Meta-Trader - Forex4you: Important Notice!

Welcome Meta-Traders.

It was a week to forget in World Markets. Equities took a belly-flop, dragged down by the still unresolved budget impasse in the United States. For those who hate uncertainty, it was the House of Pain with day after day of little progress and the Treasury's August 2 deadline fast approaching.

Equities were a sore subject this week since everything I did was wrong. It was a mirror image of last week and a humbling reminder how the human side of every trader and investor is his worst enemy. In any case, I sold half of my position in AMZN ahead of earnings, just to see it pop 16+ points in the after market on solid revenues.

As for my AAPL long call, I got the move expected up to the $400 level, and I entered an order to sell the position up +10 points limit on Monday. AAPL looked so strong so I cancelled the sell order just before it would have filled. The next day, AAPL open higher once again and traded as high as $405 and I felt vindicated. Unfortunately, AAPL opened down -7 points next day taking the better part of my profits. AAPL continued down later in the week and I ended up closing the position for a small loss. Serves as a reminder how tricky options can be to trade where profits can come and go very quickly.

It was a better week in Forex with most accounts up from last week's drubbing. The screaming winner on the week was Atipaq Full Portfolio which gained about 4% for the week recovering about half of last week's 8% loss.

I got some disappointing news from Forex4 via e-mail on Friday as follows:

Dear Christopher -

We are writing to inform you about the recent changes in the USA legislation according to which we will no longer be able to provide services to our USA customers. Hence, if you are a resident of USA, we kindly ask you to verify your account and withdraw your remaining balance as soon as possible.

As you can see from my performance numbers on the right this account is up +28.19 for the year. So here is a case of the government rescuing me from myself, and to my own detriment! Its a reminder that any business has regulatory risk and none more so than trading.

As for my next move in Forex, here's my plan:

- Close the Forex4You Account, return the $100 investment to my co-workers, along with the 28% profit and declare victory. This will return $25.60 to each of my co-workers on a $20 investment split 5 ways. Not bad for less than one year and certainly beats lottery tickets!

- Start some new demos in FXDD. So far, I am the most pleased with them as a broker and the fact that they handle hedging (long and short same pair at same time) is crucial for my ongoing operations. Plus, I have an ongoing beef with Forex.com that I will get to in a future post.

- New demos will be be based on a variety of portfolios running the Coatl trading system from Asirikuy.com.

Recall I did a series of reviews on Coatl back in May and can you read them here Part 1, Part 2 and Part 3. Coatl is a very flexible system that can be used to trade multiple instruments in multiple time frames. Also recall that I am scheduled to increase my total Forex investment by about $10,000 bring me up to $20,000 by the start of 2012. I plan to add the bulk of these fund as new Coatl Portfolios. If I start demo accounts now, I should have a healthy 5-6 months of demo time before I'm ready to go live. I should have my first week's results next week at this time so check back later for that.

Have a great weekend all!