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Update: 6th October 2017

So as those of you who are in the Whatsapp chat know, I was contacted about my scheduled webinars on the blog when I last updated on the 20th of August 2017. Apparently my former employer considered that this violated my no compete clause and I received a formal letter of notification informing me to cease my activities until this timeline expired.

Now personally, I did not think posting a market overview on my community blog qualified as competing with a top 100 global financial institution or competitive consulting for rivals. However, with so much going on and the risk of having to surrender my end of service benefits package, something I could not afford to do, I decided the best course of action would be to comply and remain inactive till the expiry date. Hence to avoid any unpleasantness, I simply didn’t log into the blog until this morning.

I also want to clarify that I hold no grudges against my former employer. They were very good to me and I have no complaints about them, only admiration. In fact I am sure they only reacted because a former colleague made a big deal over everything and I wish to say one last thing on this matter before moving on. I would like to state to my former colleague that I feel their actions were petty. It didn’t benefit you at all and just frustrated a lot of people. You should be happy when someone you worked with for so long and whom you had lunch with almost every day empowered themselves and took the bold step of going forward and chasing their dreams. You embraced me on my last day, said all of your prayers were with me and you admired my courage, only to make trouble for me the next day. I forgive you, but it was a really low thing to do. I really hope you don’t experience the same betrayal one day.

Moving on, for those of you who are curious as to what happens next, I am now pursuing my interests full time. I am that stage in my life where if I do not, I will never get another chance and will regret it later. There are many things I regret, but to live regretting something I had control over but not the courage to change is something that I do not wish to add to the list. Time wasted is something that can never be replaced and I am done allowing fear of the uncertain letting me waste any more of my time. So what is the best way to explain what happens next? To keep things as short and clear as possible, I will address what I think the key questions of the community are:

  1. What are you doing next?

I have launched a new project in partnership with two friends (Three when FCA regulation finally gets completed, as one is based in Spain). The project will be based on the usual ambition of FX spot trading. You can find more information at http://tajaraz.com

I have coded and launched a solo project to be an open platform to share intra-day updates on currency pairs etc. It was originally hosted on a separate domain which I was given for use of testing etc. I have now migrated it to: http://marketideas.org

I feel this is more appropriate to the spirit of the community and look forward to providing regular multiple day updates on the platform starting from next week. I hope to see many of you there. Naturally my principle focus will be on FX, but I added stocks and cryptos for those who have interest in discussing those.

  1. What are your investment plans?

I will be trading full time from now on, but with a different strategy compared to when I was part time. Let me clarify what I mean. Rather than trying to get financial freedom via making a lot of money over a two year period and then never working again, I am going to trade as my main source of income over a longer period of time. I understand this means many more years of work, but at the same time, I realise that it will still make me my own boss and give me freedom from the 9-5 routine that has been my life for more than the last decade.

Having before made a life changing amount in a short period of time, I do believe it can be done again, but the risks are just too high. It is not as easy as it was in 2015 when there was far less uncertainty.

Consider our last misadventure when a random comment from Amundi fund managers wrecked our positions over a 10 minute period for the price to change afterwards and fall 2 big figures over the remainder of the day. The result of this? Lost a few hundred thousand dollars instead of making nearly 2 million. I’m sure nobody has forgotten this incident, the pain was made all the worse as it happened right in front of our eyes.

The fact remains that with so many unknowns now, such as what Trump will tweet next and currency manipulation from a certain trio, volatility makes the risk vs reward outcome of high leverage trading less attractive and more risky. These days a 60 pip SL can get hit and reverse in moments after an unscheduled comment, data leak or institutional report.

With this in mind and considering I am trading with a larger amount this time, rather than aim for 4% gains every week, I will aim for 25%+ a year. I know this is far less ambitious but it allows me to avoid mass exposure to the random volatility and market unknowns. Some might say that this is a sign that I have given up on my dreams, however another way to see it is that I started looking at the bigger picture. As I will not have a second source of income to fall back on if this doesn’t work, I can not longer walk onto the trading floor saying “I accept that this may all be lost”. I need to be far more defensive than that. This time round, I am not looking to make a few million over a two year period. I am aiming to generate a comfortable income, to replace that of a qualified job, over a 15 year period, ideally withdrawing some of the profits every month, rather than leaving everything in the powder keg over a two year period. If I do better than this, I will be very happy, but anything above 25% a year will be considered a bonus rather than part of the plan.

  1. What happens to the community?

A.) Communication:

I intend to keep this site up as a reminder to myself but going forward my main communications will be via the fortnightly Tajaraz newsletters (do please sign up) and daily discussions on the new Market Ideas community site. My partners and I feel that this is the most professional way going forward and also a better and faster way to exchange organised market information and insights. It also gives everyone the opportunity to contribute and discuss, which I feel will add a lot of value. It provides the ability to do multiple updates a day rather than one every few days and being multi platform, I can access it even on the road.

I also have renewed my ZOOM premium subscription for another year as I have every intention of doing webinars from the new site. Also someone has to stay on Carney’s and Kuroda’s case….

B.) The MAM:

As you might have guessed from reading above, I intend to fully continue with the same MAM at Pepperstone. My honest to God intention was to wait until I had my retail FCA regulation and could be compliant with CF 30, but unfortunately despite lots of forms, assessments and even hiring firms to help with the paperwork, delays keep coming up. What is frustrating about these delays is that they are bureaucratic in nature. i.e. Its not a matter of not being qualified but simply being constantly asked to wait 3 months for this form to be processed, and 3 months for that one etc. In short, I can not keep waiting as delays come up and costs mount up.

If I sit idle and wait until everything gets completed (and it will get completed) then all the funds I saved the last few months with my end of service benefits payout (and no that doesn’t mean dole Mike Simmons!) will be eaten up and I will not be able to proceed forward as I intended.

The only way to do this is to compromise, which I know was not the original plan, however it is the only viable option. As it stands:

  1. The MAM account exists.

  2. Non EU residents can make accounts and sign up at http://tajaraz.com if they don’t already have an existing MAM account with the original fund. (For reasons of fairness I insisted we use the same MAM so that people who lost previously will not get charged a success fee until they are past break even – that is the right thing to do).

  3. Currently there are still 15 EU accounts which still exist as the circumstances under which they were made makes them eligible. Therefore, if you are one of the 15 who still has the MAM account showing when you login, you are able to participate (should you chose).

  4. Tajaraz will start operations on the 16th of October 2017 as a full time venture.

  5. Those eligible will be able to join at this time or before (the Non EU residents and 15 existing EU accounts).

  6. Until we get licensing, so people can follow and not miss out, I will post actual real time screen shots from the MT4 every-time we make, close and update a trade so that they can copy it themselves until the pen pushers at the FCA finally stamp all the forms. Once again, I know this is not ideal, but I am trying to do the most fair thing under circumstances that I do not have control over.

I hope this answers the main questions as I need to stop typing now. If I do not, this will likely turn into another 30 page publication. Please wish us all the best of luck.

Best Regards and Love,

M

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