September

So I calculated my pip tally for the month.

2847 pips.

Now as most of those pips were reductions of an initial trade, I added a weight to them to get them as a pip profit of the original trade.

X1 = initial entry size
X2 = reduction size
S1= initial entry price
S2= reduction price

so

WeightPips = (X1-X2)*(S1-S2)

so my weighted pip tally became 475 pips (including losses)

Short Cable

Took a daily short signal on cable, reduced +175, still 4 possible reductions left.

What a month. I have been a Trading machine!


edit: Cable fire sale!

reduced again +280 and +285. not bad for one day.

Updates

So I survived the first week of Calculus!

and as well I made some serious pips buying Yen, and CAD (~1100 pips to be exact).

Finding that when I stick to the rules, I make the money.


Working on MM strategy now.

Thinking No single trade over the size of the account managed.

ie.

$10 000 account @ 40:1, I trade $10 000 lots per trade, which is $250. I cover 7 pairs, so if I have a position in each that's 17.5% utilization of leverage.

If I have a 50 pip draw down per trade, and a 100 pip topside per trade thats:

(-$350) draw down a month or +$700 upside (-3.5% to +7%) which I consider a very good monthly return.

anywho, its a work in progress.

Options

Been working through Hulls book this past week...

starting to get good grasp of options, but haven't hit the greeks yet lol

still working on properties of options.

Finding Options arbitrage the most interesting of all the arbitrage situations to date, as you are basically creating arbitrage on your lower bound and keeping the upper bound to much more potential (creating a synthetic call option).

The end of an Era

was reading an article somewhere today (Don't remember where) and it was about how the realization of the past two years is that we as an economy are spending way beyond our means. If you make 3$ an hour as a waiter in the states, you should not own a house. If you are making 50k a year, but have 200k in student debt...you should not own a house.

People need to focus on becoming free of debts and be financially free.

I bring this down to one thing. And that is laziness. People are too lazy to work 2 jobs while in school to pay bills. They are focused on partying, living the good life. Even myself, work having slowed down immensely, have begun to look for a second job for school. Even considering taking an overnight job.

University, although looks great on a resume does not teach you how to become a trader. We are speculators. That is it in its most raw form. You learn by testing theories, losing money to the market. And if your good enough you get your ass back into the game as fast as you possibly can.

Has college and university become a privilege now? Does this mean that the return of the days of Jesse Livermore, and Rollo Tape of finance are finally coming back into being? With less money to go around in the world via. wages, job cuts, layoffs, etc. Where will the money go to? Will you really spend 50k on school after working for 2-3 years to accumulate the money? or will you use that money to buy a home, and work the blue collar?

Going back to school has been on my mind for the past month. I have spent almost $4000 and I have not even bought my books yet. How will I pay rent while going to school? OSAP? Considering just taking my investment licenses and raising capital to start a track record. MY fear is that if it fails, I do not have a fallback plan. Solution could be to take part time school, but still leaves a large economic opportunity cost to myself.

Decisions, Decisions.

Hunger.

I am Hungry.

Not for food, but for Capital.

Trading is becoming my catch-22. I NEED to start trading again. Demo account is doing well, but I cannot trade with only a $1000 dollar account (and I dare not use the LoC for trading). I'd need to pull in at LEAST 3-6% a day minimum to B.E at the end of the month. The more capital I have the more self sustaining I become.

Trading even 50k is enough to pay bills, after 20% commission. Average position on 50k would be about 2.5 lots, so $25 a pip. I Know that my daily B.E is 30-60$. that means that I need to make at least 5 pips to break even daily.

recovered most of what I lost using smaller positions and scaling in.

[1:47:18 AM] Patrick May says: thinking long dllryen soon, but not yet
[1:52:30 AM] Patrick May says: tiny long dllryen 95.337
[2:00:45 AM] Patrick May says: tiny euro short 1.41270
[2:02:21 AM] Patrick May says: took -6.3 on dllryen...not logicall...took eyen s 134.577
[2:09:21 AM] Patrick May says: euro looks short longer TF, might leave it overnight...but others look confused
[2:18:54 AM] Patrick May says: added @ 1.41398, 134.683
[2:24:49 AM] Patrick May says: hmmm...understood that they are selling the dollar, but this dllryen weakness hasn't hurt eyen much...
[2:38:05 AM] Patrick May says: would reduce some here but I know that It is too soon, so testing myself and holding out for now
[2:39:02 AM] Patrick May says: not being greedy, trying to work on exits
[2:39:21 AM] Patrick May says: I usually get out too early and miss the run...like my terrible dllryen trade the other day.
[2:39:34 AM] Patrick May says: I am going to test it now, I know I am right, Now how far can it go
[2:39:55 AM] Patrick May says: i have the strategy, need to work on mentality...
[2:41:30 AM] Patrick May says: my entries are fine. my confidence needs to grow. and I need to believe in my positions
[3:01:28 AM] Patrick May says: reduced euro +23.3
[3:01:42 AM] Patrick May says: eyen +23.7
[3:02:27 AM] Patrick May says: again euro +25.x
[3:02:37 AM] Patrick May says: eyen +28.5
[3:03:02 AM] Patrick May says: 10326.02 now
[3:13:19 AM] Patrick May says: partial eyen +9.9
[3:13:32 AM] Patrick May says: +11 partial euro
[3:19:58 AM] Patrick May says: flat eyen +6.8
[3:21:06 AM] Patrick May says: going to keep euro on...market draging dllryen up, euro could still go further south
[3:22:23 AM] Patrick May says: reduced +20.8
[3:22:55 AM] Patrick May says: .1 lot left, sl set at B.e
[3:23:16 AM] Patrick May says: actually 1.4125