Tuesday, March 25, 2008

We're LONG!!! New Milestone Hit! Euro and Pound Gain Strongly against the Dollar! -- IFCN Wk 16 -Tue- Equity: $764.55.

At the top of this blog I've stated the following:

“In this Forex blog I will take a REAL trading account of relatively insignificant size: $500.00-- and trade it so as to make it grow at a rate of more than 50% annually. The goal is $150K..., in significantly less than 10 years. Watch this blog for the volatility in return that is inevitable when a professional trading account is traded for serious capital gains. Follow along or just watch.”

If you've been watching, we've hit an important new equity high. We've had some drawdowns along the way-- but that is a function of trading and will always be the case. “Trading is not clipping coupons”, as one old speculator stated. Definitely not!

The Infiniteyield Forex Challenge account has achieved more than 50% gain just 105 days from our first trades on Monday, December 10th, 2007. Of course, this isn't the end of the week, and we could give up our big gains if something bad happens..., like the Euro and Pound falling back.

These are the current positions of FirstStrike trades for this week.

Eur/Usd: BUY 1.5410, stop 1.5350. Trade in progress---
Gbp/Usd: BUY 1.9819, stop 1.9759. Trade in progress---
Gbp/Jpy: BUY 198.05, stopped out @ 197.45 for 60 pip loss.
Usd/Chf: SELL 1.0131, stopped out @ 1.0190 for 59 pip loss.
Usd/Jpy: BUY 100.42, stopped out @ 99.82 for 60 pip loss.

I am including some excerpts of some of my first posts on the blog for new readers.

$500 to $150,000 in 10 years or less-----

I have set up a very small trading account (#1271861---$500.00) with Oanda for a proof of concept for how a person can spend 15 minutes a day (or less) reviewing the markets and placing orders, with proper money management.

My aim is to accomplish an annual average of approximately 50% return over a period of 3 years. Then, from a higher equity base, I will ramp up the return, with a corresponding increase in risk of deeper drawdowns--- to accomplish what the majority of mankind would consider to be a "fool's errand".

I have absolutely no doubt that this objective can be, or will be reached.

But..., I may be wrong. We will find that out in due time.

The seemingly insignificant size of the starting account is what makes this private challenge unique. And also, the resulting financial proof that mathematical edges can be systematically harnessed for personal profit.

Almost anyone can round up $500 or its equivalent. The idea of investing in common currencies, placing precise orders every week and profiting handsomely from such relatively insignificant efforts is what many have come to the Forex market for. They likely will find out that it may be simple-- but not easy.

What will be the challenge is for interested traders to view over time how this can actually be accomplished, what the overriding concepts are that will be followed and how frustrating the long periods of seeming non productivity can be. Not to forget the devastation of the inevitable drawdowns that will be experienced.

As long as I've traded, I still never get used to drawdowns. You can get used to the pain of drawdowns, making their necessity understandable; but you still don't get used to them. Well, I haven't. Maybe you will be different.

There are real costs to performance that this attempt will prove. Drawdowns of 60% and 70% will undoubtedly be experienced. In the past, I have discovered that it is the willingness to "trade through" to get to the gigantic profits made possible by a durable method that earns you the final reward.

-----End of excerpt-----

Best wishes on your trading. We can only follow our systems. The markets do the rest.

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to:
newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL or Yahoo addresses. Nothing personal, but they've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!

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