*FKLI turn LONG 1505 for November month..(roll)
*CPO still holding January contract LONG 3052..
Friday, October 29, 2010
CPO Commentary
News Bites-
* Market Talk: Malaysia palm oil exports in October is likely to increase a tad by 2%-3% on month, while exports in November is likely to increase more as Indonesia's export levy would make rival Malaysia palm oil a cheaper alternative. Production is likely to taper off as seasonally high palm output period ended and annual monsoon season begins, which might prompt further decline in production and a drawdown in stockpile level.
Outlook-
* Fundamental: Expect CPO prices to be supportive on talk of higher export.
* Technical: CPO futures touched a new 27-month high again and settled at 3085 yesterday. The buying momentum also triggered hourly MACD into bullish mode and confirmed the breakout above the hourly “bull flag” of 2931 on Oct 27 with a short-term target of 3140 in the near term.
The daily, hourly and 15minutes RSI readings are however overbought at their 70s, indicating possible shortterm correction in the near term. Would suggest on buying accumulation after a correction on intradays’ RSI readings. Immediate support and resistance should refer to observed low of 3010 and 3100 psychology level, then 3140 to cap more upward momentum in the near term.
#Courtesy Inter-Pacific Securities Sdn Bhd, for enquiries please contact 03-21427586 or email :- tanks@interpac.com.my (please mention my site http://www.fkli.co.cc/ when enquiring)
* Market Talk: Malaysia palm oil exports in October is likely to increase a tad by 2%-3% on month, while exports in November is likely to increase more as Indonesia's export levy would make rival Malaysia palm oil a cheaper alternative. Production is likely to taper off as seasonally high palm output period ended and annual monsoon season begins, which might prompt further decline in production and a drawdown in stockpile level.
Outlook-
* Fundamental: Expect CPO prices to be supportive on talk of higher export.
* Technical: CPO futures touched a new 27-month high again and settled at 3085 yesterday. The buying momentum also triggered hourly MACD into bullish mode and confirmed the breakout above the hourly “bull flag” of 2931 on Oct 27 with a short-term target of 3140 in the near term.
The daily, hourly and 15minutes RSI readings are however overbought at their 70s, indicating possible shortterm correction in the near term. Would suggest on buying accumulation after a correction on intradays’ RSI readings. Immediate support and resistance should refer to observed low of 3010 and 3100 psychology level, then 3140 to cap more upward momentum in the near term.
#Courtesy Inter-Pacific Securities Sdn Bhd, for enquiries please contact 03-21427586 or email :- tanks@interpac.com.my (please mention my site http://www.fkli.co.cc/ when enquiring)
Thursday, October 28, 2010
CPO Commentary
News Bites-
* Market Talk: Talk that chinese regulators moves to tightening trading rules to curb speculation and cool inflation in China, as well as likely weaker India edible oils imports may both place pressure on soyoil and palm oil market. A local broking house commented that CPO prices are likely to fall towards RM2,950 a ton in the near future due to the above given reasons.
Outlook-
* Fundamental: Expect selling pressure on bearish fundamental ahead. Watch for technical to trade.
* Technical: Another daily hanging man candle formed yesterday. A particular pattern signifying bullish reversal and prices are losing some upward momentum. The candle also alike bearish dragonfly doji pattern where opening and closing are nearly identical wihout an upper wick on top, a much stronger and reliable candle compare with hanging man offering bearish signal. note that, open interest for February contract jump 71.7% or 5512 lots from 7,686 to 13,198 lots while benchmark January contract only increased 4.2% or 1136 lots to 28,062 lots, likely indication traders are building up their position in February contract.
With mix technical indications, would expect prices to consolidate between 3010, low of Aug 27 , and 3084, high of Oct 25, pending any breakout to provide a clearer picture in near term.
#Courtesy Inter-Pacific Securities Sdn Bhd, for enquiries please contact 03-21427586 or email :- tanks@interpac.com.my (please mention my site http://www.fkli.co.cc/ when enquiring)
* Market Talk: Talk that chinese regulators moves to tightening trading rules to curb speculation and cool inflation in China, as well as likely weaker India edible oils imports may both place pressure on soyoil and palm oil market. A local broking house commented that CPO prices are likely to fall towards RM2,950 a ton in the near future due to the above given reasons.
Outlook-
* Fundamental: Expect selling pressure on bearish fundamental ahead. Watch for technical to trade.
* Technical: Another daily hanging man candle formed yesterday. A particular pattern signifying bullish reversal and prices are losing some upward momentum. The candle also alike bearish dragonfly doji pattern where opening and closing are nearly identical wihout an upper wick on top, a much stronger and reliable candle compare with hanging man offering bearish signal. note that, open interest for February contract jump 71.7% or 5512 lots from 7,686 to 13,198 lots while benchmark January contract only increased 4.2% or 1136 lots to 28,062 lots, likely indication traders are building up their position in February contract.
With mix technical indications, would expect prices to consolidate between 3010, low of Aug 27 , and 3084, high of Oct 25, pending any breakout to provide a clearer picture in near term.
#Courtesy Inter-Pacific Securities Sdn Bhd, for enquiries please contact 03-21427586 or email :- tanks@interpac.com.my (please mention my site http://www.fkli.co.cc/ when enquiring)
Tuesday, October 26, 2010
CPO roll roll roll day
*I decided to roll CPO today to January contract >> LONG 3052..
*FKLI still no difference maintain my LONG 1461 for October month..
*FKLI still no difference maintain my LONG 1461 for October month..
An Introduction To CANDLESTICKS, PART 1
PART 1
AN INTRODUCTION TO CANDLESTICKS
Technical Analysis vs. Fundamental Analysis
There are two types of ways to analysis the price of a stock, fundamental
analysis, and technical analysis. Fundamental analysis is used to gauge the
price of a stock based on the fundamental attributes of the stock, such as
price/earnings ratio, Return on invest, and associated economic statistics.
Technical analysis deals more with the psychological component of trading a
stock, and is influenced for the most part on emotionalism.
The technical analyst is seeking to answer the question "how are other traders
viewing this stock, and how will that affect the price in the immediate future".
As you will see, the candlestick chart is the most effective way to gauge the
sentiments of other traders.
History of Candlestick Charts
The Japanese were the first to use technical analysis to trade one of
the world's first rice futures markets in the 1600s. A Japanese man by
the name of Homma who traded the futures markets in the 1700s
discovered that although there was link between supply and demand
of the rice, the markets were also strongly influenced by the emotions
of the traders.
Homma realized that he could benefit from understanding the
emotions to help predict the future prices. He understood that there
could be a vast difference between value and price of rice.
This difference between value and price is as valid today with stocks,
as it was with rice in Japan centuries ago.
The principles established by Homma in measuring market emotions in
a stock are the basis for the Candlestick Chart analysis, which we will
present in this seminar.
Candlestick vs. Western Charts
The Western bar chart is made up of four parts components, open,
high, low, and close. The vertical bar depicts the high and low of the
session, while the left horizontal line
represents the open and the right
horizontal line represents the close.
Figure 1
The Japanese Candlestick Line (Figure 2) uses the same data (open,
high, low, and close) to create a much more visual graphic to depict
what is going on with the stock. The thick part of the candlestick line
is called the real body. It represents the range between the session’s
opening and closing prices. If the real body is red, it means that the
close of the session was lower than the open. If the real body is
green, it means that the close was higher than the open. The lines
above and below the body are the shadows. The shadows represent
the session’s price extremes. The shadow above the real body is
called the upper shadow and the shadow below the real body is called
the lower shadow. The top of the upper shadow is the high of the day,
and the bottom of the lower shadow is the low of the day.
Figure 2
AN INTRODUCTION TO CANDLESTICKS
Technical Analysis vs. Fundamental Analysis
There are two types of ways to analysis the price of a stock, fundamental
analysis, and technical analysis. Fundamental analysis is used to gauge the
price of a stock based on the fundamental attributes of the stock, such as
price/earnings ratio, Return on invest, and associated economic statistics.
Technical analysis deals more with the psychological component of trading a
stock, and is influenced for the most part on emotionalism.
The technical analyst is seeking to answer the question "how are other traders
viewing this stock, and how will that affect the price in the immediate future".
As you will see, the candlestick chart is the most effective way to gauge the
sentiments of other traders.
History of Candlestick Charts
The Japanese were the first to use technical analysis to trade one of
the world's first rice futures markets in the 1600s. A Japanese man by
the name of Homma who traded the futures markets in the 1700s
discovered that although there was link between supply and demand
of the rice, the markets were also strongly influenced by the emotions
of the traders.
Homma realized that he could benefit from understanding the
emotions to help predict the future prices. He understood that there
could be a vast difference between value and price of rice.
This difference between value and price is as valid today with stocks,
as it was with rice in Japan centuries ago.
The principles established by Homma in measuring market emotions in
a stock are the basis for the Candlestick Chart analysis, which we will
present in this seminar.
Candlestick vs. Western Charts
The Western bar chart is made up of four parts components, open,
high, low, and close. The vertical bar depicts the high and low of the
session, while the left horizontal line
represents the open and the right
horizontal line represents the close.
Figure 1The Japanese Candlestick Line (Figure 2) uses the same data (open,
high, low, and close) to create a much more visual graphic to depict
what is going on with the stock. The thick part of the candlestick line
is called the real body. It represents the range between the session’s
opening and closing prices. If the real body is red, it means that the
close of the session was lower than the open. If the real body is
green, it means that the close was higher than the open. The lines
above and below the body are the shadows. The shadows represent
the session’s price extremes. The shadow above the real body is
called the upper shadow and the shadow below the real body is called
the lower shadow. The top of the upper shadow is the high of the day,
and the bottom of the lower shadow is the low of the day.
Figure 2
Sunday, October 24, 2010
Weekly update..
This week got nothing to update again.. hahahaha, still same position for both FKLI/CPO :))
*FKLI maintain my LONG 1461 for October month..
*CPO still holding December contract LONG 2736.. no rollover for me still..
*FKLI maintain my LONG 1461 for October month..
*CPO still holding December contract LONG 2736.. no rollover for me still..
Monday, October 18, 2010
50 reasons why you shouldn't be trading or even consider trading if...
1) you need the money
2) you hope to buy something from the paper winning in the trade you just made
3) you want to make a million bucks with 1 lot of a futures contract
4) you set a minimum profit target for the year
5) you don't want to lose
6) you never lost before in anything in your life; more like you bluffed yourself that you never lost
7) you offer people free market tips
8) your wife spends your profits and nags you about your losses
9) you graduated from Harvard or Yale or Princeton or Cornell with an economics or business degree
10) your financial blog is full of analysts reports that justify your positions even when you are losing like crazy
11) you don't allow anyone to post a contrary argument to your positions in your blog even though the market has proven those arguments correct
12) you brag a lot in other peoples blog on how you rob and pick pocket the markets but disappear when you are wrong big time
13) you criticise other traders for learning from books and say that you play by your own rules and still insist on averaging and holding on to your losses even though the market is in a super trend against you
14) you had a group of trading students whom you were teaching and they have now abandoned you
15) your ex-students are now trading successfully in markets you dare not trade and still dare not trade in
16) you thought you had a trading system, when in reality all you had was your hope and opinions
17) you've been called stubborn, egoistic or lansi lanyong too often
18) you think to accept losses is the same as to like losses
19) you think Singapore street food tastes better than Malaysia's
20) you think Ipoh Fried Kway Teow, Penang Laksa and Seremban Beef Noodles originated from Singapore
21) you know the names of all the footballers in the Malaysian football team
22) you have a new child but the last time you had sex with your spouse was over a year ago
23) you don't have a trading system and if you did ,you 2nd guess the signals
24) you don't know who Manny Pacquiao is
25) you think Floyd Mayweather Jr has balls
26) you pester and beg successful traders for their system
27) your charts are so full of indicators and lines that you can't see the price bar at all
28) your charts are so full on indicators and lines and you still don't follow it
29) you say that you'll fight the market because a few lots won't kill you
30) you want to impress a girl/guy/bapok
31) you talk about trading to your non trading friends so often that you suddenly realise that you have no real friends left and the people that hang around you now only want to borrow money from you or get a free lunch
32) you always blame others for your mistakes
33) you are a white skin worshipper
34) you invest in unit trusts
35) you can't think of any other uses for palm oil except as cooking oil and bio-diesel
36) you equate successful trading with passing exams with flying colors
37) you support Liverpool FC even when it's in the relegation zone
38) you think the voice behind Bart Simpson is a guy
39) you find Venus and Serena Williams attractive
40) you hero worship Mao Zedong
41) you are for the return of Chin Peng to Malaysia
42) you still buy 4D,5D,6D and Toto
43) your second home is the casino
44) your second home is the pub
45) you named your sons or dogs Jack ,Jim,Johnnie or Sahib
46) you spend more than what you earn
47) you are about to undergo brain surgery
48) you are about to undergo open heart surgery
49) you listen and followed the advice of Tun Dr. Mahathir not to cut your losses during the stock market crash of 1997
50) you find this article irritating and feel like killing me because I have just described YOU!
2) you hope to buy something from the paper winning in the trade you just made
3) you want to make a million bucks with 1 lot of a futures contract
4) you set a minimum profit target for the year
5) you don't want to lose
6) you never lost before in anything in your life; more like you bluffed yourself that you never lost
7) you offer people free market tips
8) your wife spends your profits and nags you about your losses
9) you graduated from Harvard or Yale or Princeton or Cornell with an economics or business degree
10) your financial blog is full of analysts reports that justify your positions even when you are losing like crazy
11) you don't allow anyone to post a contrary argument to your positions in your blog even though the market has proven those arguments correct
12) you brag a lot in other peoples blog on how you rob and pick pocket the markets but disappear when you are wrong big time
13) you criticise other traders for learning from books and say that you play by your own rules and still insist on averaging and holding on to your losses even though the market is in a super trend against you
14) you had a group of trading students whom you were teaching and they have now abandoned you
15) your ex-students are now trading successfully in markets you dare not trade and still dare not trade in
16) you thought you had a trading system, when in reality all you had was your hope and opinions
17) you've been called stubborn, egoistic or lansi lanyong too often
18) you think to accept losses is the same as to like losses
19) you think Singapore street food tastes better than Malaysia's
20) you think Ipoh Fried Kway Teow, Penang Laksa and Seremban Beef Noodles originated from Singapore
21) you know the names of all the footballers in the Malaysian football team
22) you have a new child but the last time you had sex with your spouse was over a year ago
23) you don't have a trading system and if you did ,you 2nd guess the signals
24) you don't know who Manny Pacquiao is
25) you think Floyd Mayweather Jr has balls
26) you pester and beg successful traders for their system
27) your charts are so full of indicators and lines that you can't see the price bar at all
28) your charts are so full on indicators and lines and you still don't follow it
29) you say that you'll fight the market because a few lots won't kill you
30) you want to impress a girl/guy/bapok
31) you talk about trading to your non trading friends so often that you suddenly realise that you have no real friends left and the people that hang around you now only want to borrow money from you or get a free lunch
32) you always blame others for your mistakes
33) you are a white skin worshipper
34) you invest in unit trusts
35) you can't think of any other uses for palm oil except as cooking oil and bio-diesel
36) you equate successful trading with passing exams with flying colors
37) you support Liverpool FC even when it's in the relegation zone
38) you think the voice behind Bart Simpson is a guy
39) you find Venus and Serena Williams attractive
40) you hero worship Mao Zedong
41) you are for the return of Chin Peng to Malaysia
42) you still buy 4D,5D,6D and Toto
43) your second home is the casino
44) your second home is the pub
45) you named your sons or dogs Jack ,Jim,Johnnie or Sahib
46) you spend more than what you earn
47) you are about to undergo brain surgery
48) you are about to undergo open heart surgery
49) you listen and followed the advice of Tun Dr. Mahathir not to cut your losses during the stock market crash of 1997
50) you find this article irritating and feel like killing me because I have just described YOU!
Saturday, October 16, 2010
Weekly Update..
*FKLI maintain my LONG 1461 for October month..
*CPO still holding December contract LONG 2736.. no rollover for me yet.. :)
*CPO still holding December contract LONG 2736.. no rollover for me yet.. :)
Wednesday, October 13, 2010
A few behavioural traits of a confused/bad speculator
In my many years of trading securities and futures, I've come across many or almost all, bad traders. They could be the ordinary jo in the gallery or the chief dealer in a big firm and the thing that catches my attention is that all of them share a lot of similar traits; not necessarily all the traits but a lot of similarities.
So here are some of the most common traits of bad traders which I noticed:
1) they spend paper profits.
Illogical as it may seem, this is the most prevalent trait among people with poor emotional control. I think most of you will realize the same thing if you think about it. How many traders(or even yourself) do you know suddenly increase their spending pattern during a bull run? They could be more lavish in their meals, change a new car, change to more expensive perfumes, more expensive in their dressing or even keep a mistress. When I ask them whether they have liquidated their positions; the answer is always unanimously 'not yet'! ..There's more, they'd be so full of themselves that they even declare that they'll make it no matter what the market condition and most of these fellas are stock traders in Bursa(Bursa being a 1 way market only)! This only shows that people do not need to be rich before they 'upgrade' themselves,they only need to feel rich!
A contrasting example would be my very succesful trading buddy Tom: he naturally liquidates the portion of his positions to pay for his Camry , an Altis for his wifey and a 3 week European holiday for himself, wife and his in-laws ;all paid for in cash.. my only gripe with him is why take his in-laws along? Sorry tommy..i can't help myself.
2)they are sexually active only when there are winning real or on paper.
Lo and behold, I broke the taboo subject that most of you don't want to admit! Think about it, bad traders are only sexually active when they get lucky in the markets! They think they are great and they go all out to conquer another person to fuel their ego of being so smart in making a rare win. They good traders (very few) whom I know personally are only sexually active when they are in a losing streak! Maybe this behavior can be explained that winning traders get their high from winning and don't need any external stimulation to cut down their high..after all,sex is more mental than physical and so too is trading. Lesson to be learnt here? Good lovers are actually lousy traders..LOL!
3) they have no life outside of the markets.
They would be restless when the market is on holiday,they'd look at charts the whole time or be drinking themselves drunk just so the holiday would past by. They would talk about the market to every person they meet showing off their limited knowledge that they possess. Or they'd go around asking for tips and tits! If they could,they'd want to trade 7 days a week.
Contrast this with the good,excellent or fantastic traders I've come across; They have a balanced life and are very passionate with their hobbies and family. They have other goals in life and look forward to a break to catch up with their other passion. Gt is passionate with his family and with his hobby of flying remote control planes and helicopter. Lesson to be learnt here; GET A LIFE!
4) they subscribe to analyst reports.
All the good traders whom I personally know NEVER bother reading analyst reports let alone subscribe to it...not even the Wall Street Journal or even Fortune magazine. But they do read good trading books like 'Reminiscences...', Market Wizards etc. Why then bad traders rely on so many news and reports while the best don't even bother? Confidence; the best knows that no one knows what the future holds. Some more,why bother paying for someone else's opinion when you can get it free in some bad traders blogs? But ask yourself this, if analysts are so sure of their reports,don't you think they'll sell everything they possess and trade? Think about it, how many analyst do you know gets fired for writing a wrong report or a series of wrong reports? Lesson here: if you want opinions ,get it FREE!
5)they never learn from their mistakes.
History repeats itself all the time and that's why we study it. How many traders do you know actually study their mistakes and try their level best not to repeat it? Or how many traders do you know keep on repeating their mistakes over and over again? Like getting wiped out more than once? It's hard to accept your mistakes more so if you have an over inflated ego. I guess that's why so few make it in this game called speculation ,but a lucrative game for those living off people's mistakes.
This is also not a conclusive traits of bad confused traders, just a few traits that are most common among them. Think about it, does it apply to you? If it does,then do something about it like STOP trying to impersonate a trader.
So here are some of the most common traits of bad traders which I noticed:
1) they spend paper profits.
Illogical as it may seem, this is the most prevalent trait among people with poor emotional control. I think most of you will realize the same thing if you think about it. How many traders(or even yourself) do you know suddenly increase their spending pattern during a bull run? They could be more lavish in their meals, change a new car, change to more expensive perfumes, more expensive in their dressing or even keep a mistress. When I ask them whether they have liquidated their positions; the answer is always unanimously 'not yet'! ..There's more, they'd be so full of themselves that they even declare that they'll make it no matter what the market condition and most of these fellas are stock traders in Bursa(Bursa being a 1 way market only)! This only shows that people do not need to be rich before they 'upgrade' themselves,they only need to feel rich!
A contrasting example would be my very succesful trading buddy Tom: he naturally liquidates the portion of his positions to pay for his Camry , an Altis for his wifey and a 3 week European holiday for himself, wife and his in-laws ;all paid for in cash.. my only gripe with him is why take his in-laws along? Sorry tommy..i can't help myself.
2)they are sexually active only when there are winning real or on paper.
Lo and behold, I broke the taboo subject that most of you don't want to admit! Think about it, bad traders are only sexually active when they get lucky in the markets! They think they are great and they go all out to conquer another person to fuel their ego of being so smart in making a rare win. They good traders (very few) whom I know personally are only sexually active when they are in a losing streak! Maybe this behavior can be explained that winning traders get their high from winning and don't need any external stimulation to cut down their high..after all,sex is more mental than physical and so too is trading. Lesson to be learnt here? Good lovers are actually lousy traders..LOL!
3) they have no life outside of the markets.
They would be restless when the market is on holiday,they'd look at charts the whole time or be drinking themselves drunk just so the holiday would past by. They would talk about the market to every person they meet showing off their limited knowledge that they possess. Or they'd go around asking for tips and tits! If they could,they'd want to trade 7 days a week.
Contrast this with the good,excellent or fantastic traders I've come across; They have a balanced life and are very passionate with their hobbies and family. They have other goals in life and look forward to a break to catch up with their other passion. Gt is passionate with his family and with his hobby of flying remote control planes and helicopter. Lesson to be learnt here; GET A LIFE!
4) they subscribe to analyst reports.
All the good traders whom I personally know NEVER bother reading analyst reports let alone subscribe to it...not even the Wall Street Journal or even Fortune magazine. But they do read good trading books like 'Reminiscences...', Market Wizards etc. Why then bad traders rely on so many news and reports while the best don't even bother? Confidence; the best knows that no one knows what the future holds. Some more,why bother paying for someone else's opinion when you can get it free in some bad traders blogs? But ask yourself this, if analysts are so sure of their reports,don't you think they'll sell everything they possess and trade? Think about it, how many analyst do you know gets fired for writing a wrong report or a series of wrong reports? Lesson here: if you want opinions ,get it FREE!
5)they never learn from their mistakes.
History repeats itself all the time and that's why we study it. How many traders do you know actually study their mistakes and try their level best not to repeat it? Or how many traders do you know keep on repeating their mistakes over and over again? Like getting wiped out more than once? It's hard to accept your mistakes more so if you have an over inflated ego. I guess that's why so few make it in this game called speculation ,but a lucrative game for those living off people's mistakes.
This is also not a conclusive traits of bad confused traders, just a few traits that are most common among them. Think about it, does it apply to you? If it does,then do something about it like STOP trying to impersonate a trader.
Tuesday, October 12, 2010
FKLI & CPO Update
*FKLI maintain my LONG 1461 for October month..
*CPO also same story, still holding December contract LONG 2736..
*CPO also same story, still holding December contract LONG 2736..
Thursday, October 7, 2010
The many 'don't 'of intelligent speculation
Many a time I've been approach by friends who want to speculate in the futures markets and I always give them my copy of 'Reminiscences of a stock operator' to read 1st. If the book is not read within 1 week, I would then ask them to return back my book and tell them plainly in their face not to waste their time even to think that they can trade.
This is a hard and cruel game and you need a passion for it. But let's see how many people can be passionate about this game after reading and pondering about the 'DON"T' of speculation. Why do I start of with the 'don't' of speculation ? Because it's the most common and basic mistakes made by every beginner when they place their 1st trade.
DON"T #1 : Don't ever over trade.
This year we've come across bloggers and traders who have suspended themselves from trading for one reason or the other. My deduction is that they were over trading. What is over trading? Over trading is mainly trading with insufficient capital. What is sufficient capital? Let's take the example of CPO ,the margin requirement is RM4,ooo per lot. That means you need a minimum of RM4,000 to trade 1 lot of CPO. If you follow gt's 30% rule;you need a minimum of RM 14,000 in your trading account to trade 1 lot of CPO. But how many actually keep to such a rule? I've seen many gallery traders who trade CPO with RM5-7,000 per lot.Needless to say,they don't last long after 1 or 2 whips from the market.
DON"T # 2: Don't increase your trading position after a loss or a series of losses.
This is quite a normal thing for gamblers to do,they increase their positions every time they lose thinking that their losing streak will end soon and they get to cover all their losses in 1 hand. But how many actually know when their losing streak will end? What if the markets whips u 10 times in a row? DO you think you still be around to catch the big move in your favor? This is also a form of over trading.
DON"T # 3: Don't ever fight the trend because of your opinions.
There is a blogger (still blogging by the way) who is and I believe is still fighting FKLI by being short and even shorting higher. He quotes 'who says there is only 1 road to Rome?' . But the surest and fastest way to Holland is by being stubborn and egoistic by fighting the market! IF you think you are smart and intelligent and therefore you must be right all the time why then do you not find or even hear of Albert Einstein or Professor Stephen Hawking trading for a living even on a part time basis, since they are sooooo smart and their opinions are definitely better than yours or mine? Think about it? You think you are smarter than Einstein or Professor Hawking?
DON'T # 4: Don't ever talk about your trades with other traders.
Trading is an egoistic game,chances are if you ever talk to someone that someone will talk you out of your position;since egoistic people always want to justify that they are always right! If they can't talk you out of your position with charts ,they'll probably talk you out of it by showing you negative analyst reports or projected gloom in the economy or market. Remember, all analyst reports and projections are just opinions of the author!
DON'T # 5: Don't ever talk about trading to your non-trading friends or family.
This is the fastest way to lose friends as they'll think that you are either a braggart or a gambler.
You must see it from their point of view,it's damn boring and most inexperienced traders get carried away as they'll go on and on and on about their trades or system and will start dominating the conversation. People will avoid you the same way people avoid direct selling recruiters or pesky life insurance agents trying to load you up with policies you can't afford! But do talk trading to people you don't like ;it's a classy way of getting rid of them from your life!
DON"T # 6: Don't be a fulltime trader/speculator if 30% gain a year on your capital is less than what you are making now.
Serious, it blows my mind wondering why people even decide to trade on a full time basis when they are already holding on to decent jobs. But honestly,30% gain is a conservative figure to speculators,but how sure are you that you'll even come out ahead for the year? Most part time traders don't realize that the reason they are doing spectacularly year in year out is because of their full time job. Losses will affect you no matter what people say and losses without a full time job will affect you even more. You'll never realize just how many tricks your mind can play with you.
This list of 'don't' is not exhaustive but I think I've covered the basics . Now it's all up to you to really be honest with yourself. If I offended anyone,don't take it personally but just ponder about it.
By the way,I'm not taking in new students but the door is still open for oops n nb..since I left them too abruptly! So oops and nb do send me your email address if you want to continue your education.
This is a hard and cruel game and you need a passion for it. But let's see how many people can be passionate about this game after reading and pondering about the 'DON"T' of speculation. Why do I start of with the 'don't' of speculation ? Because it's the most common and basic mistakes made by every beginner when they place their 1st trade.
DON"T #1 : Don't ever over trade.
This year we've come across bloggers and traders who have suspended themselves from trading for one reason or the other. My deduction is that they were over trading. What is over trading? Over trading is mainly trading with insufficient capital. What is sufficient capital? Let's take the example of CPO ,the margin requirement is RM4,ooo per lot. That means you need a minimum of RM4,000 to trade 1 lot of CPO. If you follow gt's 30% rule;you need a minimum of RM 14,000 in your trading account to trade 1 lot of CPO. But how many actually keep to such a rule? I've seen many gallery traders who trade CPO with RM5-7,000 per lot.Needless to say,they don't last long after 1 or 2 whips from the market.
DON"T # 2: Don't increase your trading position after a loss or a series of losses.
This is quite a normal thing for gamblers to do,they increase their positions every time they lose thinking that their losing streak will end soon and they get to cover all their losses in 1 hand. But how many actually know when their losing streak will end? What if the markets whips u 10 times in a row? DO you think you still be around to catch the big move in your favor? This is also a form of over trading.
DON"T # 3: Don't ever fight the trend because of your opinions.
There is a blogger (still blogging by the way) who is and I believe is still fighting FKLI by being short and even shorting higher. He quotes 'who says there is only 1 road to Rome?' . But the surest and fastest way to Holland is by being stubborn and egoistic by fighting the market! IF you think you are smart and intelligent and therefore you must be right all the time why then do you not find or even hear of Albert Einstein or Professor Stephen Hawking trading for a living even on a part time basis, since they are sooooo smart and their opinions are definitely better than yours or mine? Think about it? You think you are smarter than Einstein or Professor Hawking?
DON'T # 4: Don't ever talk about your trades with other traders.
Trading is an egoistic game,chances are if you ever talk to someone that someone will talk you out of your position;since egoistic people always want to justify that they are always right! If they can't talk you out of your position with charts ,they'll probably talk you out of it by showing you negative analyst reports or projected gloom in the economy or market. Remember, all analyst reports and projections are just opinions of the author!
DON'T # 5: Don't ever talk about trading to your non-trading friends or family.
This is the fastest way to lose friends as they'll think that you are either a braggart or a gambler.
You must see it from their point of view,it's damn boring and most inexperienced traders get carried away as they'll go on and on and on about their trades or system and will start dominating the conversation. People will avoid you the same way people avoid direct selling recruiters or pesky life insurance agents trying to load you up with policies you can't afford! But do talk trading to people you don't like ;it's a classy way of getting rid of them from your life!
DON"T # 6: Don't be a fulltime trader/speculator if 30% gain a year on your capital is less than what you are making now.
Serious, it blows my mind wondering why people even decide to trade on a full time basis when they are already holding on to decent jobs. But honestly,30% gain is a conservative figure to speculators,but how sure are you that you'll even come out ahead for the year? Most part time traders don't realize that the reason they are doing spectacularly year in year out is because of their full time job. Losses will affect you no matter what people say and losses without a full time job will affect you even more. You'll never realize just how many tricks your mind can play with you.
This list of 'don't' is not exhaustive but I think I've covered the basics . Now it's all up to you to really be honest with yourself. If I offended anyone,don't take it personally but just ponder about it.
By the way,I'm not taking in new students but the door is still open for oops n nb..since I left them too abruptly! So oops and nb do send me your email address if you want to continue your education.
Saturday, October 2, 2010
Weekly Update FKLI & CPO
*FKLI now holding Long 1461 for October month (roll)..
*CPO still holding December contract LONG 2736..
ps>> for those not believers that our market damn strong and still holding FKLI Shot position, i wish good luck shorting to AVERAGE HIGH your position, watch/search this movie about Nick Leeson, dont go against the trend, the name of the movie -->> ROGUE TRADER :), maybe you guys (i mean shorties) will learn something.. Good weekend to all.. adios
*CPO still holding December contract LONG 2736..
ps>> for those not believers that our market damn strong and still holding FKLI Shot position, i wish good luck shorting to AVERAGE HIGH your position, watch/search this movie about Nick Leeson, dont go against the trend, the name of the movie -->> ROGUE TRADER :), maybe you guys (i mean shorties) will learn something.. Good weekend to all.. adios
Friday, October 1, 2010
Test your skill/system trading..
*You discover a super system to trade, try this website www.chartgame.com to test your "PROVEN" system to trade the market. The chart taken from real stocks traded in US/Canada, your system will compete with Buy & Hold system set by the website.
*This is my game record using my system.. hahahhaah, damn bored now playing chart games..
*This is my game record using my system.. hahahhaah, damn bored now playing chart games..
Subscribe to:
Posts (Atom)