Wow it's been a while since I posted. I got quite lazy over the summer break. But I recently started reading the WSJ again, so hopefully I'll get some ideas soon. Right now, I'm thinking of a paired trade: shorting NYSE and longing NASDAQ. Reason is simply because Nasdaq is gaining more market share than NYSE; there was an article in the Journal today saying that NASDAQ are executing more Big Board trades than NYSE itself!
Also, you can note a jump in my NLV, but that's because I injected $5,000 on June 27th, 2008 into anothr broker, Interactive Brokers, to begin trading forex. Their fx platform is a little bit more developed than ToS. I was long AUD/USD and short USD/CAD. Basically, very bearish on the USD. Reasons include inflation troubles (oil, agricultural and metals) coupled with the Fed's reluctancy to raise rates, Fed's strong support for banks and unwillingness to let them fail ala free markets, real estate troubles, and now extending the credit card debt defaults as well.
I was debating with myself whether I want to include my FX portfolio into the blog, but I guess it's part of my learning experience. It's a major pain in the ass to add the two NLVs together.
Well anyway, like I said I had two positions: 1) long AUD/USD and 2) short USD/CAD. I expected to recieve net interest, kind of like a USD carry trade, but I was disappointed/pissed when I found IB charging my account for interest. Apparently the way they calculate the interest is a net debit interest.
So today, I covered my USD/CAD short because I saw a double bottom forming and my conviction for this trade was wavering. So I covered the trade for a nice $252.50 profit. I kind of regretted the trade later; what I should have done was placed a stop loss order and let the trade run itself. But I tried doing that with the AUD/USD and I had no idea how to do it with IB.
Unable to post chart right now, I'll try to get it up later.
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