Friday, May 27, 2016

Day-trading : Which instrument to be used?

9.30am : Morning ... it is Thu. DOW up another 145 points ... great, our KLCI lagging behind and I just closed my FKLI long ... my 5th consecutive winning trades in FKLI. It is tough as I have lost to FKLI ... many of times. Now, I m more cautious and focus ... patiently wait and apply technical charting.

Day-trading : It is very difficult to day trade stocks ... simply because we have so many stocks to watch and also keeping updates on each of them(the news, rumours and such). Also ... we need larger capital to trade stocks, unless ... what many retailers doing are getting margin(t+4) and/or trading penny-stocks!! To me ... that is not the way to trade as we are against the operators who goring up-down those hot-penny (AAX, Vivocom, GPacket, KNM ... we have missed IFCA, SMRT and gang ). We will lose long run(if you are one of those greedy newbies ... using margin to trade these penny-stocks, you are exposing yourself to very high risk.

So ... I was in that situation too ... trading call-put warrants is extremely risky too(we could lose a lot). So ... I was asking ... how do I day-trade at home? I was planning to quit my full-time job .... give tuition part-time and trading too!!

Then ... some 3 years ago, I ventured into futures (FKLI/FCPO). We formed a group, followed an experienced trader but  ... and many of us got badly burnt, quit for 1 year plus ... and few of us gathered back and re-started last year!!

Yes ... I was focusing in FCPO ... and doing well once I got the trading system to trade. It is more of patience ... emotional control etc etc ... not the system.

10.05 am : Morning ... it is Friday now ... I stopped somewhere yesterday ... lost the momentum to write about day-trading. haha.

Anyway, I missed the whole 50points in FCPO yesterday. Gained RM400 yesterday was considered good as I m aiming for an average profit of RM200 per day (roughly RM1k profit per week).

AirAsia : Pressed down to RM2.12 support level(ex-div 4cents yesterday) and gap up this morning!! I didn't buy ... few in my members were asking and some bought at RM2.15 level ... wow. Daring and confident of AA giving good QR. At 2.30 resistance level now is a SELL.

11.30am : I am back after ... made amateurish newbie blunders in my FCPO this morning, and now in paperloss. I shorted. Anyway ... we shall see how it pan-out.

Need to fetch my girl ... and continue after lunch.

Note : If you are reading this from i3 or other forums, it will NOT refresh to update. You need to come to for the updates ... as I will continue the post HERE instead of creating a new post .

3.20pm : AirAsia really fly and breakout ... now at RM2.40. WOW ... now everyone can fly ...

Trading for living ... is like a dream comes true ... but it is too difficult. I just lost in FCPO as I shorted this morning and it recovered, hit my cut-loss point. zzzz ...

At the moment, I m at MainPlace ... moved out from my home ... clearing my mind after the loss. It is very important as I have consecutive many winning trades in FKLI/FCPO recent days ... and a loss could shaken our confident. Re-group .... re-focus next week.

re-reading my day-trading book ... and also I shared an excerpt from "Trading in the zone" with my trading group, for learning purposes. Yeah ... I have e-meeting weekly and also slowly added in learning-corner ... for those newbies and those wish to learn about trading. The topic I chosen today is "Taking responsibilities".

wait ... I go to my group page and copy it here ... since your are a good reader reading from THIS blog. Yup ... I sent the morning post and it wont be read by many from i3-forum or other forums!! Hmm ... getting away from the crowd and more comfortable to blah-blah with some real-loyal readers.

Let me highlight some important pointers ...

Taking Responsibility

Taken from : Trading in the zone

The words “taking responsibility” sounds simple enough yet the concept is neither easy to grasp nor put into practice. We have heard the phrase so many times that it is easy to take for granted that we know exactly what the phrase means.
Taking responsibility in trading and learning the appropriate principles of success are inextricably connected. You must understand with every fiber of your being, that ways in which you are and are not responsible for your trading success.

To express yourself as a consistently successful trader you must deactivate limiting beliefs, create new empowering beliefs and work on your mental and emotional attitude. To realize your potential your goal must be to learn how to think like a consistently successful trader.

The best traders think in a number of unique ways. They have created a mental structure that allows them to trade without fear and at the same time keeps them from becoming reckless or overconfident.
If we work from a premise that to create consistency trading you must focus your efforts on developing a traders mind-set, it is easy to see why most traders are not successful. Instead of learning to think like traders, they expend most of their efforts in thinking about how they can make more money by learning about the markets. It is nearly impossible not to fall into this trap, it is easy to assume that it is what you don’t know about the markets that causes your losses and lack of consistent results.

However this is simply not the case. The consistency you seek is in your mind not the markets. It is your attitudes and beliefs about losing money, being wrong, and the tendency to become reckless when feeling good that causes losses, not technique or market knowledge.

It takes time to develop this winning attitude and mental structure. A definition of a positive winning attitude is expecting a positive result from your efforts, with an acceptance that whatever results you get are a direct reflection of your level of development and what you need to learn to do better. This winning attitude helps you move beyond your mistakes and keep learning. Instead of getting bogged down in negative self-criticism.

Most traders had the common experience of losing one or more fortunes before they realized how they needed to think in order to be consistently successful. It is a fundamental shift in attitude that accounts for their success, not some brilliant realization about the market, as most people erroneously assume.

Taking responsibility means believing that all of your outcomes are self-generated; that your results are based on your interpretations of the market information and the decisions you make and actions you take as a result. Not taking complete responsibility sets up two major psychological obstacles that will block your success. The first is that you will establish an adversarial relationship with the markets thus taking you out of the constant flow of opportunity. Second you will mislead yourself into believing that your lack of success and trading problems can be rectified through market analysis.

From the markets perspective, each moment is neutral; to the observer or trader, every moment and price change can have meaning. These meanings are based on what you have learned and exist in your mind not the market. The market does not attach meanings or interpret the information it generates about itself. In addition the market doesn’t know how to define an opportunity or a loss.

The market does not know or care if you perceive it as an endless stream of opportunities to enter and exit trades for both profits and losses at each and every moment, or as a greedy monster ready and willing to devour your money at any given moment.

If you perceive the market information as painful in some way, you will naturally try to avoid that pain by either consciously or subconsciously blocking that information from your awareness. In blocking this information you systematically cut yourself off from any number of opportunities that exist to enrich yourself. In other words you cut yourself off from the opportunity flow.

Finally learning more and more about the markets only to avoid pain compounds your problems, because the more you know naturally the more you will expect from the markets, making it all the more painful when the markets do not do their part. This can create a vicious cycle where the more you learn the more debilitated you become; the more debilitated you become the more compelled you are to learn. This cycle will continue until either you get fed up and quit trading in disgust or you recognize that the root cause of your trading problems is your perspective, not your lack of knowledge.

Taking responsibility is the cornerstone of a winning attitude”.

Naim ... selling stops? Finding bottom soon ...

3.40 pm : WCT ... will post the chart later, down 7% at the moment.

Ok ... time for me to pause ... go jalan-jalan and to come back to check around 4.30pm. Then, going for massage later with a friend ... talk biz ... and meeting tonight.


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