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)
Comment:
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.
Note:
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

Thursday, June 25, 2009

Action 20090625: Long CPO Sept 2009 Contract At 2288

(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 June 2009 (Day 1: Open Trade)
Action: Long CPO Future Sept 2009 Contract
Long Price: 2288
Volume: 1 contract
Initial Stop loss: 2261 ( 6 points below today's low of 2267 )
Potential Loss Amount: RM725 ( 27+2=29 points above my entry point )
Reason To Short:
1) Daily Stochastic is now up from oversold area
2) Price broke the high of two days ago; 2299 (23/06/2009)
Profit Target: 2365 (Moving Average Higher Line - Green)


Date: 26 June 2009 (Day 2: Close Trade)
Action: Short To Close CPO Future Sept 2009 Contract
Longed Price: 2321
Volume: 1 contract
Profit: RM 775 ( 2321-2288-2 = 31 points )
Reason Of Long To Close Position:
1) CPO Price went higher than yesterday high (2340) but failed to stay at the high; The market could be weak.
2) Based on 4 hourly chart, the stochastic was at overbought area and started to break down.
3) There is no good reason to risk over weekend.
Note:
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 35,800 as deposit and now RM 36,575 after the profit of RM 775

Tuesday, June 23, 2009

Handling Missing Trade

It is hard to handle the emotion side of ourself when we miss the major movement of trades. Like the recent selling down of both stocks market of KLSE, KLSE future index and CPO future index. I was very tempted to short the future markets even when they are where oversold at one point. What guide me through the emotion part of myself was the pre-determined trading rules.
It is important to have our own solid rules (tested overtime) in the business of speculation; trading. The rules that you have been proven working for ourself. Of course, setting up trading rules require hard work; doing lot of testing (paper trading), reading books of successful traders like Jesse Livermore, attending seminars etc.

Saturday, June 13, 2009

Candlestick Chart Better Than Bar Chart

I always believe in candle stick chart than bar chart as candle stick chart has clearer picture of the price action than bar chart. Looking the two charts below (KLSE Monthly Chart); one candlestick chart and the other one bar chart, the appearance is obvious.


For more information on the candlestick chart, I found a site that are very informative.
click here

Sunday, June 7, 2009

Action 20090605: Short CPO Aug 2009 Contract At 2520

(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: 5 June 2009 (Day 1: Open Trade)
Action: Short CPO Future Aug 2009 Contract
Shorted Price: 2520 (at the close)
Volume: 1 contract
Initial Stop loss: 2617 ( 6 points above the high of 2611 on 5 June 2009 )
Potential Loss Amount: RM2475 ( 97+2=99 points above my entry point )
Reason To Short:
1) Daily Stochastic is now down
2) Candle Stick Pattern: Bearish Engulfing (open high and close low)

Date: 8 June 2009 (Day 2: Close Trade)
Action: Long To Close CPO Future Aug 2009 Contract
Longed Price: 2460 (at the close)
Volume: 1 contract
Profit: RM 1450 ( 2520-2460-2 = 58 points )
Reason Of Short To Close Position:
1) Based on 30 minutes chart, the stochastic is at where oversold area
2) Based on 30 minutes chart, the price have continues 6 black candle in a row. The very next bar could be up. So it seems that closing the position and confirm the profit is the way to go.
Note:
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 RM34,350 as deposit and now RM 35,800 after the profit of RM 1450

Thursday, June 4, 2009

Action 20090604: Long FKLI Future June 2009 Contract At 1068

(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: 4 June 2009 (Day 1: Open Trade)
Action: Long FKLI Future June 2009 Contract
Shorted Price: 1068 (at the close)
Volume: 2 contracts
Initial Stop loss: 1046 ( 5 points below the low of 1051 on 4/6/2009 )
Potential Loss Amount: RM2400 ( 22+2=24 points below my entry points )
Reason To Long:
1) Price is still above the up trend line (in green)
2) It is a bullish engulfing pattern; open low and close high
My View:
I am going for a short term trade meaning that I will cash out when I had profit. I am not hoping for a big profit for this trade.

Date: 5 June 2009 (Day 2: Close Trade)
Action: Short To Close CPO Future Aug 2009 Contract
Shorted Price: 1076.5
Volume: 2 contracts
Profit: RM 750 ( 1068-1076.5-1 = 7.5 points )
Reason Of Short To Close Position:
1) Lately, the market will rest after two white candle appear in an up series (refer to chart in blue circle)
My Comment:
I locked the profit as I had making small profit in mind at the time of entering the trade.
Note:
1. One points of FKLI Future = 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) = RM3500
4. I have RM33,600 as deposit and now RM34,350 after the profit of RM750

Wednesday, June 3, 2009

CPO Future Looks SideWay


The price of CPO Futures have been swinging ups and downs, there is no clear direction of where the prices will head to. I am standing side line and waiting for the markets to tell me what to do. I will not think or assume what the direction of the market.