Archive for November, 2015

The Future..

Okay, so the first real post in earnest. I spent a good couple of hours reading back through some old posts and it’s amazing to read some of the emotions and beliefs I was going through. So much has changed since 2010 that my trading couldn’t be any further from what it was back in 2010.

I joined a prop trading firm whereby the house stakes you and you take a percentage cut of your profits. I spent 3 months doing an online traineeship here on the Gold Coast and then fortunately I was offered a trainee position down in Sydney. The rock of my life, aka my wife, put in a huge amount of faith and trust into me and we agreed I’d go down to Sydney for 3 months. To add a little backround information, we had another child born in March 2012, Charlie, and I left for Sydney in November 12. I spent 3 months cutting my teeth learning the art of trading interest rate futures, specifically the 10 year US treasury note and the Australian 10 year bond. This is commonly referred to as the 10:10 spread. The idea is you buy one bond and sell the other and trade the inefficiency in the market and look to make a profit.

Being a rookie, they start you off incredibly small (naturally) and they were very honest and said I’d need 12-18 months before starting to earn any worthwhile money. Prop houses garnish a monthly trading fee, it varies from firm to firm but Propex was $2,500 a month to sit down. For this you got 24hr tech support, the fastest connection/s to the exchange and the ability to trade with very successful traders.

I started to build some consistency and by month 7-8 I was pulling a profit and the managers were starting to up my sizing and limits and I could see massive potential. I remember the night extremely well, I was skyping with the head trader in Sydney from the Gold Coast office and he had just bumped up my limits to 30 lots (10 lots in 3 clips) and a daily stop level of $7,500. The usual scenario of a spread is it’ll move in one direction and you look to fade the move to bring the spread back into alignment, one leg will profit and the other will lose but you make profit by the winning leg being greater. The absolute worse scenario for a spread is when you lose on both legs and October 3rd 2013 was the night the spread blew out by record levels and I got absolutely smashed and dropped around $10,000. Extremely shaken but not quite stirred I sat down for trading on the 4th October reasonably happy in the knowledge I had tried my best and even the bigger traders had got hammered the evening before. The 4th started gently and by the time the US session rolled round, the spread began to jackknife again and I hit the limit for my stop again. To be in a $20,000 hole by the end of the first week of the month was a horrible feeling and I knew it’d take at least 4-6 weeks to recover ┬ábut I equally knew time was running out to make it work financially as my wife was working two jobs to allow me to trade and build up equity.

I never truly recovered from those 2 nights and by the 16th December I left Propex. My head trader told me it was shitty timing being given extra size to only walk into the mother of all blowouts on the spread and if I’d had some money in the bank to cope with the losses it’d have maybe turned out differently but my timing wasn’t to be. Adding in the 2 months of fees at $2,500 I ended up leaving $2,000 in the red. I had clawed back $22,000 and change but time had simply run out. It was devastating for me to leave but the pressure of having to try and force the issue and make money and knowing my wife was breaking her back to let me trade was just too much and so I decided I needed to find a regular income to help ease the burden.

The reason for the backround is, those 16 months I was at Propex changed my entire perspective on trading and whilst I didn’t make it work at Propex, I had learnt lifetime lessons from some of the best futures traders in Australia and money can’t buy that sort of exposure. Since February 14 I have been working on adapting my forex trading and as of September this year I began again with a live account. I have no grand aspirations of making fortunes in short spaces of time, my risk management could not be any different from 4-5 years ago. I’ll elaborate further as I progress with the blog and trading but I’ll leave it here for now.


It’s been a while…

It’s safe to say, a gap of 4 years and 4 months is a lengthy period between posts.

It was the off chance I saw an email from a widget on the blog that reminded that this blog is still ‘live’. So here I am writing a fresh post to absolutely no-one other than myself.

Reading through my old posts brings back a lot of memories and I’d like to give it another try and see how we go.

So much has happened in the intervening 4 and bit years I really don’t know where to start so I think I will just dive into the posts and see what the future brings. The intentions of this blog are to chronicle the ups and downs of day trading in the forex markets. I don’t know how I’ll garner any viewers but I’d like to set myself a challenge of posting at least twice a week and leave myself some feedback in terms of emotions/feelings and everything else that whizzes through my head on a daily basis.

Enough for now, more tomorrow.