Also finally finished Macro-Economics for Dummies. Last topic was about fixed exchange rate systems. Didn't know that this is even possible.
I've occasionally heard the term "Bretton Woods". The Bretton-Woods-System actually was a fixed exchange rate system which was introduced 1944 with 44 countries participating.
It lasted until the 70s and actually was the reason for the creation of the World Bank and the International Monetary Fund.
Up next for the "Economic-Machine thing" is Money, Credit and Banks.
I chose a German/European version here. Even though the itch for an American version would be greater, I think it's the wiser thing to first stick to Europe.
"Who is John Galt?"
Can you help answer these questions from other members on futures io?
Maybe one ingredient to the secret sauce could be long-term thinking.
Month to month is definitely too short. It might depend on the subject, but probably year to year is still too short. Maybe 3 years or so could be reasonable?!
Looking on the economic machine, it seems that one key is to find a way to take a credit and then multiply that borrowed money more on a percentage basis, than what you pay for it.
I always thought it's foolish to go into debt in general, but it appears that it could be almost as foolish not going into debt as it is going into debt for things you don't need.
I never understood the reason behind the "credit-score-thing" in the US, but this way it would make sense. The art is borrowing from your future, not to relieve the pain of the present, but to make a better future.
"Who is John Galt?"
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Holiday in Austria today, so I was able to go back to the good old full-time days with Bloomberg, charts and reading.
Starting to track Cotton again as the first regular Future
Continued reading "The House of Morgan" by Ron Chernow. That's basically a biography of the Morgan bank and its various branches.
Chapter today was about the 1907 panic, which was actually the tipping point for founding the Federal Reserve System to prevent the every ten year collapse of the former financial system. Before that Morgan acted a few times as a type of central bank.
There's a theoretical r/r of 1:9.3 . Because of the high volatility up there, I unfortunately have to place my stop pretty tight, above the last 4h-candle, which isn't even half the day's range.
If my money management would allow it, I'd prefer a lower r/r and less stress.
But what I'm also wondering is, if that does even matter.
The thought is, that if it overall even goes lower than about 30% winrate, even with very tight stops?!
But on the other hand, that would kinda start to collide with the "random intraday fluctuations theory" I guess.
There's also a possibility, that I have to open another position because of the Double-Top, if the trade should start to work out.
The Double-Top is pretty much exact what the old-masters would probably look for. About 20% decline and about 2 months between the tops.
I start to recongize a bit the advantage of just having no time to get involved too much.
I always enter via Stp-Lmt order allowing a max slippage of 1 point.
Because of that I didn't get filled when it first crossed the entry line, which started to annoy me a bit and led to check my phone one or two times to often while working, looking if it comes back up to fill me.
It finally did, but the strain would have been way bigger and the fear of the market dropping without me would have been way higher, have I had time to watch the market constantly.
Maybe a special occurrence in this trade. Since settlement date for the July contract is on July 14th, I didn't really put much thought into that. Problem is, I've just learned that IB liquidates the position already on June 29th to avoid delivery.
So I maybe have to roll that thing over to September.
And also the Double-Top is void now, since the September contract didn't make it.
Things to note: - was tempted already on Friday in the morning, because sudden fear of the old contract drying out and giving me a horrendous slippage arose. But I knew that the possibility of making some stupid mistake, was on too high a level, so I rather wrote a plan on the weekend.
- had 1 point slippage using Market-Orders, but I deem that more favorable than trying to do something with Limit-Orders while not being able to watch the chart
- Took the profit target measured from the September-Chart, which decreased the possible profit for ~10 points = 1/2R
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Also finished the Money, Credit & Banks book.
Up next is Accounting and Balance Sheet for dummies, since I feel like I have deficiencies in the way I look on my finances as a whole and try to get them overall more organized.
