Decision made on the trading account
I have decided to move my trading account, and I think I've found a home. I've been reading up quite a lot on markets other than the US equities markets, and I want to take my game to those other markets. The one I'm most interested in is the forex. I think that currency trading stuff looks like a winner for several reasons.
First, it is a huge, very liquid market. No problems getting into or out of positions. Not that I'll be trading enough contracts of anything tradeable to cause myself problems, but still, it is nice to have lots of liquidity for pricing reasons.
Second, it is basically a 'round the clock market. I can set my longer term trending positions, but still trade shorter when I have time. My real work no longer has to be the obstacle to real fun.
Third is leverage. The broker I'm looking hard at provides 50:1 leverage in the currencies markets. I think that may even be pretty low, but it is good enough for me right now. That's a real turbo charger.
Finally, in looking at the charts of the major pairs, I think I'll be able to work up a trading methodology that should work well fairly soon. I think playing breakouts and waiting for trends to develop off the breaks will be a good way to go. These things seem to like to get a little run out of their moves before giving it up. With the leverage involved, smaller moves can be big winners.
Anyway, the broker I'm probably going to use is Interactive Brokers. In my research, all the big guns had good points and bad, but IB seems to fit the bill the best for me personally.
What I'm going to do is let my trading account liquidate itself naturally and send the funds in to my new account as they become available. Well, I have to wait until I raise $5K before I send in the first traunch since that's the minimum opening deposit, but after that I'll trickle the rest in.
IB also allows trading in just about any other market I'm even a little bit interested in, from futures to commodities. I think eventually I'd like to build up to where I'm trading trending positions across several different market. The diversification is far better than diversifying across industries in the equities market.
I'll still be trading equities in my IRA, so they won't disappear from my blog by a long shot.
First, it is a huge, very liquid market. No problems getting into or out of positions. Not that I'll be trading enough contracts of anything tradeable to cause myself problems, but still, it is nice to have lots of liquidity for pricing reasons.
Second, it is basically a 'round the clock market. I can set my longer term trending positions, but still trade shorter when I have time. My real work no longer has to be the obstacle to real fun.
Third is leverage. The broker I'm looking hard at provides 50:1 leverage in the currencies markets. I think that may even be pretty low, but it is good enough for me right now. That's a real turbo charger.
Finally, in looking at the charts of the major pairs, I think I'll be able to work up a trading methodology that should work well fairly soon. I think playing breakouts and waiting for trends to develop off the breaks will be a good way to go. These things seem to like to get a little run out of their moves before giving it up. With the leverage involved, smaller moves can be big winners.
Anyway, the broker I'm probably going to use is Interactive Brokers. In my research, all the big guns had good points and bad, but IB seems to fit the bill the best for me personally.
What I'm going to do is let my trading account liquidate itself naturally and send the funds in to my new account as they become available. Well, I have to wait until I raise $5K before I send in the first traunch since that's the minimum opening deposit, but after that I'll trickle the rest in.
IB also allows trading in just about any other market I'm even a little bit interested in, from futures to commodities. I think eventually I'd like to build up to where I'm trading trending positions across several different market. The diversification is far better than diversifying across industries in the equities market.
I'll still be trading equities in my IRA, so they won't disappear from my blog by a long shot.
posted by mccrok @ 9:58 PM
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