Managed Accounts

I recently launched my managed accounts program via SmartTradeFX. While details are being worked out on the minimums and such, results will be posted in early March once I complete my trading for my first month as a professional.

While I have been trading for a while, I stayed away from managing accounts for the time being while I was developing my craft.

I will start posting my weekly returns starting this Friday, if you are interested in having your funds managed I will post contact info soon

You get what you pay for, even in a broker

I recently noticed the different levels of service you get with FX brokers. The big companies treat the average client like a nuisance, while the bucket-shops are only focused on how much money you will deposit with them, and its very high pressured. I recently experienced that while I was looking for a broker, and once the pressure started I took it as a sign to back up and check out more on the company. I checked the ForexPeaceArmy.com and found out that had I sent my money to that company, I would never see it again. After more research I found out a broker called smarttradefx , the service was very polite, informative and pleasant. My emails were responded to promptly, and all my questions were answered, it seems to me like I am not the only one to experience this, as all their reviews keep mentioning that as well.

I know it might sound a little biased, as I am now an Introducing Broker for SmartTradeFx, but then again, would you partner up with someone you were not happy with?

I am back

I took a break for the fall, as I spent most of my time trading forex.
Its harder then I thought, and frankly I lost a lot at first. But then it finally turned around and I am now happy to report I am finally making money consistently.

I opened accounts with a few brokers, but the one that really impressed me was SmartTradefx.com .
A Canadian company, which has great spreads and excellent customer service, and just far enough from the US regulations. I have recently signed up as an IB for them and currently working on developing a webpage to help out clients.

check in often.

Interest rates vs inflation.....

There is a huge question that is brewing behind the scenes, when do we raise interest rates? Some analysts are saying we should raise them now, to avoid inflation spiralling out of control. However should the rates be raised now, we are going to throw cold water on the economic recovery, and risk the economy falling back into the recession. However should the FED wait until the economy is stronger, we risk losing buying power to inflation.

I personally think that we need to wait, as raising interest rates now would break the housing market, and cause major havoc on the financial industry which the FED has been working overtime to save. While inflation could be painful in the future, by being preemptive we are hurting the present.

- Arthur Smelyansky

Overblown economical hype

It seems like over the last few days investors have lost their minds. the SP500 is up more then 7% in a week, on mediocre economic news that point to the fact that the recession is not as bad as previously expected. Thank god for this mornings Bernanke testimony, to pour some cold water on the lemings.
Of note the SP500 pushed past the 950 mark for about an hour before getting slammed down again. Analysts are paying close attention to this number, as most predict that this is where the summer time rally will stall. There is a lot of money tied to the options around this number, so it will be very interesting to see just who will win this battle. A piece of advice to the average investor, sometimes its wise to pass.


- Arthur Smelyansky

A blow up is just around the corner

CIT group, which lends money to retailers, is on a verge of bankruptcy. Should it fail, it will be the largest bank failure ever, with more then 70 billion in assets. The company has already been rejected for a bailout, and the clock is ticking. If you think the credit markets froze when Lehman brothers failed, you have seen nothing yet.
This has the potential to devastate the whole economy.

There is a last minute effort to convert their debt into equity, however with mixed stories of exactly how much they need and by when is making this last minute attempt very difficult.

The fall out from this failure is going to be huge, should CIT file for chapter 11 bankruptcy, look for the financial and retail sectors to really take it on the chin the next day.


BTW and on top of this we are facing the sp950 hurdle, which many analysts are predicting is where the market will end the latest rally.
- Arthur Smelyansky

Investors must be pretty desperate when they bid the market up 2% on news that the industrial production didn't cut back output as much as initially expected. It seems like everyone is trying to catch the bottom of the economy, so they can ride the recovery to the top. The problem is catching a bottom is like catching a butcher knife thats falling by the blade. Lots of blood will be shed, and many will regret it later.

My advise for now, is to buy some Treasury Inflation Protected Securities. Because if history taught us anything,is that when interest rates are at an all time low, inflation is bound to spike at some point.

- Arthur Smelyansky D.M.S.