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, February 29, 2012
Monday, February 27, 2012
Report: Cardiff City v Liverpool - English Carling Cup - ESPN Soccernet
Sunday, February 26, 2012
Report: Manchester City v Blackburn Rovers - Barclays Premier League - ESPN Soccernet
Saturday, February 25, 2012
Liverpool's Craig Bellamy finds loyalties split in Carling Cup - ESPN Soccernet
Friday, February 24, 2012
"Now let us deepen our understanding of when the market will be ready for us o
act. The market itself gives us the clues that tell us what to do. All that we must
do to learn is listen to it.
IT IS All ABOUT MISDIRECTION
Things are not always what they seem. If they were, it would be easy for anyone to
have a look at the market and to make money. This is not the case. You first must
know where to look.The market will very often go against public opinion. This is because people
are so enthusiastic about the market's immediate behavior that they enter a kind of
In a bull market, no one wants to be told about reversals or the end of the trend.
They all want to be where the money is being made. This is fme as long as the
market maintains its trend. The problem with this approach is that enthusiasm takes
a very long time to build. It accumulates in a slow, snowballing motion as a result
of stories of other people's success in the market.
When knowledge of the successful buyers is widespread and the public is enthu-
siastic, it is already too late and the market will reverse. Why'? Because the all-
important buying has already taken place. In fact, very soon the only thing that
will matter is selling. The public, fully ignorant of this, believes that it is at the
beginning of a move that will last for a long, long time. This is no longer true when
the public is fully aware that a bull market is underway.
Why is there such public ignorance'? Simple! The answer is 'misdirection.' The
public is misdirected by opinion. There is an abysmal difference between 'opinion'
'Opinion' is what you hear around you, what you are told by someone, whether
it is the media, a professional, or whoever. It does not really matter who is telling"
From Pilepe Tudela's book, "The Secret Code of Japanese Candlesticks".
Thursday, February 23, 2012
Fund manager performance: 79% don't beat the S&P - Feb. 23, 2012
City beat Porto 4-0 in the Europa League.
Wednesday, February 22, 2012
Tuesday, February 21, 2012
More from Dr Elder, on those dreaming to day trade (page 141)
gether. They quit their day jobs and go on the floor. Some move to a
city that has an exchange where they buy or lease a seat. Costs are
higher on bigger exchanges that handle high volumes in popular mar-
kets, and cheaper on smaller exchanges in lesser markets. The best
way to learn is to get a job as a clerk on the ﬂoor and work for some-
one, but this option is open only to the young—the ﬂoor generally
doesn't hire people over 25. They want them young, pliable, and with-
out any preconceived ideas.
The great paradox of day-trading is that it demands the highest level of
discipline, while attracting the most impulsive, addictive, and gambling-
prone personalities. If trading is a thrill, then day-trading provides the
best rush. It is a joy to recognize a pattern on your screen, put in an
order, and watch the market explode in a stiff rise, stuffing thousands
of dollars into your pockets. A former military pilot said that day-
trading was more exciting than sex or ﬂying jet aircraft.
Corporate traders are in the market because their companies gave
them jobs. Private traders enter for reasons that are partly rational and
partly irrational. The only rational reason is to make money, but a prof-
itable day-trade delivers such a great high that it sweeps most people
off their feet. Flooded with pleasure, they go looking for the next high
and lose money.
The purpose of any business is to make money. A well-run business
also gratifres many of its owners' and employees' psychological needs,
but money is the pivot of the enterprise. Traders who become hooked
on thrills take their eyes off the money and jump into impulsive trades.
Vendors encourage day-traders because losers spend like drunken
sailors on software, data, systems, and even coaches, most of whom
have never traded or busted out. Go into any port area, and you'll
see plenty of bars, brothels, and tattoo parlors. Go into day-trading,
and you'll see more vendors than you can shake a stick at. There is money
to be made from turkeys whose market life is measured in months
Successful day-traders test patterns and systems, measure risks and
rewards, and focus on building equity. Winners tend to be emotionally
cool. If day-trading attracts you, you must answer several questi
survive and succeed, you must develop discipline. The moment
you become aware of feeling fear or joy, use that as a signal to tighten
your discipline and follow your system. You developed that system
when the markets were closed and you felt calm. Now it gives you
your only chance of survival and success in the markets.
The idea of an automatic trading system is fundamentally flawed. If
those systems could work, then the smartest guy with the biggest com-
puter would have cornered the market long ago. Automatic systems do
not work because the market is not a mechanical or electronic entity
that follows the laws of physics. It is a huge crowd of people acting in
accordance with the imperfect laws of mass psychology. Physics and
mathematics can help, but trading decisions must take psychology into
\When you talk with a pro, one of the first questions he'll ask—or
not even ask because he'll know the answer from a few of your com-
ments—is whether you are a discretionary trader or a system trader.
A discretionary trader takes in market information and analyzes it using
several technical tools. He is likely to shift and apply somewhat different
tools to different markets at different times. I-Iis decision-making tree has
many branches, and he follows them at different times as market condi-
tions change. All branches are connected to the sturdy trunk of his deci-
sion-making tree, an inviolate set of rules for risk control.
A system trader develops a mechanical set of rules for entering and
exiting trades. He backtests them and puts them on autopilot. At that
point, an amateur and a pro go in opposite directions. An amateur,
frightened by the market, feels relieved that a system"
Monday, February 20, 2012
Warren Buffett's no 2 principle
"2. Be Willing To Be Different: Don't base your decisions upon what everyone is saying or doing. When Warren Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. He worked in Omaha, not Wall Street, and he refused to tell his parents where he was putting their money. People predicted that he'd fail, but when he closed his partnership 14 years later, it was worth more than $100 million. Instead of following the crowd, he looked for undervalued investments and ended up vastly beating the market average every single year. To Warren Buffett, the average is just that -- what everybody else is doing. to be above average, you need to measure yourself by what he calls the Inner Scorecard, judging yourself by your own standards and not the world's. "
Don't be a sucker, and do what the crowd does, be different and stand out from the rest.
Jeremy Lin Interview With Rachel Nichols From ESPN
The Jeremy Lin/New York Knicks continue with a win over last season's champions, Dallas Mavericks
Warren Buffett Rules for Cuccess
2. Be Willing To Be Different: Don't base your decisions upon what everyone is saying or doing. When Warren Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. He worked in Omaha, not Wall Street, and he refused to tell his parents where he was putting their money. People predicted that he'd fail, but when he closed his partnership 14 years later, it was worth more than $100 million. Instead of following the crowd, he looked for undervalued investments and ended up vastly beating the market average every single year. To Warren Buffett, the average is just that -- what everybody else is doing. to be above average, you need to measure yourself by what he calls the Inner Scorecard, judging yourself by your own standards and not the world's. //-->
Sunday, February 19, 2012
profits and most wash out. The industry hides good statistics from
the public, while promoting its Big Lie that money lost bv losers goes
to winners. In fact, vvinners collect only a fraction ofthe monev lost by
losers. The bulk of losses goes to the trading industry as the cost of
doing business—commissions, slippage, and expenses—bv both win-
ners and losers. A successful trader must hop over several high hur-
dles—and keep hoppin"
Alexander Elder, "Come into My Trading Room" page 48.
Basically if the trading costs of commissions, slippage and expenses are too much the hurdles to a trader's success gets bigger. ..
BTW Sally Pearson is the hot favourite for the Olympic gold in the 100m hurdles for women.
Jeremy Lin: Pattern of Turnovers Is Achilles' Heel for Knicks PG | Bleacher Report
Saturday, February 18, 2012
Revisiting the dog stocks
BIMB, UNISEM, MBSB, KGB
Friday, February 17, 2012
Thursday, February 16, 2012
How to suceed cin business and have a vibrant economy-Germany
Foreign Correspondent program of the ABC T.V. Basically don't get greedy and use leverage from the ah long...
"The system in Bavaria works. Unlike in Greece, you don't have to know someone or bribe someone to get things done."
Tuesday, February 14, 2012
The Linsanity phenomena
Moody's getting out the ratings machine gun downgrade for 6 Eurozone countries. Someone wants the markets down...
Buffett has the last laugh
Warren Buffett invested US5 billion into Bank of America, the market was full of hysterical doomsdayers saying he was 'wrong' and they subsequently tried to prove him wrong by driving the price below US5.00 per share. Now he is laughing to the bank... The power of Value Investing philosophy.
The Mystery of the Stock Market Flash Crash - YouTube
1 When the algos run amok one should get a good idea how the market might react
2 Fear and greed, don't get overly excited and hysterical like the commentators in the videos.
3 Algos are made by humans, and like humans they are prone to insanity=doing something that you know is wrong but still doing it anyway...
The pigs are coming...
"Bulls get fed, Bears get fed, but the pigs get slaughtered"
High frequency trading is coming, the Bursa says. We better focus and be there to slaughter the HFT pigs, when their emotionless computers run amok like the flash crash of May 6 2010.
Monday, February 13, 2012
Advice from a 30 year market veteran
'possibly the best value stock on Bursa'=London Biscuit. Nice weekly chart, trending with the gap up today??
Wednesday, February 08, 2012
Tuesday, February 07, 2012
Bank Negara FX Liberalisation
s announced on Jan 30, 2012, the new measures basically open up the way for domestic participants in the capital markets to engage in new fx related instruments for example margin fx trading witht eh domestic banks.... but non Ringgit related. If the participant converts ringgit into say us dollars, euros or aussie dollars, they are free to invest that foreign currency in whatever they want be it domestically created products or foreign products. Opens up a whole new world of trading opportunities....
So, in terms of Bursamalaysia stocks, banks/financial institutions to be rerated upwards?
Malaysia issues tax free palm oil export quotas." I guess some parties who bought up the cpo futures last Friday already knew.... If you are fortunate enough to be in the inner circle, the you might buy volume with confidence, otherwise forget about trading volume and making the big bucks.
Monday, February 06, 2012
Prem Lge: Man Utd rescue draw with Chelsea, Newcastle beat Villa - ESPN Soccernet
With united slip up, city edge two points clear
Sunday, February 05, 2012
Heat is now on man united
"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