Goldman Sachs Made Me "Special"

From Gary Sutton, Co-fouder of Teledesic

[Quote 1]: Banks of every flavor are in business to make money for themselves. They are not in business to make money for you. If they worried mostly about making money for you, they'd likely go broke, and you'd lose every penny.

[Quote 2]: So am I mad at Goldman? No. I just understand them better. They're out to make a buck. So am I. And they're better at it than I am.

How NOT to Invest: Four Lessons From the Goldman Case

Read the whole article HERE:

For many big financial institutions on Wall Street, we're simply customers to be sold a product.

The case is also a great example of how not to invest. You could go a long way in this life just by observing the behavior of wealthy and powerful investors in Abacus and then doing the opposite.

Never assume the big money is also the smart money.

What are the lessons?
1 Never put too much faith in a bank.
2 Think twice before buying any complicated financial product.
3 Be wary of investing in something you don't understand.
4 And when in doubt...

Message from the DOW’s 1000 point loss: The “ship has hit the sand”

View article:

Life is tough. We’re better off planning on how to manage through harsh and ugly reality than having it hit us over the head as we smile on believing the economies of the world are recovering.

CNBC is on TV claiming a trader error was responsible for the decline. What about the decline earlier this week? What about all the bourses in Europe. What about the futures for Japan?

You people (the media) are bold faced liars. We cannot believe Anything you say.

Lets dump the talking heads at CNBC. This guy David Faber is ridiculous. Look at the carry trade changes today - the yen moved 4% verses the dollar today alone. Was that an error David? Huh David? You @#$%&!. Everyone can see that Greece cannot live up to any accord. They will default. And so will Spain and Portugal. And some major European banks will fail. And so will some U.S. Banks.

I watched the tapes today and I can tell you, absolutely and positively, that fear, not a trader’s error, took down worldwide markets. Tomorrow, many institutions are nervous and they are going to take money off the table.

Now the @#$%&! says that we in the middle of a recovery and expansion story. Lets watch foreclosures and jobs the next six months and see.

All you need to do is look at Greece to understand where we are headed. The populace is ticked off in a major way because now they are being told that they need to live within their means. Not only do they need to live within their means, the “forced austerity” will suck growth out of the economy and turn it negative to a greater degree. What I am trying say here is that the “ship has hit the sand” and the years of reflating the system have come to an end globally whether anyone wants to admit it or not. To raise taxes and cut spending during a recession is a Keynesian no no because the economy will spiral downward in a debt implosion.

THIS is exactly what the Austrian economists have said for years upon years while being laughed at and ridiculed. We will now see exactly who has been correct, the “paper pushers” or the “common sensers”. Did Greece go out on its own and invent deficit spending? Of course not. Have they done anything that anyone else (in particular Britain and the U.S.) did not do? No, in fact, just look at what the West has done for the last 18 months as their “cure” for the GFC and you’ll see Greece with twin turbos and NOS! The entire system has become unstable and anything can happen at anytime.

The “mark up” phase will not take very long, of course this also means that the “wipeout” phase will not take much time either. Millionaires who have lived on interest and dividends for years and have not worked in years (or maybe never did) will end up losing their wealth over what I believe could be as short as a 2 week period. Judging by previous currency collapses such as in Argentina, these privileged individuals may very well end up in dumpsters with their feet pointing skyward looking for food. Laugh all you want, this has happened before but NEVER on a global scale as today.

The new “indicator” of how things are financially will be Gold. People will wake up in the morning and look to the price of Gold as to whether it will be a “good day” or bad. Gold is up $32 right now and it seems a few people on CNBC understand what higher Gold means today. I am rubbing my eyes and trying to clear my ears because THIS is unbelievable. As I said before, “my how times have changed”. Stay alert, locked, loaded and fully stocked.

Got Gold?

My Current View on Stock Markets

Stop speculating and investing in the stock markets now before it's too late. The present market behaviour is mostly driven by insider knowledge and outrageous speculation. You'll never understand how and why until it hit you.

If you have recently made yourself a fortune by supporting the markets, it's time to lock in your profits. Donate part of your winnings to charity wholeheartedly and don't think that you can beat the market twice.

If you have lost some fortune in betting against the markets, it's time to cut your losses and never to engage this kind of activity again. Put your time and efforts into other things that can bring true happiness into your life.

And finally to stock market specialists or professionals, it's time to start thinking about a new job career which is not based on profiteering on other's misfortune and lack of knowledge.

The same applies to the currency markets.

Related articles:
Better Late Than Never: Regulators Charge Two Traders for 2008 Oil Spike

Fed Policy to Refuel Risk Trades?

During the last two months, all asset prices have risen sharply. Are we going to see a continuation in this trend or a turn around?

• Lack of inflation prompts US Fed to guarantee long period of low rates
• Dollar correction near end

Prices on Sept 4:

Dow 9441.27

EUR/USD 1.4293

GBP/USD 1.6389

Prices now (2 months later):

Dow 9802.14 (+360 pts)

EUR/USD 1.4875 (+582 pts)

GBP/USD 1.6555 (+166 pts)

Late US Non-Farm Payrolls Trade Setup

Short EUR/USD at 1.4308 (SL @ 1.4408)

Short GBP/USD at 1.6394 (SL @ 1.6494)

I am hoping to fetch 60 - 80 pips each from these two positions. I will carry them till Monday if necessary. If profitable, I will post my chart and analysis for this type of setup.

Update: I shorted EUR/USD and GBP/USD once more at these levels - 1.4348 and 1.6420 on Monday morning. Exited the two GBP/USD shorts at 1.6340 and 1.6330 late afternoon. Targets as envisaged. Plus I wanted to reduce risk exposure at this point since EUR/USD seemed to be well-supported. EUR/USD could move higher Tuesday morning but I am going to hold. Hope my gamble pays off.

Update 2: Oh well, a gamble lost on the EUR/USD positions as the price exploded higher at the London opening.

Back from Two-Month Long Holiday

A warm greeting to all, just a quick update that I had a really long summer vacation as I prepared for the arrival of my newborn baby. And time flew by really quick and I am now a proud father of a two-month baby boy.

Since I'm back to work, I will be running my intraday daytrading systems again next week. I think I really need to diversify my forex income (away from long-term/ drawdown approach). I always want to grow my account via limited risk trades. I have already done all the hard work fine-tuning my systems in the past and all I need now is effort, discipline and patience.

Long EUR/USD, AUD/USD & Short USD/CAD

Closed EUR/USD at 1.4176 for +50 pips

Closed AUD/USD at 0.8105 for +35 pips

Covered USD/CAD at 1.0891 for +75 pips

We bagan trading for the month of June with three winners. +165 pips for the day.

May 2009 Daily Subscriber Signals +640 pips

+355 pips (Majors), +285 pips (Crosses), Total: +640 pips

Once again, the market sentiment approach was spot on last month. Hence, a very productive month for day trading.

The latest pips count of the system can be found here. Note that my daily forecasts and live signals are delivered via a specially prepared spreadsheet template.

Hitting A Trading Milestone

As a part-time trader who has an intense longing for success, I hit an important milestone today.

Back in November, I recognised some good trading opportunities. As a result, I started running and managing my two metatrader accounts and also a CFD trading account at the same time.

During the past six months, I funded another metatrader account with profits and had actively traded with those accounts.

Today - my five figure CFD account has just been doubled after a six-month period. I appreciate my past efforts in blogging which, somehow, made me a better trader. Despite my tight schedule nowadays, I recognise the importance of running the blog more often.