Friday, October 25, 2013

Potential Correction - CPO

CPO has been up remarkably to the high of 2485. However there are two reasons that CPO might correct in the next few sessions;
1. The price reached the high of 2485 which was also registered in 28 Aug 2013.
2. MACD of hourly chart has been flat despite the surging of the price.

Monday, October 21, 2013

Soy Bean Oil Hourly Chart Might Be Weak

Soy Bean Oil Futures has been moving up slowly. Despite the daily chart looking strong, the hourly chart seems weak based on the divergent between the price and MACD. The weakness of Bean Oil Futures could give us an opportunity to short CPO.

Friday, October 18, 2013

Gold Futures 101

Simple Facts we should know about Futures Gold Trading :

Code Name: FGLD 

Trading Time : 
Morning Session 9:00 to 12:30
Afternoon Session 14:30 to 19:00

Deposit For Each Contract : RM 1,000 
( We should place more than RM 1,000 as we have to top up if our position go under. I would use RM 2,000 or RM 3,000 for each contract to buffer the volatility ) 

Contract Size For Each Contract : 100g 

Contract Value : RM 13,500 as at 18 Oct 2013 
( RM 135 x 100g = RM 13,500) 

Movement Per Tick : RM 0.05 
( RM135.00, RM135.05 , RM135.10 , RM 135.15 , RM135.20 and so on ) 

The Value Per Tick : RM 5 
( RM 0.05 x 100g = RM 5 ) 

Commission (Online) : RM 13 per trade ; buy or sell 
( Meaning that to complete a buy and sell trade, we will be charged RM 26 and so we need 6 ticks to break even for every trade ; 6 ticks x RM 5 = RM 30. For example, long at RM 135, we would need RM 135.30 to be break even and any price beyond RM 135.30 will then be our profit and vise-versa ) 

Active Month : 3rd Month 
( For our current Oct 2013, we are trading Dec 2013 Futures Gold Conract ) 

Contract Expiry : End of month 

Settle Price : Based on London Gold Fix the morning price ( AM Price ) 

Thursday, October 17, 2013

CPO Daily Potential Correction

CPO has been performing well since the beginning of Oct 2013. However, with the 'hangman' candle stick pattern emerged, there is a high probability for the price to correct or at least a sideways ahead.
Intraday trading has been tough lately. Just look what has happened today, it opened with a beautiful gap up of 2422 then the price plunged all the way to the low of 2369 then closed at 2400. I did not take the long trade due to this reason :) 
' When I See It, I Take It ' should be the trading way for now. No more 'let the profit run' way of trading. 

Monday, October 7, 2013

CPO Weekly Might Be Strong

It is important to see the big picture once in a while. CPO weekly has been descending (the high is getting lower), however, looking at Weekly MACD, it shows otherwise. There is a divergent between the price and MACD indicating that CPO might be Bullish. 

Thursday, October 3, 2013

Realize Loss At 2288

Date of exit : 3 Oct 2013
Title : Realize Loss At 2288 
I exited the trade to realize the loss at 2288 with a loss again of 29 points. I am not sure what the direction will be. Just call it a day and see how. 

The Loss : RM 725 (29points x RM25 x 1contract = RM725)  
The balance is now RM 22,725 (RM 23,450 - RM 725 = RM 22,725)
(The details of my account is at My Future Trading Account Records 2012 )

Date of entry : 30 Sept 2013
Title : Long One Contract
I initiated long CPO Dec 2013 Future Contract at 2315 for 1 contract. Usual break up.