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.
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

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