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
Concern:
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

Note:
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

Thursday, July 23, 2009

Action 20090723: Long FKLI July 2009 at 1055.50

(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: 23 July 2009 (Day 1: Open Trade)
Action: Long FKLI July 2009 Contract
Long Price: 1055.50
Volume: 1 contract
Initial Stop loss: 1039 ( 2 points below moving average low of 1041 )
Potential Loss Amount: RM 875 ( 16.5+1=17.5 points above my entry point )
Reason To Long:
1) FKLI broke above the recent high of 1160
2) The future index stayed well above moving average high and low
3) Stochastic of 4 hour chat is up

Date: 25 July 2009 (Day 2: Close Trade)
Action: Short To Close FKLI July 2009 Contract
Short Price: 1056.50
Volume: 1 contract
Profit: Breakeven
Reason Of Short To Close Position:
1) Stochastic is now down
2) Price opened high but failed to close at the high

Wednesday, July 22, 2009

Action 20090722 Should Not Trade When Busy

(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: 22 July 2009 (Day 1: Open Trade)
Action: Short CPO Future Oct 2009
Shorted Price: 2095
Volume: 1 contract
Date: 22 July 2009 (Same Day: Close Trade)
Action: Long at 2110 to close position
Long Price: 2110
Volume: 1 contract
Loss: RM 400 ( 2095-2110-1 = 16 points
I have RM 35,950 as deposit and now RM 35,550 after the loss of RM 400
Reason Of Long To Close Position:
I took up the short position of CPO Future Oct 2009 Contract this afternoon when I was trying to finish my other job and I ended up my trade with a loss (RM400). This loss is really unnecessary. I lost because I did not pay enough attention into the trade. That is wrong. I will remind myself again and again in the future that I should NEVER TRADE WHEN BUSY.
And also, when i think I am wrong, I exit immediately and stay sideline. Anywhere, it turned out to be the price came down after a exit. Honestly, I don't care, what I do care the most is to exit when I think I am wrong and I should never trade when busy.

Wednesday, July 15, 2009

CPO Future Could Rebound From Now On


I am waiting to long with the simple reason that CPO future has been down since 15 May 2009 after hitting the high of 2710. There are three white candle bars in a series of the recent down trend (weekly chart). This could mean the end of recent bear market.
I will use daily chart or 4 hourly chart to decide on my buying action.

Friday, July 10, 2009

Action 20090710: Long FKLI July 2009 Contract At 1066

(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: 10 July 2009 (Day 1: Open Trade)
Action: Long FKLI July 2009 Contract
Long Price: 1066 (the actual price is 1065.50, I was mistaken)
Volume: 2 contracts
Initial Stop loss: 1053 ( 2 points below Yesterday's low of 1055 )
Potential Loss Amount: RM 1400 ( 13+1=14 points above my entry point )
Reason To Long:
1) Stochastic of 4 hourly chat is still up
2) The price stayed well above 10 moving average of high and low
3) The price broke above Yesterday's high of 1067.50

Date: 9 July 2009 (Day 3: Close Trade)
Action: Short To Close FKLI July 2009 Contract
Short Price: 1070.50 & 1080.50
Volume: 2 contracts
Profit: RM 900 ( 1080.50-1065.50-1 = 14 points and 1070.50-1065.50-1 = 4 points )
Reason Of Short To Close Position:
1) 4 hourly Stochastic is at very over sold area
2) The price hit the high of 1082.50 which is near the recent high of 1085.50
I could hold the trade for another day as there is high chance that the price will continue. I did not as I want to feel the profit after two previous consecutive losses. It is important for a trader to keep up the momentum.
Note:
1. One points of FKLI Futures = RM 50
2. Commission needed for buy and sell is RM50 so we need 1 points to break even
3. Margin (Minimum Deposit for holding overnight) = RM 3500
4. I have RM 35,050 as deposit and now RM 35,950 after the profit of RM 900

Thursday, July 9, 2009

Action 20090709: Short FKLI July 2009 Contract At 1056

(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: 9 July 2009 (Day 1: Open Trade)
Action: Short FKLI July 2009 Contract
Long Price: 1056
Volume: 1 contract
Initial Stop loss: 1067.5 ( 5 points above today's high of 1062.5 )
Potential Loss Amount: RM 625 ( 11.5+1=12.5 points above my entry point )
Reason To Short:
1) Daily Stochastic is down
2) Future index stayed well below moving average of high and low
My comment:
I short one contract only as I have no strong reason to short actually. I just want to 'test the water' using one contract. The markets worldwide have been down, so I put tight stop loss which is the high of today 1062.5.

Date: 9 July 2009 (Same Day: Close Trade)
Action: Long To Close FKLI July 2009 Contract
Longed Price: 1067
Volume: 1 contract
Loss: RM 600 ( 1056-1067-1 = 12 points )
Reason Of Long To Close Position:
The price hit pre determined stop loss of 1067. I had no choice but to follow my rule.
Note:
1. One points of FKLI Futures = RM 50
2. Commission needed for buy and sell is RM50 so we need 1 points to break even
3. Margin (Minimum Deposit for holding overnight) = RM 3500
4. I have RM 35,650 as deposit and now RM 35,050 after the loss of RM 600