Slow Trader Diary – week 39

We remain just above even. We have taken no trades this week.

The week was spent trading small amounts with my fund (£1 per point in the currency pairings).

Providing a chance to work through, and live trade, many of the lessons from the holiday modules with small risk.

Trading is like any other demanding job; we need to work our way back in after a break.

Slow Trader is daily charts and therefore not day trading; however, the day trading techniques I use in my account are the same for the slow trader with the daily charts. What I do in one day with day trading takes a week or so using daily charts.

Due to the China situation, both the S&P and the FTSE have seen a significant drop since August. That will reflect on individual stocks and shares of course. I am watching the S&P for a turn.


Commodities to keep an eye on:

Coffee price is at a ten year low. The COT report supports an increase in Coffee, but it’s early days. As coffee price increases we can look to see what effect this has on coffee companies such as Green Mountain.

Gold is at the same price that it was in 2009. Gold price remains uncertain. The COT is a buy and gold shot up yesterday in reaction to the US nonfarm payroll monthly report. From our point of view, however, gold is now a wait and see.

Crude oil is, as we all know, at a significant low. The COT is at a minor buy stage. However, the trend down for crude is so strong we would need to see an established move up before considering buying. Most amateurs will buy crude thinking it can only go up, not sure about that one. I certainly would need to see evidence first before committing. Okay, we miss the very bottom and therefore maximum gain, but to try to find the base is a foolish strategy.


Those not thinking that we live in a global economy should have watched the nonfarm payroll at precisely 1.30 pm yesterday. The results were not favourable to the US and most major currencies (including the S&P) moved, simultaneously, the price difference of a big trading day in less than a few seconds. Eye-watering stuff.

As a trader, the above shows the importance of knowing the significant event news item times. I do not trade the news, for me the probability of getting it right is too low.

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