Here;s the GBP/JPY trade.. it's still rising.. could have made 50+pips..easy.. but 25 is good enough. The GBP is pretty strong and it should be back up to its regular levels. AUD/JPY is also coming up..at 90.38 now
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Anyone here into FOREX?
- Thread starter Music_Producer
- Start date
- Sort by reaction score
- Status
Here;s the GBP/JPY trade.. it's still rising.. could have made 50+pips..easy.. but 25 is good enough. The GBP is pretty strong and it should be back up to its regular levels. AUD/JPY is also coming up..at 90.38 now
Music_Producer said:
Oh I know it's nothing. I was leaning towards not even mentioning it, but then I thought I would in the interest of others here benefiting from my experience, being a person who has "been there, done that" before, in my early days of trading. I've been down thousands on trades before (luckily not that often!) so I'd like to think I have ice water in my veins for the most part - this doesn't affect me in the least.
But yah, funny how easy it is to cave into emotional responses. You really have to be disciplined with this stuff - there's another good lesson.
Music_Producer said:
Nice one. Yeah, I bought into AUD/JPY last night around 90.54 (?) and had a conditional stop in at 90.74 (i.e. if AUD/JPY passed that point by x%, activate the stop to preserve profits.) This morning I was actually up even more on it, but then it started decreasing a fair bit. As I said, I'll check in again tonight and maybe attempt a carry trade again (this time longer than 8 hours
). Just a guess, but I'm thinking that holding a currency like that over the weekend is usually a fairly safe bet, since it doesn't move much on the weekends due to lack of news/activity? Yes, no?
Music_Producer said:
Off topic but Apple just released a firmware update to address the shutdown issue. Check out software updater.
Hoef.. my macbook works great after the update.. no shut downs.. and its absolutely quiet.
Went out during the weekend to San Diego - the Wild Animal Park.. Shard, I still have my AUD/JPY position open .. earning some nice interest on it, and those pips that I made on the GBP/JPY trade actually balanced me out pretty well.. so if I sell AUD/JPY at 90.20.. I won't go in a loss. I'd rather wait a bit though.
Went out during the weekend to San Diego - the Wild Animal Park.. Shard, I still have my AUD/JPY position open
.. earning some nice interest on it, and those pips that I made on the GBP/JPY trade actually balanced me out pretty well.. so if I sell AUD/JPY at 90.20.. I won't go in a loss. I'd rather wait a bit though.
Shard, I still have my AUD/JPY position open
Nice one. Yeah, it's interesting to see how the currencies move when you're actually holding them for longer than 6 seconds...
I think I'll pop back into AUD/JPY myself in the next day or two and just let it ride. I'll have enough cash in my margin account to cover a dip of over 2 cents technically, so I should be fine...Also looking at picking up some XAU/USD (Spot Gold against the USD). Gold has a period of seasonal strength right now on its own (Indian jewelers stocking up for wedding season, other jewelers for Xmas season, many other factors too...) but coupled with the fact that it has an inverse relationship to the USD, I like this cross-pair and am going to give it a try...
Hey Shard.. very interesting stuff about Gold..
AUD/JPY is back at 90.57.. GBP/JPY is still at a low level though. I think it was just GBP/JPY that was overbought.. I don't think AUD will go down until that interest rate decision anyway.
AUD/JPY is back at 90.57.. GBP/JPY is still at a low level though. I think it was just GBP/JPY that was overbought.. I don't think AUD will go down until that interest rate decision anyway.
Hey Shard.. very interesting stuff about Gold..
AUD/JPY is back at 90.57.. GBP/JPY is still at a low level though. I think it was just GBP/JPY that was overbought.. I don't think AUD will go down until that interest rate decision anyway.
I'll keep you posted on the Gold front - it's getting ripe for the picking... Other nice thing is, with CMC, they do not charge any financing (overnight interest) on commodity positions - it's technically built into the spread. As a result, I don't have to worry about paying 6% interest (or whatever god-awful amount) on tens of thousands of borrowed dollars every day on my commodity trades - that tends to erode profits fairly quickly...
I bought AUD/JPY this morning before work @ 90.66. I promise to actually hold it longer than a day this time and actually collect interest for a change on it.
Plus, I only picked up $50,000 for now. That way if it goes down significantly for whatever reason, I can DCA down since I'm confident in its relative long-term performance - as well as the whole carry trade interest thing of course.
Music_Producer, could you help explain this little nuance to carry trading for me? Since I haven't done this before, I'm not sure if this is standard practice, or something specific to how CMC handles things...
Basically, my AUD/JPY position was just rolled over. Perhaps I'm not reading my client position summary correctly, but the way it is represented at least, it appears as though CMC executed a rollover trade on my behalf. My position was closed out at 90.47 for a loss of $90 (I owned 50,000 @ 90.66 at the time) and then 50,000 was subsequently bought @ 90.4264 for me (essentially giving me a 4 pip bonus. ) (And I am currently up about 15 pips on it = $75)
So, is this just how they do it every day, and if so do I need to track my position every day to make sure I know exactly how much I'm up/down? (i.e. down $90 today, up $60 tomorrow, down $10 the next day, etc.)
And how would the interest payment work on this? When would it be realized in my account? I'm assuming as a simple CR? Or is it built into that 4 pip differential between my rollover orders? Let's see, 50,000 * 6% / 365 = $8.22. Hmm, nope, that doesn't equal 4 pips x 50,000, which is what a day's interest should be...
Sorry, just thinking out loud here, perhaps I'm missing something simple. Any ideas? I'm familiar with commodity contracts rolling over upon expiry, but those always last a full month, not just a day! And for what it's worth, my "new" position has a "value date" of November 6th... hmm...
Just want to make sure I fully understand exactly what is going on and how things are handled. I always pride myself on being educated when it comes to matters like this, and don't like being unsure, as I'm sure you can appreciate. Any insight would be most appreciated.
Basically, my AUD/JPY position was just rolled over. Perhaps I'm not reading my client position summary correctly, but the way it is represented at least, it appears as though CMC executed a rollover trade on my behalf. My position was closed out at 90.47 for a loss of $90 (I owned 50,000 @ 90.66 at the time) and then 50,000 was subsequently bought @ 90.4264 for me (essentially giving me a 4 pip bonus.
) (And I am currently up about 15 pips on it = $75)So, is this just how they do it every day, and if so do I need to track my position every day to make sure I know exactly how much I'm up/down? (i.e. down $90 today, up $60 tomorrow, down $10 the next day, etc.)
And how would the interest payment work on this? When would it be realized in my account? I'm assuming as a simple CR? Or is it built into that 4 pip differential between my rollover orders? Let's see, 50,000 * 6% / 365 = $8.22. Hmm, nope, that doesn't equal 4 pips x 50,000, which is what a day's interest should be...
Sorry, just thinking out loud here, perhaps I'm missing something simple.
Any ideas? I'm familiar with commodity contracts rolling over upon expiry, but those always last a full month, not just a day! And for what it's worth, my "new" position has a "value date" of November 6th... hmm...Just want to make sure I fully understand exactly what is going on and how things are handled. I always pride myself on being educated when it comes to matters like this, and don't like being unsure, as I'm sure you can appreciate. Any insight would be most appreciated.
Further to the above, I realize something funky may have been going on since it it the end of the month and all, but I'm still curious about the specifics. I guess I'm just not used to closing out trades like that automatically, unless it's a commodity trade near the expiry date. For common shares for instance, I have been several thousand dollars down on stocks before, but it's all been on paper, and I've in many cases simply held on and realized a much smaller loss or even a gain - it would stress me out if those positions were actually closed at a huge loss when my intent was to hold it long term, and my capital gain/loss was therefore realized on a regular basis like that!
I guess in my mind I thought this carry trade would act just like owning a stock. I own some currency, and whether it's for 10 seconds or 10 days, whether it's up or down, I could just sit back, collect interest and sell it to realize a capital gain/loss when I so choose.
Lastly, so you don't get the wrong idea, I'm not ticked off by this in the least - just confused and a bit cautious as a result until I fully understand the specifics. But enough babbling from me on this topic for now...
I guess in my mind I thought this carry trade would act just like owning a stock. I own some currency, and whether it's for 10 seconds or 10 days, whether it's up or down, I could just sit back, collect interest and sell it to realize a capital gain/loss when I so choose.
Lastly, so you don't get the wrong idea, I'm not ticked off by this in the least - just confused and a bit cautious as a result until I fully understand the specifics. But enough babbling from me on this topic for now...
Interesting issue you have ~shard~. On OANDA, nothing like this happens, though I don't think I can hold any pair longer for a week (but that is a user preference).
Did it pay out interest when it "rolled over"?
Did it pay out interest when it "rolled over"?
The only thing I can think of is that it has something to with the end of the month, but even that's a bit odd to me...
As for the interest, I'll check tonight when I get home after work, it should show up by then. Not sure if it's calculated based on midnight of my time zone, CMC's main time zone, or GMT, not that it really matters.
Oh, and the position was definitely rolled over. I now show a $90DR and a "new" position @ 90.43. Doesn't really matter in the grand scheme of things, but still. I might have to phone CMC for further clarification as well.
Shard, that's a little odd I've held a carry trade position with Oanda for 2 months, and my position was never closed. So I don't think it would be a end-of-the-month thing.
I've had one position at GFT for 2 weeks.. but no position was closed.
I don't know how CMC operates though.. maybe they have some specific rule regarding carry trades. Also, regarding the interest rates.. not everybody pays daily interest or in fact, the same interest either! Out of all the forex brokers, I found Oanda to be the best for carry trading.. because they pay interest daily.
You might want to check with CMC as to what really happened.
I've held a carry trade position with Oanda for 2 months, and my position was never closed. So I don't think it would be a end-of-the-month thing. I've had one position at GFT for 2 weeks.. but no position was closed.
I don't know how CMC operates though.. maybe they have some specific rule regarding carry trades. Also, regarding the interest rates.. not everybody pays daily interest or in fact, the same interest either! Out of all the forex brokers, I found Oanda to be the best for carry trading.. because they pay interest daily.
You might want to check with CMC as to what really happened.
Shard, that's a little odd
I've had one position at GFT for 2 weeks.. but no position was closed.
I don't know how CMC operates though.. maybe they have some specific rule regarding carry trades. Also, regarding the interest rates.. not everybody pays daily interest or in fact, the same interest either! Out of all the forex brokers, I found Oanda to be the best for carry trading.. because they pay interest daily.
You might want to check with CMC as to what really happened.
Yeah, it looks like the close out positions every once and a while and open a new position based on the differential of the interest rates. Regardless, I don't like realizing capital gains/losses until I choose to!
I'm phoning them tomorrow to clarify. I'll still continue to trade with them, but this might just affect my strategy a bit, that's all.
So are you planning on trading any of the US news either tomorrow morning or Friday morning? If so, which announcements are you watching for and what are your predictions?
Tomorrow morning there's nothing but the EUR interest rate statement. Its expected to remain unchanged at 3.25%.. so I'll just be watching. If they hike/lower the rate.. obviously I'll trade.
Friday morning is Canadian employment change and the US Non Farm employment change.. you know the 'non farm' stuff creates a lot of excitement.. lol. Absolutely no predictions on that one It jumps around quite a bit!
Friday morning is Canadian employment change and the US Non Farm employment change.. you know the 'non farm' stuff creates a lot of excitement.. lol. Absolutely no predictions on that one
It jumps around quite a bit!
Sounds good - I'll be taking a break today, but will be watching tomorrow with my mouse-clicking finger at the ready...
Well I just traded the UK Services PMI (GBP/USD) for only 3 pips.. I was a little late entering the trade (I think a little Black Label that I drank an hour earlier might have affected my reflexes!) Weird.. i can't seem to attach the screenshot.. it gives me a 'You do not have permission to access this feature' or something like that. I'll try attaching the pic later.
Next trade is the CAD employment and USD non farm.
Next trade is the CAD employment and USD non farm.
Ideal trade for me, this is pretty much how I'd like it to happen every time!
Although Oanda's news service didn't report the CAD #s I saw the USD/CAD spike down so I sold. Sold at 1.1297, bought at 1.1308 and make a nice 11 pips in less than 30 seconds! I got in a little late, technically, but without a news flash to support the move, I wanted to confirm the downtrend before I sold.
Did you manage to do a trade as well Music_Producer?
Edit: I see you beat me to it! Nice trade! Yes, I still don't have your speed yet to capture as many pips as you, but I'm working on it - all in good time...
Although Oanda's news service didn't report the CAD #s I saw the USD/CAD spike down so I sold. Sold at 1.1297, bought at 1.1308 and make a nice 11 pips in less than 30 seconds! I got in a little late, technically, but without a news flash to support the move, I wanted to confirm the downtrend before I sold.
Did you manage to do a trade as well Music_Producer?
Edit: I see you beat me to it! Nice trade! Yes, I still don't have your speed yet to capture as many pips as you, but I'm working on it - all in good time...
Yup Shard, I wish all trades were like this! Well most of them are
If you're trading the non farm report.. I would caution you to use a smaller lot.. because of the darn revisions that are always whack. The last time, the revision deviated by a huge number.. so you saw those whipsaws in the eur/usd. I'm trading with a small lot, it's not worth taking a risk when you know there's going to be some volatility ahead!
If you're trading the non farm report.. I would caution you to use a smaller lot.. because of the darn revisions that are always whack. The last time, the revision deviated by a huge number.. so you saw those whipsaws in the eur/usd. I'm trading with a small lot, it's not worth taking a risk when you know there's going to be some volatility ahead!
Holy cow! That was one heck of a crazy trade.. looks like neither Oanda nor MB Trading could handle this one. Both platforms froze approx. a few seconds after the spike. I made about 8 pips.. could have made more but i just cant login! Is CMC functioning well Shard?
Man this is the last time I trade the NFP. It's a good thing I closed all my trades before the platforms crashed. I still can't sign in! Unbelievable.. I feel for those who are still stuck
GBP/USD and EUR/USD are still moving like crazy.. whipsaw all over the place.. sheesh!
Edit: - Its the stupid a$$ revisions again. Aug numbers were revised from +51K to +238 K!!!! WTF??
Makes you wonder what kind of calculators these so called economists who work for the government use! How can they be so off??
GBP/USD and EUR/USD are still moving like crazy.. whipsaw all over the place.. sheesh!
Edit: - Its the stupid a$$ revisions again. Aug numbers were revised from +51K to +238 K!!!! WTF??
Makes you wonder what kind of calculators these so called economists who work for the government use! How can they be so off??
Sounds like you had a wild ride Music_Producer!
CMC did indeed execute just fine for me. I saw the reports and spike in the EUR/USD (decided to do this pair instead of GBP/USD this time around) and sold. Moments later I closed my position and ended up making 20 pips, my largest gain to date! CMC executed flawlessly, kept the 2 pip spread - it was all good.
And thanks for the head's up on using a smaller lot size. Although the way it worked out I could have made more, I could easily have lost more as well due to the volitility. As it turns out, I still made a decent profit so it's all fine by me.
CMC did indeed execute just fine for me. I saw the reports and spike in the EUR/USD (decided to do this pair instead of GBP/USD this time around) and sold. Moments later I closed my position and ended up making 20 pips, my largest gain to date!
CMC executed flawlessly, kept the 2 pip spread - it was all good.And thanks for the head's up on using a smaller lot size. Although the way it worked out I could have made more, I could easily have lost more as well due to the volitility.
As it turns out, I still made a decent profit so it's all fine by me. That's awesome Shard! CMC is looking more and more tempting to me now Yeah.. I made a profit.. but heck, this was a 100 pip drop.. so to make 8 pips on that because of platform issues is absolutely unacceptable to me. I was able to log back in after an HOUR!
You made a lot of pips today.. time to celebrate
PS - Did you see AUD/JPY? It's gone up to 90.81 and above.
Yeah.. I made a profit.. but heck, this was a 100 pip drop.. so to make 8 pips on that because of platform issues is absolutely unacceptable to me. I was able to log back in after an HOUR! You made a lot of pips today.. time to celebrate
PS - Did you see AUD/JPY? It's gone up to 90.81 and above.
Music_Producer said:That's awesome Shard! CMC is looking more and more tempting to me now
Yikes - imagine all the people who got kicked out of their account with open trades!
That could amount to some serious losses... CMC is by no means perfect - just read some of my previous posts on the differences/deficiencies between it and Oanda - but nothing is perfect at the end of the day. For me, the Oanda/CMC combo is working fine though. Oanda for the news and real-time 5-second charts and CMC for the actual trade execution, fixed spreads and 100:1 leverage.
You could always just give it a try if you like - they have a 14-day trial and it's all free. Also, I have all the documentation on the software platform, FX trading, etc. and would be willing to e-mail it to you if you would like to read through it to get a better idea of things. Just PM me if you want.
Also, keep in mind that I use CMC for other trading as well - as a forex platform itself, it may not be the best for you, but for me, it's a great all-around platform. Also, since I'm just getting started and am not at the "level" you are with repsect to quickness, efficiency, etc., perhaps CMC is good enough for me but would not be able to keep up with you.
One way to find out though I guess... Music_Producer said:You made a lot of pips today.. time to celebrate
Guess that means I need ot have a pip party.
Yeah, the full 100 would have been nice, but I'll take 20 any day! As I've stated before, I still consider myself new to forex trading, and want to err on the side of caution. Come 2007 though I think I will start using larger lot sizes and so forth. For right now though, a couple hundred bucks here and there is quite fine by me!
Music_Producer said:
Yes, unfortunately I am not carry trading it at the moment - I closed my position a day ago due to that rollover issue I was having. I wanted to be completely out of everything until I fully understood how they worked things. Now that I understand rollovers, Value Dates, Mark to Market and so forth, I know how they handle things and will enter back in this weekend most likely - Monday at the latest. Even if there is a slight sell-off due to the AUD's recent rise, I think long term it can only go higher. And with interest rate hikes looming, it makes sense to me...
- Status