My Trading Room

Wednesday, October 31, 2012

Best Forex Brokers in Singapore (Updated)

I decided to update this page to reflect the changes in Oanda Platform.

Oanda (MT4 trading platform, iPhone app and unit size trading)

I like Oanda because of (1) Low spreads (not anymore), and (2) Ability to trade in units, instead of the typical lot sizes.

For instance, normal brokers require you to trade in 0.1,0.2....1,2,3 lots. But with Oanda, you can trade 1unit, 1001units (1 micro lotand 1unit), 10,001 (1 mini lot and 1 unit), or 100,001(1 lot and 1 unit). This gives you the flexibility to manage your risk to the very unit.

However, I would like to add that Oanda has disappointed me of late. Their spreads are getting wider. Typical euro spread is 1.1 Typical AUD/USD spread is 1.8.

And Oanda do not practice carry trade. If you were to long EUR/USD overnight, you have to pay interest. If you were to long GBP/USD overnight, you also have to pay interest. The only pair that you will gain interest is if you long AUD/USD.

It NEVER used to be like that. And when I asked their customer service what is the reason for this, they gave me a link to calculate the overnight interest rate, and they expect me to understand just by reading their mathematical explanation. Oanda is very clever, you know why? They hide everything behind mathematics and codes.

Other brokers include GFT Asia, CMC Markets and IG Markets.

If you can find a better broker, please let me know.

Tuesday, October 2, 2012

Core Ideas in Trading Psychology: Introduction to Trading Psychology

This post will begin a review of the key ideas from my three trading psychology books and the roughly 3700 blog posts on this site. Wherever possible, I will link to posts and resources pertinent to each topic for ready reference.

But first an introduction to trading psychology. The relevance of psychology for trading is based upon two important realities:

1) Trading is a performance activity, much like athletics or performing arts. Psychological variables influence both the acquisition of skills in any performance field and the application of those skills. While there is much more to performance than mindset alone--talents, skills, and interests must align--the wrong mindset can greatly hamper performance;

2) The human mind does not process information efficiently or effectively under conditions of risk and uncertainty. To simply "trade what you see" is a recipe for falling prey to a variety of cognitive and emotional biases. The trader's psychological development is crucial to learning how to properly gauge risk and reward when performance pressures mount.

Trading psychology is not something that is simply appended to trading practice: it is an integral part of functioning as a trader and is acquired in the process of learning how to trade. It is through the trader's developmental process that he or she learns how to manage risk, how to temper overconfidence and fear, and how to sustain positive motivation.

Indeed, a proper training curriculum for a new trader is one which helps the trader and the trading develop over time. A great deal of psychological learning comes from making the classic mistakes that bedevil all new traders: making impulsive decisions, allowing fear to overtake opportunity, overtrading, allowing losing trades to run and capping winners, and the like. If you can make those mistakes--and learn from them--long before you put the lion's share of your capital at risk, you will have an opportunity to grow into the trader you're capable of becoming.

Sometimes the best therapy for your trading is to get into therapy yourself. The markets are an expensive place to be working out your issues about success/failure, competency/adequacy, and need for approval/esteem. Many people take their repetitive patterns from family and romantic relationships and enact them in trading. When that is the case, psychological development needs to precede trading development: resolving those issues is the best way to approach markets with a clear and open mind.

Eventually, you will be able to take your psychological development to the next level of trading: you will recognize when others are making the mistakes you used to make. You will see markets acting on fear and greed and you'll be able to take the other side of those reactive trades. You'll observe when market sentiment is tilted one way and price can no longer sustain its trend. Developing yourself psychologically doesn't mean that you'll be free of emotion; it means that you will become increasingly competent at using your feelings as useful trading information.

http://traderfeed.blogspot.sg/2010/04/core-ideas-in-trading-psychology.html

Saturday, July 2, 2011

High Frequency Trading (Deutsche Bank Research)

How much do you really know about High Frequency Trading? Do you want to know the implications of High Frequency Trading on the financial markets?

Well, then take some time to read this piece of research done by Deutsche Bank.

Not to be missed! How to trade demand and supply zones!

As a follow up to the previous video, I managed to locate more in-depth explanation of demand and supply zones trading. These topics are further explored by Sam Seiden in his Webinars.

Liquidity Gaps and Spike Removals (noBrainerTrades)

The following is an extract from noBrainerTrades website.

Liquidity gaps can be vary valuable in both dissecting price and distinguishing major reversal points or price targets.

When using as a meter to take profits, do so when gap risk becomes considerably lower, at the base or origin or the spike.

Trade in line with the prevailing, underlying trend.

Use as a guide of knowing when to stay out, or be patient for better risk / reward.

Know how to identify the four major types of gaps, which ones fill and which ones don’t.

Don’t “fudge” the setup. If things don’t line up or are ambiguous, this is probably the case to everyone else
.
Applicable to all time frames; concept is still very much the same.

Learning and successful application are two very different things. Filling the gap between them takes time
based on your own effort, diligence, sensibilities, etc.

The liquidity gaps that he talks about in the video is very coincidentally 100% similar to what Chris Lori spoke about when he came to Singapore. I will refrain from speculating who copied whose style of trading. But this could help you in your trading.

Thursday, June 30, 2011

innerFX (How I Trade)

innerFX is one of the leading authority on FX Trading. He is an independent trader, and has been trading currencies for the past 8 years. To my delight, he has written an article on how he trades the forex market. Well, that guy has been doing it full time for 8 years. He has to be good, right?

So spend some time to read through this article at innerFX!

Wednesday, June 29, 2011

THE PATH OF A SUCCESSFUL FX TRADER

Inspirational Speaker - Les Brown (Part 1)

Tuesday, June 28, 2011

Confessions of a Trader

Just bear with me for this one. Sometimes it's tough to be completely honest with yourself, but it's important that you do. Otherwise, you will never improve.

At the moment, I'm sitting on losses in my EUR/USD trade. Even though I was in profit at one point, it wouldn't have meant much even if I won the trade. Because I would have won it the wrong way. Better to lose the right way, than to win it the wrong way.

Mistake 1: Choosing to see what I wanted to see

For example, take a look at EUR/USD. The "M Formation" doesn't qualify because there are too many peaks within the "M". But I chose to view it as a "M" so that I could quickly make back my losses in CHF/JPY. Moving forward, I will leave my trade on until I get stopped out.

Mistake 2: Adding on another position without planning for it beforehand

Yes, it was an impulse adding of position, and at the worse possible price. I added a short almost at the lowest point: 1.42628

Lessons learnt: Be objective and stay out of the market if I'm emotional after losing a trade.

Dukascopy FX Trading Competition

You may be interested to know that Dukascopy has been running a monthly FX trading competition. You can find the website here. You will be trading on a Demo account in this competition, and attractive prizes are up for grabs.With high returns and absolutely no risk involved, why wouldn't you give it a shot?

The registration for July Contest is now open!

See you on the other side!

Tuesday, May 31, 2011

Top Traders Under 30 (MUST READ)

As a trader yourself, you will probably want to know who the top traders are, what makes them special, and who they work for. This website will tell you all about them!

Enjoy!

http://www.investoholic.net/general/113-top-traders-under-30

Chris Lori Interview

Monday, May 30, 2011

Good Forex Blogs Resources

With so much information on the internet these days, you don't have to pay thousands of dollars to learn about FX Trading. You will be surprised how much you can learn just reading other traders' blog. I came across a good forex blogs website a few days ago. It contains several links to Forex Blogs.

Take a look when you have the time :)

http://www.forex-bloggers.com/

Saturday, May 28, 2011

Up Close & Personal With Chris Lori!

Hi all,

I joined this trading group on meetup.com since last year. And a few days ago, I received an email saying that Chris Lori is coming down to Singapore! It's probably once-in-lifetime opportunity to listen to a professional FX trader. You should come down if you can.

P.S. Join early to avoid disappointment!

http://www.meetup.com/forextrading-152/events/19511621/

Chris the Fund Manager

http://www.chrislori.com/about-Chris-Lori.html

Chris Lori is a registered CTA and fund manager for a private firm where he manages funds on behalf of private and institutional clients worldwide. Chris offers private consulting services to individuals and institutions looking to diversify their portfolio relating to foreign exchange holdings and risk. He also manages a currency fund for clients booked in London and Singapore.

Chris Lori is also a popular speaker on the foreign exchange environment and has shared his insights and techniques with traders and fund managers worldwide. The high demand for Chris as a speaker, trainer and fund manager has placed him on the global stage with frequent lectures and workshops in Singapore, Australia, USA, Canada and Europe. Chris has been a guest on Canada’s “Money Talks” Radio show, Singapore’s Radio 938, and has written articles for financial publications in Singapore, USA and Canada.

In 1988, Chris completed the Canadian Securities Course and has had a passion for trading in the financial markets ever since. Although Chris maintains his priority as a CTA and fund manager, he is the only active fund manager who also educates in the foreign exchange sector, which sets his expertise apart from any other. His experience as a foreign exchange fund manager has inspired him to author educational materials for forex traders, such as; Pro Trader Complete Course, Understanding Global Fundamentals for Foreign Exchange Traders, Strategies for Optimal Entry and Position Management, Scalping in the Forex Market, and Powerful Reversal Formations. He has also authored an eBook on the psychology of trading titled, “Face the Trader Within,” and an article titled “Foreign Exchange and Your Portfolio.”
Previous to his career as a fund manager, Chris competed in four Olympic Winter Games and won the prestigious Overall World Cup Championship in the sport of bobsleigh. Chris totaled nine Crystal Globes for Overall World Cup final standings and accumulated twenty-two World Cup Medals during an outstanding bobsledding career. Chris was a model athlete in Canada where his success brought him celebrity status and high demand for appearances and endorsements.

As a champion athlete and successful trader, it is clear that Chris harbors the psychological prowess that he acquired as a tenacious winner in Olympic sport that is essential for success in trading.

Chris continues to strive for excellence in his trading, fund management and mentoring career. He is a dynamic leader who fosters the importance of integrity, discipline and truth in trading and in life.

Friday, May 27, 2011

How pro traders think and trade! (SMB Capital)

As a follow up from my recommendation of "One Good Trade", I bring you "Live From The Trading Floor" from SMB Capital. You get a preview into how proprietary traders think and trade stocks. I don't think you'll get such a deep insight anywhere else.

Enjoy!

http://www.stocktwits.tv/live-from-the-trading-floor-with-smb-training/

Tuesday, May 24, 2011

One Good Trade (Highly Recommended)

I highly recommend "One Good Trade".

I am halfway through the book at the moment. The book brings you into SMB Capital - Proprietary Trading Firm in New York. The author, Mike, begins by sharing with you the personalities of the top traders in the firm. You have all kinds of different personalities who make it as a professional trader. And you will be extremely surprised by the diversity.

The next part of the book shares with you the "secrets" of trading. Essentially, Mike shares with you how the top traders train and sharpen their trading skills each day. He shares that it's all hard work and resilience. And often, top traders are compared to top athletes in the world.

Also, Mike makes the book even more interesting by bringing in real trades that some of the traders made on the trading floor. I promise you that you will get hooked onto it once you start.

But don't expect the book to teach you actual trading techniques and skills. No, there will be none of that in the book.

Three words to describe the book: Enriching, Inspiring and Awesome.