Deadly Mistake.......

Honestly I really have no idea what I learning throughout the years of trading. I’m keep repeating the same mistake over and over again, and I really don’t know when I going to learn for not repeating it again. Discipline…..why is so hard to be a discipline person, just follow only, what is the big deal? Is it due to my own characteristics or I start to put my own prediction on the market direction? No one will ever survive without applying the discipline in their trading, and I keep reminding myself, however, I still failed to do it and I really disappointed with my discipline.

Suppose there is a long signal trigger for both of my cash and fkli chart around 12 noon something. However due to my personal greedy of myself, I told my broker to help me park to long at 1358 because I don’t want to get out at such a high price which around 1362 to 1363. After that I just leave my order like that to make a assumption the order can be done by today. Unfortunately, when my brokers inform me again around 4 pm something, the market already hit 1369. I have to admit for make a very emotion mistake and failed to follow accordingly to my trading plan accordingly with discipline.

At first I carrying a short position at 1354 and the market did went down to 1338 before and now the market rebound from the lowest to highest at1370 on today. In this case, I can’t believe my paper profit suddenly turn to become paper loss in 2 days, and I admit I carry a hope towards my position to wish the market can go back to around 1350 so that I can get out with some tiny profit. Is too bad that market never response to my wish and it just keep going opposite of my direction. Until my both cash and fkli signal turn to long signal, I still waiting….waiting there is a suddenly crash or what so that I can get out my with lesser pain, but market still not listen to me…..

Honestly, I start to doubt on the discipline to follow my signal. Maybe it is time for me to think about a better plan for me to follow my signal exactly. If I keep not doing my part, I know very well the consequences, I will soon kick out by the market…..

Up Up Up!!!

Today our market was influence by the rally of Dow futures as well as good performance from regional market and bringing our FKLI spot month to close at 1367. Though our market was doing discount on last Friday but now had becoming premium as our cash market close at 1363.

For my position that long at 1252, I still keep it till now, due to our cash market support at 1350 is still well maintaining. With the breaking new high of our cash market, I shall peg my new support at 1355-1360, and hopefully our market can reach 1380 level by this week. Honestly it is quite confusing as a position holder in our FKLI. Though our cash market was steadily moving upward bias, however, due to influences from regional market, our FKLI was moving between premium and discount, so it is not an easy feeling when seeing your profit reach to a new level and then wipe off half of it in 1 or 2 days. Therefore, as a position holder, we should not influence by the price fluctuation, however, focus on our trading plan strictly is a must to ride on the trend.

Come into my trading room

“Come into my trading room”, another book which written by Alexander elder after completed the “Trading for a Living”. I would say it is another trading book that cannot be missed up for those serious trader that looking for ways to survive in the market. Bear in the mind, we need to learn how to trade rather than aiming getting rich faster in trading, cause when you know how to trade well, soon you will getting richer easily.

The author was emphasizes 3 aspects that is a must in order to success in trading and they are mind, method and money-trading psychology, trading method and money management. In the chapter talking about mind, author strengthen that every traders should keep their own trading record and always reviewing on their history trade to remind them what is the mistake being made and what need to be done to make successful trade. Whereas in method part, author did mentioned about triple screen which trading based on big picture and finding entry point for smaller time frame chart. I was trying to do exactly as what indicates in the book, but I think triple screen system is more suitable in trading stocks rather than futures. Lastly, I really impress by what being delivered by the author on the money management part. And what author trying to delivered was so true, if the best signal can be prove making money in the long run, the best programmer should be the one trading the market, but not us. The puzzle only can be solve by just a simple money management rules, but it just require a lot of discipline in working on it, which it is quite tough for a human being to follow exactly.

I quite enjoy the books that written by Alexander elder, since his book was delivered in a quite simple understanding ways. Once u read his book, I will noticed the 1 he talking about is quite similar with me, who as an amateur trader. As I go through so many books, I only realized actually I didn’t know too much about proper ways in trading, and I thought I mastered the secret of trading, but in fact, I’m not…..So I will keep on my habit in reading, and by doing so, I able to discover more and more keys to success in trading.