Passion for Trading - A Trader's Interior Monologue

Consolidating

2009-07-05T17:31:00.001+08:00

well, have not done any single trade lately. Market is consolidating and seeking for direction.

I believe it will challenge 1,095-1,100 and subsequently 1,164.

11 June

2009-06-11T23:11:00.000+08:00

Bought Mulpha-W @ RM0.14

IDR play

June 11 2009 - PELIKAN, IRIS, KNM

2009-06-11T01:04:00.001+08:00

Sold KNM at RM1.04 (Bought at RM0.825)

Bought IRIS at RM0.20

Bought PELIKAN at RM1.42

Watching:

FAJAR

AMMB

2009-05-23T18:53:00.001+08:00

bought 2 weeks ago.

Forming bullish ascending triangle with higher low, expecting a breakout to next level RM 3.50

Share trading 7th May

2009-05-10T23:59:00.001+08:00

AnnJoo-WB RM 0.41

Mother AnnJoo is stading firmly on 200MA but its son WB has yet to reach 200MA

Another painful day - Burst my account.

2009-05-06T23:02:00.003+08:00

6/5/09 S 1003, B 1020 -17, net - 18

Another lesson learnt, if day trading, dont carry over to different session.
If the support is so strong, reverse the trade.

Game over.

A day that burst my account.

Painful and pricey lesson

2009-05-05T21:46:00.002+08:00

April was obviously terrible for me. Too many bad trades, albeit i have been talking about discipline, apparently 2 huge losses were due to discipline problem. Gosh!

These bad trades has wiped out 85% of my initial investment, with 15% left in the coffer, i am wondering how would i recoup my investment, not even to mention profits.

Yes, it is painful and pricey, to buy the experience. Why would they happened?

1. Holding losses for too long, wary about regret of making such decision.
I cant stress enough that discipline and cut loss strategy. If the trend is against you, cut loss and follow the trend. (For example, B 1 , S 2 if market going south)

2. Not able to identify the big trend, rather op for small rebounce
When market turn against you, cut loss and follow the trend. Trade on trend reversal during the day is too risky as it is way too short term say 1 - 5 mins, is enough to knock you off due to the volatility

3. Not able to spot the pattern and gauge trading behavior
Open high - Close low -> Profit taking
Open low - Close high -> Support
Quick trade on opening trend of the day would probably make the most. Foreign bourses factors also count. Think like an operator. If foreign market is going up and people are going to long, they will attract enough long contract and short till you broke.

4. Futures always ahead of cash, so dont doubt on it

5. Not bold enough to follow my instint when my instint and correct. The worst is, i did against it. Bloody hell.

Summary:
1. Be discipline
2. Be bold to follow instint
3. Take calculated risk
4. Cut loss strategy
5. Think like an operator
6. Trend is friend
7. Strategy
8. Be bold to take position and get out from it

Recent trades 30 Apr - 5 May

2009-05-05T21:40:00.002+08:00

30/4 S 967, B 1005.5 -38.5 (net -39.5)
4/5 B 1009, S 1012.5 +3.5 (net +2.5)
5/5 B 1017, S 1011.5 -5.5 (net -6.5)
5/5 B 1009, S 1005 -4 (net -5)

Shit, i have no idea what happened to me, all my trade turned sour. Wrong direction, all against the trend, what am i doing?

I guess i should get away from the market for some time.

What a painful and pricey lesson.

I loss almost 85% of my initial investment, i am wondering how to recoup my losses?

21 Apr 2009 Futures trading

2009-04-21T22:06:00.003+08:00

Sell Apr 961.5 Buy 973 -11.5, net -12.5
Buy 973 to close 909.5, -63.5, net -64.5

No position now.

KLCI is still being hold firmly despite DJIA, HSI, N225 declined.
1. Foreign shareholding at the lowest since 1997/98, no heavy selling by institutional funds.
2. Retailers are expected to short due to overnight DJIA declined, if CI is being hold up firmly, institutions would push up to kill short sellers.

Head shot!

Cash market would go up 988-990 before heading to correction.

Lesson learnt.

Burnt my fingers ...

16 April 2009 Futures Day Trading

2009-04-16T20:05:00.002+08:00

Sell April 964.5, Buy 955, +9.5, Net +8.5

Comments:
Futures opened high but momentum was hampered after N225 and HSI pared their gains. This was why i short it. However, i missed the top to short it at 974.

Looking at the chart, N225, DJIA, HSI MACD seem to be making a death crossing. If DJIA fails to hold at present level, it will resume its downtrend.

Remain short term bearish.

15 April 09 Futures day trading

2009-04-15T21:31:00.003+08:00

May Buy 950.5, Sell 959 +8.5 , net +7.5

Justification: My April outstanding at 909.5 is facing huge losses (damn! am not cut loss yet), i foreseen today will rebound eventhough DJIA closed lower due to sustainable momentum and strong support. The unexpected ones was Maybank being pushed up for the MCB Pakistan news.

Moving forward, be prepared to cut loss anytime, as strengthening of Yen for the past few days has reversed, however, still below 99.5

I reckon market would lost it steam soon, as volume has broken 1B. Market is overheated by hot money now.

Remedy: Huge loss is made because of not discipline. Follow the handbook always !

Traders Handbook

2009-04-13T20:15:00.000+08:00

As a trader, you are bounded to Principles, and it determines how successful you are going to be.

1. discipline, discipline, discipline. I cant stress much on it.
2. stop loss %
3. Trend is friend, never against it, follow it.
4. Entry and Exit strategy

Factors to watch:

1. bond yield
2. gold
3. interest rate
4. inflation rate
5. GDP
6. currency (USD, Yem Euro)
7. commodity (CPO, Crude oil)
8. equity indices

Find out the relationship between these factors, figure out the money flows.

09 April 09 Futures Day Trading

2009-04-09T19:59:00.003+08:00

A disappointing day, miscalculation eroded all my profit made yesterday.

Sell 921, Buy 925, buy stop 924, -4

Net -5

Comments: Underestimated market sentiment on new cabinet, CPO rally, Yen & Treasuries retreat, Japan proposed econoimc stimulus package, Japan machinery orders rose.

Remedy: Prepare to cut loss for the remaining contract as the odd of further advance is predominant due to the mentioned factors. In view of the current market development, short selling activity should be carried out with caution.

08 April 09 Futures Day Trading

2009-04-08T20:54:00.003+08:00

Sell 910, Buy 907, Buy stop 913. +3
Sell 912, Buy 909, Buy stop 916. +3

Net +4

Justification: Yen strengthen, Gold / Treasuries jump, CPO weaken, sell on after election, 3 Gap up - Gap to close, major bourses undergo correction, EU ugly economic data.

View: Continue to bearish in short term.

CI Future : 03 Apr 2009

2009-04-04T12:47:00.000+08:00

Sell 909.5

KLCI (cash) closed at 907.01, (apr fts) closed at 910

Justifications:
-2/4/09 Gap up
-confirmation to test next resistance, triangle breakout
-economic data not convincing, although there are signals of stabilizing
-Feb export data is better than expected due to demand orders from China but according to latest news, PMI China declines after posing 3 months of uptick.
-G20 / 6th PM sentimental play

Concerns:
-CPO uptrend confirmed after breaking resistance
-RM strengthen against Yen and Dollar
-According to news, Japan is buying high yield assets, it has been the net buyer for the past few days. Carry trade in play?
-consensus: still will move up, but selling on strength

Action:
-Be prepared to buy stop at 912.5 and wait for better opportunity to sell.
-Remain cautious on the market development