Background
I want to be more wealthy with more depositable income so I can deposit off my boss forever. Who don't want to do that? The daily grind of a salaried worker really sucks the life out of me, leaving me with little time to pursue my interests.
Without enough money to invest with a long term horizon, the best I can do is to take the risky route of engaging in speculative leveraged trading in Forex and precious metals. Strong risk management skills and nerves of steel is required to survive here.
In Singapore, for part time traders like me, it's great because...
From IRAS: " Generally, profits or losses derived from the buying and selling of shares or other financial instruments on your own account are viewed as personal investments.So the strategy is to work on a day job and trade FX. Even if the trading income far exceeds the income from the day job, it is not going to be taxed a single cent.
Capital gains are not subject to tax. If you buy and sell shares or other financial instruments at a profit, the profit is not subject to tax."
Financial Markets
The markets I am actively trading in is the spot Forex market and the spot precious metal market.
This is mainly in the Euro Dollar pair and the Silver Dollar pair because of their high volatility and high volumes.
The spot Forex market allows for small traders like me to play the game with leverage (a double end sword) and the flexibility to long and short. I tried "investing" in funds before but after losing money in some, barely break even in some and gaining very little in some, I figure that funds are not for me.
Macro Market Views
The Euro is doomed to go down as long as the PIIGS are still in the Euro and precious metals are going up as long as the debasement of currencies continues.
I had enough of suffering from every financial meltdowns and is hell bent on making money out of them instead.
Market Maker
In a nutshell, I chose Oanda as my market maker of choice because the following pros outweighed the corresponding cons after 3 years of live trading with them...
Pros
- Near instant execution below 5 standard lots.
That's USD$50 per pip. My account isn't that huge to hit the "limit" yet. - Platform support.
Light weight client on the Android and PC (Java based). I am no iFan. - Based in Singapore (Singapore branch)
Being a Singapore citizen has it perks. I have an account with Oanda Singapore, which allows to be keep money out of the United States and London, the twin capital cities of fraud where your money can be vaporised with no recourse even when they are supposedly held in segregated accounts (MF Global).
The account is denominated in Singapore dollars rather than the common US dollars because the Singapore dollar is on a long term bull run (chart) against the US dollars. With the Swiss Franc soft pegging to the doomed Euro and Japanese Yen entering the doomed path of debasement, the Singapore dollar will retain it's value best in the Currency Wars.
In the events of severe financial turmoil, Asia will also be affected to a lesser extent and be in a much better position to recover. This also mean that financial companies and institution based in Asia is much less likely to roll over.
For a feel of things, here is a list of failed US Banks alone, excluding financial companies and other institutions. It's not pretty but it's true, banks do go up in flames.
- Direct Market Access VS Market Maker, Slippage and Spread
As long as I am not trading in multiples of standard contracts, trading with a good market trader is actually better because of low spreads and slippage. - Good and fast support
I tried their email and online support on numerous occasions and they worked great.
- PC Platform support
Not enough price history due to a limitation of the max number of price period displayed.
- MT4 support
MT4 does not appeal to me because I do not use anything more than the basic charting functionality. - Basic indicator included
My trading techniques does not require the use of indicators.
I am employing the Supply and Demand (SD) strategy pioneered by Sam Seiden from Online Trading Academy. Over nearly a year trading live while learning to use the SD strategy, I finally reversed my losing streak and turn it around.
This is not a conventional trading strategy taught in books, seminars or Forex factory. Do not confuse this with the common support and resistance strategies. The strategy focuses on locating market turning points which makes it great for swing and position trading. It is a 100% rule based technical method and does not rely on ambiguous indicators or interpretation of chart patterns.
The trading size used in my trades ranges from a mini lot to a standard lot.
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