Welcome…

ScottWelcome to The Capitalist Trader, where I discuss markets, money, and math, while promoting reason and liberty. I’m Scott, better known around the interwebz as Capitalist, and I’ll be your host.

If this is your first time at The Capitalist Trader, you may want to read about the site and maybe even a little about me and my mission.  Have a question or a comment? Head over to the Contact tab.

I’ve traded several different markets including equities, fixed income, and options since the 1980’s (yep, I’m old).  Since 2004 however, I’ve concentrated on the foreign exchange, or Forex, markets. Many of the trading resources you’ll find on the site relate specifically to Forex.

So come on in, make yourself comfortable and…keep pipping up!

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Weekly Update – 10/21/2017

Greetings!

The account was down 0.94% this week, settling at 150% of inception value.

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Two new forex trading experiments

Greetings!

Thought I’d announce a couple of new little forex research projects that I’ve recently started. Both of them involve opening a new sub-account at Oanda in addition to the main account, a step which I took today.

The first sub-account is for trading based purely on the Buying Power Reversal (BPR) indicator. Every week when I update the CapTraderPro dashboard, I notice that the “Pure Fundamental Pick” chart always looks just awesome. The extreme peaks and valleys of the BPR indicator often line up precisely with the lows and highs of the pair price. So in this account, I’ll be taking positions based exclusively on the fundamental BPR rankings.

The other sub-account will be for intra-day trading, probably just during Monday’s London session opening hours at first. I’ve been doing a research project involving the correlation between the behavior of a pair during one hour and the next. The idea is to create a sort of “profile” of the pair’s behavior throughout a typical day or week, identifying the most common reversal times and trending periods. I’ll be publishing those research notes here, just as I did with much of my earlier work from years ago.

After both accounts have been active for a while, and if the results look promising, I’ll add the equity curve charts to the My Trading page.

So stay tuned for that, and…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Weekly Update – 10/14/2017

Greetings!

The account was essentially flat this week, rising just 0.36% to 151% of inception value.

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Weekly Update – 10/7/2017

Greetings!

The account was down 4.42% this week to 151% of inception value.

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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The Forex account is one year old!

Greetings!

Happy Birthday to the consolidated Forex account that I put together on 10/1/2016!  In the first year of trading my consolidated method, I managed to return a respectable 58%. Guess I’ll take it!

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

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Weekly Update – 9/30/2017

Greetings!

The account gave up over half of last week’s gains, dropping 3.07% this week to 158% of inception value.

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Two more reasons to love bitcoin

 

Enemy of my enemies, you are my friend…

Bitcoin LogoGreetings!

As if there weren’t already enough reasons to love cryptocurrencies like bitcoin, etherium, and litecoin, now there are two more. It turns out that neither Jamie Dimon nor the Chinese Communist regime are fans of bitcoin.

Works for me.

Dimon’s collectivist assertion that “we’re our brother’s keeper,” his long support of the Democrat party, his involvement in the TARP ripoff, and his chummy association with the socialists in the Obama administration tell me all I need to know about him.

As far as the ChiComs go, I’ve already made my position clear regarding this illegitimate regime of thugs.

So why doesn’t this crowd embrace bitcoin? They’ll cite all kinds of reasons, but here’s my theory. They don’t like bitcoin because it does exactly what it was designed to do. Let me say that again. Bitcoin does exactly what it was designed to do.

We don’t know who Satoshi Nakamoto, creator of Bitcoin, was. However, we do know one thing about him (her, them?). Nakamoto’s initial paper cites a prime motivation behind the creation of digital currency. It takes the manipulation of the money supply out of the hands of a centralized authority (or “trusted third party”), preventing the diminution of its value through inflation.

But Jamie Dimon and Xi Jinping aren’t interested in freedom from centralized authority. They’re all about control. And of course that makes them enemies of cryptocurrencies such as bitcoin.

Enemy of my enemies, you are my friend.

End of rant. Until next time…keep pipping up!

 

To get more details on how I trade, take a look at the Trading Profitably page.

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Weekly Update – 9/23/2017

Greetings!

The account was up 5.18% this week, breaking a shallow yet disconcerting 3-week losing streak. w00t! This brings the equity to 163% of inception value, so not quite an all time high.

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Living the forex dream – what were you doing 17 years ago?

For some, 17 years might seem like a long time ago, but for others it’s just recent history. But what if, 17 years ago, you could have started a process that would have made you a forex trading millionaire now, today? What if you could go back in time and talk to that younger version of you, and try to convince yourself to get started now, TODAY, for cryin’ out loud!

OK, you can’t do that. But what you CAN do is imagine that your future self, from 17 years hence, has dropped by for a visit. “Just stick with it,” your future self says, “and I’ll be living the forex dream!”

By now you’re probably wondering if Scott has finally gone ’round the bend, but here’s what prompted all this. I recently joined a discussion on Forex Factory regarding this article about trading small forex accounts. One of the participants was arguing that it was a waste of effort to trade a small account. This poster pointed to an example in the article of a monthly 5% return on a $1000 account, which would amount to making $50 in a month.

Not only did I have to chime in and disagree, but being the math geek that I am, I whipped up the numerical example below. It illustrates what a 50% annual return on an initial investment of $1000 would mean over the next 20 years. This is actually a little less than the 5% monthly return example in the article, but it’s just for illustration purposes anyway. The bottom line? You hit a million dollars in just over 17 years.

Compound Interest Example

So there you have it. And by the way, my own account, even after the third straight weekly loss in a row (it happens), has returned about 55% in just about a year. So it’s not an outlandish goal, especially for a high margin, volatile product like forex. And of course it’s true that there are no guarantees. You might have some bad years, but you might have some stellar years too. So everyone’s results will vary. But if you don’t try…

So. Where will YOU be in 17 years?

As always…keep pipping up!

 

To get more details on how I trade, take a look at the Trading Profitably page.

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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Weekly Update – 9/16/2017

Greetings!

The account was down 1.05% this week, extending its losing streak to three weeks. Bleh! At least the loss was pretty small this time. The main culprit was the surge in the pound, which, (as subscribers to the dashboard know) I’ve been shorting. Anyway, this brings the account equity to 155% of inception value.

To get more details on how I trade, take a look at the Trading Profitably page.

Until next time…keep pipping up!

 

NOTE: As always, comments are closed due to WordPress spambots. However, to comment on this or any other post, just go to my Forex Factory journal or Cap’s Forex Musings on Investors Hub.

 

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