Jan 222013
 

I haven’t been able to update the blog much, the baby has kept us very busy and I’ve been working on finding my next consulting assignment.  I have an interview on Thursday with a company in the financial sector.  My mention of trading & finance on my CV has peaked the client’s interest.  So it will be an interesting interview.

My trading has not been as good as I hoped.  I realized that what I was doing in the last 1-2 hours is not easy to transfer to Globex & the US morning session.  As a result I’m slightly above breakeven and that’s very disappointing.  I was hoping to take my 1 pt/day average and double or triple it since I was going to trade 3 times as much.  And that just isn’t happening.  Globex volatility is very low so now I’m not even looking at the markets during Globex.  Watching them all day zaps my energy and results in decision fatigue.

The US morning is a bit crazy.  I’m used to seeing how the day is playing out and going for a pullback for continuation into the close.  That strategy works well for the last 2 hours, but not in the morning session.  And all this reinforces my decision to do consulting full time and trade the last 1-2 hours.

Before I forget, the subject of this post is the financial transaction tax.  I just read an article on CNBC and it doesn’t sound good.  This tax is going ahead.  And it will be 0.01%.  That would be $14.79 round-trip for trading 1 ES lot.  That is 3.5 times more than the commission.  The tax will be due if either buyer or seller are in the EU.   In my opinion this will kill day trading.   At least for me.  The only way I see to be able to trade with this is to go for really big wins where the tax becomes a smaller percentage of the overall expectancy.  And even then, it will be very difficult to do.

We still consider moving to the US or Canada, not because of the tax but just for a change in lifestyle.  And that is one partial solution.  And maybe the tax will fall through.  The UK is threatening leaving the Euro zone, and they should.   So there is still a lot of uncertainty but we also have time before it’s in place.

 

  2 Responses to “Transaction Tax still in the works”

  1. If they try it in Europe and it’s not a complete disaster I wouldn’t be surprised to see the US follow. We’ve had proposals on the table here with 0.02% taxes or more on futures. It’s a funny feeling knowing that, at any moment, my government could put me out of business, justifying it with nonsense claims about me adding risk to the marketplace.

  2. Michael – some advice: leave france. france is a communist state that is heading to be the next argentina.

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