Order Of Magnitude

We feel that Interactive Brokers are hards down the best brokerage you can use as a personal investor in Canada.  Their a la carte approach to trading, news and data is appealing to those who count their dollars and cents.  Recently, however, because our entry targets have not been reached, we have been sitting on a lot of cash and not entering a lot of positions.  For those using IB in Canada, you can get your data and news covered, if you generate their cost in commissions.  Since we love our data fees, in January we came up almost $200 short, and had to pay out of pocket for data and news.  Not something that happens very often, and not something that we would like to repeat

As a result, we take a small portion of our holdings at IB, and put them to work in the currency markets.  We have never been successful at long term trading the currency markets, but short term, we can usually turn a small profit, or break even.  This is great, as a few hours of trading currency swaps can generate enough commission charges to pay our whole month of services.

Since the Fed is going to do something to the markets tomorrow, and the majority of participants are likely to get hurt, we decided to spend tonight trying to pull in a small profit on the Forex market.  The usual setup, is to drill down from long term to short term and determine price targets and ranges.  Most nights, after the preparation is done, the remainder of the evening is waiting for price to bounce off, or cross any of the targets that have been set.  Tonight was different, and instead of having to spend the evening waiting for something to happen, a lot of price targets were hit immediately.  We thought we'd share what we usually stare at while we are trading currency, here's a shot:

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