A Systematic Trader's Journal

The last week has been another challenging moment for me, where I had encountered multiple setbacks in my trading. And yes, it was a challenging moment for me throughout the week, and in addition, it felt even worse when I knew I was making such lousy calls on the market. This experience has indeed humbled me a great deal, and I do hope I could share some experience of this short evaluation that I had done up over the weekend: Allow the market to show its hand,  especially when it trade sideways. Look out for the more liquid markets, as their volumes remains fairly thick even though volatility remains high. (e.g Eur/Usd) See not trading as making money, instead of seeing it as 'not making money being the same as losing money', where to wait is not a waste of time. Leverage should be greatly reduced, and stops should be widened to allow you a chance to allow your trade to work out. And that will greatly help the trader psychologically. Stops must be used. In such volatile market...

Here are some details of the severe repercussions should AIG fall, take this to reference on the impact of the LEH collapse: Sept 17 (Reuters) - (The following statement was released by the ratings agency) Sept 17 - Moody's Investors Service announced today that is has placed its ratings of certain credit derivative transactions listed below (the "Transactions") that have exposure to Lehman Brothers Holdings Inc. ("LBHI") and certain UK Lehman companies, including Lehman Brothers International (Europe) ("LB-UK" and collectively with LBHI, the "LBHI Entities"), on watch for possible downgrade. Additionally, certain other Transactions were downgraded and left under review for further possible downgrade. Moody's explained that its rating action is based upon LBHI seeking protection under Chapter 11 of the U.S. Bankruptcy Code and LB-UK being placed into administration, a procedure governed by the Insolvency Act of 1986, on September 15, 2008...

Continuing from my previous blog, how did I fair in the market as a trader today, after the market has adopted to the tight spreads and no commission trading environment? I made money, that is my humble answer. Is it a lot? Is it that simple? Some may ask, but the answer is no. It was never easy. Simply, what is the difference between trading on the current environment versus an environment that requires you to make back wide spreads and huge commissions from the market? Well, in my opinion, the difference is just that other than being able to allow you to exit at a price that could end you up with lesser losses, if not it will end you up with a small profit. But if you relook at it again, do you think the market has also became less trendy over the years? If time allow, it would be excellent if you could take a close look at the Average Daily Range data on some of your favourite currency pair that you trade on frequently. You will discover that right after when trading became more e...