Currency Trading

2009-06-30T22:20:00.000-07:00

Site Contents

Forex for $300
Play for money
The solution to your money woes
Introduction to online trading
The lifetime free hands-on training
FXCM and GCI compared
Interview with February’s King of the Micro Winner
Interview with March’s King of the Micro Winner
How to open a live account with FXCM
How to open a live account with GCI
Earn as you learn
9-Month demo summary results
Dealing desk rules, policies and procedures
The Philippine stock market -- one of region's laggards

The Philippine stock market -- one of region's laggards

2009-06-30T21:01:00.000-07:00

Today, many are just beginning to see the great benefits and advantages to trading online as compared with trading in our market.

1. In the Philippines, short selling is still illegal even if a few brokers and big dealers are able to evade the law and short the market. But prices will go up and down. On average, 3 to 6 months moving up and 7 to 9 months going down. This means that for the majority of traders and brokers, there is nothing to do, no earning opportunities during 8 or more months of every year. Those who insist on trading despite the adverse situation are doomed to lose.

Compare this to Online Trading, where short selling is available all the time. And for Forex and some futures, we can trade 24 hours every day. Earning opportunities are available 12 months of every year and every trading day, the whole 24-hour day.

2. Here, after commissions which vary from client to client and taxes and other charges, turn-around costs would amount to some 1.7% or more of gross value. In Online Trading, turn-around costs are never more than 0.004% or just a 2 to 4-pip spread. A price rise of a mere 1% constitutes a great big profit, already.

3. In the stock market, margin is fixed at 50% of gross value compared with 0.25% or just 25 pips if we trade online.

4. Here, we have to call up our broker and he executes our orders. In Online Trading, we can key in our orders directly by using our own PC in the comfort of our home or office. No one to consult or screen our orders. No delays.

5. Here, we will be charged interest at banking rates based on our debit balance. Online, the charge is less than a very insignificant 1 pip equivalent value for every additional day that we hold on to our position.

6. Regarding liquidity, except for the few most active blue chip issues here, we might not be able to buy or sell significant volumes. Even a million peso order could take more than a day to complete. And the listed issues are comparatively few. In online trading, CFDs trade in the billions of dollars per day and Forex in the trillions. We can buy and sell as much as we want, very easily. And we can choose to trade shares, indices, commodities or forex. Moreover, there are always issues and products having their bull run.

7. Here, rumors fly but accurate and timely information are scarce and hard to come by. The information that filter down to us from our brokers are generally too late for trading purposes. And worse, here, the news is too often fabricated or manipulated or else its release is delayed by our corrupt government officials and unscrupulous insiders until after they have already loaded or unloaded their shares. In Online Trading however, we just have to tune in to Bloomberg, CNN or BBC or we can click our mouse to get all the news we want over the Internet or from your brokers.

But we don't even need to know the news. Provided that we have developed the necessary reading skills, we can consult our charts and trade just as profitably. All significant buying and selling will register in the charts and warn us even before the news breaks. Charts are free and are available in real time to everyone without any delay.

8. Of great help in the honing of our trading skills is the availability of demo trading facilities where beginners can learn from simulated trading without risk of losing real money.

9. Now, we don't need a lot of money to earn money. We can start to trade with as small as a $300 initial start up fund with FXCM.

Considering all these, it's no surprise that our market has long lagged behind its neighbors and the rest of the world while Online Trading continues to grow by leaps and bounds.

Latest developments:

1. As of July, 2007, the PSE Board has already approved a revised set of rules on short selling and has submitted the same to the SEC for final approval. See article http://www.gmanews.tv/story/51718/PSE-board-approves-short-selling-rules.

2. At least one broker is now offering online services.

For inquiries, send email to: forex300club@gmail.com

Blog Contents

Forex for $300
Play for money
The solution to your money woes
Introduction to online trading
The lifetime free hands-on training
FXCM and GCI compared
Interview with February’s King of the Micro Winner
Interview with March’s King of the Micro Winner
How to open a live account with FXCM
How to open a live account with GCI
Earn as you learn
9-Month demo summary results
Dealing desk policies, rules and procedures
The Philippine stock market -- one of region's laggards

Dealing desk policies, rules and procedures

2009-06-30T21:00:00.001-07:00

GCI Dealing Desk Execution and FXCM Auto-execution or No Dealing Desk Execution compared

The situation at the dealing desk

Orders from different member brokers are enqueued in a central computer on first in, first filled basis. Stops, Limits and Market Orders are executed at the next available price.

Sample postings of Buying and Selling orders

Buying // Selling

Price Lots // Price Lots

2.0004 40000 // 2.0007 35000

2.0003 25000 // 2.0008 45000

2.0002 50000 // 2.0009 65000

1.9992 75000 // 2.0019 60000

Possible trading scenarios

1. Client clicks a Market Order to Buy 100000 lots -- He is filled 35000 lots at 2.0007, 45000 lots at 2.0008 and 20000 lots at 2.0009. Immediately, the quotation is changed to now Selling at 2.0009.

With the sellers at 2.0007 cleaned out, new Limit Orders are enqueued at their limit price but Market Orders and Stop Loss Orders are executed at the next available higher price, immediately.

At this point in time, it is possible that other brokers and traders might then opt not to wait, and instead be the first to hit up at the next high price. If the next price is cleaned out, brokers’ limit orders would be out of market and left unfilled. The price may or may not come back down.

In this scenario, if we had placed an order to Buy at 2.0007 or 2.0008 even as 2.0007 was still being transacted, we would not be filled because there is no longer a Seller at that price. Instead, we would be requoted at the new price, which is 2.0009. If we placed a market order with our trading mode set to At best on the FXCM platform, then our order will be filled at the next best price.

If we had set our Stop at 2.0008 to Cover a Short position, again, we would not be filled at 2.0008 but at 2.0009, provided that we are next on queue. Should there be others ahead of us, we might get Closed at much higher, wherever our order can be matched. If the next Seller as in this example is posted at 2.0019, then our position would be Closed at that high price.

If Buyers in panic should Buy everything offered up to the price of 2.0055 and the next Buyer after they are done buying is only posted at 2.0030, it is possible that a Seller might Sell down to his low price right after. Gaps happen all the time and not all prices in between are transacted. We should exercise extra caution in such panic situations.

Take note that there are other member brokers and other traders that may be posting orders before our own kicks in or are triggered. They will move us farther and farther in the queue, even as they will be filled in the order that other Buy and Sell orders come.

2. Conversely, if a client clicks a Market Order to Sell 100000 lots, then chances are that our late orders to Sell will only be executed at 2.0003 and lower. Everytime, our orders can only be attended to based on their position in the queue.

3. During Breaking News and the release of significant economic reports, sometimes prices spike some 50 pips and more, even as much as 200 pips. The above examples will likely occur, but with much greater slippage.

4. Scalping is the act of attempting to profit from a surge or plunge in price. An example is to Limit Buy or Buy at Market immediately after the announcement of a positive news. But everyone usually has the same idea. So big orders flood in, hence the sharp surge. If others were able to place their orders ahead of us when the price was say, 2.0001, our Limit Buy will likely not be filled and our Market Order could get filled at 2.0051 and higher. Anything wild can and does happen during panic situations.

If we set a Stop at the same time as our Buy order, we could get filled high. At some price, the Buyers will be satisfied and Selling will come in forcing down the price. If our Limit has not been reached or even if it manages to trade at our Limit price, but there are plenty of Sell Orders ahead of us, we won't be Sold at our Limit but we could be Stopped when the price turns down. Everything will depend on the queuing order.

5. Bad prices are the unwarranted spikes and plunges seen in the charts, sometimes as much as hundreds of pips. Many of these are broker errors. But whatever the reason, they are followed by an immediate return to the true going price. For this reason, some brokers employs dealers who execute orders manually, and does not rely purely on automatic order execution by computer. If a price surge is determined to be a bad price or quote, then our Stop or Limit will not be executed.

Had broker dealing been on automatic, we could have Sold at a high price but on the other extreme, we would have been Closed out. So the Manual Dealing in place by some brokers is also for the trader's protection, to prevent his incurring great and unwarranted losses in the event of irrational price moves against his position.

GCI controls

All orders are timed and logged in to the GCI computer. In the event of a complaint, the records are accessed and the error, if any, can be verified. The owner-trader only needs to send a request for an audit of the questioned transaction together with a short narrative complete with details and a screenshot, if possible, of his trading platform.

Recommendations

1. Prefer to trade the European currencies between NY closing and Europe opening. There won't be too many surprise news or trend-reversing announcements. If possible, especially if not very confident in your position, Close them before expected announcements or releases of economic reports.

2. Do not try to trade on the news or profit from surges and plunges in prices. Position early and get out early before panic situations. Especially, never place Entry Stop Orders where slippages are very possible.

3. In the event that you suspect an error was made, you should ask for an audit by GCI. GCI will investigate and where GCI is at fault, the appropriate amount will be credited to your account.

These policies, rules and procedures are standard practice by most all International Forex Brokers. With few exceptions, complaints of similar nature to the cases cited above by new and inexperienced traders who are not familiar with these policies, rules and procedures are completely unjustified and without merit.

For inquiries, send email to: forex300club@gmail.com

Blog Contents

9-month demo summary results

2009-06-30T19:31:00.000-07:00

The early days of the Internet and our Training were some of the most exciting, full of hope and promise. A time of discovery. A magical time. Everything went right. We could do no wrong.

Lessons were learned. Our abilities were developed. Our dreams were made possible, everything we desired was within our grasp.

You can relive those magical moments by subscribing to Currency Trader where you can access the complete training records from September, 2003 until our transition to Forex 300 Club in July, 2009.

Click to join: http://finance.groups.yahoo.com/group/currencytrader/


9-Month Demo Summary Results
April to December 2007

General percentage averages
			Total		Percent	Projections
			Trading	Total	$50,000	30 days	261 days
Particulars	Strategy	Currency	Days	Profit/Loss	Capital	%/month	%/annum

All Funds/Demos	Safe load		648	$400,381	801%	37%	323%
GBP	Safe load	GBP	179	$135,643	271%	45%	396%
EUR	Safe load	EUR	88	$38,100	76%	26%	226%
CHF	Safe load	CHF	88	$32,800	66%	22%	195%
Mix	Safe load	Mix	344	$193,838	388%	34%	294%
All Funds/Demos	Fast track		296	$344,703	689%	70%	608%
All Funds/Demos	Daytrade		49	$10,504	-21%	-13%	-112%

Database
			Adjusted			Projections
			to $50000			Actual days	261 days
Date/Period	Strategy	Currency	Fund	Profit/Loss	Percent	%/month	%/annum

28 days, April 17-May 14
ID153236	Safe load	GBP	$50,000	$29,900	60%	64%	557%
ID153237	Safe load	CHF	$50,000	$15,300	31%	33%	285%
ID153238	Safe load	EUR	$50,000	$18,800	38%	40%	350%
ID153239	Safe load	GBP	$50,000	$29,970	60%	64%	559%
ID153241	Fast track	GBP	$50,000	$47,918	96%	103%	893%
ID153242	Fast track	GBP	$50,000	$68,342	137%	146%	1274%
23 days, May 20-June 12
ID129651	Safe load	GBP	$50,000	$24,500	49%	64%	556%
ID129652	Safe load	CHF	$50,000	$3,500	7%	9%	79%
ID129653	Safe load	EUR	$50,000	$2,800	6%	7%	64%
ID129654	Safe load	GBP	$50,000	$24,457	49%	64%	555%
ID129656	Fast track	GBP	$50,000	$38,782	78%	101%	880%
ID129657	Fast track	GBP	$50,000	$66,258	133%	173%	1504%
ID129658	Fast track	GBP	$50,000	$10,452	21%	27%	237%
30 days, June 18-July 18
ID164195	Safe load	GBP	$50,000	$23,300	47%	47%	405%
ID164196	Safe load	CHF	$50,000	$1,400	3%	3%	24%
ID164197	Safe load	EUR	$50,000	$200	0%	0%	3%
ID164198	Safe load	GBP	$50,000	$3,516	7%	7%	61%
ID164200	Fast track	GBP	$50,000	$20,819	-42%	-42%	-362%
ID164201	Fast track	GBP	$50,000	$12,558	-25%	-25%	-219%
ID164202	Fast track	GBP	$50,000	$51,932	104%	104%	904%
24 days, July 16-August 8
ID168965	Safe load	Mix	$50,000	$17,467	35%	44%	380%
ID168966	Safe load	Mix	$50,000	$32,498	65%	81%	707%
ID168967	Safe load	Mix	$50,000	$24,274	49%	61%	528%
ID168968	Daytrade	Mix	$50,000	$38,833	-78%	-97%	-845%
ID168969	Daytrade	Mix	$50,000	$19,229	38%	48%	418%
31 days, Aug. 20 to Sep. 20
ID176136	Safe load	Mix	$50,000	$9,934	20%	19%	167%
ID176137	Safe load	Mix	$50,000	$3,046	-6%	-6%	-51%
ID176138	Safe load	Mix	$50,000	$22,097	44%	43%	372%
ID176139	Safe load	Mix	$50,000	$7,281	15%	14%	123%
10 days, Sep. 26 to Oct. 5
ID182985	Fast track	Mix HS	$50,000	$45,906	92%	275%	2396%
ID182986	Fast track	Mix NKY	$50,000	$7,600	15%	46%	397%
ID182987	Fast track	Mix HS	$50,000	$5,679	-11%	-34%	-296%
1 day, Oct. 5
ID182988	Daytrade	Mix	$50,000	$9,100	18%	546%	4750%
16 days, Sep. 26 to Oct. 11
ID182990	Safe load	Mix	$50,000	$9,518	19%	36%	311%
ID182991	Safe load	Mix	$50,000	$10,890	22%	41%	355%
ID182992	Safe load	Mix	$50,000	$1,123	2%	4%	37%
33 days, Oct. 19 to Nov. 20
ID189900	Safe load	Mix	$50,000	$16,406	33%	30%	260%
ID189901	Safe load	Mix	$50,000	$39,304	79%	71%	622%
17days, Dec. 3 to Dec. 19
ID199623	Fast track	Mix	$50,000	$2,283	5%	8%	70%
ID199624	Fast track	Mix	$50,000	$12,828	26%	45%	394%
ID201998	Fast track	GBP	$50,000	$20,100	40%	71%	617%
7 days, Dec. 13 to Dec. 19
ID201999	Safe load	EUR	$50,000	$11,000	22%	94%	820%
ID202000	Safe load	CHF	$50,000	$17,900	36%	153%	1335%



Notes:

1. To enable all the trainees to follow my trading in real time, the usernames and
passwords were emailed to them even before the demos were first traded. All the source
emails and statements are accessible from our archives and also from our Files Section,
Managed Accounts and Training Files sections.

2. To protect the interests of our clients, all information relating to their live accounts are
regarded as confidential and classified information, not to be revealed to others.
However, demos are traded in real time under actual conditions. They approximate actual
live trading in every way and for our purposes can serve just as well as any actual results.

3. For purposes of a more effective comparison, the data figures where a $500 fund or 1
mini lot was utilized were adjusted based on a $50,000 fund. The projected averages were
based on actual or 30 days per month and 261 trading days per year.

4. The basic trading strategy is our Turn100 and 1 or 2 mini lots/1000 equity recommended
or safe loading limit. Fast track is trading at more than the safe loading limit, over 2/1000.
Daytrade sets Stops and Limits to much closer ranges and turns over several times in a
single day. In ID968, the losses were due mainly to my disorientation not having daytraded
in quite a while, experimenting too much and overextending or positioning double the
recommended limits. As advised, I no longer daytrade for personal reasons but I did this for
the benefit of our more active traders. Nevertheless, I am confident that with more practice,
this strategy can earn for others, just as well.

5. In trading the proposed managed funds as a general rule but subject to my discretion, I
will be employing the Turn100 Strategy and trading GBP, hence the info relating to other
strategies, fast track and daytrade, and the other currencies will not constitute a risk
factor. The other strategies and products were included in the demos merely to
demonstrate the possibilities. Nevertheless, setbacks at certain periods due to whatever
reasons are always to be expected. They are normal hazards against which
countermeasures have already been provided for in our strategies.

6. Under the Limited Management Plan and basing purely on the results of the 9-month
demos, profit projections on average, safe load, could range anywhere from 22% to 45% on
monthly basis and 2 to 4 times beginning capital projected to end of year on straight line basis
using 261 trading days, only. But as with all projections, there are never any guarantees.

FXCM Disclaimer:

Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particularly trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk. Variables such as the ability to adhere to a particular trading program in spite of trading losses as well as maintaining adequate liquidity are material points which can adversely affect actual real trading results.

Earn as you learn

2009-06-30T19:30:00.002-07:00

Supplemental training to speed up learning

Rationale

Unless one has his own money placed at risk or stands to earn some money, immediately, as a general rule, one would find little or no interest in learning to trade. Further, while many are eager to share in the potential earnings that can possibly be derived from trading forex now, they may not yet be ready to trade, themselves. To provide a means whereby a trainee may possibly earn even as he is still learning and speed up the development of his trading skills, this auxiliary program is now made available to those who choose to take it up.

In any business, even as profits may be reasonably deduced from the many demo results on file at our training websites, past performances do not and cannot guarantee future results. Losses are always possible. The Manager can only undertake to exert his best efforts in this regard.

The sole objective of this program is simply to help the trainee in the development and honing of his trading skills in the most effective and quickest way possible. At the same time, the commissions generated will ensure that this training program can continue to help new traders over the years.

Implementing procedures

1. Trainee may open a live account, required starting fund of at least $1000.00 minimum, which he will allow IQ Investments care of its designated Manager to trade for him, freely, from time to time. No special arrangements will be required. Trainee/Owner will simply need to apply by email to join this program and transmit direct to the Manager the Account No., Username and Password of the trading account to be subject to this limited management so that he may access the platform for buying and selling purposes, only.

2. No extra charges, whatever, will be imposed. Except for trading the account, no other powers or rights relating to it will be granted to the Manager. Especially, the Manager will not be able to withdraw any funds or issue any other instructions that may be detrimental to the Owner's interests. His fund will still be solely under his full control and management. Moreover, the Owner can also trade the account, himself, and he can likewise countermand any of the Manager's entry limits or settings (stops and limits) anytime he wishes.

3. All RB commissions generated shall be credited to the Manager's account as his full compensation for this service.

4. This program shall take effect upon the Trainee's/Owner's application and his transmittal to the Manager of the required information per Item 1 above -- Account No., Username and Password of the trading account to be subject to this Limited Management Program.

5. The Agreement will remain in force for 4 months at which time, the Trainee is expected to be ready to trade on his own or until it is earlier terminated. In the event that either party should decide to preterminate their arrangement, they can simply serve the other email advise to this effect and the Agreement shall be deemed terminated. The Owner should then immediately change his password. And henceforth, the Manager will no longer be able to access or trade the account.

6. After the 4-month period, the Agreement shall automatically expire. However, in the event that the Owner should want his account to continue under management, he may subject to his application and IQ Investment’s approval of his application request that the Agreement be extended for another 4-month period.

For inquiries, send email to: forex300club@gmail.com

Blog Contents

RISK WARNING: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results.

GCI How to open a live account

2009-06-30T19:30:00.001-07:00

Please be guided by the following procedures in opening a new live account.

Individual applicants: Click here to open a Live Account.

Corporate applicants: Click here to open a Live Account.

Or visit our Website at http://finance.groups.yahoo.com/group/currencytrader/ and there click on the link to open a Live Account.

Do not apply to open your account using other GCI Webpages to avoid problems or delays in the crediting of your bonus margin.

In Step 1, you will need to agree to the 'Disclosure and Agreements.' They are industry-wide standard agreements that you have to agree to. Accomplish the 'Step 2 Trader Information Questionnaire.' FAX or email one copy of one form of your identification to GCI. And finally, remit your funds in accordance with your preferred mode of remittance after you receive the approval of your application to open an account.

After you receive the GCI Confirmation of their receipt of your deposit, forward the same to IQ Investments so we can request the crediting of your bonus margin to your account.

Should you encounter any problems or have any questions, contact GCI directly or relay your request to us for follow-up.

New account opening terms and incentives

In line with the increase in the minimum required opening deposit to US$2,000 or EUR2,000, the bonus margin entitlements are adjusted as follows for dollar-denominated and Euro-denominated accounts, respectively:

1. New mini accounts shall be entitled to receive a bonus margin of US$250 or EUR250

2. New standard accounts shall be entitled to receive a bonus margin of US$500 or EUR500

3. In addition, winners of the GCI Monthly Contest shall be awarded a prize of US$200 or EUR200 bonus margin, while the 2nd Placer shall be awarded US$100 or EUR100

4. All new accounts shall continue to enjoy the same incentives, including 2 and 3 pip spreads on the FX majors, 25 pip margins and the reimbursement of all deposit and withdrawal remittance costs.

FXCM How to open a live account

2009-06-30T19:29:00.000-07:00

Please be guided by the following procedures in opening a new live standard account.

Click here to open a Live Standard Account.

In Step 4 of your online application, make sure that you input IQ Investments as your Referring Broker.

After you receive the FXCM Confirmation that your account setup is complete but before remitting your deposit to fund your account, forward the same to IQ Investments at forex300club@gmail.com. Wait for our clearance so we can ensure that everything is in order before you commit any funds.

Should you encounter any problems or have any questions, click on the Chat Box to contact FXCM directly or relay your request to us for follow-up.

Note:

The Microlot accounts are handled by a separate division of FXCM that does not offer a referral program. It is not part of our package with FXCM. Opening a microlot account does not entitle the owner to join our training.

Moreover, targeting over 100% gains in any single month should be regarded as extremely high risk and is not recommended for new traders. But smaller, more reasonable and continuing incremental profits are possible to those who have been sufficiently trained.