FKLI Futures Trading - Bursamalaysia
This will chronicle trading in the FKLI & FCPO futures. If you don't like what you see/read in this blog, just surf away. These opinions are our personal opinions and just a record of our thoughts..."In evolution, it’s not the biggest, the fiercest nor the smartest that survive, it’s the one that changes the fastest.” I.e. the key word is to adapt the trading style to the markets, until it stops working
Saturday, January 31, 2009
Friday, January 30, 2009
20090130 1909. Reached home and find that cable is now above 1.4300. Kudos given to myself for having the nerve to hold on to the view and the trade. There is a time though, for conviction and a time to GTFO (get the fu*&k out), and I think one's experience will help decide which course of action to take. At least this is fairer game, unlike the FKLI and FCPO today, one with low volatility and the other was a case of the 'big fish eat small fish'.
Monday, January 26, 2009
HAPPY CHINESE NEW YEAR
In this year of the Ox (or will it be the bull), here's wishing all readers, bloggers, traders, businessmen, chaipersons, government servants, Polis (don't put the hands too often in the till guys) a very Happy New Year of the Ox. Eat well (I'm sure that will be a certainty) but don't forget to exercise...
Thursday, January 22, 2009
Wednesday, January 21, 2009
20090121 2255 UPDATE:Cable breaks 1.3850...
20090121 2221. Cable builds up momentum so we can lock in some profits and trail the stop.
As an aside, I read with interest that the KLCI will be replaced by the FTSE Bursamalaysia KLCI, which will be a 30 stock index with weightings adjusted for free float. Hooray! No more manipulation of the KLCI. This is because stocks' weighting will be adjusted for free float. Most of the time manipulation occurs in the KLCI through marking of stocks such as MISC, which has 23% free float. IOICORP has free float of 46%, hence there will be less influence on the index value by MISC Bhd. Ha Ha, the manipulators get their just desserts after July 9, 2009.
20090121 1015. FKLI futures pattern plays out for the longs. Well for the short term traders who long anyway. Bear in mind yesterday this pattern failed...
20090121 0954. In everything that we do, one has to keep the 3 and 1 day trend in mind, on this 15 min chart, the moving averages 'give an approximation' to the trend direction. So if you long, should be for day trade only, risk and reward adjust accordingly. Short, well you are on the right side of the trend.
Tuesday, January 20, 2009
Monday, January 19, 2009
Jim Rogers was a Market Wizard. He says he hasn't met a technician who gets rich. He doesn't time the market. He blasts US Presidential elect Obama's policies in this interview. Granted he is a good trader (who doesn't time the markets), but what does he care about what happens to the USA and the American economy or the US dollar..... He has already moved to Singapore, put all his money in China, Korea and Agriculture (which by the way wheat, soybeans and corn some of which are planted in the US), sold out all his US dollar.... He should be concerned with the Bank of China, the Singapore economy, how the exports have contracted dramatically recently etc....
Friday, January 16, 2009
20090116 1126. I was looking around the FX for a trade, the eur was in a nice uptrend but I noticed a setup on the 1 min chart where the previous high made was berached after another subsequent high, so I shorted the eurusd. Add to this a ww pattern on the 15 min, the eurusd after a retest of the horizontal line broke down.
Thursday, January 15, 2009
Wednesday, January 14, 2009
What was the cause of FKLI futures selldown?
Scanning the breaking news on Bloomberg.com
Tuesday, January 13, 2009
There is a lot of 'talk' by experts and laymen alike on the disastrous state of the world economy in 2009, on how the stock market cannot go up, there will be a great Depression etc etc, blah blah blah. In her book "Street Smarts", market wizard Linda Bradford Rashke on page 100 we find this excerpt, which is self explanatory.... I am not saying that the doom and gloom won't happen, but just to keep an open mind on the markets and 'anything can happen' in markets.
Basically the page talks about:
1 ESPN basketball analyst Dick Vitale would make a great trader because of the words"Talk to me, baby!"
2 She goes to paint the following scenario "The markets talk to us all the time. For example, let's look at December 1994. The Federal Reserve raised interest rates, California's Orange County was teetering on the verge of bankruptcy, and Mexico was in the midst of an economic freefall after the devaluation of the peso. Any, rational investor would assume that our equity market should go down." Basically the 'bad news' is discounted. If one looks at this using the same logic the press uses crash is around the corner. Higher interest rates? Stocks go down. Municipal bonds default? Stocks go down. Mexico, the US's trading neighbor devalues its currency? Stocks go down. All three the same month? Stocks really go down!
In reality though, the market did not go down. The S&P 500 finished 15 percent higher for the month. What was the market saying? It was saying, "I don't care about higher interest rates or an economic crisis, I'm going higher!" And that is in fact what happened. Over the next 10 months, the Dow Jones appreciated over 30 percent.
Monday, January 12, 2009
20090112 1713. By shorting the ww pattern in the morning, we can cash out near the end of the day.(or even intraday for those demi gods that can pick the 921 bottom)
Sunday, January 11, 2009
20090111 It is Sunday evening, and as we look back at the call on the bottoming of the Dow Jones, we look back and think that the call to buy stocks (a "once in every decade" opportunity) now doesn't seem that stupid or suicidal. Back in Nov-Dec 2008, there were prediction of doom and gloom for global equity and financial markets. In markets, one's calls are vindicated only with the passage of time: "Time will tell". (attached 4 hr chart of FKLI futures continuous contract) Those astute enough to buy some stocks can now profit, maybe sell and wait for the doomsdayers again. Believe me the bears are very much still around, "Economy will crash in 2009..." is what was echoed around in the last 2 weeks.
Saturday, January 10, 2009
DMA Direct Market Access
The age of technology utilising the internet to enter orders is upon Bursamalaysia Derivatives. Currently there are two vendors approved for offering software to brokers for trading through dma. Word has it that a couple of brokers will be launching the service to retailers in Jan-Feb 2009. The retail offerings will be from either of these application providers. Who are the brokers? Amfutures and Phillip Futures were some names mentioned.
Friday, January 09, 2009
"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore
THE END OF AN ERA
From Dragons and Bulls by Stanley Kroll
Intro and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet/a>
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system