2022/10/20 (093) Column

„Do You know?
How Describe Your Own Personal CFD Trading Account?
How About Trading A Offensive Short-Term Conservative One?“


There is still a lot going on on US WallStreet so far in 2022.
Strong mood and/or price fluctuations are an expression of ongoing uncertainty.
It may be difficult for many colleagues to show their (potential) customers clearly defined perspectives.
Many of my colleagues are reluctant to make far-sighted forecasts for the future. Even suppress as recent analyzes it shows. Understandably, if you`re aware of all the current uncertainties (key interest rate decisions, yield cruves, exchange rates, individual commodities, individual stocks, even entire stock markets). And most, like me, do not want to estimate to what extent the self-inflicted US inflation, by Sleep Joe Biden, and his US Democrats, is affecting the us economy. How badly us inflation is biting it`s into the wallet of the us consumer, like a self-inflicted cancer. Due to the contrary, even opposite, policy initiated compared to his predecessor Donald J. Trump. Politically, Trump understood how to organize an export surplus of energy for the first time in over 40 years. Under his watch in the white house, the USA produced more energy for the first time than US taxpayers and US consumers could consume. As already written; quite the opposite of Biden’s green inflation. Which is politically wanted and also so high; like it hasn’t been for 40 years.

For market guys in particular, who while us wallstreet trading sessions mainly have an other professional activities, I always try to make it detaily clear to focus on what you, yes you, can influence. And these are – in addition to reading, analyzing and evaluating daily stock market news and other market price action relevant information – above all my 3 variables: And these are: The number of transactions; the entry price including target price and/or stop price; and the transaction’s percentage of the total portfolio. What you can do very professionally within 1 to 2 hours on every trading day, from Monday to Friday! If you want it?

I Distinguish The Number Of Transactions In
An Offensive, Proactive Or Defensive CFD Trading Account:
an offensive CFD trading account, I define with more than one transaction per day
a pro-active CFD trading account, I define with always only one transaction per day
a defensive CFD trading account, I define with less than one transaction per day

The Distance Of The Target Price & Stop Price From The Entry
I Differentiate Between Short-Term, Medium-Term And Long-Term CFD Trading Accounts:
in a short-term CFD trading account, shorter than daily charts are use
in a medium-term CFD trading account, only daily charts are use
in a long-term CFD trading account, longer than daily charts are use

The Percentage Share Of Each Individual Transaction In The Total Portfolio Assets
I Differentiate Between Conservative, Dynamic Or Speculative CFD Trading Accounts:
a conservative CFD trading account, trades every transaction with 1% share of the total portfolio asset
a dynamic CFD trading account, trades every transaction with 2% share of the total portfolio asset
a speculative CFD trading account, trades every transaction with 3% share of the total portfolio asset

Personally, I find myself as a pro-active medium-term conservative CFD trading account holder.
What you, in my technical analysis 4XsetUps, can hopefully, more or less, understand in every DEVISE 2 DAY Edition! What you don’t believe me again? Read one of the latest editions, out of the archive, on my homepage.
But let`s be more detailed and/or clear about your CFD trading account!
Do you know? How describe your own personal CFD trading account?

How About Trading A Offensive Short-Term Conservative One?
So let me use a few more numbers and/or letters…

Therefore, do not try to be someone else who you are not! Don’t fake yourself, don’t fake other market guys, and or don’t fake it basically. Try it, try it, and/or try it again! Until you real eye it, until every market guy around you real eye it – until you are it. Better stay honest with yourself. And don’t educate yourself to be a better financial market participant, let alone human being, than others; there is always someone else who can do something better, as well as someone else who can do something worse. Think for yourself, just for yourself, independent of all other market guys, independent of US WallStreet, how many transactions per day, per week you feel most comfortable with. Are you most comfortable with more than one transaction per day, ie an aggressive CFD trading account? Or is a pro-active CFD trading account enough for you, like me, with only one transaction per day? And if both are too much for you, how does the idea of ​​a defensive CFD trading account with less than one transaction per day feel? The advantage of an offensive CFD trading account, with more than one transaction per day, is that with a higher number of transactions, you accelerate your own personal portfolio value development. So if you have made relatively good trading decisions (buy/sell or do nothing) so far, then a higher number of transactions than before should motivate you more. To be able to make at least one trading decision (buy/sell or do nothing) on every trading day.

And never again operate without a previously defined entry price including target price and stop price. And that regardless of the number of your transactions. Also, don’t change your approach just because of this article. Not immediately! First, think carefully about what you just wrote! Have you, if at all, always chosen your entry price and/or target price, but also stop price, in the chart for the short term on an intraday basis? Or was it enough for you, if at all, like me, to always choose your entry price and/or target price, but also stop price, in the medium-term chart on a daily basis? And if both time intervals were not long enough for you. How does the idea feel to continue to choose your entry price and/or target price, but also stop price, if at all, as always long-term chart? The good thing about an entry price including target prices & stop trips, on intraday charts, has the advantage of being able to trade (buy/sell or do nothing) even small, fast financial market price developments. So that you will realize your profits comparatively relatively quickly and frequently. The bad thing about a short-term CFD trading account goes without saying. Losses can increase quickly and frequently – not just your profits.

However, the most important thing is and remains the prior definition of the percentage of each transaction in the total portfolio value. Even if many professionals strongly disagree with me. Because if you decide to trade at a conservative 1%, then you have up to 99 times the opportunity to realize losing open positions! In the case of each transaction in the amount of dynamic 2%, you have up to 49 times the opportunity to realize losing open positions! And if you decide to trade at a speculative 3%, you still have 33 times the opportunity to realize losing open positions! Take a few days and calmly think about what you have just read? You can bet that it will question your understanding, also of your previous depot management? Think about it before you fall asleep! Because a depot, like yours, has to look like a well-organized workbench: As a CFD trading account holder, you have to know at all times: What’s there? Where is it? What is it for? And or how do I deal with each individual part of my depot? How is this to be done? Right! With the help of my 3 variables, which I didn’t invent. But for the first time I put it together in such a way that the depot management of every interested market guy, including yours, is raised to a more professional level. And above all, every market guy who has to pursue another main occupation every trading day in order to secure the livelihood of his family. Just like I did back then when I cared for my mother for 11 years because of her advanced age. And that until your last breath. And even worked at gas stations at night. Wrote nonfiction about US Wall Street by day. And while always being forced to come up with ideas while taking care of my mother. To make it easier for me to trade on US WallStreet, on the financial market, especially derivatives trading (in the form of CFDs). So that I’m now down to my 3 variables. Since you more than acceleratethe depot management of each individual – never heard of you before, let alone implemented it. So that you only need 1 to 2 hours on each trading day to be able to professionally follow the most important current financial market developments. If you go for a speculative 3% per transaction, like most CFD market guys I’ve been surprisingly told by the way, then you have up to 33 times the opportunity to realize losing open positions in a row! Think about it again for a moment? Right! Who will be wrong 33 times in their trading decisions (buy/sell or do nothing). And that in a row! I don’t think anyone can do that – and certainly not us! Or? So that, learning by doing if you will, sooner or later you will surely become a better and better speculative CFD trading account holder. Because, after one month, you should have a maximum of 66-69% of your portfolio value with open trading positions in the market, depending on how many trading days the current month has. Giving you up to 5 to 6 weeks, if at all, to start learning how to organize a full speculative CFD trading account in the near future! And then learning by doing! Which increases the learning effect; because it immediately reveals both positive and negative practical examples! What? Do you like that thought? Is your mouth already watering? You, yes you, see yourself as a speculative CFD trading account holder? Is that what you liked? Then visit my homepage and voluntarily decide for a new CFD trading account with a broker of your choice, such as »AdmiralMarkets«, »AvaTrade«, »Dukascopy«, »eToro«, »FxPro«, »InstaForex«, “IronFX”, “Plus500” and or “XM”.
DEVISE 2 DAY 48h
– My Last Thoughts About Market Price Actions

In the US, the week will be dominated by earnings reports, speeches by several Fed officials, and housing data. Investors will be also monitoring financial markets in the UK following the government U-turn on tax cuts. In China, the 20th National Congress of the Chinese Communist Party will take place and Q3 GDP growth, alongside industrial production and retail sales will be released. Also, inflation rate data is due for the UK, Japan, Canada, and New Zealand.

Nothing is to be expected from the major central banks this week – no regular meetings are scheduled for this week. Nevertheless, the focus should definitely remain on the 10-year yield on a case-by-case basis; from currency to currency. Because they high/low should more or less also determine the rhythm of the stock markets.

Also keep an eye on London! Let’s see if the Conservatives get a grip on their government this week? And then the market calms down…
DEVISE 2 DAY 48h
– Some Market Price Action News

UK Shares Trade Flat after PM Truss Resigns
Equities in London traded cautiously on Thursday, with the benchmark FTSE 100 hovering near 6,900, as gains in energy and real estate companies were offset by losses in healthcare and tech stocks. Investors are trying to digest the latest news that Liz Truss resigned as prime minister after just 45 days on the job.

Sterling Stable as PM Truss Resigns
The British pound traded just above $1.125 Thursday, after rising to almost $1.13 earlier in the session, as Liz Truss announced she was resigning as British Prime Minister following a turbulent 45 days in office which has seen a market crash and a U-turn on her budget proposals. The announcement came as Britain faces risks of recession amid political and financial turmoil, the surge in natural gas prices, post-COVID supply-chain bottlenecks and labor shortages, and as the Bank of England is seen stepping up its interest rate hiking campaign next month to combat stubbornly high inflation.
DEVISE 2 DAY
– Where I Was Wrong, Were I Was Right

In the last few weeks, I have clearly focused on the Dow Jones Future. Having briefly completed a successful long 4XSetUps Trading Capability in the somemr; I’m also a bit confident that we will be able to recover a bit in the US stock market!? How wet?! We’ll have to show that – of course I don’t know that either. Which is why I formulated a long/short Trading Switch 4XSetUps Trading capability. More about that as usual in the Technical Analysis 4XSetUps.

In USD, we got to the 9/11, 2001 level quicker than I ever imagined. It’s probably like that for most people, so I wouldn’t be surprised if we might get a short, sharp devaluation. And then again in the medium term, even in the long term, to start again at a low level. But maybe that’s just my personal, subjective, individual paranoia, due to the incredibly good development in the last few weeks and months. Therefore also place the stop price at 110 USD index points. And wait until it levels off again underneath; so that we can then go long again cheaper. Should there unexpectedly be a fight for the 110 price zone, then we remain long above the USD 110 index point.

Just like us, we remain short UKOIL below USD 100.

Regardless of our 4XSetUps, let`s focus this week also on London!
Because the problems in the British capital market could spread to other countries. One possible fire accelerator is lending — and a special class of structured securities. Last week, the chaos days in Britain continue. Prime Minister Liz Truss surprisingly fired her Chancellor of the Exchequer, Kwasi Kwarteng, on Friday, replacing him with former Secretary of State Jeremy Hunt. At the end of September, Kwarteng’s tax cut plans triggered violent upheavals on the British bond market and sent the pound plummeting. After he had already withdrawn a cut in the top tax rate, Truss announced on Friday that he would raise the corporate tax as planned. This did not reassure investors: the yields on British government bonds rose again. The Bank of England (BoE), meanwhile, seems to actually want to end its emergency purchase program for British bonds. That`s why focus on the GBP vs. The other major currencies. I wouldn`t wonder, if he creates a trend-reversal, at these crazy times. But be careful. I don’t have to be the first, let alone the last – in any trend. And above all not in the GBPUSD cross-rate, which is currently being traded around historic lows…