Friday, May 22, 2009

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.
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

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