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Update on Fundamental and Technical Analysis Thread

Discussion in 'Other Off Topic Forum' started by JSinNOLA, Mar 31, 2004.

  1. JSinNOLA

    JSinNOLA F1 World Champ
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    Mar 18, 2002
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    I wanted to thanks those who took the time to respond to my thread about Fundamental and Technical Analysis.

    As a quick update, my trading class trades FX spots of the EurUSD.

    We began a trading simulation with $10,000 in fake money. The simulation runs from March 16th-April 28th.

    Whoever ends with the best P/L gets an all expense paid trip to New York to meet with various traders such as Stan Jonas, Jim Caron, and possibly George Soros.

    In my original thread I asked for some advice on how to get started and several users responded with their take on things. I read several of the recommended books and thought that it would be fun to let you guys know how the simulation is going.

    The simulation participants include my undergraduate class of about 30, and an MBA class of 16 or so.

    My current rank out of everyone combined is 3rd. Hopefully this improves as time progresses. Anyways, here are some pics of the excel file I am using to keep track of my stats.

    All transactions have been fully documented with pictures of buys/sells and have been verified by a trading partner and my professor.

    I am certainly going to try to make it as a trader full time and will be looking for a job in the near future. Thanks you guys for the support and advice!:)

    Any more words of wisdom?
     
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  3. JSinNOLA

    JSinNOLA F1 World Champ
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    I would call being up 29.5% in about 2-weeks time a good start!
     
  4. Hubert888

    Hubert888 F1 Veteran
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    May 14, 2003
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    It looks like your P/L for the 2 weeks does NOT include commissions costs, which would DRASTICALLY reduce your net profit. To be more realisitic, I would suggest that you tell your professor that the class should use an arbitrary number like $9.95, for commission costs on trades up to 10 lots. That way the competition would be more fair towards the people who trade less frequently than the high turnover rates of the more active traders.
     
  5. JSinNOLA

    JSinNOLA F1 World Champ
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    The dealer we use (IFX Markets) for our spot transactions has a 3 tic Bid-Ask spread.

    These transactions have no commission costs so I guess you could say the Bid-Ask spread is more of a theoretical opportunity cost.
     
  6. Hubert888

    Hubert888 F1 Veteran
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    One should always remember if you are a proprietary trader - that GROSS profit does not mean a thing. What you actually take home $$$, NET profit, is what counts.
     
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  8. JSinNOLA

    JSinNOLA F1 World Champ
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    I am still confused. My entry and exit prices where taken down factoring in the bid-ask spread.

    So if I went long at 1.2200-03 and sold at 1.2215-18 my entry would be.

    Entry Price: 1.2203
    Exit Price: 1.2215

    So I would net 12 tics.

    Is this incorrect?
     
  9. Ryan S.

    Ryan S. Two Time F1 World Champ
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    Mar 20, 2004
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    john do you have a link to your original topic? Id really like to read it.
     
  10. JSinNOLA

    JSinNOLA F1 World Champ
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  11. Cudmore Tuning

    Dec 12, 2003
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    Peter Cudmore
    I've been reading the board for awhile, but haven't really posted. I've been studying forex for awhile while trading a mini account and messing around with some contests. Was this a public contest and will there be another one soon? Any chance I could sign in?

    Hubert888, there are no commission costs... at least there shouldn't be with any half decent forex broker. The only 'cost' is the spread, generally 3 to 5 pips (or tics as you may call them).

    Hopefully forex will pay for my Ferrari in the distant future.
     
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  13. JSinNOLA

    JSinNOLA F1 World Champ
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    This simulation contest is only open to those students enrolled in my undergraduate class and to those students in the MBA class equivalent.

    So Cudmore, how long have you been working on FX and what has your experience been thusfar?

    Tomorrow will be a great trading day with PPI and ISM coming out. Not to mention a meeting of the ECB in a few hours!
     
  14. Forza1

    Forza1 Formula Junior

    Mar 20, 2004
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    May I ask what school/major/age, etc... ?



    -DC
     
  15. JSinNOLA

    JSinNOLA F1 World Champ
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    Tulane University in New Orleans/Senior Finance Major/22

    Feel free to PM me if you wish.


    It's now time for me to catch some sleep so I can catch some trades bright and early!
     
  16. JSinNOLA

    JSinNOLA F1 World Champ
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    I am long at 1.2354-57 with ten minutes before ISM. Let's hope I am right!
     
  17. tonyh

    tonyh F1 World Champ
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    Looks like you're in the money at the mo; 1.2363 trading......hope you won't be running this posi into Nonfarm Payroll tomm?
     
  18. JSinNOLA

    JSinNOLA F1 World Champ
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    Took profits at 1.2364 before ISM came out.

    Then shorted at 1.2341 and got out at 1.2329 on ISM move.

    2 lots for both trades. Now time to take a break, this is too stressful!

    I can post pics to prove if anyone wants.
     
  19. Cudmore Tuning

    Dec 12, 2003
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    Toronto
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    Peter Cudmore
    As far as my experience, I started demo trading last summer. Double an account each week, 3 weeks in a row. Started a real account with the same amount I had been demo trading with. Lost nearly everything in 2 or 3 days. It was definitely a learning experience.

    I tried a contest last month called the Forex Olympics and made 115% in about 3 1/2 weeks, but I dropped out since the top five were over 300% by that point.

    I'm going to start trading a very small live account next week using a new system I've been working on for a few months, I'll let you know how it goes.

    All of my trading is based on technical analysis, I really don't track the fundamentals.

    A few sites you might want to check out are:
    http://www.moneytec.com/ - good forum, many new traders
    http://www.global-view.com/ - has Forex chat room w/ a few very successful traders
    http://www.forexnews.com/ - tracks all reports affecting the market
     
  20. JSinNOLA

    JSinNOLA F1 World Champ
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    Tony

    I am learning how to scalp right now, so I basically just try to ride the waves.
     
  21. tonyh

    tonyh F1 World Champ
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    John,
    you'll never be poor taking profits ! Some of the best traders i know are day traders/scalpers.
     

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