Sunday, July 26, 2009

Action 20090724: Long CPO Future Oct 2009 Contract at 2124

(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: 24 July 2009 (Day 1: Open Trade)
Action: Long CPO Future Oct 2009 Contract
Long Price: 2124
Volume: 1 contract
Initial Stop loss: 2053 ( 3.5 points below moving average low of 2056.50 )
Potential Loss Amount: RM 1825 ( 71+2=73 points below my entry point )
Reason To Long:
1) The price closed high and closed almost at the high showing candlestick bullish engulfing pattern (4 hourly chart)
2) The price also stayed well above moving average high and low (4 hourly chart)
3) 4 Hour Stochastic is about to turn up
4) The price stayed above daily moving average for both high and low
5) The daily Stochastic is still up
1) In time of writing this article, the bean oil future was down more than 2% as at Friday (24 May 2009)

Date: 25 July 2009 (Day2: Holding On Trade)
I changed stop loss to 2059 which is 4 points below the low of moving average low (in blue).

Date: 31 July 2009 (Day 4: Close Trade)
Action: Short To Close CPO Future Oct 2009 Contract
Short Price: 2192
Volume: 1 contract
Profit: RM 1650 ( 2198 - 2124 -2 = 66 )
Reason Of Short To Close Position:
1) 4 hourly Stochastic is at very overbought area and starting to go down
2) The price failed to maintain at the high, in fact it went below the today's opening price 2198

1. One points of CPO Future = RM 25
2. Commission needed for buy and sell is RM50 so we need 2 points to break even
3. Margin (Minimum Deposit for holding overnight) = RM 8000
4. I have RM 35,550 as deposit and now RM 37,200 after the profit of RM 1650

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