Archive for August, 2010

That’s it. I am one of the millions who join to the herd. I bought it so I can follow my trading when I am outside my office. But Capital spreads (which have the best spreads and platform) doesn’t support it

I contacted them today and they say they are working on app that will allow iPhone traders to trade. Can’t wait!

Ever since I’ve started trading I am looking for good charting package. I tried Sharescope and eSignal and didn’t like the interface. At the moment I am using IG Markets advance charting. It is quite good but there is a big problem. Have a look on this chart of Rio Tinto

See the third candle from the right (where the red line is)? on this chart the high of Rio Tinto on the 4/8 was 3503 and it is outside bar of the candle before.

I am using a lot the inside & outside bar patterns so I would create an order to buy the next day at 3505 or so.

The problem is that this price is fake. Rio didn’t even came close to this price. You can see it on the chart from MoneyAM website:

The high of that day was 3440. Huge difference! So what is going on? From time to time IG and other spread betting providers have some problems with the data they get and the prices jump for a second much higher. This doesn’t affect your positions and orders but it does affect the chart you see.  So you can’t really trust them. It is like driving 80 MPH while your meter says you are only 70. Then try to explain it to the police officer.

It is a shame because their charting package is quite good and cheap (£30 a month free if you trade 4 times) but they don’t clean the data and it is a problem.

I am still looking for good package! Anyone?

Update: One lesson learned – not to trade when you are tired and not focused. I bought the opinion on oil because I thought the Change in EIA Oil Inventories is going to be published. But this one was yesterday… today there was the Natural Gas… stupid mistake!

1) Weekly USD/JPY 20/08 8800 call. Opened price: 20.5 why? because I do believe it is near bottom and 20/8 gives some time to recover.

2) Daily oil 8060 put opened price: 5.9 why? Change in EIA Natural Gas Inventories will be announced in 40 minutes. The black gold tends to react strongly in the 30 minutes after.

13:20 Sometimes it is better not to listen to guts feelings… Barclays is 11 points down from my order but I chose not to cancel my sell order… Glaxo is 4 points down from where I bought it…

8:23 I am in with Glaxo but something hold me form entering Barclays. So I will give up this one.

7:40

Looking into the News Calendar it seems that all eyes are looking for tomorrow Nonfarm payrolls. Good results can send the Dow around 11k bad one and we can see it back to 10300 level.

So I don’t expect big movements today but here is my orders for Thursday:

1) Barclays Buy 346 stop loss 331 target 376 or Sell at 331 with stop at 346 with 301 as a target. Reason: Triangle & outside bar on the daily chart.

2) Glaxo. Buy 1139 stop 1121 target 1175. Reason inside bar on the daily chart near support level. MACD & Elder ray are rising.

Good luck

As expected once the 1027 level has broken the share went all the way back to 1000 level. My order was to close the position at 1005 which it trigerred. Now the share trades at 998…

The risk / profit ratio was 1:2 which is not bad.