational. "Man, you gotta push yourself to get a bigger muscle." Absolutely. But, what is your limit? A little Asian man like me, trying to train like a huge Caucasian is a absolute stupid move. Most of time, you will tear your muscle, injured your arms, and cause you to stay at home for 3 weeks, and can’t even lift up a 5-pound shopping bag.

Try to relate this to your trading. What would you do in gym?

Food for thought from Gavin.

No trade & Another rogue trader

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Man, I just realize that it is Friday today! I was extremely busy with my work this week (and, ok, I am following Australian Open as well 🙂 ). All I have is just a couple of hours after London session open. So, no trade at all. I hope to get back to swing next week.
Here we go, another rogue trader who’ve thrown Société Générale into €4.9bn crisis.

SocGen said the “exceptional fraud” resulted from the purchase of huge long positions in “plain vanilla futures hedging on European equity market indices” that were “beyond his limited authority”.

The trader – likely to trigger comparisons with the UK’s Nick Leeson, who caused the collapse of Barings Bank in 1995 – had “deep knowledge” of risk-control procedures from his time at the bank’s middle-office activities, which SocGen said had allowed him to conceal his positions.

Does it really help to have ‘deep knowledge’ of risk-control procedures ? uhm…

Tuesday No trade

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Pretty much as I had expected. I did not put in any day trade. The surprised rate cut kinda messing up the things. There might be a lot of money changing hands today, but I am glad I am not in the market today, it is just….messy. Anyway, the rate cut did not save the stocks market. But, I see GOLD back on feet today. Maybe the next couple of days will be interesting to see if dollar is to continue its weak trend and give me some better trends to trade.

Here is the …..bouncing GOLD.

[photopress:gold22jan2008daily.gif,full,alignleft]

gold22jan2008trend.GIF
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