Now they are writing on how the Asian stocks moved into bull market yesterday. Stanley Kroll used to say, trade with the trend... when the 9 Price>am>18ma>50ma, then the trend is bullish...
UPDATE: This is the schzo nature of human nature. A day after "Asian stocks move into bull market...", they drop as concerns arise over no more China easing...

"Traders come to the markets with great expectations, but few make
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.

No sooner than Greece Parliament passes the austerity, one call from the manipulators sees Moody's getting out the ratings machine gun downgrade for 6 Eurozone countries. Someone wants the markets down...

When prices go up, there is always a reason (cpo at 3 week high after Greece passes bill), AFTER the fact. Hence listen to Ed Sykota in his Whipsaw song, "What do you do with a hot news flash? You stash that flash in the trash!"

FACT: What is the attrition rate for Local Participants? It is about 50%. Over a ong period of time there are now 128 registered LP, only 66 are trading now.

The Mystery of the Stock Market Flash Crash - YouTube

Few comments:
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...

The saying goes:
"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.

Advice from a 30 year market veteran

Stanley Kroll, in pp52-53 of his book, Dragons and Bulls.

It was a roller coaster ride this week...

The Whipsaw Song

Time tested principles from a Market Wizard, Ed Sykota.(revisited)

Ride your Winners
Cut your Losses
Manage your Risk
Use Stops
Stick to the System
File the News (in the trash eg Greece)

Before you turn into a super bear...

a

20120130 After a long period of sideways activity.... the break of the uptrendline was the signal to be bearish for FKLI futures, on the 30 min chart...

S&P500 closes above 1300

Dialogue sesion

Well, the night was one with nice food, and a dialogue sessions between Local Participants and Bursa Derivatives. A constructive and frank discussion where CEO Mr Chong Kim Seng outlined bursa's plan to grow the local pupulation to 1,000 LPs. If that is achievable, then all augers well for liquidity in the market. Oh, and thanks for Bursa to put on the CNY dinner for the locals...

Actually, interested potential locals might want to try out being a local participant on BMD by taking this 'Chance of a Lifetime'.

Moved to new blog

Visit this location. Thanks to those who appreciate my throughts and chronicles and are continuing the journey in the new blog....
"When you do not feel appreciated but are treated as expendable, it sucks." One trader tells me.

Is trading as a 'Professinal' easy?

One of the best performing (in terms of profitability) locals is an old timer by the call sign AKT. When asked on a bit of advice on how to succeed and trade profitably, he remarked, "When you look at the market, who is making the money? No 1 No matter whether the trader make or lose, the exchange is at the apex, making the clearing fee, No 2 Next comes the broker, who will make the brokerage every time the trader makes a trade, win or lose, No 3 The service providers eg charting provicers are next to make the 'risk free profit'. If you understand this, then you will know to trade accordingly"

Poignant words, which to me means:
1 The odds are stacked against the trader from the outset.
2 Trading costs must be kept at as low a level as possible.
3 Don't overtrade. If you are subject to the pressure of a monthly volume quota, the odds are even more stacked against you, with forced trading just to make up the numbers.

Note that this is my personal opinion only.

Shifted to CPO blog, as I envisage less of idex futures trade going forward, due to increased costs and loss of 'edge'.

20120107 The Week that was, posts from fcpo.blogspot.com....

Local Participants entry liberalised.... but read the fine print....

"Local Participants can trade with their own funds and are not permitted to conduct trades on behalf of Clients. They will enjoy exchange and clearing fees rebate if they trade 1,000 contracts per month or more. Local Participants are registered with Bursa Malaysia Derivatives (BMD) and can trade in all BMD's products.?

If you don't trade 1,000 contracts per month, you WILL NOT enjoy the trading fee and scratch fee benefits, and any profits will be subject to income tax.(albeit at 50% exemption for the next 5 years), ie you are screwed. So, it is only for those who want to slave away and churn out volume every day..... So basically if you are a beginner and small trader, the exchange does not encourage you. They give 3 months 'promotion' though, to enjoy the fee discounts even if 1k not traded.

As John K puts it:

"You might as well trade as a retail client, no scratch trades but you do not pay income tax anyway"