The first two weeks of the month were quiet for me with a steady decline into a drawdown of around 14%. markets were consolodating and doing nothing really.
The woes of the Sub Prime mortgage fiasco changed all that in week 3 with the virtual collapse of Northern Rock (NRK). Britains 2nd largest mortgage provider.
same old story as before, they were suffering liquidity problems all because of these clever American companies who thought it would be good to lend money to people who had no chance of paying it back.
Northern rock suffered first because mortgages were just about the only sector they were in - others have insurance business to fall back on. The bubble burst when the Bank Of England blew the whistle and told the world they had extended credit to NRK as the 'lender of last resort' - basically the death knell.
This of course caused widespread panic in the money markets this side of the pond.
Strangely enough I didnt make that much from the NRK effect but it did jolly up the markets enough for us to turn a healthy profit by month end.
The Coming Month.
I'm predicting yet more shocks in the market, in fact I think this sub prime effect will last into the new year - which is great news for us, bad news for the banks and hedge funds.
My methods thrive on volatility and we have that in spades at the moment, bring it on!
September Results:
Increase Percentage: 20.2%
Individual accounts may vary based on client’s comfort level of risk
The monitor account updates every hour and is live for the current month - you can see the last update time in the top right corner Have a look at it herePlease email me managed@simpleforexsystems.com for full details should you be interested in managed accounts.
4 comments:
Hey Soultrader,
Looks like you're doing very well this month, despite the sub-prime mess. Yeah, us Yanks did lend to too many high riskers! Is your 20% increase in your account, is that a per annum figure? It really is pretty darn good. I am trying a new Forex system that I've written a review of. Tell me what you think of it, if you have a moment. Thanks, Greg
No, the 20% was for the month :) the 128% for August was also for the month.
The 5ema system is rubbish by the way.
Hi Soultrader,
Nice to see you back on track & updates to your blog! Keep on trucking both here and on FF. Your viewpoint is well respected...
Daemien
ta matey
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