NipThePips road to Professionalism

Hey everyone,


After almost 2 years of studying forex, and practing with personal funds and also friends and family funds, My business is finally going to become incorporated this year (at least that is my goal). To avoid confusion I am not going to say much about it so people wont think I am advertising.

The Reason I am incorporating is actually several things. But the main ones are:

1. I am up to almost 15 accounts that I am managing, all with very satisfied clients (even though they are just family and friends) and in the event of any bad things, I would like to protect my personal assets etc.

2. Last year, I netted about 727%. That is a conservative number, it is not including expenses that I had to take out for computers, to live, etc etc etc.

3. I want to have "Inc." by the business name I dreamed about for several years, and to see it actually come to pass will give me a great great sense of accomplishment.

4. One day I do want to trade for strangers...

The list can go on and on.


But anywho, I am using this year to develop some more track record, work out kinks, gain more experience etc etc.

And for those that are wondering, I am not starting a Hedge fund, I am simply managing people accounts in different risk factors (which will be my products) and offering other manage account services that my qualifications will allow. As I get more qualifications my services will expand.

And the purpose of this journal is to simply post trades I take and the progress of the development of my corporation. I am not sure if it is allowed, but maybe details about it in the future as things finally get organized.

I am accepting of all advice, support, nay sayers anything. All input will help me, it will allow me to look at things that I might of missed.

If you have any expierence in what I am doing, your advice is invaluable to me...I would greatly appreciate it.


So please post all questions comments or anything here. I would really like that.


The way that the main posts are going to be organized is similar to another journal I saw earlier:

1. trade #
2. pair
3. short/long
4. Entry price
5. s/l
6. original take profit


If I modify the stop or anything about the trade

1. trade #
2. pair
3. MODIFIED s/l
4. MODIFED t/p


After the trade closes

1. trade #
2. pair
3. short/long
4. net pips after closing
5. R (net pips/original pips risked or 6/5)
6. number of winning/losing trades

And then under some post I will post updates on the development of my corporation.

The system I use is mostly all technical. It focuses on support resistance, change of trend, and some strength analysis. My system even though can be mechanical, works better with descrition. The reason I am not posting it, is because I feel most of my trades are succesful because i believe i am developing that feel for the ART of trading.

But, if it is requested in the future, I will be glad to post some details. But know, 2 people can trade the same system, and have totally different results

The pairs that I focus on is GBP/USD, and EUR/USD..they are the only 2 i need. When I expierment with other styles of trading I might add pairs.

Thanks for reading that long post lol. And I hope you enjoy my journal


Nip

****YAY 200th Post!!!****

Even though this trade already happened, it was my first trade of the year, and I wanted to start the journal somewhat even. In the future the post will be made as soon as I place the trade on my accounts.


1. Trade number 1
2. GBP/USD
3. Short
4. Entry 1.9682
5. S/L 1.9712
6. T/P 1.9470

I entered this trade around 4AM EST

I have since modified to the following:

1. Trade Number 1
2. GBP/USD
3. When Price reached 1.9639 Stop was moved to +10 and trailed 40 pips (Currently 1.9530)
4. TP: 1.9320

Currently up +169 Pips

Chart:
http://img246.imageshack.us/img246/9...ade1id3.th.gif


Update On Corporation Development.

My business name is currently being checked to see if it is already taken. Also I have inquired about corporation services from a service provider. I am in need of legal help as far as business liscense and things like that, so I am currently looking for a lawyer and accountant to have a consulation with. I want to make sure everything is legal


Hope you enjoy the post

****Closed Trade!!!****

1. Trade Number 1
2. GBP/USD
3. Short
4. Closed at 1.9525 +157 {o[s
5. R= 157/30 which is about 5 to 1
6. 1/1 trades are winners (100%)

Good luck on your journey. You and I seem to be traveling parallel roads. I hope all goes well for both of us.

so why not start a hedge fund? If you are already managing several accounts, i think a hedge fund will reduce a lot of nitty gritty work. Less headaches

Hedge funds are more regulations, more laws, and more responsibility.


But eventually I might become a hedge fund. Its just, until I get everything settled, I am just going to continue to manage accounts.

But yea, That is a goal in the future

Me too.

Nip,
Have you considered setting up an LLC? It is much easier to mange (taxes, paperwork, etc) than an S corp.

btw, what percentage of profit have your clients agreed let you have for your efforts?
Do you use PAMM software?

Thanks,

I have considered LLC, but LLC does not allow business credit, and does not allow the coporation to act as a sole legal entity...correct? And I wasnt thinking S Corp, I was thinking a regular C Corp. Is there something I dont know? I want to be able to lease an office, get credit etc in my corporations name, once i build my business credit...will I be able to do that with a LLC?

Since all of my clients are family and friends I only allocate 30% of profits. When I actually go into business, depending on the forex product (risk profile package) you agree on will determine profit sharing.


My broker should have PAMM at the end of the month they said. Currently I have to toggle between accounts, but I only have to do this for a month. I use to use IBFX and they had PAMM.

Hi Nip,

I'm a little green on how hedge fund managers work. You manage 15 accounts, and when opportunity comes for a good trade, which account do you trade? Or is this PAMM software allows you to trade all accs at the same time ?
You mentioned that at this time you have to toggle back and forth between accounts, suggesting that once you see a potential trade and decides to jump in, you have to enter 15 times, for 15 accounts right?

And I'm also curious to know, did you insure them of their funds, at least to a certain amount, in the case of losses? How often do you provide update for them on the acc balance?

Thanks for your answer.

Yea when I had PAMM it allows you to trade one master account, and allocate the risk between all of your accounts. So you just have to trade the one master account.

Unfortunately until my broker impliments PAMM all the way, I have to toggle. They said it would be by the end of this month. So 15 times is correct . This is not going to be a highly active trading month because of that though.

Also, I programmed my own database that I keep all my records in that say how much I should of made that month from thier account, how much thier profits should be, where to send profit payments (if requested) etc. But that is because I plan on using it for my company.

Nip,
So what made you change from IBFX? And who do you use now?

I feel I'm going the same way except I'm just starting at this point and I need more time to prove to everyone that it's not beginners luck.Been trading live for about 4 months and lost up to 70% of my capital but my last 70 trades have been dead on.If I can keep this up for about 6 more months,so they say,then it's not a fluke. I'll then be knocking on everyone's door in my family tree.
Please keep us informed from time to time about your progress.Also I just want to know what is the reasonable return rate to solicit to clients .

I only left IBFX because of thier spreads and style of broker they are. I actually like them a lot, and I still have a decent size account with them. I use them for testing and modifying my style of trading and also my carry trades. Plus with thier debit card option they are extremely convient.

Within the next month, all my accounts will be transferred to EFXG. But only a portion, because I want to see how they work out.

My biggest draw down was only 40% of my account, but i got it all back in 2 days (not by the most respected way, but I traded it back up never the less). I had to show my family about a years worth of my personal account. But I showed them a very impressive year...if you go to strangers they are going to want to see 3 impressive years constantly. My family just trust me. and when they see 1000's% return a year, they are willing to take that risk. Strangers dont care about 1000's% more than consistancy. And that is what I am working on now, developing a 3-5 year consistant legal track record.

You say your last 70 trades been dead on, I hope that click happen so now trading comes easy to you. I hope the rest of your year is dead on..make 2007 your prove it year.

I charge my family 30% of PROFITS. But I hear that most managers charge 50%+. The actualy price I am going to charge when I incorporate is not yet known.

****Trade Number 2!!!****

1. Trade number 2
2. GBP/USD
3. Short
4. Entry 1.9475
5. S/L 1.9520
6. T/P 1.9420

I entered in this trade after it broke lower support after a long consilidation. It hasd support around 1.9479 and i waited for a significant break of it.


Lets see how it goes


EDIT:

Here is the chart I entered based of. I am still in trade btw.

http://img518.imageshack.us/img518/4...ade2ct0.th.gif

****Modified Trade!!****

1. Trade Number 2
2. GBP/USD
3. Stop moved to +10
4. TP: 1.9320

Since trade showed great downward movement, I modified the Takeprofit to the next support point.

I also secured profits, so now I can rest easier

I like your thread... and congratulations because you are actually doing something that I think we have all eventually want to aspire to....

By the way nice call on that earlier move...

I also got in on that break but didn't get an entry until 1.9447... Just wandering if you don't mind explaining how you got an earlier entry?

The indicator below gives me great support and resistance default settings should work


What I did earlier was waited for the price to break below support by like 5-10 pips. Also I made sure it was under all my EMA guages. Stochs MacD and RSI were bearish. So as soon as it broke support I entered the short trade. My TP are based future supports and resistance.

****Closed Trade!!!****

1. Trade Number 2
2. GBP/USD
3. Short
4. Closed at 1.9425 +50
5. R= 50/45 1.11
6. 2/2 trades are winners (100%)


Price could not handle my first Take profit which was at the next support after entry. It played around with it and bounced back up to the 20 level (which is a significant psychological level). I figured it is probably just retracing from a strong decline. Technically I would still be in this trade. But using my judgement, I am going to take profit now and wait for a break of 1.9410ish or 1.9610ish which ever comes first.

Great trade...lasted a good hour or so. I am bout to lay down now. I have my alarm set on meta trader for any significant price moves. Will be back if anything happens.

CHART:

http://img456.imageshack.us/img456/4...loseyc5.th.gif

I tend to have trouble explaining things in writing, so if you all have any questions just ask.