Wednesday, May 27, 2009

Action 20090525: Short CPO Future Aug 2009 Contract At 2445

(I am recording my trading. The followings are my trading actions and records. As good traders, we should keep a good records of all the details like points of entries, reasons of the actioin;long and short, stop loss levels, profits and loss and commands etc. )

Date: 25 May 2009 (Day 1: Open Trade)
Action: Short CPO Future Aug 2009 Contract
Shorted Price: 2445 (at the close)
Volume: 1 contract
Initial Stop loss: 2565 ( 120 points above my entry points = RM 3050 losses)
Reason To Short:
1) Price is below the up trend line (in green)
2) It also broke below the recent low of 2480 (21 May 2009)
3) Price is below both the high and the low moving average
4) Daily Stochastic is already down for sometime
My View:
I am really not convinced the shorting as the shorted price turned out to be the lowest of the day at the close. I should have just short it earlier. I am watching very closely with the stop loss level of 2565 from now. The trend is obvious down but there will be bound from time to time. Higher to further sell is my way.

Date: 26 May 2009 (Day 2: Moved Down Stop Loss)
Stop Loss Moved down to 2518 which is 10 points above the moving average high (2508).
I am using 4 hourly chart shown above.

Date: 27 May 2009 (Day 3: Close Trade)
Action: Long To Close CPO Future Aug 2009 Contract
Shorted Price: 2425 (at open)
Volume: 1 contract
Profit: RM 450 ( 2445-2425-2 = 18 points )
Reason Of Long To Close Position:
1) Crude Oil Future broke new high last night
2) KLSE Composite Index also broke new high this morning
My Comment:
I closed my position at the open given the reason of the crude oil futures broke new recent high last night. The profit is small but at least positive. Markets over all looks strong or at least consolidation. CPO Futures will rebound here a bit and I am ready to short when opportunity comes.
Note:
1. One points of CPO Future = RM25
2. Commission needed for buy and sell is RM50 so we need 2 points to break even
3. Margin (Minimum Deposit for holding overnight) = RM8000
4. I have RM33,150 as deposit and now RM33,600 after the profit of RM450

Friday, May 22, 2009

Shorting Climate For CPO Future Index


Date: 20090521 It looks like this is time time to be ready to short the market based on the close of CPO August 2009 Future Contract which closed at 2499 broken the low of 2513 registered on 18 May 2009 (reason 1). The daily stochastic has been down (reason 2).
My strategy: I will wait for a rebound if possible touches the lower line of moving average (purple line) and place my short order.

Action 20090519: Long FKLI May 2009 Contract At 1028

(I am recording my trading. The followings are my trading actions and records. As good traders, we should keep a good records of all the details like points of entries, reasons of the actioin;long and short, stop loss levels, profits and loss and commands etc. )

Date: 19 May 2009 (Open Trade)
Action: Long Future Index May 2009 Contract
Shorted Price: 1028 (at 4:55pm)
Volume: 2 contract
Initial Stop loss: 1012 ( 16 points below my entry points = RM1600 losses)
Reason To Long:
1) Price broke above the moving average of the low (purple line)and the high (green line)
2) Daily Stochastic has just turned up
3) Markets of the rest of the world are all bullish. ShangHai Stoch Exchange, Hang Seng, Sensex are all broken recent high
4) Our local traded volume remain high; 1.75 Billion
My Comment:
In trading, we really have no idea what the real direction of the market will be. It will be very wrong to use our opinion to trade the market. Everything might seem turning bearish but it usually is not true.
Remember: let the markets tell us what to do.

Date: 21 May 2009 (Close Trade)
Action: Short To Close Future Index May 2009 Contract
Shorted Price: 1038 (at 12:10pm)
Volume: 2 contract
Profit: RM 900 ( 1038-1028-1 = 9 points )
Reason Of Shorting To Close Position:
1) It broke below the moving average lower line (purple line)
My Comment:
I do not have a strong reason to close my position actually as the daily stochastic and even stochastic of 15 minute chart are still bullish. Further more, the price broke yesterday high. I close it for reason of confirming my profit.
Note:
1. One points of FKLI (KLSE Future Index) = RM50
2. Commission needed for buy and sell is RM50 so we need 1 point to break even
3. Margin (Minimum Deposit for holding overnight) = RM3000
4. I have RM 32,250 as deposit and now RM 33,150 after the profit of RM900

Monday, May 18, 2009

Waiting to Short Future Index


Date: 20090517 Still Waiting and Watching
I am still waiting for the KLCI to close below the moving average both the high (Green Line) and the low (Purple Line). Both Daily Stochastic and Weekly Stochastic are now down. Shorting seems to be a better chance of making big buck. However, if the price keeps going up and breaking the recent high, I will turn long again. I am using KLCI as reference to decide on my long and short actions of Future Index




The bull have been strong up till now. There no sign of weakening except that Daily Stochastic and Weekly Stochastic (refer to KLSE Daily and Weekly chart). And also index hold well above the moving average (the high and the low).
I will base on the KLSE composite index as reference for my future shorting action. If index breaks below the recent daily low of 1013 registered on 12 May 2009, there is high chance that the trend will turn down. I will short future index. A piece of FKLI chart is attached for reference.
Of course, this action of shorting has to be temporary as the overall trend is still up. A close stop loss should be used.

Thursday, May 14, 2009

Action 20090511: Short FKLI May 2009 Contract At 1015

(I am recording my trading. The followings are my trading actions and records. As good traders, we should keep a good records of all the details like points of entries, reasons of the actioin;long and short, stop loss levels, profits and loss and commands etc. )
Date: 11 May 2009 (Open Trade)
Action: Short Future Index May 2009 Contract
Shorted Price: 1015 (at the close)
Volume: 1 contract
Initial Stop loss: 1042 ( 4 points above the 1038 High on 7 May 2009)
Reason To Short:
1) Daily Stochastic is now down
2) It closed below the low of 1018 registered on 8 May 2009
3) KLCI opened high closed low with larger volume (please refer to chart)
Comment: I am not totally convinced with the short as the market is still very bullish. Many counters still broke their high even today. The future index price still closed higher than the moving average high (in green line). So I decided to trade one contract only.


Date: 13 May 2009 (Close Trade)
Action: Long to close position
Price: 1025
Reason Long To Close Position:
1) Broke The Resistant of 1024 based on 30 minute chart
2) Price hold well above the moving average high (in green line) in daily chart (refer to daily chart)
3) The price initially broke the low of yesterday but rebounded strongly
4) Many active stocks went up strong in the afternoon section
5) The overall trend is still very bullish. There is no reason for me to risk further.
6) The overall volume is still big; 2.205 billion


Comment:
I was right at the time of the decision for shorting as markets seemed overbought and started to weaken. But the markets rebounded strongly worldwide this afternoon actually. Anywhere, the price still can go either way, but there is no reason for me to risk. Further more, I have 6 reasons to close the position. What can I say?
I lost 3 trading consecutively and I am ok with that. I consider them as small loses.

Note:
1. One points of FKLI (KLSE Future Index) = RM50
2. Commission needed for buy and sell is RM50 so we need 1 point to break even
2. Margin (Minimum Deposit for holding overnight) = RM3000
3. I have R 32,800 as deposit and now RM 32,250 after the loss of RM550

Wednesday, May 6, 2009

Action 20090506: Short CPO July 2009 Contract At 2653

(I am recording my trading. The followings are my trading actions and records. As good traders, we should keep a good records of all the details like points of entries, reasons of the actioin;long and short, stop loss levels, profits and loss and commands etc. )


Date: 06 May 2009 (Open Trade)
Action: Short CPO July 2009 Future Contract
Shorted Price: 2653 (at the morning close)
Volume: 1 contract
Stop loss: 2685 ( 9 points above the 2676 High )
Reason To Short:
1) The Daily Stochastic (daily trend) is down even though stochastic 30 minutes chart is still up
2) The price hit the moving average high from the low, there is high chance that the price will fall
I will trade in very short term, so I put stop loss based on 30 minutes chart

Date: 06 May 2009 (Close Trade)
Action: Long to close at 2674
Longed Price: 2674
Volume: 1 Contract
Loss: RM575 [ (2653-2674-2) x RM25 ]
Reason To Long (close):
1) All the markets including stocks and shares, currencies and index futures are pointing up. Since I am in short term - intraday, I just closed my short position and I loss RM575 including charges.

Note:
1. One points of CPO Future = RM25
2. Commission needed for buy and sell is RM25 so we need 1 point to break even
2. Margin (Minimum Deposit for holding overnight) = RM8000
3. I have RM33,375 as deposit and now RM 32,800 after the loss of RM575

Tuesday, May 5, 2009

CPO Future Is In Volatile Phase



The swing of the prices of CPO Future (July 2009 Contract) had been wild and with the up gap and down gap, the market is volatile. This could mean the end of the up trend. Of course, confirmation is needed. I will watch and see in the next fews for direction.
The weekly chart is now bearish, then again there is not confirmation also. I am getting ready to short. These are for position trade; that means holding over night.

For now, I will look into 30 minutes chart for intraday trading. I will try not to have any position at the end of the day.