Monday, September 14, 2009

Action 20090914: Short CPO Future Nov 2009 Contract

(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: 14 Sept 2009 (Day 1: Open Trade)
Action: Short CPO Future Nov 2009 Contract
Long Price: 2092
Volume: 1 contract
Initial Stop Loss: 2125 (6 points above today's high of 2119)
Reason To Short:
1) Price stayed below moving average of both high & low
2) Price formed bearish engulfing candlestick pattern
3) Stochastic is still down indicating price is still in down trend mode

Date: 16 Sept 2009 (Day 3: Close Trade)
Action: Long to close position
Shorted Price: 2140
Loss: RM 1250 ( 2140-2092+2=50 points )
Reason to close Position:
1) Price went above my stop loss level 2125 and I closed at the open this morning at 2140.
I have been lossing for the last 3 trades. I did what I supposed to do. I followed my trading rules. It did not work at my favour, so I will have to be calm and keep on trying as long as I follow my rules.
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 37,350 as deposit and now RM 36,100 after the loss of RM 1250
Please refer to 'My Future Trading Account Records' for details.

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