Fed Cuts Another 50 Bps

The Fed has released the FOMC statement for this month and voted to reduce the overnight lending rate 50 basis points to 3%.

This reflects the lowest rates have been since June of 2005. The move was made easier after GDP numbers came out this morning lower than expected, mostly on negative housing growth.

The Fed felt it had to lower rates because inflation is not a concern, the economy is spiralling into recession (out of fear, possibly), the market had already priced it in, and today's GDP numbers proved that the economy needs a shot in the arm to pull out of a recession quickly.

You can argue that a little recession would be good, but you can't convince Wall Street of that, and obvious signs of fear and lack of confidence there made the Fed's decision fairly easy.

Proton Saga Red Concept Design

Here are some photos of the Proton Saga "RED" Concept by Proton Design, which will let some of you soon to be new Proton Saga owners know what modifications could be possible with the car's aesthetics. Having a special kitted up version of each new model launch has been a tradition now, and I hope this continues.
The Proton Saga "RED" Concept features a nice metallic red paintwork, a black roof, nice light grey grill surrounds, and large wheels, complete with a minimal tyre to fender gap. The interior gets a two-tone black and grey design, with red door trim, red seats and a grey-red trimmed steering wheel.

Trade Out

At the time of writing I am somewhere in Putrajaya. Its sound proof and no mobile phone can get a signal in here.

Trade gone bad. EU has actually hit my 1st target but I didnt close it. Now every trade has hit SL. No more trade for now.

Im going back to Kota Kinabalu this afternoon. My flight is at 3pm. See you later

US Fed Cuts

US Fed has cut benckmark Fed Fund rates by 75 basis points to 3.50% and it has cut the Discount rates by 75 basis points as well.

This cut has managed to bring immediate immediate relief to carry-trades and the stock indices.

The statement with the rate cut is given below...

The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.

The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Appreciable downside risks to growth remain. The Committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.

In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis.

Effect:
I was up 3k on the demo account but now its -1.6k. This is something unexpected and market is trying to find a new balance point. At the moment that point is still unknown. EurUsd was dropping like WWII plane shot down now its going up again. In another angle what we see here is a correction. An act done by US Fed to slow down the drop by EurUsd.

Beauty about forex market is it will not turn on you in an instant. At the moment trend is still intact eventhough UsdChf has turn but with out support from other pairs it may not go very far.

System Testing

Ive open a demo account to test my final system. Final coz I dont see anyway I can improve it somemore. It has been the same in the last 3 months with no more room to improve.

Its a medium term trade system. Trade between 2-4 times a month only with target of doubling capital each month.

For those of you who like to monitor the trade can login to investors account as below:

Metatrader 4 Terminal
Login : 112328
Investor : qjxx1rm (read only password)
Server : 74.86.131.115:443 or 88.85.79.65:443

You are welcome to monitor. Any idea on improvement is much appreciated.

Trend is broken

At last the trend is broken. EU is changing direction but unfortunately that last dip was too much. A correction is coming before we can consider a short entry.

Same story with Uchf. Long entry on next low

Masa itu Emas

Disebabkan signal lom kluar dan aku hari ni makan lunch laju, jadi ada masa sikit nak berceloteh kat sini. Citer apa saja yang terlintas difikiran aku

Mula-mula sekali aku cemburu dengan ramai orang. Ramai orang mempunyai masa yang berlebihan sehingga boleh membuang masa. Dalam 1 hari cuma ada 24jam saja. Takleh tambah atau kurang. Nak dibeli dengan seberapa banyak duit pun takleh. Jadi bila aku tengok orang duk melepak dan takde buat apa, aku rasa cemburu. Orang tu ada banyak masa dan boleh dibuang sesuka hati.

Kepada aku lak, aku rasa macam masa tu tak cukup. Aku ada kerja tetap, time office hours aku sibuk ngan keje office aku. Disamping tu aku buat network marketing edymium. Dimasa yang sama aku study forex dan trade forex. Kenapa aku kata study dan trade?? Bak kata orang keje sambil belajar sebab forex ni terlalu banyak bidang yang perlu dipelajari sebelum kita betul betul mahir.

Dimasa yang sama kemahiran aku yang lain seperti membaiki kereta, motor, alat elektrik, komputer, wiring, networking, sound system dan beberapa lagi masih aku teruskan pembelajarannya. Ini kerana kemahiran tu perlukan latihan yang berterusan disamping ilmu yang amat luas utk dipelajari.

Jadi bila bila masa korang terjumpa satu mamat yang takde keje, takde duit dan duduk melepak membuang masa, korang perlu cemburu pada mamat tu pasal dia mewah dengan masa. Masa itu tidak boleh dibeli dengan duit. Mamat tu adalah orang kaya sebenarnya.

Medium Term And Long Term Trade Only

After much thinking, I have decided to take only medium and long term trade only. This is to avoid those noise in the market which will lead to losses.

Medium term are trades that run from 1 week and can last for 4 weeks. Its more of riding the trend.

Long term trades are trades that can lasts for years. Last long term trade for EU lasted for 2 years.

Due to this strategy I may be trading between 2-4 times the most a month. Its boring but its safer compared to short term trading. Furthermore I will have much more time for other things in life.

Hopefully I can post a full medium term trade signal by this week or the next.

How To Steal Money Off Forex Market

I was watching the charts today. My trade gone bad, suddenly it came to me. How to steal money off forex market. It came to me. The answer is as clear as broad daylight. Why I havent seen it earlier. The answer is right there infront of my eyes for so long.

Since I have found the answer now its time to take it into play. Time is running short. I need to confirm my findings by end of April. Good luck everyone

Trade Setup Week 2 January 2008

For this week I would only trade on 3 pairs. They are Eur/Usd, Usd/Chf and Usd/Jpy.

Eur/Usd
At the moment is having difficulty to rise forcing for a correction soon. The trade would be to short Eur/Usd @ 1.4700 or better.

Usd/Chf
No confirmation at the moment but trade setup is close to perfect. Long Usd/Chf @ 1.1150 or better

Usd/Jpy
Currently the only Jpy pair that I would trade. No confirmation yet but if all goes well I would Long Usd/Jpy @ 109.00 or better.

As usual forex is a risky business. Protect yourself at all time. Use stop loss appropriately

Happy New Year 2008

This year my new year celebration is a bit different from before. At the stroke of midnight I was on a plane cruising some 20,000 feet above sea level on my way home.

There is no celebration just the steward wishing a happy new year to all the passanger.

This year I plan to run my system full throttle for 4 months and lets see how good it is. By the end of april if I manage to gain massive profit, I would be going back to KL and have a meeting with my friends. Some of which are very amazed on how I could make huge profit from forex and are asking me to trade for them.

Until then I will not post my live trading result. Only my demo account on Marketiva. Hopefully I can be Marketiva Masters for 4 months and only then the result would be good enough for me.