Fortunately, the profits were taken at the open of the Monday, with little follow-through. After exiting, the markets all reversed course like they hit an anvil.
Everywhere you turn, you are hearing the R or D words-- recession and depression. I've said it before, but it bears repeating-- if we are going into a deep recession or depression, it is the most highly advertised one in history.
It is very difficult to imagine that with all the doom-saying out there, that people who feel threatened haven't already acted. Whether that means eliminating whatever assets they felt vulnerable about or ...?
Time will definitely tell, but it is likely we will benefit because we act so quickly as major capital flows force us into our trades.
For the last two days we've been experiencing sharp set-backs in the main currencies vs. the dollar. Most of the news sources trumpet the idea that the Euro, Sterling, Swissy and others will continue tumbling, with the dollar regaining prominence because of derivative market risks being too high.
Whether or not that will be the case, we got entered into five mostly profitable, FirstStrikePlus trades.
While the XAG still is pretty weak, it is encouraging to be getting some decent (at the moment) trades.
This week's FirststrikePlus current trades:
- eur/usd: Short @ 1.3441, stop 1.3602.
- gbp/jpy: Short @146.66, stop 151.92.
- gbp/usd: Short @1.4712, stop 1.5007.
- usd/chf: Long @1.1339, stop 1.1238.
- usd/jpy: Short @ 99.51, stop 101.28.
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Trading account equity: $ 2,125.65
Silver position equity: $ 548.00
(Current XAG price: $12.32 – 400 unit position average: $10.95)
TOTAL Equity: $ 2,673.65
Have a good morning.
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!
2 comments:
How do you account for the impact of TAXES on your lovely equity curve? Seems that would put a serious dent in the CAGR plans in fact.
Very good question---
Everyone has a different tax situation. If this trading account was the only income you had, very likely you would not have any taxes to pay.
Some trading forex are in other countries with varying tax situations - some taxed, others with no tax whatsoever.
In the USA, some trade forex from a Roth IRA, where there are no taxes to pay from the gains.
I've already paid taxes on the increase last year. I will probably continue paying the taxes from profits from my other trading operations until the equity gets over $50K.
I have a pretty good idea (based on my plans for increasing the account) that a majority of the profits will come near the end of the "challenge" and most of the taxable gains will be paid from the completed total.
JR
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