Titan's PipWorld

[Titan]

Foreign exchange market

From Wikipedia, the free encyclopedia


The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.[1] Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks, and are subject to forex scams[2] [3].

Foreign exchange market - Wikipedia, the free encyclopedia


Titan

[Titan]

I would love to find more information on this...


With the enormous daily figures in the FOREX markets, large corporations have been seen to benefit enormously from foreign exchange movements. For example, Bank of America reported in its 2002 annual report a $530 million profit from foreign exchange trading revenue under "Global Investment Income". Meanwhile, it reported only a $384 million profit from trading stocks, and an $86 million profit from commodities trading.

Caterpillar established its special currency management group back in 1986, when it reported a $100 million profit on foreign exchange that turned its $24 million operating loss into a $76 million profit for that year.

DaimlerChrysler threw itself into major investment headlines in late 2003 when it acknowledged that more than half of its 2Q 2003 operating profit was generated by currency trades - making more money on foreign exchange than in selling cars. The car maker reported quarterly operating profit of € 641 million ($1 billion), beating some analysts estimates. The company says approximately €350 million of this profit was generated in foreign exchange.


Titan

[Titan]

Institutional Bank Style Trading: Balance Point Trading is how the banking institutions and large retail investors make their money. This is how we as well are going to make ours. Welcome to Titan's PipWorld...

Happy New Year
Date: Wed, Jan 02, 2008
Time: 1:15am New York Time


Update: I thought it best to give you a pic-image update on my current open positions. As you can see all my positions are negative at the moment and now is not the time to panic but to just let GbpJpy finish out it's downside move. As I have mention before this Balance Point System is a medium to long term trading method that can take days, weeks even months to complete a particular price target.

I did decide not to get back in on Cable (GbpUsd) and was thinking of going with UsdJpy but haven't fully made up my mind as of yet. However, I do believe UsdJpy will head upward to the 115.00 level, it's current price is 111.42...



To enlarge pic once loaded just click on image.


Titan


p.s. It is normal for the market to move against us and it will on 70 to 90 percent of our trades, which is a good thing. A movement against us allow for larger profits simply by letting us add to our positions.

[Titan]

Institutional Bank Style Trading: Balance Point Trading is how the banking institutions and large retail investors make their money. This is how we as well are going to make ours. Welcome to Titan's PipWorld...

This is what I'm looking at for GbpJpy:


To enlarge pic once loaded just click on image.


Titan

[Titan]

Institutional Bank Style Trading: Balance Point Trading is how the banking institutions and large retail investors make their money. This is how we as well are going to make ours. Welcome to Titan's PipWorld...

Update: I placed a pending order on GbpJpy at 216.42


Titan


p.s. 216.42 if reached is the last trade to be added to this trade signal.

[Titan]

Institutional Bank Style Trading: Balance Point Trading is how the banking institutions and large retail investors make their money. This is how we as well are going to make ours. Welcome to Titan's PipWorld...

Date: Wed, Jan 2nd 2008
Time: 5:15pm New York Time

Overview: GbpJpy has been in a correction all day and based on CCI appears to be near or at the bottom (time will tell). I still have a pending order at 216.42 and a new trade signal was generated today upon which I added a new position based on the new trade signal at 217.29.


To enlarge pic once loaded just click on image.


Titan

[Titan]

Institutional Bank Style Trading: Balance Point Trading is how the banking institutions and large retail investors make their money. This is how we as well are going to make ours. Welcome to Titan's PipWorld...

Date: Thur, Jan 3rd 2008
Time: 7:58am New York Time

Comment: Nothing has changed, we sit and we wait. GbpJpy is in OS (over-sold) condition and will bounce up, the only question is will the bounce be today, tomorrow or Monday of next week. The below pic-image shows GbpJpy is outside the bands and below CCI, its a waiting game for us medium to long term traders.


To enlarge pic once loaded just click on image.


Titan

[Titan]

Trading Rule Update

As you know I have mention on more than one occassion that I wish there was a way to reduce drawdown (DD) and for the longest I have looked to some form of correlation pair to offset DD. Yet, doing such based on how I compared different currencies (which could be completely wrong) would take away far too much of our profits and it was not stable. Meaning, in regards to profits not being stable is that in a correlation trade to help offset DD the profit levels vary from trade to trade and most important to me is that I have no way of knowing or controlling two currencies that may move against me. So, correlation trading to offset DD, such as Freedom Rocks does is a no go for me. Even though I do like Freedom Rocks take on how one can earn interest as a long term investor.

A ligh bulb turned on today and I wonder if I could enter a Buy-trade at 0.20 lots (mini) and a Sell-trade at 0.10 (half the size) where the Buy-side would always be in the direction I feel the market will go, could this be what I'm looking for? Huummm...

Then set entries at the close of a daily bar, then at -300, -700, -1500 for a total of having four open trades per trade signal. Where a move against the acct would trigger an exit of the Sell-side trade 0.10 at -300. Then add a new positon only if -300 occurs, and so on up to -1500.

That way I only lose half of -300 (-150) or half of -700 (-350), instead of the full amount. Which will allow one to keep the majority of their profits.

I will think this over some more but it looks good.


Titan


p.s. Just sharing my thoughts...

[Titan]

lol... No that won't work. Guess its back to the drawing board on how to reduce DD.

Maybe I should sign-up for Freedom Rocks and get a closer look at how they do it..? But like I stated (or hinted at), I'm not in it for the interest earned on the Carry-Trade that's a bonus, I need the pip-gain and I want it to be Large.

Titan

[Titan]

If the S&P 500 double tops, then carry trades will fall off the map!

Take a look at the monthly chart of the S & P 500 chart below. It never sustained the highs set back in 2000. So seven (almost 8) years later, we're there once again and it's looking like we're not going to head to "higher highs". It appears thjs coming recession will cause the index to complete the double top formation in the upcoming months.

Full article: World Currency Watch: FOREX Market, FOREX Trading BLOG


Titan