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
Wednesday, July 29, 2009
Tuesday, July 28, 2009
Monday, July 27, 2009
20090727 1157. So, Bursamalaysia will implement the reduced tick size for stock trading. This will have an impact on the FBM KLCI.
Sunday, July 26, 2009
Saturday, July 25, 2009
20090725 Salvatore Deli of Malaysia Finance Blog likes MPHB for its 'meat value for potential vultures'. The price has surged last Friday. Looking at the chart how would one play it from a trading point of view? Well, if one were to commit a certain amount in this trade, you could chase the price and buy 1/2 position on break of the highs, then enter the 2nd 1/2 on retracement to the 8 ma on the 60 min charts. Stop loss? 1.40 may be good. Just an idea.(remember this is only for hypothetical purposes only)
20090726 Oh, I just want to add that this type of trade in a stock is 'from a tip'..... If everyone is in a trade it might go for a while, but the insiders have already got on the train 5 stations before you do..... Let's see how this pans out. As Salvatore says, the fundamentals are compelling for a corporate raider to come in and take a strategic stake in the company. If so, a better strategy is to keep the stock on the radar screen, in case there is a sharp market correction to enter. This type of 'value investing' play is superior to the kicks one gets from taking a gamble on a stock.
Friday, July 24, 2009
20090724 1800. Two charts to note today: Following on from yesterday's squeeze in FCPO(15 min), there was a significant break out of the range downwards then a rally upwards in the afternoon session, a prime example of the spring uncoiling. Second chart is the daily FTSE KLCI(daioy), momentum still looks to be intact, no sign of reversal yet...
Bloomberg reports on how the S&P500 has reached its 50% retracement of the falls last year to the lows. The KLCI similarly faces the 50% wall at around 1168-1173 region....
A bit of Deja Vu
The market has roared forward this year and come back with a vengeance. People tell me that 'most of the retailers' are not participating in this rally. How does one invest or trade successfully in this market? Not by contra playing (high risk to your wallet) nor insider trading (high risk to your physical and mental well being) nor buying stock due to tip, but remember the 10 (well, 10-13 year cycle., take a longer term approach. Definitely don't listen to doomsdayers who last oct/nov were talking of meltdown and the end of the financial markets.
Thursday, July 23, 2009
Wednesday, July 22, 2009
Tuesday, July 21, 2009
Monday, July 20, 2009
Saturday, July 18, 2009
Wednesday, July 15, 2009
Tuesday, July 14, 2009
Monday, July 13, 2009
Thursday, July 09, 2009
Wednesday, July 08, 2009
The Cabinet today, in their wisest of wise men wisdom ways, has decided thet BM (and vernacular languages) will be used in the teaching of English and Maths going forward.
The reasons cited are:
"“Only 19.2% of secondary teachers and 9.96% of primary teachers were sufficiently proficient in English,” he said, explaining the Government’s decision to revert to the old system."
Read this blog post on the Malaysian Finance Blog for why English MUST be the medium to teach English and Maths in schools. Touche, Salvatore, I agree with you wholeheartedly.
Tuesday, July 07, 2009
Monday, July 06, 2009
Saturday, July 04, 2009
Portfolio rebalancing prior to FTSE KLCI
The half hourly charts of the 3 indices FBM100, FBM70 and FBM30 clearly shows the forces at work, in the past few days of trade in the run up to the adoption of the FBM KLCI. The 30 stock index was bought, 70 stock index sold....
Noting down the important reference levels
for future reference.
Friday, July 03, 2009
Last day of trade for KLCI, closes 1072.69, last minute they just HAD to fix the stocks down to mark the index down to 1072.69. From next week we welcome the FTSE KLCI, with 15 sec updates for the index values. It seems the plunge is caused by some components that market speculated would make it into the FBM KLCI 30 stocks did not make it. (see "KLCI bows out lower")
Read this article for an introduction to the FBM KLCI. How will the new FBM KLCI move? Well, it seems backtesting has seen a 98% correlation to the old KLCI.(see RHB article) So it will move just as the old index did, but with an increased emphasis on the top 5 stocks: Commerz, Public Bank, Sime Darby, Tenaga and Maybank.
Go here to see which are the winners and losers in terms of stocks in the FBM KLCI.
20090703 1129. FKLI futures 30 min chart...gap down filled, with 2 buy stop runs today. It seems the index is 'resilient', but prices are just maintaining, as S deli of Malaysian Finance blog says, the "market looks tired and due for breather". Incidently today is the last day the KLCI in its present form will trade....
Wednesday, July 01, 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