Update of recent trade

An update for my recent trade again. I had officially turned long at 1323.5 on 9^th June, Friday with a total loss of 13 points from my previous short position. Let’s me review the lesson that I learned from this trade.

Actually there was more than 20 points profits that I can earned from my previous short position, however, I end up closing the position with a losses of more than 10 points. At first I would say that I trying to fight against my own signal. Suppose there is a long signal trigger on 8^th June, Thursday evening before the market closing, however, due to my emotion disturbance again, I couldn’t accept my position from a winning trade become a losing trade, I try to delay my cut loss so that hope the market will going into my favor. I have to admit, I hope the market, which the common mistakes that every amateur traders could easily make.

I found that the market was in a very tide zone, and I wondering is it the reason come from lack of foreign institution involvement in our market. As I using my signal very long time, I understand my signal that need to move more than 40 points than only can consider a safe run, or else any signal will easily caused a losses. If this sideways was only 1-2 months is ok for me, but if the sideways was maintain for 1-2 years, then I definitely can’t survive till a trend come. As a result, I really have to develop a method which allow me survive in the sideways and also catch the possible trend to come.

Besides doing my own analysis on the trade, I also like to access to some trend trader’s blog. By reading their trading diary, it did give some inspiration in improving my trading skills. Today I was accessing to 1 of my favorite trend trader blog. This guy was writing his own trading diary for 2-3 years and all his profit/loss of his position was clearly posted in his blog. From the ways of his trading, I can see that he using daily chart to trade and there are huge trend he able to catch as well he being suffered from major draw down before. Today when I try to access to his blog as usual, I found out this guy decide to stay out from the market till early of 2011 or permanent retirement from local market as he still need some time to consider it.

From what he stated in his blog, he did achieved 250% of profit in FCPO while 98% of profit in FKLI from the days he start trading. However, he loses around 90% and 50% for FCPO and FKLI respectively in this year. The profit that he earn in the market was very impressive and trading for a living always the ultimate dreams for every investors and I wish I can become like him 1 day. The reason for him to take stay out from the market was due to margin call on last Friday which mentioned in his blog. I pay my fully salute to this guy, because he is a full-time trader as he can spend most of the time with his family members and I wish he able to come back to market once again. I will never forget something that he write in this last update of his blog, “Topping up a margin call is never a wise move. For me, losing is losing and the more you top up, the more bigger the hole will turn out to be!” “Speculation is never a low risk job. You can obtain a three figure return (percentage) also means that you can easily lose out the same amount of percentage!” Even an experienced trader also has to take a break, so I really have to put more effort in brushing up my trading skill so that I can survive in the long run.