Tuesday, March 17, 2009

Let the Reader Use Discernment! -IFCN WK 67 - Tues- Equity: $2,338.19

There is a truth that gets repeated just often enough for you to remember hearing it before, but too quickly forgotten when the latest episode of your life slaps you into temporary submission..., that is- “those who refuse to remember the past are condemned to repeat it”.

It would be best if an understanding of history was regarded as a crucial talisman against catastrophe by those who affect the present and future lives of so many others around them. As we can observe in just the last year's financial exposés, few of the offenders ever considered what financial mayhems occurred before them, except perhaps as a guide to fleecing their prey more effectively before they got caught.

There are too many failed financial schemes in the past to recount, most of the best itemized and dramatized well in Extraordinary Popular Delusions and the Madness of Crowds. The famous tome is a wealth of history of popular follies by author Charles Mackay, first published in 1841. I recommend that any person wishing to profit from markets- especially in these unique times- immediately obtain the book and read it straightaway. A one-time reading of the Tulip Mania account - which occurred a mere 370 years ago - is worth the price of the book. You will refer to it many times over the years to reassure yourself that you aren't mad, the world likely is.

Something a few of us are doing more than we will readily admit to.

One of my favorite personages, Thomas Jefferson, drew from his lifelong study of history, theory and practice to become the main author of the Declaration of Independence, and become the desperately needed 3rd President of the United States. He was the original “reluctant hero”, who had no desire to govern men because of the lack of appreciation received when the governing is truly fair.

Finance is not a discovery of the last 20 years. Jefferson understood that countries like ours are created and maintained primarily for profit, not to make all personal ills right. When they stop being run for profit, the safety and security of the country declines. Eventually even a great country will be brought to ruin if the inmates (or those who should be) are allowed to make the rules and make YOU pay for their liberty at the expense of your own.

Jefferson's thoughts on banking apply only too well today, and our downfall is assured if his warning is disregarded:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. “

I know that if he was aware of what was transpiring in our country today, he'd be spinning in his grave.

A final quote from our 3rd President:

...Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these Ends, it is the Right of the People to alter or to abolish it, and to institute new Government...it is their Right, it is their Duty, to throw off such Government, and to provide new Guards for their future Security.
Thomas Jefferson – The Declaration of Independence

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I had one FirstStrikePlus trade get stopped out, the Gbp/Usd. Meanwhile, the Eur/Usd is still holding, the Usd/Chf is sagging and the Japanese Yen affected pairs are making narrow ranges.

Quite a showdown situation building.

The week's current FirstStrikePlus trades:
  • eur/usd: Long @ 1.3020, stop 1.2859. Trade in progress.
  • gbp/usd: Long @ 1.4171, stopped at 1.3980 for 191 pip loss.
FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit)
Trading account equity: $1,717.19

Silver position equity: $621.00
(Current XAG price: $12.67 – 300 unit position average: $10.60)
TOTAL Equity: $2,338.19

The recent abrupt silver swings toy with the total equity, but the likelihood of abrupt higher prices in the near future tempers too much concern.

It is interesting that the first 2 days of this week have been burned through and we only have had two entries. Maybe something spectacular will happen later in the week.

Joel Rensink
www.infiniteyield.com

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, Hotmail or Yahoo addresses. 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!

1 comment:

Mike said...

Mavelous post!

although not following your trading system, I learned so much from your "senses" and "reflections" to market and human kinds. This blog is not playing the role like those offering basic advises but the role to educate people how to understand the market from the inner parts and how to exploit it. I am sure many other people also benefited from your words.

Keep it going sir and all the best!

regards,
Mike