Fed Cuts Another 50 Bps

Thursday, January 31, 2008

The Fed has released the FOMC statement for this month and voted to reduce the overnight lending rate 50 basis points to 3%.

This reflects the lowest rates have been since June of 2005. The move was made easier after GDP numbers came out this morning lower than expected, mostly on negative housing growth.

The Fed felt it had to lower rates because inflation is not a concern, the economy is spiralling into recession (out of fear, possibly), the market had already priced it in, and today's GDP numbers proved that the economy needs a shot in the arm to pull out of a recession quickly.

You can argue that a little recession would be good, but you can't convince Wall Street of that, and obvious signs of fear and lack of confidence there made the Fed's decision fairly easy.

Proton Saga Red Concept Design

Wednesday, January 30, 2008

Here are some photos of the Proton Saga "RED" Concept by Proton Design, which will let some of you soon to be new Proton Saga owners know what modifications could be possible with the car's aesthetics. Having a special kitted up version of each new model launch has been a tradition now, and I hope this continues.
The Proton Saga "RED" Concept features a nice metallic red paintwork, a black roof, nice light grey grill surrounds, and large wheels, complete with a minimal tyre to fender gap. The interior gets a two-tone black and grey design, with red door trim, red seats and a grey-red trimmed steering wheel.

Forex Trading Wish List

Saturday, January 26, 2008

Well, once again it is Saturday. There is no trading at all today so I have some time to reflect on wider issues. So, as someone who wants to trade full time for a living, I am feeling the need for the following:A nice large workstation including a comfortable reclining chair. As an active trader I can find myself sitting at the keyboard for many hours at a time so I might as well be

Forex Trading Review

So, I've been practicing my strategy using a micro-account for months, and it's time to up my game and start trading for real.I capitalized my account on Thursday evening and have been playing the AUDJPY with a more serious dollar value for the last two days. Here is a summary of the mistakes I noticed myself making over this period:Discipline breakdown. I broke discipline and acquired too many

Double Top Warning

Friday, January 25, 2008

It isn't here yet, and that means it may never arrive, but we are currently looking at a potential double top on the AUDJPY.This means that the DOW could also be poised to give up some recent gains.Obviously, the DOW can do what it wants, but if you are seeing gains right now and are thinking of jumping in, be wary.Personally, I'm hoping for the downturn. If it happens according to "my" chart

Trade Out

At the time of writing I am somewhere in Putrajaya. Its sound proof and no mobile phone can get a signal in here.

Trade gone bad. EU has actually hit my 1st target but I didnt close it. Now every trade has hit SL. No more trade for now.

Im going back to Kota Kinabalu this afternoon. My flight is at 3pm. See you later

Earning While Sleeping or Catching The Top

Wednesday, January 23, 2008

This morning I wake up to verify that I've made about 30% of the NAV (net asset value) of my downside trading sub-account. Sweet!How did I do this?I have been charting the AUDJPY for several days. There is a clear down trend and at 7:30pm last night the price touched the top of the trend. From there I'd been able to accumulate short positions, setting protective stop losses before opening up

US Fed Cuts

US Fed has cut benckmark Fed Fund rates by 75 basis points to 3.50% and it has cut the Discount rates by 75 basis points as well.

This cut has managed to bring immediate immediate relief to carry-trades and the stock indices.

The statement with the rate cut is given below...

The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.

In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis.

I was up 3k on the demo account but now its -1.6k. This is something unexpected and market is trying to find a new balance point. At the moment that point is still unknown. EurUsd was dropping like WWII plane shot down now its going up again. In another angle what we see here is a correction. An act done by US Fed to slow down the drop by EurUsd.

Beauty about forex market is it will not turn on you in an instant. At the moment trend is still intact eventhough UsdChf has turn but with out support from other pairs it may not go very far.

Monday Forex Thoughts

Monday, January 21, 2008

Well, I was able to successfully navigate the downward movement of the AUDJPY overnight. It's always a pleasure to wake up to a large degree of pippage! Of course, I sunk a few positions with protective stop losses before retiring for the evening.This morning, the AUDJPY is bouncing around the 91.36 resistance point. However, a double top has formed on the bounces, so I'm starting to suspect

System Testing

Ive open a demo account to test my final system. Final coz I dont see anyway I can improve it somemore. It has been the same in the last 3 months with no more room to improve.

Its a medium term trade system. Trade between 2-4 times a month only with target of doubling capital each month.

For those of you who like to monitor the trade can login to investors account as below:

Metatrader 4 Terminal
Login : 112328
Investor : qjxx1rm (read only password)
Server : or

You are welcome to monitor. Any idea on improvement is much appreciated.

Is It Bigger Than A Breadbox?

Saturday, January 19, 2008

This was gold!Poulson, while trying to avoid questions about the exact size of a proposed stimulus package, answered "I don't want to play 'is it bigger than a breadbox?'"It's hard to say what the DOW (and hence the AUDJPY) is going to do with this. Obviously, it's better for the economy than not having incentives, so it must have some impact. It also shows the government is serious about the

Finicky Forex Friday

Friday, January 18, 2008

Well, in a while the president will be talking about some type of economic stimulus package.The question is, will the market think this is meaningful?So far, the market is up a bit but moving sideways. I guess we are all waiting to see if anything important is going to come out of this.My guess is that the market will rise a bit before the details arrive, but then fall in disappointment when the

Thursday's Bernanke Dive

Well, as per my previous post, Bernanke maintains his negative signal status.I'm happy to say I was trading the AUDJPY downwards today. I don't usually trade the downside, as I don't like the chance of being caught in a negative interest income position, but with Bernanke on the microphone, I just couldn't resist.I also had some very well behaving trend lines on the 1hr and the 5min charts.

The Bernanke Signal

Thursday, January 17, 2008

If you haven't noticed, Bernanke has turned into a Forex signal.The market will rise, anticipating that he'll say something useful, or helpful, but then he actually starts speaking and we get a precipitous drop in prices.Of course, when rate cuts are announced we will get a momentary spike, but it will only be lasting if the rate cuts are deeper than the market has already built into prices.Keep

Trend is broken

At last the trend is broken. EU is changing direction but unfortunately that last dip was too much. A correction is coming before we can consider a short entry.

Same story with Uchf. Long entry on next low

Fundamental Forex Guesswork

Okay, so during the NY trading session today I did manage to get some AUDJPY positions protected under a stop loss.What I'm hoping, and I'll try to convince myself via fundamental issues, is that the foreign markets will rise based on US news. You see, the US economy came out luke warm today. Inflation didn't seem to be a big issue and various sectors were weak, but nothing was

Buying AUDJPY Under 94.00

Wednesday, January 16, 2008

I don't know about anyone else, but I'm excited to get my hands on the AUDJPY at current rates.At the risk of repeating myself, since most visitors are new visitors, this is a great time to acquire small positions, building size as they become profitable and have been protected with stop losses.Though it isn't easy, I've been working at bringing down positions that were purchased above current

Masa itu Emas

Disebabkan signal lom kluar dan aku hari ni makan lunch laju, jadi ada masa sikit nak berceloteh kat sini. Citer apa saja yang terlintas difikiran aku

Mula-mula sekali aku cemburu dengan ramai orang. Ramai orang mempunyai masa yang berlebihan sehingga boleh membuang masa. Dalam 1 hari cuma ada 24jam saja. Takleh tambah atau kurang. Nak dibeli dengan seberapa banyak duit pun takleh. Jadi bila aku tengok orang duk melepak dan takde buat apa, aku rasa cemburu. Orang tu ada banyak masa dan boleh dibuang sesuka hati.

Kepada aku lak, aku rasa macam masa tu tak cukup. Aku ada kerja tetap, time office hours aku sibuk ngan keje office aku. Disamping tu aku buat network marketing edymium. Dimasa yang sama aku study forex dan trade forex. Kenapa aku kata study dan trade?? Bak kata orang keje sambil belajar sebab forex ni terlalu banyak bidang yang perlu dipelajari sebelum kita betul betul mahir.

Dimasa yang sama kemahiran aku yang lain seperti membaiki kereta, motor, alat elektrik, komputer, wiring, networking, sound system dan beberapa lagi masih aku teruskan pembelajarannya. Ini kerana kemahiran tu perlukan latihan yang berterusan disamping ilmu yang amat luas utk dipelajari.

Jadi bila bila masa korang terjumpa satu mamat yang takde keje, takde duit dan duduk melepak membuang masa, korang perlu cemburu pada mamat tu pasal dia mewah dengan masa. Masa itu tidak boleh dibeli dengan duit. Mamat tu adalah orang kaya sebenarnya.

Medium Term And Long Term Trade Only

After much thinking, I have decided to take only medium and long term trade only. This is to avoid those noise in the market which will lead to losses.

Medium term are trades that run from 1 week and can last for 4 weeks. Its more of riding the trend.

Long term trades are trades that can lasts for years. Last long term trade for EU lasted for 2 years.

Due to this strategy I may be trading between 2-4 times the most a month. Its boring but its safer compared to short term trading. Furthermore I will have much more time for other things in life.

Hopefully I can post a full medium term trade signal by this week or the next.

Turbulent Tuesday - AUDJPY Opportunities

I was on the road today, so I didn't have to witness the inevitable slide in the AUDJPY as the DOW searched for it's navel.However, I was back in my technology haven in time to notice the AUDJPY bouncing off the 93.80 resistance point.I don't know if we'll be on our way further down, but we are getting to historically depressed levels. Now, what to do. I'm putting in a little bit here, with the

How To Steal Money Off Forex Market

Monday, January 14, 2008

I was watching the charts today. My trade gone bad, suddenly it came to me. How to steal money off forex market. It came to me. The answer is as clear as broad daylight. Why I havent seen it earlier. The answer is right there infront of my eyes for so long.

Since I have found the answer now its time to take it into play. Time is running short. I need to confirm my findings by end of April. Good luck everyone

Sunday Forex Reflections

Sunday, January 13, 2008

Today I am wondering if I'm trying to do this the hard way.Trading the AUDJPY is pretty perilous. There are all kinds of stock market driven perturbations that make the price gyrate around in a mad frenzy. This makes it difficult to get some funds into the market without risking some massive continued downturn.If you don't take your profits when they are presented, you risk seeing your profit

A Winning Forex Trading Philosophy

Thursday, January 10, 2008

I'm starting to believe that being successful trading Forex has more to do with your philosophy than anything else.You cannot trade based on how much money you want to make. You cannot trade based on how much money you need to make. This means that you can't push money into the market, desperately searching for opportunity, risking a large portion of your net asset value in the process.You must

Forex Gridding Strategy

Okay, I'm pretty much sold on this idea. Here are some advantages to gridding the AUDJPY on the upside:Each purchase represents a carry position while waiting for it to become profitable.Extremely limited downside risk when set up properly.Excellent earning potential in choppy market conditions.Using my nano-account here is what I set up last night. Place a limit order for NNN units every 2

AUDJPY Stop Losses Hit

Tuesday, January 8, 2008

Well, positions entered overnight and this morning have now been stopped out. We are approaching the SMA-50 (simple moving average over fifty measurements) at approximately 96.37 and we are likely to enter a buying zone soon.Obviously, the risk is that it won't bounce, or worse, that it will bounce, give us false confidence, and then fall like a rock.In any case, I'll be taking small chunks with

AUDJPY Bounce?

Well, it looks like it is going to bounce up. On the chart below you can see the AUDJPY dropped to touch the SMA (simple moving average) around 97.75 about the time I posted about being stopped out.Since I was taken out of several positions, I did sneak another one back in and I do still have a few that are still underwater.Whether or not it will mean anything, the 1hr chart is showing a nice

Crowing Too Soon?

I have now been stopped out of my AUDJPY positions (see previous post).Now, will it continue to go down, and make me happy, or will it reverse and drive upwards now that it has shaken me off?Profits in the Forex are a truly wily game.

AUDJPY At 100 Pips

So, if you followed the advice in my last post you'd be sitting pretty with some AUDJPY carry trades profitable to the tune of 100 pips.So, while I'm sitting on a nano-account, if things continue to go up I'll be able to accumulate more and more position at very little risk. Why? Because all of my positive positions have a stop loss set at a point that ensures that I cannot lose money on those

AUDJPY Carry Loading Time?

Well, it's always impossible to call a bottom, but given the amount of downturn recently, it might be time to start loading up on a bit of AUDJPY.For example, you could enter some minor positions right after you witness some support after a little bit of free fall. Whether or not it's a bottom does not matter as long as you are investing small enough quantities with a plan to hold on long enough

Trade Setup Week 2 January 2008

Monday, January 7, 2008

For this week I would only trade on 3 pairs. They are Eur/Usd, Usd/Chf and Usd/Jpy.

At the moment is having difficulty to rise forcing for a correction soon. The trade would be to short Eur/Usd @ 1.4700 or better.

No confirmation at the moment but trade setup is close to perfect. Long Usd/Chf @ 1.1150 or better

Currently the only Jpy pair that I would trade. No confirmation yet but if all goes well I would Long Usd/Jpy @ 109.00 or better.

As usual forex is a risky business. Protect yourself at all time. Use stop loss appropriately

Happy New Year 2008

Thursday, January 3, 2008

This year my new year celebration is a bit different from before. At the stroke of midnight I was on a plane cruising some 20,000 feet above sea level on my way home.

There is no celebration just the steward wishing a happy new year to all the passanger.

This year I plan to run my system full throttle for 4 months and lets see how good it is. By the end of april if I manage to gain massive profit, I would be going back to KL and have a meeting with my friends. Some of which are very amazed on how I could make huge profit from forex and are asking me to trade for them.

Until then I will not post my live trading result. Only my demo account on Marketiva. Hopefully I can be Marketiva Masters for 4 months and only then the result would be good enough for me.

Margin Call Today

Well, it had to happen. After I was forced to make a withdrawal from my account due to the fact I was surprised that someone had given me an NSF check. There simply wasn't much capital left.This means that any sudden moves, as happened today, would cause my account to run out of cash. Well, it did.It's not fun, but at least at this point we are talking about a very small amount of cash. So,

Forex Speculation?

Tuesday, January 1, 2008

Have you ever wondered what is meant by the term speculation?It seems to be rather loosely defined. Speculation is the process of selecting investments with high risk in the hopes of making a profit due to price changes. Apparently, if you use that which you purchase, such as consumption of a commodity, or if you purchased something in order to profit from dividends or interest rates, then it

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