Tuesday, June 30, 2009

Action 20090630: Short CPO Sept 2009 Contract At 2236

(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: 30 June 2009 (Day 1: Open Trade)
Action: Short CPO Future Sept 2009 Contract
Long Price: 2236
Volume: 1 contract
Initial Stop loss: 2301 ( 7 points above high of 2294 )
Potential Loss Amount: RM 1675 ( 65+2=67 points above my entry point )
Reason To Short:
1) Price broke below 2242
2) 4 Hourly Stochastic is now down
3) Price is also below both moving average of high (Green Line) and low (Purple Line)
I am using 4 hourly chart to decide on my trading. I am not really comfortable with this trade, as there is high chance that stock markets worldwide will try to maintain at high close for middle year window dressing at least for today. I have to be very cautious on this trade.

Date: 1 July 2009 (Day 2: Close Trade)
Action: Long To Close CPO Future Sept 2009 Contract
Longed Price: 2271
Volume: 1 contract
Loss: RM 925 ( 2236-2271-2 = 37 points )
Reason Of Short To Close Position:
1) 4 Hourly Stochastic is now up from bottom
2) Mini down trend line (in green) is broken
3) Stocks markets are positive specially Malaysian market
My Comment:
I closed the position as everything seems positive. There is no reason for me to risk further. I don't care what the direction the price is heading to. It might goes down. Closing the current position and wait is the only way for now.
1. One points of CPO Futures = RMRM25
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 RM 36,575 as deposit and now RM 35,650 after the loss of RM 925

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