June 26, 2008 • 7:08 pm 0
“What are the consequences of repeating the same purchase if this security were already liquidated and would I invest in it again?” If the answer is “no”, it’s time to sell.
That means, evaluate the situation at NOW moment instead of thinking about the time when it was taken.
Filed under: Random Thoughts
June 21, 2008 • 1:10 pm 0
Quiz: 200 pips on a $5000 USD account per week… how much you will have after 4 years? (provided at 100:1 leverage) using 2% equity per order.
5000 x 0.02 = 100 x 200 pips = 200 USD
200 / 5000 = 0.04 or 0.04 x 100 = 4% return on equity. Duh not much eh?
So 50 weeks (lets say u went for 2 week’s vacation) per year so 50 x 0.04 = 200% ROI per year. Not much eh only making 10,000 US per year pretty low.
Ok… here is the trick of compounding ;-)
200% every 12 months so 100% every 6 months right? okay…
After 6 months your investment is worth 100% ROI + Equity = 5000 + 5000 = 10,000
After 12 months your investment is worth 100% ROI on (10,000) + Equity 10,000 = 20,000
So with compounding you are turning your 200% ROI into 400% ROI :-)
Now, keep calculating for four years… Its gonna become something like 1,280,000… yes in Greenbacks. Thats over a million btw ;-)
Money is cheap if you know how to make it. I’ve not yet fully implimented the rule of 70 on my equity… next time.
Filed under: Random Thoughts
June 20, 2008 • 7:32 am 0
USD/JPY
The unemployment claims were better than expected but the point is, Philadelphia Fed Manufacturing Index put a pin on the bubble and I’m keeping my shorts open for the time being.
Filed under: Random Thoughts
June 16, 2008 • 2:06 pm 0
As I said on sunday… we will be seeing an upward move by pound this week and my target was hit at 212.05 it is currently at 60.
My first trade after 6 weeks break yielded me 4.26% net return heh….
Filed under: Uncategorized
June 14, 2008 • 7:20 am 0
Divergence on Weekly chart. Regardless of the G8 meeting minutes forecasting a strong dollar, I don’t think the recession affected US consumers will come out of their shells .
In the Uk we have RICS House Price Balance index numbers on last tuesday which came out better than expected and regardless of the technical divergence I’m hoping that GBP’s upwards movement will last few more weeks.
Will review my position on tuesday.
Filed under: Weekly Charts
