Monthly Archives: September 2010

Why do people - and traders - do what they do? Why do traders sometimes do what they know is the wrong thing? How can we learn the right behaviors and stop doing the wrong ones? Join us for this practical webinar, 8AM EST tomorrow, and learn about important concepts in the Forex Trading mindset, and review actual trades taken at the London market open. Urban Forex analyst Navin Prithyani will share his experience and introduce you to these trading psychology concepts and tools:

* Knowing in advance what you want from a trade
* Sticking to your plan
* Practicing and applying techniques to daily trading

Sign up here:

The webinar is free and suitable for traders from beginner to professional. At the end of the session there will be time for audience Q&A with Navin and all attendees will get a special offer from the Currensee Marketplace and Urban Forex.

About Navin Prithyani:
Navin Prithyan started his Forex journey in his teens. Trading and testing several systems and trading strategies in the beginning, Navin has been a great contributor in the Forex industry. With over 6 years of experience, he today runs forexwatchers.com and teaches individuals how to trade the empty charts using little to no indicators. All his methods are shared widely within the Forex community and are free of charge.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

We've been busy here at Currensee. It's Fall here in New England and we thought - what better time to redesign the website? Some people took the summer off but we were working away on a complete site overhaul. And, voila, it's ready for prime-time.

Designing and building websites in the start-up world is a fun but challenging task. You release something to the world and then two days later, the message changes or there's a product update or we change our mind about a graphic or image. I think about our website as the living representation of our brand - who we are, what we stand for and what we do. The site needs constant care and feeding. The idea of whipping a website together, putting it up and leaving it for months and months is archaic and trust me, you'll see the results in your web traffic. Instead, here at Currensee, we are constantly improving what we do for our visitors to currensee.com.

Our redesign is centered around three main goals:

  1. Making content more accessible
  2. Improving the overall design
  3. Delivering a better user experience and more functional UI

Upgrades include:

  • New layout, navigation and design
  • Affiliate signup form and affiliate program information
  • New About page and "Memory Lane" timeline
  • Social links on all pages
  • Updated messaging and positioning
  • New content sections
  • Direct links to upcoming events on our homepage
  • The ability to easily scale with new product and platform offerings

Our super-talented Product Designer, Elliot Nash, had a huge hand in making this redesign happen. Of the redesign he says, "The Currensee.com redesign makes our marketing site more usable and gives visitors a better overall experience." Way to go, E!

Here's to continuous improvement. It's a beautiful thing. Check out the redesign by going to Currensee.com.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

On a trading forum recently someone started a thread with the title “Tell Me What You Get from the Forex Trading besides Money.” It’s interesting (to me anyway) that the personal development side of trading doesn’t come up more often. I think it is definitely worth thinking about because the financial markets provide us with the opportunity to grow in ways that most people probably do not even think about. Trading, like any worthwhile pursuits, provide more rewards than just the obvious accomplishments.

To paraphrase the old saying, the destination is not always as important as the path taken to get there and the things seen along the way. While it is true that the expansion of one’s portfolio is what ultimately indicates success or failure in the markets, how those gains are achieved can provide outstanding opportunities to learn important lessons about ourselves with far reaching value. These lessons reach across all areas of our lives.

Playing to Your Strengths
We all have our strengths and weaknesses and a kind of structure in which we operate based on the demands on our time, education, experience and an array of other factors. In the markets we need to make assessments about these things to help us decide what to trade, the timeframe in which to operate, and how to make our trading and investing decisions. Why? Because it is unlikely that we will achieve our objectives if we do not honestly judge ourselves and how best we can operate. For example, I am unlikely to be a good day trader if I cannot dedicate my days to watching the markets for long stretches and frequently buying and selling. I must either choose another course or alter my schedule to accommodate the demands of being a day trader.

It is the same in the rest of life. We must constantly consider our personal inventory and life situation. They dictate what we can do and how we can do it. That said, these are not static things. Just as I noted above that I could alter my schedule to allow for day trading, so too can we change things to expand our options. Education, in all its forms, is part of that equation. So too is seeking out new experiences, meeting new people, and even consciously changing our attitude toward things. If a goal is important enough, there are things we can do to make achieving it possible. Part of that is knowing what we have to work with and how to most efficiently apply it. The other part is knowing how to open up new avenues.

Knowing Who to Listen To
In the markets there is a vast array of information available. It comes in every form imaginable, from data released by the government to commentary by analysts to tips from Uncle Joe. Some of this information is useful to us. Some is not. A great deal of what came out in the aftermath of the stock markets collapsing in 2000 and after was the number of conflicts of interest those who provided “expert” opinions had. These people did not have the interests of those they spoke to about this stock or that at heart, but rather their own and/or their firm’s. Many, many people listened to these pundits to their detriment. Clearly, a hugely important element of successful trading is knowing what information is of value and which sources can be trusted, and what should be taken with a grain of salt.

The same holds true in all other areas of our life. All of us are constantly provided with information and advice. Some is solicited. Much is not. Before we can decide whether to make use of it all we must be able to assess the veracity of the source. Some people are trustworthy and wise. We can depend on what they say. Others do not have our best interests in mind. We must carefully consider what they say and the motivations behind it, before deciding whether it is worthwhile or should be ignored all together. Being able to effectively judge the input we receive from sources such as our family, friends, and peers is a priceless skill.

Being Disciplined
Success in the markets is achieved by doing what we know is the right thing to do. The single biggest reason people fail to consistently produce the returns they seek is that they fail to maintain a disciplined approach. Sound familiar? It is the same as anything else we do. Want to lose weight? You must be disciplined about diet and exercise. Want to learn how to play guitar? You must exercise the discipline required to practice the hours required to attain the skill.

Understanding Why You Fail, Knowing How to Succeed
Perhaps the single greatest thing about trading and investing in a meaningful fashion is that it provides a fantastic opportunity to see what you do which causes you to fail and what leads to success. The conscientious trader/investor has a plan and thereby a way to make evaluations. Whether things go to plan and profits accrue, or they do not go well, he or she knows why and what needs to be done going forward.

Achievement in life requires that one follow a similar course. No matter the objective or pursuit, we must understand what it takes to succeed and have ways we can judge whether we are doing those things or not. To do otherwise is to act in a random fashion, never sure if we are doing what is right and necessary.

These are just some of the valuable life lessons that trading and investing can provide. There are plenty more as worthwhile, to go along with the more commonly thought of value in understanding how the markets can be used to improve your financial well-being. And these lessons need not come at great expense either since modern trading and investing can be done with very small amounts of money – even none at all in the case of demo accounts. All the more reason to make the markets a source of both financial and personal growth.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

The International Traders Conference is fast approaching and in order for us to get a deeper look into what the conference is all about we interviewed Communications Director Maud Gilson.

Watch the interview here to get an insiders look at the ITC.

For more information and to see the full length interview click here.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

2 Comments

Here at Currensee we obviously believe that "trading together" is the best way to trade. Surrounding yourself with like-minded traders, traders with experience, and traders with unique strategies are some of the best ways to really immerse yourself in the currency trading culture. Because we have found that our community has benefited from the contributions and opinions of its members we figured it would be nice to develop an "Ask the Experts" panel. This panel has been created to help traders ask tough questions about the economy and Forex trading in general.

You're probably thinking, what makes this panel an "expert" panel? I introduce to you Dean Popplewell and Scott Boyd from Oanda.

Dean Popplewell has a wealth of forex experience: professional currency trader for 10 years, fixed income trader for four years, and head of the global trading desks at various financial institutions in Canada. Dean is OANDA’s resident currency analyst and has been writing OANDA’s daily forex blog since January 2007 as a way to share some of his forex experience with the OANDA community.

As a content writer specializing in the financial sector, Scott Boyd has produced educational materials and conducted market analysis for several of Canada’s leading financial institutions. Scott now contributes articles to the OANDA blog and is keenly interested in the factors affecting global currency prices.

As you head over to the Oanda site and blog you'll see many articles written by Dean and Scott. They have agreed to lend us their expertise to help our traders get a better understanding on the world of Forex. The panel will work as follows:
  • Submit your question via comment to a post, on our Facebook Wall, in the Facebook discussion section, through the "Ask the Experts" discussion in the platform, or simply Tweet it
  • We will pass on your questions to our team of experts, which will also include guest appearances from Currensee team members
  • Once we have the answer(s) to your questions we'll create a blog post about it so everyone can benefit

We're exited to welcome Scott and Dean to our blogosphere. We hope you'll ask great questions and in return we'll provide great content.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

Live Forex Market Analysis Webinar with FXCM strategist Jamie Saettele

Currensee and FXCM present a live Forex Market Analysis session with FXCM Senior Technical Strategist Jamie Saettele.

Sign up here - 4PM - 5PM EST Today.

In this informational session, Saettele will use live charts to analyze the market and identify technical trading opportunities while taking questions from the webinar audience. Attendees will learn...

  • What Jamie is trading now and what opportunities he sees in the weeks ahead
  • How to pinpoint entries and exits with channeling and Fibonacci techniques
  • The optimal time of the day and week to establish and exit a position

The webinar is free and suitable for traders from beginner to professional. At the end of the session there will be time for audience Q&A with Jamie and all attendees will get a special offer from the Currensee Marketplace and FXCM. Please join us for this engaging webinar and feel free to invite your friends too!

Sign up here - 4PM - 5PM EST Today.

About Jamie Saettele:
Jamie Saettele is an active trader, Senior Technical Strategist at Forex Capital Markets LLC in New York and author of Sentiment in the Forex Market (Wiley Trading). His technical strategy focuses on sentiment indicators and Elliott wave and is published at DailyFX.com. He has contributed to Technical Analysis of Stocks and Commodities magazine, SFO magazine, Futures magazine, and Investopedia.com.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

It’s that time of year again, ITC Barcelona! FXstreet.com presents the International Traders Conference from October 20-22. As a social community we love conferences. It gives traders the opportunity to meet fellow traders, learn new strategies, and view experts in their element. We, at Currensee, are consistently producing live webinars for just this reason. We are firm believers that learning, especially in regards to trading, is a collaborative experience.

Take a look at the line-up of experts this years’ ITC will have. This conference is one of the few opportunities where YOU are participating in a live trading session WITH Forex experts.

This isn’t a traditional conference with limited contact and more brochures than you know what to do with. Instead groups with a maximum of 10 attendees will be live trading with a team leader who is one of the guest speakers for ITC. Each session you, the attendee, will be in a group with a different expert. That way, in each session, you are able to learn different approaches to trading. The groups are small in order to create a very comfortable atmosphere where experiences and techniques can be shared. Participation and questions are not only welcome, but encouraged.

Rob Booker who has been Guest Speaker of the ITC every year since 2007 will be back again this year! He says:

"The International Traders Conference is, for me, the most important gathering of currency traders every year, sponsored by the company that knows us better than anyone - FXstreet. People come to this conference and build relationships that last for years afterward - there are still attendees meeting together online 4 years after the first conference. I think the relationships that I build with other traders, and with the traders who come to teach - I think those relationships make the conference special for me, and something that I just can't miss. It's the perfect mix of live trading, team-building, and instruction in the latest trading techniques from some of the hardest working traders in the business."

We couldn’t have said it better ourselves. And in case you’d like to hear what FXstreet.com has to say about the conference here’s some insight from CEO, Francesc Riverola:

“We want the ITC to be something different than just a Forex workshop or convention: we try to provide the best-ever experience so we care not only for the quality of the education but also for the human experience the traders will take back home.

With the ITC, we just not welcome forex traders from around the world to Barcelona, we nearly move our office to the event so we can live with our guests for three very special days..., it is an unforgettable experience for us and it's our annual opportunity to meet our visitors face to face.”

If you have any questions regarding the sessions feel free to comment here and we'll pass along your inquiries to FXstreet.com. And if you are ready to join the greats at ITC sign-up here.

Take a look at some pics from last year!

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

2 Comments

Today we announced a pretty cool new feature for Currensee members. Now, any member of the Currensee Forex trading social network can share their profile with the world. We launched the ability for members to make their profiles public and to then share their profiles on social sites such as Facebook, Twitter and LinkedIn and on any website or blog. This social enhancement continues to pound the drum for transparency of information and helping traders connect with each other. It makes the Currensee network more open and gives members the ability to tell other people they are on Currensee.

What does my public profile look like?

Your public profile has a unique URL that looks like this: http://app.currensee.com/forexpert/forex-trading/profile/MIHPK with your personal Currensee ticker symbol. Your public profile gives a snapshot of the information visible to Currensee members, including:

  • Your active pairs, techniques, and approach
  • Your trader performance chart vs. the Currensee community and the S&P500
  • Your profile bio and social details (Twitter handle and blog, if applicable)

Some information on your profile is still only visible to fellow Currensee members. This includes your trading strategies, any open trade positions, and your recent activity in the application. To see your complete profile, people have to either add you as a friend to their virtual trading team, or join Currensee – both of which can be done directly from your public profile page. Check out my profile as an example.

What should I do with my public profile?

Share it. Think of it as your Forex calling card. Here’s some places you can share your public profile and plug your Forex expertise:

  • Tweet your Currensee profile to your followers
  • Post it to your Facebook, LinkedIn and other social network profiles
  • Include a link to your Currensee profile in your email signature
  • Post it to your blog and in Forex forums
  • Add a link to your business card

What about my privacy?

Members are our top priority and we have very high privacy standards. All current Currensee members’ profiles are private by default. We believe in transparency, openness and sharing, but understand it’s your call as to what to share when. To share your Currensee profile, just go to Currensee privacy settings and flip the switch. Then grab your unique URL and show the world what Trading Together is all about!

Take a look at some of top traders from the Currensee community on the Leaderboard.

The Currensee public profiles add a whole new layer of transparency and collaboration to Forex traders around the world. We’re proud to be on the forefront of openness and sharing - just like being 7 years old all over again. Don't have a profile on Currensee yet? Have no fear. You too can join the ranks of the smart Forex traders trading together on Currensee.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

2 Comments

The other day I had a reader of my blog leave a comment to my post on the new CTFC margin rules. My contention is that for the vast majority of traders, the 50:1 leverage cap (2% required margin) for trading the major currencies is more than adequate. The commenter left the following in response:

I’m actually kind of at a disadvantage with 2% margin requirements because that means that I have to have around $18,000 in my account just to be able to buy my 6 standard lots of GBPJPY which I need to be able to do as part of my trading plan. With 1% margin, I only need $9,000. If my trading plan calls for an initial capital of $25,000 plus the cost of entry, I can earn a much bigger percentage return on $34,000, than on $43,000 trading the exact same way. With the new requirements, the initial capital needs to be more and it becomes harder to show superstar returns.

In doing some follow-up I've learned that this trader basically looks at the $25,000 initial capital as his cushion against drawdown. He's back-tested his system and observed it's only seen anything close to that kind of drawdown a handful of times over 10 years worth of data. It's good to hear he's done that sort of testing.

Personally, though, I would take any drawdown seen in testing and double it when looking at capital requirements. That may sound very conservative, and perhaps it is, but I've been around the block enough times to know that the market always seems to do something different or more extremely than it ever did before every once in a while.

Now, getting back to the concerns about the impact of the 2% margin requirement vs. 1%, I think there are a couple of points worth making.

First, the rate of return difference will virtually disappear over time. Let's say the system makes $20k in profits the first year. That's about 59% on the $34k assumed as starting capital under the 1% margin requirement, 47% on the $43k when using 2% margin. Now say the system makes another $20k the second year. The 1% margin scenario would have $54k to start, so the return would be 37%. The 2% margin scenario would have $63k to start, so the return would be 32%. Notice how the spread between the returns dropped from 12% to 5% in only one year's time? It will increasingly narrow until it becomes virtually nil – and the higher the rates of return seen each year, the faster the narrowing will take place. In other words, it's not something I'd be concerned with.

Second, it's one thing to say you're comfortable riding out a big drawdown and a whole other thing to actually do it. That's the sort of thing that's easy to be rational about when testing, but becomes very emotional when it's happening in real life. If this trader were to see his whole cushion wiped out by a system drawdown, we'd be talking about more than a 70% loss. Even going with the 2% margin requirement capital base you're over 50%. That's a hard thing to deal with for a great many folks. All sorts of questions start arising in one's head about whether the system is broken.

The last thing I'd toss out there is the question of position sizing. This trader says trades up to 6 full lots of GBP/JPY in a throw, and it looks like a scale in from a starting position of 2 lots. Has he tested the impact of determining his position size relative to his equity base – which may require trading mini lots rather than standard ones – rather than fixed trade sizes? Depending on the system, there can be a major difference in performance. The relative trade sizing tends to lessen the depth of drawdowns because it reduces trade size as equity falls, but that approach can also be slower to recover to recover from drawdowns because of the smaller relative position sizes. Whether that works out for the best or not tends to depend on how drawdowns happen in the system.

Just a few things to think about.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.