A simple blog on Singapore stocks and shares for the savvy and the novice. The author, Adam has been trading for over 10 years and he is currently a stockbroker. He is dealing in capital markets mainly. Other than that, he has trade access to bond markets as well as FX trading too.
As usual, this is a quarterly review of my personal FX trades. The numbers are for May 2019 with the broker Axitrader.
In the last 3 months, thanks to Trump, news of trade war has been flooding the market. EURUSD has been bullish, and indexes were hitting year high. Much of the trading positions are actually not in positions. Hence the spike in drawdowns from the charts below.
In June, thanks to Trump again who commented on the suitability of Fed Chair mentioning the possibility of a rate cut to ensure a competitive USD. As a result, EURUSD took a turn and thus the market changed.
This is illustrated by the chart above, a huge spike in drawdown during 10th June which is a Monday. FOMC statement was on Friday night, SG time. Overall, the trade positions were closed in an orderly manner and turned things around.
Another point to note is, the current drawdown is 0%. Which also translates that the opened positions are running on the traded profits only. Perhaps we should open more position to leverage and absorb more risks in exchange for a higher return.
To have monthly returns of 10% is considered average and more positions should be opened in order to capture more market opportunities. However, Trump is a wild card still. A higher risk-taking behaviour will translate to a higher drawdown. And each drawdown is a test to our system, simply because if it fails, that will be the end of our trading method, System Alpha.
Overall, the full numbers are displayed above. Moving forward, there will be no change in our trading strategy for now. Being nimble and careful is the better way to go in this market.
This account has started in May 2019 with the new broker, Axitrader, after our previous broker left us. If you need a good FX broker, you may consider Axitrader. The spreads are reasonable and even though Axitrader is a market maker, the spread is still acceptable.
So that is a wrap for the last quarter. Will update again.
Gone are the days that we always think and believe that foreign brokerage houses like Company I and Company T gives very cheap brokerage fees.
These days local brokerage houses are catching up too. Not to mention, the shares transacted are held under the custody of the brokerage houses. There are no market makers, you-lose-house-win situation and etc.
In any case, the conditions are elaborated below.
Under this Promotion:
a. Clients are required to execute at least 3 trades to enjoy the rebate. The Promotion entitles each Client a maximum of 3 free trades, capped at a maximum rebate of S$50 (“the Rebate”), regardless of the number of trading accounts he or she has.
b. The rebate will be in the form of bonus points. The equivalent of 1800 bonus points will be credited in the following month and are valid till 31 December 2020.
c. New clients with no prior or pre-existing business dealings with UOBKH who open a cash or margin trading account with UOBKH will also enjoy 1 month free Hong Kong real time streaming price when they execute at least 3 online Hong Kong trades during the Promotion period.
d. The free 1 month Hong Kong real time streaming price will be activated in the following month.
If keen, dont wait. Open account is FREE too. The trading account allows online access to HK (of course), SG, Malaysia and US.
PM me to open a UTRADE account via the bottom right hand corner.
I was buying books from Amazon this week and I spotted this offer which i think it will be useful for friends of SGSAS. Not just useful, it can be FREE for you if you do the following steps. Took me a while to figure out, so must as well blog it and bookmark it too.
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HSI opened high only to fall back to the previous closing range. This shows that sentiments are still bearish, with no clear conclusive end to the current trade war.
At this rate, there might be a chance for the market to move lower than the day before.
If investing, watch for strategic entry prices. Likewise, for invested clients, you may do a sell first and buy back at a later time. This is something like a covered short where invested clients can trade for some profits while holding on to shares.
Mr Tan has 1k shares of DBS bought at S$27.00. It is sure loss now if he were to sell now at S$25. To do a covered short, Mr Tan sells DBS at S$25. And after a week, DBS falls to S$24.00. Mr Tan bought back after a week at S$24.00. He has profited S$1.00, and back to holding DBS shares to wait for the shares to come back at S$27.00. Profit is made when one is buying low, selling high, or vice versa, regardless of the sequence. The risk for Mr Tan is if he were to sell at S$25, and the price starts to move up and up, then Mr Tan would have missed 'the boat'.
Be sure to tabulate and account for the prices bought and sold. The online portfolio only tracks what is first bought and sold, not the other way around.
The previous withdrawal was due to incorrect SWIFT codes. Now that my broker has acknowledged, the error is rectified.
A new trading account with AxiTrader was set up and I have to say I am quite pleased with the overall experience.
I will do up a proper review to share my experience. Meanwhile, I am accumulating the trades so that I have sufficient results to show and share with you guys.
Meanwhile, if you would like to open a trading account with AxiTrader, I hope you would use my referral code below. with the referral code, it is a promo code where the trading fees will be lower. On top of that, Axitrader will also share a part of the brokerage revenue with me. This helps to contribute and fray part of the hosting costs for SGSAS.
I hope it is not too much to ask for. Thank you for your kind support