Friday, August 21, 2009

Action 20090821: Short FKLI Aug 2009 at 1154 (Intra Day)

(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: 21 August 2009
Action: Short FKLI Aug 2009 Contract
Shorted Price: 1154 and long to close at 1158.50
Volume: 2 contracts
Reason To Long:
1) Price went below the moving average low (10 days) in green line
Loss: RM 550 ( 1154 - 1158.50 - 1 = 5.5 )
Comment:
I shorted at 1154 when price hit below the moving average low (green line) but it failed to stay at the low. Instead, the price came back up and I closed my position 30 minutes before market close thinking that there is no need to hold over weekend when the price was at the sideway.
I have RM 38,775 as deposit and now RM 38,225 after the loss of RM 550
Please refer to My Future Trading Account Records: http://www.bullsa.com/2009/06/my-future-trading-account-records.html

Monday, August 17, 2009

Action 20090817: Short CPO Future Nev 2009 Contract at 2356

(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: 17 August 2009 (Day 1: Open Trade)
Action: Short CPO Future Nov 2009 Contract
Long Price: 2356
Volume: 1 contract
Initial Stop loss: 2403 ( 6 points above the today's high 2397 )
Reason To Long:
1) The price droped below the moving average low (green line) for the first time since recent rally
2) The pricce came down and form bearish engulfing candlestick pattern

Date: 20 Aug 2009 (Day 4: Close Trade)
Action: Long To Close CPO Future Nov 2009 Contract
Long Price: 2333
Volume: 1 contract
Profit: RM 500 ( 2355 - 2333 + 2 = 20 points )
Reason Of Long To Close Position:
1) 4 hourly Stochastic turned up second times from oversold area
Comment:
I have no strong reason to close. The trade has been there for 4 days slightly held longer than my usual trade.
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 38,275 as deposit and now RM 38,775 after the profit of RM 500

Sunday, August 16, 2009

Reasons For KLCI To Correct


I have been looking and waiting for KLCI to correct since the index hit 1000. The bull has been very strong and I had no chance to buy my list stocks for long term investment. There was no major correction since recent rally started in March 2009. I have been finding the reasons for KLCI to correct.
The following are my reasons: (not many reasons yet)
1) KLCI reached 50% Fibonicci target of 1162.98 and advanced to 1196.46
2) The index has been up for almost 5 months. History has been showing us that KLCI rally usually not more than 5 months (sometimes it does, fo course).
I am not saying the markets will drop immediately, it is certainly advisable to get ready.
I sell some of my stocks and buy back when price reach 10% below my selling price. I will also short index future (FKLI) for some profit.

Tuesday, August 11, 2009

Action 20090811: Long FKLI Aug 2009 Contract at 1184

(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: 11 August 2009 (Day 1: Open Trade)
Action: Long FKLI Aug 2009 Contract
Long Price: 1184
Volume: 2 contracts
Initial Stop loss: 1178 ( 2 points below the moving average low of 1180
Potential Loss Amount: RM 350 ( 6+1=7 points below my entry point )
Reason To Long:
1) The last bar formed a candlestick bullish pattern
2) The price stayed well above the moving average Low of 1180 (refer to the green line)
3) 4 Hour Stochastic is up now (Red line closed above blue line)

Date: 12 Aug 2009 (Day 2: Close Trade)
Action: Short To Close FKLI Aug 2009 Contract
Short Price: 1180.50
Volume: 2 contracts
Loss: RM 450 ( 1184 - 1180.50 + 1 = 4.5 points )
Reason Of Short To Close Position:
1) 4 hourly Stochastic turned down
2) The price opened and stay below the low of moving average (green line)
Comment:
Note:
1. One points of FKLI Future = RM 50
2. Commission needed for buy and sell is RM50 so we need 1 point to break even
3. Margin (Minimum Deposit for holding overnight) = RM 3500
4. I have RM 38,725 as deposit and now RM 38,275 after the loss of RM 450

Friday, August 7, 2009

ACtion 20090808: Long CPO Future Oct 2009 Contract at 2340

(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: 7 August 2009 (Day 1: Open Trade)
Action: Long CPO Future Oct 2009 Contract
Long Price: 2340
Volume: 1 contract
Initial Stop loss: 2298 ( 8 points below the low of 2306 dated 7 Aug 2009 )
Potential Loss Amount: RM 1100 ( 42+2=44 points below my entry point )
Reason To Long:
1) Price stayed well above moving average of high and low indicating the market is still strong
2) The price closed almost at the high forming bullish engulfing pattern
Comment:
I have just closed my long position 1 hour before market close but I went in again (long again). Honestly, it is hard to do this but I long it because technical analysis showed me the reasons to go back in. I have to stick to technical analysis forgetting my emotion.

Date: 11 Aug 2009 (Day 2: Close Trade)
Action: Short To Close CPO Future Oct 2009 Contract
Short Price: 2412
Volume: 1 contract
Profit: RM 1750 ( 2412 - 2340 - 2 = 70 )
Reason Of Short To Close Position:
1) 4 hourly Stochastic is at very overbought area and starting to go down
2) There are 3 bullish candlesticks in a row.
Comment:
Honestly, I do not have strong reason to close the position. 70 points profit is tempting enough to turn into cash.

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 36,975 as deposit and now RM 38,725 after the profit of RM 1750

Action 20090807 (Intraday): Long CPO Future Oct 2009 Contract at 2325

(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: 8 Aug 2009 (Day 1: Open Trade)
Action: Long CPO Future Oct 2009 Contract
Long Price: 2325
Volume: 1 contract
Date: 8 Aug 2009 (Same Day: Close Trade)
Shorted to close price: 2317
Loss: RM 225 ( 2317-2325-1= 9 points )
Comment:
I longed in the morning as the price stayed at above moving average both high and low as it remained at almost the same the whole price further more it was near the end of the day (Weekend is near) so I closed 2317 lossing 8 points. I will stay aside and get when opportunity comes.
Note:
1. One points of CPO Future = RM 25
2. Commission needed for buy and sell is RM25 for intraday trade so we need 1 point to break even
3. Margin (Minimum Deposit for holding overnight) = RM 8000
4. I have RM 37,200 as deposit and now RM 36,975 after the loss of RM 225