Thursday, September 23, 2010

Now--- 2090 % increase since December 2007

A hearty hello to the most determined traders I've ever known. 

I have no doubt that some of you thought I would never post again.

I've been busy trading, traveling to Chicago and other cities for consulting with hedge funds..., but mostly trading.  

Because of the tremendous move in silver over the last month – we have again hit new equity highs. The Challenge account shows a 2090 % increase since December 2007 when I started the blog and the account with just $500. This is equivalent to a 761% annual average return.

Pretty incredible, but I still expect some hard, negative equity swings in the future. When silver dropped to $14.66 last February the account dropped to around $4300 – and I began to believe that I might have to dump some if it dropped another dollar. It didn't.

The Challenge Account 1000 oz. silver position has been a lifesaver over the last year. It definitely helps that silver has climbed over $21.00/oz. Now it seems that all you hear on the financial news networks is that gold and silver are being recommended by this bank or that analyst – if I didn't know that silver had a much larger distance to go long term..., I would be inclined to exit some just because of contrary opinion reasons.

And there has been a definite change in the attitude of the voting public about the”change” that has come to Washington. Not many are happy about – no jobs – lower prices for their homes – tough to get credit.  

Don't expect too much REAL “change” in the near future.  

Things might “appear” better soon – if just because people get tired of being afraid and start doing things, starting up more business, and because the banks will finally figure out a way to liberate (lend out) the Trillions of dollars put into their coffers.

Banks hate to have capital that is only making ½ % a year - lending it back to the same guys who gave it to them (who thought that up?).

Eventually people will begin to forget the recent financial unpleasantness just like they forgot the “Savings & Loan Crisis” of the late '80's. Some of the younger (and not so young) readers will be saying, “What was that?”

It can't be soon enough for me.

The forex markets have been very choppy.

I don't need to hammer that point too hard for those of you trading FirstStrike and One Night Stand along with me. ONS has done a little better overall than FS but that is what happens ever so many years. Trading systems go into drawdowns and we have to wait patiently until things get exciting again.  

Maybe that will be soon.  

This last year was very good to me, trading-wise.  

I've had the move in silver, of course, but had great moves (some of them historic!) in wheat, corn, cotton, coffee and sugar.  These markets made me 4 times what silver and the currencies did.

I've made no secret of the fact that I believe forex trading is a great place to start trading and learn to trade properly with a small amount of capital. After you get competent, it is ridiculous to miss the huge moves that are possible in the other derivative arena, the futures markets.

This week we have a few decent FirstStrike trades working.

Week of Sept. 20, 2010---FirststrikePlus trade executions:
eur/usd: Long @ 1.3183, currently profitable
gbp/jpy: Short @ 132.06, currently w/small loss
gbp/usd: Short @1.5557, stopped at 1.5709
usd/chf: Short @1.0042, currently profitable
usd/jpy: Short @ 84.77, currently profitable

(Current XAG price: $21.16– 1000 unit position average: $12.59)
TOTAL Equity: $ 10,966.54

  -----
Congratulations to all of you who have stuck to their trading and weathered the drawdowns that inevitably show up when you trade a long-term plan.

I know that feeling too.

Looking forward to more updates.

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!

9 comments:

José said...

Hello Joel,

Congratulations (and thanks) on this IY initiative. I've been following it for almost 2 years now.

I would like to ask you to post, if possible, what the results would have been without the XAG/Silver trades.

I ask this because I, like many I suppose, only trade fx, and think many would like to see the results of your initiave, since the beggining, only on fx.

Thanks

José

prunto said...

nice to see you back....i enjoyed reading your blog...and good luck in keeping up with the updates. i don't want to be waiting for another one till september 2011 ;)

Anonymous said...

Great to see you back Joel!!!

The Archiphage said...

Glad to see you're back for an update! Awesome job today with the Trader's World expo... quite inspiring as usual! It certainly has been rough recently, but I am confident that FSP/ONS will be producing profits again soon. Seems like a decent week so far... for a change! Anyway, take care, and Great Trading!
-Dave

andante9 said...

Thanks for the update Joel.

You are an inspiration to many traders.

Anonymous said...

Hello ,Joel

Nice to have u back :)


i have a question ?

Recently i read some analysis about trading 30 years back -or more , and today . The thing is that markets in old days would drop or raily for 400-500 pips . Today ,we are lucky if they raily or drop 200 pips ! Since , FSP is trend following strategy ,would u think that is endangered in future ?

tnx
markot

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