Owner: Effective trading and trade ideas URL:http://tradingstyle.blogspot.com/ Join Date: Sun, 26 Aug 2007 14:05:54 -0500 Rating:0 Site Description: A proprietary trader with a lot of trading ideas writes about his trading approach. He gives advices for beginners who want to profit the markets. Site statistics:Click here
What should you trade? 2007-08-23 18:19:00 This is an important question that every trader has to answer - which instrument suits her/his trading style best... Where she or he can profit markets most?Fortunately there are not so many possible options: currencies, bonds, derivatives, equities etc.Normally, derivatives (like options, swaptions etc) are quite advance instruments when it comes to pricing and trading - beginers and intermediate traders shall not base their strategies on derivatives.Bonds require very detailed knowledge of monetary economics. If you want to trade bonds (or other FI products) successfully, you need to track FEDs or ECBs policy very carefully. This is not as simple as it may seem. Additionally, not so many trading platforms offer good products for those who want to trade bonds.After excluding complex derivatives and bonds you are left with stocks and currencies. The decision which instrument to chose should depend on your attitude to trading. If you like tracking hundreds of companies at the same time,
DJIA Longterm trend still sustained 2007-08-22 05:45:00 Although short term dynamics of the stock market is very unfavorable and we should expect further fall in the equity indices, long term prospects don't look so bad. Simple technical analysis shows that DJIA was able to move back into the long term growth channel (indicated by parallel lines on the chart) after large falls touched the market in last weeks.One of the rules of technical analysis says that when indices move back quickly to support lines this support lines are extremely strong and should be considered to be support in the future. This suggest that in long term we should expect rise in equity indices Read more:sustained
EURUSD in a narrow range 2007-08-22 04:50:00 For last four days EURUSD is trading in a narrow range. On the one hand this is a good proof of the claim from my previous post (currency market stable when equities turbulent) but on the other hand it seems that the market is awaiting some news that will input a momentum on the market. The currency market is now consolidating and we should expect increased volatility in the days to come. Fundamentaly EURUSD should go up, but in the short term we would rather see further appreciation of the dolar, just because there is a constant flow of investor's money to safe instruments and US T-Bonds are considered to be the safest in the world.
Weak stock market = time for currency trading 2007-08-21 10:32:00 As you see, the world stock markets are not robust at all. Even Fed and ECB (European Central Bank) have to act in order to fight with the poor mood on the world equity markets. It seems that it is now a good time for currency trading. Traders, who trade on their own account should move now to more liquid and less turbulent FX markets.Strategy seems to be extremely easy now. You should have "safe" currencies long (CHF, USD, EUR) and emerging market currencies short (PLN, ZAR etc). Global flight to liquidity should lead to the appreciation of safe currencies in the short to medium term.Of course, you may argue, that fundamentals of some of these "safe" currencies are quite weak (look at US twin deficit). Yes, that is true, but in fact fears of investors (global equity panic) should lead to the so called flight to liquidity and G7 currencies will become stronger in spite of their structural weaknesses.Currency trading will give good opportunities especially now, as for example USD has po
Blog start 2007-08-04 06:53:00 Hi guys,welcome to my blog - the website about proprietary trading and investments.I hope you will comment on all I write!Best
EURUSD technical analysis for the new week 2007-08-26 17:01:00 Technically, it seems that EURUSD will be testing levels 1.3736-1,3813 which were seen in the first week of August. If that happens we should expect FX rate to test these levels on Wendsday or on Thursday. However, due to short term reasons (global flight to quality) I am expecting that USD will NOT depreciate above these levels. In the middle of the week EURUSD will probably stabilize.
Automated Trading Systems - My comments 2007-09-06 16:35:00 A reader of my second blog: http://phdmbacfa.blogspot.com/ send me a link to the free book about the famous Turtle Trading
System (http://freeforexebooks.com/Other/turtlerules.pdf). From his personal experience is seems however, (he implemented trading rules in C#) that these strategies do not perform very well in the market. The sharp ratio is not superior.How that can happen that famous trading rules, which are rumored to have brought millions in profits are useless nowadays?Possible explanations are:1. Strategies are quite old. Nowadays, market behaves differently than when Turtles were on the market.2. Modern quantitative strategies of investment banks exploit mispricing so effectively that any old-style strategy will be beaten by IBank computers.3. Revealed strategy is not complete/accurate.(If you find another reason just put it in comments)I think that most probable is the first explanation. Today market works differently than when Turtles traded. Their strategies and tricks are Read more:Automated
, Systems
What to trade during the global recession? 2008-01-02 11:48:00 It is hard time now for everyone who wants to trade equities now. The capital market is predicted to be stagnant for at least one or two years. Probably you will not see many opportunities on equities market soon.So what should you do if you want to trade for living. The answer is: foreign exchange. During the crisis or recession FX markets offer great and aboundant opportunities.Basic strategy is to buy currencies of the countries which would suffer most severly and to invest into currencies of the countries that are more immune to global slowdown.The most obvious example of this strategy is taking EURGBP long. Great Britan is the country is suffering a lot because of the credit crunch. Too high real estate prices and rising inflation in GB compared to relatively stable economic environme
After a break! 2008-06-17 12:01:00 Dear all!Now, I am back to trading! I had to finish my last PhD exams and now I am starting to trade again, so you will see the posts online more often.Since the begining of the February, when I had last time my position opened, a lot has happened in the financial markets.It seems that we are going to experience years of higher volatility in the world. The inflation seems to be running out of cont
Second day of trading 2008-06-20 10:11:00 Cool. It seems the banking industry is weaker than I thought. That should be good for my short position in 513 Morgan Stanley stocks (at this stage I am losing -1,36% on this position, but that is basically the spread I had to pay).Today, the breaking news was that China is going to increase the price of oil domestically. Unfortunately, this led only to a very minor fall in the global price of the Read more:Second
First step - analysis of macroeconomics 2008-06-19 12:30:00 So here I am with my 100.000 EUR to start trading. Now this money is on bank account and is waiting for me to start trading.In order not to go straight into red (loosing) I need to better understand current macroeconomic climat. In order to do that I bought the Financial Times (I think it is much better then WSJ) and I will be buying it everyday to get insight into economics.Today's headline is "K Read more:First
Morgan Stanley, but what else? 2008-06-24 08:52:00 Ok. So it seems that shorting MS was a good decision. Now the price is 37,01, so I made almost 5% on this company so far. However my target is at least 20%, so it seems there is some way to go...Today's news are pretty gloomy... Economic revival will not come too quickly. As you remember I was thinking about shorting car makers last week. Today some more news appeared that convinced me to such a m Read more:Morgan
, Stanley
, Morgan Stanley
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