Yard Sale

Leslie has been working hard for the past few weeks getting ready for our yard sale tomorrow and Saturday. Tonight we were scrambling to get all the last minute things setup and signs posted. It's going to be hot the next two days, but we're hoping for a good turnout. The kids have contributed a few items of their choice and are planning on having a water and gatorade booth to make a little extra themselves. This is all a part of our Dave Ramsey liquidation. We've had a joke around our home that Dave has moved in with us for the past few months. We're working hard to cut spending and find ways to contribute all we can to our debt.

I would like to ask for prayer for a friend of mine at work, Mark. He and his wife were missionaries in Honduras until he was diagnosed with a brain tumor several years back. They had to move back to the states for his surgery and subsequent healing process. Although his health improved, they were unable to return to the field. A few months back, Mark began experiencing debilitating headaches and the same symptoms of the previous tumor. It seemed like he might have another one. However, a recent MRI indicated no tumor. Although we are all thankful, it is somewhat frustrating not knowing exactly what is causing these continuing headaches. The doctors told him it was stress. Although this is quite possible, I'm sure he still has doubts. Plus, how do you remove stress from your life?? So please pray for him and his family as they all suffer together through this. Mark has a great attitude, but I know he is really hurting.

Another friend of ours, Carol, is also experiencing some debilitating health issues. She and her husband, Bill, were some of our dearest friends in Birmingham. Pray for Carol and the doctors as they look for a solution, and for Carol's endurance through her suffering.

Leslie and the kids are preparing to return to school next week. It's hard to think the summer is over. But we've had a good one and have much to be thankful for. This year will have its own unique challenges for us as my travel schedule with work is still demanding. I really enjoy getting out and meeting with churches to discuss their missions ministries, but it is difficult being away from my family, and it is especially difficult on them.

Eurozone sentiment 89.5 vs 94.8 in June

+10 pips . Not happy since I missed two excellent opportunities due to software problems. I had to reboot the computer. Always have a back-up plan if computer goes on strike  :-)

...still here

Unbelievable? Maybe. After nearly a month of silence, I finally bring up my blog to write something. I don't have time to say much other than we're doing well. I will write more soon. The summer has flown by. Next week Leslie goes back and then the kids start on Thursday. It's hard to believe. Leslie is feeling better, but still not 100%. To me it seems like 100% though. She looks great. She even went with her dad to Stone Mountain on Monday and did a high ropes course there. But again, more to come later...if anyone even reads this anymore! :-)

oil declines, USD up 140 pips

Sharp decline of eurusd . Sometimes I got a contrarian instinct and it always go against me. At some point I bought (!!!)  at 1.5617 ; in a matter of a few seconds eurusd reached 1.5600 , then retraced luckily for my position. Never , ever, go against such powerful movements.

All in all, I made some 8 pips net and was lucky to save my skin for this time  :-)

Africa: the fx forgotten continent ?

Looking at the visitor's map of the last days, I noticed that it is rare to have visitors from Africa on the blog. I have not the pretention to believe that what I write should attract worldwide audience but this fact makes you wonder what might be the reasons of this absence.

Most probable explanations could be the scarcity of decent internet connections and average revenue of Africans, not enabling them to put money aside to invest in stockmarket  and other speculative ventures.

Cultural reasons : speculation could be far from daily priorities or political reasons : citizens from several african countries are forbidden to open accounts with European or US brokers.

Or simply the lack of adequate banking system: I have been living several years in Central Africa, banks were totaly inoperant and the simple notion of having a bank account was inexistant. Businessmen were importing goods paid in USD or Euro currencies, and selling them against local currency. ( thousands of banknotes to buy anything). 'Traders' were playing the role of banks by setting up exchanges were businessmen could trade full bags of local currency against USD , DEM or CHF . Daily rates fluctuating wildly with crazy inflation.

how many brokers do you need ?

Oil lost 10% the last few days, nevertheless Trichet is right when he fears second round inflation with payrolls, because where I work most employees have got a 10% raise over the last months.  And workers are still whinging about cost of living.

I haven't traded much this week , I made something like twenty pips, no more. Actually I made much better results on a demo account . I have been testing the platform of a bank that made recently a new offer for fx traders.

I have usually 3 brokers with three different base currencies to hedge somewhat my total exposure.  I am constantly looking for a lower spread, maximum funds security and best execution.

A low spread means a maximum of two pips. A 3 pips spread on eur-usd is not acceptable anymore . Going from 3 pips to 2 pips is a 33% cost reduction which is huge.

If you plan to make 100 trades with 1 lot  and a 3 pips spread, you have to realize that you start with a 3000 usd loss.  In any case, I prefer paying a 0.5-1 pips spread plus commissions rather than paying a full fixed spread. Do the math.

Oil jumping to 145 usd again

...and eur-usd following the move to 1.5820

10 easy pips scalp when the eur crossed the 1.58 mark.

your broker is the most essential partner in trading

Even before  testing trading strategies, the search for a decent broker is paramount to ensure any future success. Trading is a difficult enough activity  not to add problems with a trading platform  or concerns about a broker's honesty  . When trust is broken, it's time to leave.   Several items should catch your attention:

 is there a regular communication between you and the broker ? Does the broker keep you informed of future developments or do you have the impression that your opinion is of no importance ?
does the platform 'freeze' regularly ?
is the communication with servers often interrupted ?
are the spreads enlarged to ridiculous values during volatile periods ? This means that they are losing money against a particular category of traders at those times and that's the only protection they have found. Thus penalizing other traders.
is the company a privately held  one ? What do you really know about the people behind the company ?
is the broker trading on markets for his own with  customers money  without you knowing ? It's always too tempting to trade with O.P.M. ( other people's money).
are your funds insured one way or the other ?
I will not even mention sudden  spikes, slippage and other common tricks.

FX is mostly a non regulated activity and you are supposed to know what you do with your money. Nobody forces you to open or keep an account with one broker in particular. I just want to attract your attention that it would be very difficult to hope to grow an account regularly and trade with confidence if you were to face several of the above mentionned problems.

Your fx trading activity would just be some kind of an elaborate video game , which needs often rebooting  . No more , no less. Nothing close to what could be called a professional activity.

I see few advantages to stay with a less than optimal broker: some offer micro lot trading and this  can be useful for training purposes  without risking much of your  capital. Other than that...

only one trading screen: need no more

eurusd @ 1.5730 after ECB rate decision @ 4.25 and ISM

what a reversal ! Eurusd was playing with 1.59  some moments before the ECB rate decision and headed south very quickly after Trichet didn't use the 'code' words of vigilance etc in his speech. He also attracted the attention on a possible growth slowing in the Eurozone.  Because I am euro bullish, I have been reluctant to hop in the train downwards.

I only made 4 miserable pips , when I tought the day would be the royal path to 1.60 bringing at least 50 pips  ; how disapointing . Well, perhaps some other time.