Aug 232015

I was replying to a post at BMT and I looked for an example chart to use in my reply, so I googled about volume composite and clicked “images” and took the first chart.  When I pasted the link, I was surprised that it was one of my charts from my blog!  That reminded me that I have a blog!  I had kind of forgotten.

I can’t believe it’s been over 1 year since I last posted to my blog.  So I thought I’d take a few minutes to write an update.  A couple years ago I accepted an exciting consulting offer to redesign the architecture for a bank.  It’s been a great experience for me.  It’s also about the time we had our son.  Between the two I haven’t had much free time.  I stopped participating in forums (except once in a while someone wakes up an old thread and I get an email notification), etc.

But I still kept on trading.  I did get very selective with my trading and only trade when I’m home and the markets are moving.  This results in less trades, but it has been profitable.  I have a profit for last  year and this year as well.  So I’m happy about that.

A week ago I had some time to think about all this while laying on the beach in the Cote d’Azur.  I wrote out a list of goals for myself.  I want to win $1 SNG (poker) (I’m currently slightly better than breakeven for $0.25).  I want to redo my CV for my consulting in order to offer more services to my clients such as Agile Coach.  And then I thought about trading.  What do I do about trading?

My trading partner is taking some time off and when that happened I scaled back a bit too.  I miss many trades which is a shame because I see many that would have qualified as a setup and paid off nicely.  I felt like I was letting good opportunities pass me by, and with a little more attention I could turn it into a serious income.  So I added trading to my list and decided I wanted to make $500/month consistently.  Once I achieve that I can scale up to 2 lots.

In the past when I was trading full time I was trading 2 lots and was making money but unfortunately it wasn’t consistent.  So a few years ago I decided to accept less and go for consistency.  And a few years later I think that is the right approach for me at this time.  Kids have activities, I have a weekly class, and I help out a lot around the house.  So I had to refine my method to make it more hands off.  Typically I set up audio alerts in my areas of interest and wait for the market to come to me.  Then based on what I see, I choose to enter a limit order and go about my activities.  It’s a compromise, but it allows me to trade evenings in addition to my full time consulting business and my family.

So now I think it’s time to step it up a bit.  I want to be less passive, take a bit more risk, but most importantly, not let perfect setups pass me by.

If there is interest, I will update my blog with my results.  I’m not really interested in promoting myself, advertising my blog, posting on forums, etc.  I realized that was a hobby but not really a business.  Well some shady characters have succeeded in turning that sort of thing into a business, but I prefer not to go there.  Time is limited.  Since I’m profitable, any extra time I have is either spent trading or doing hobbies.  I’m still not sure playing poker for 30-40 minutes to make $1 is worth it, but it’s fun at least.

So if you’re still here after all these years, let me know.





Jan 262014

I was taking time off from trading around Christmas and then just after Christmas Zenfire forced everyone to upgrade and then zenfire was no more.  The first few days I figured they’d get it fixed.  Then a week went by.  And another.  And then Mirus got involved, saying they had a backup datafeed (Continuum) but that was only available for customers clearing through Dorman and I clear through RCG.  I didn’t mind a few weeks off but I was very disappointed in both zenfire for botching such a huge upgrade and Mirus for having no backup.  But it got worse.  Mirus was making promises and then going silent.  Last I heard from them, all RCG customers would be automatically converted to Dorman January 21st and would be able to trade live the 23rd.  That came and went with no word from Mirus.

I read in a forum that I was not alone.  One user didn’t get converted so he asked and it turns out they didn’t want his business because he was Canadian.  Another didn’t hear back either.  So I will contact them tomorrow and see what my options are.  In hindsight I should have just opened up an account with the minimum deposit at another broker so I could trade but I was being naïf and maybe lazy too.

So I’ve enjoyed about 6 weeks off from trading and I always think it’s good to have a break like that because it lets us look at trading with a different perspective.  My trading partner has been doing well so I’m eager to get back in it and join in his success.

Besides trading I’ve been keeping myself very busy with my current consulting assignment, an SOA certification, home improvements, spending more time with the kids and wife, etc.  So when I do start trading again it’ll be hard to give all that up.  My plan is to identify a couple places for a pullback, set the audio alerts, and spend time with the family.  When I get the alert I’ll look for an entry.  I’ll keep it very simple.  And I’ll share how it goes here.

Good trading everyone.  Hopefully we’ll have a correction and some good volatility.


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.