Monday, January 10, 2011

Short To Close FKLI Just To Call It A Day


Date of entry: 7 Jan 2011
Long FKLI For Potential Continuation Of Up Trend
I longed FKLI Jan 2011 future contract at 1573.5 for 3 contracts. I did not wait till the break up as bullish candle stick pattern speaks well.

Date of exit: 10 Jan 2011
Short To Close FKLI Just To Call It A Day
I shorted to close my position at 1563 (finally!!) with a much bigger loss of 11.5 points for each contract.
The lesson: Stop Loss Limit Should Place At Least Two Prices
My initial stop loss was set at 1569 (one price only) and the price did not match my price instead jump down to 1568.5 way passed my stop loss price. So I was never stop out.
It is important to place a stop limit for at least two prices, for example, if my stop loss is 1569, I should place the stop loss limit at 1569 and 1568.5 or even 1568. By doing so, my stop loss is sure to meet the actual traded price.

The losses: RM1,725(11.5points x RM50 x 3contracts = RM1,725)

The balance of my account is RM17,900 after the loss of RM1,725.
(The details of my account is at My Future Trading Account Records 2011 )
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7 comments:

  1. AnonymousJanuary 10, 2011 at 12:09 AM

    hi Abel,

    Are you familiar with DMA? Heard there is an algo trading in it... sounds interesting.. lengchai6

    ReplyDelete
  2. AnonymousJanuary 10, 2011 at 5:58 AM

    oh btw, your method of trend trading sounded like what was written in "the complete turtle trader " - still in midst of reading...lengchai6

    ReplyDelete
  3. AbelJanuary 10, 2011 at 1:04 PM

    HI LengChai6,

    I am not familiar with DMA. I will check it out.
    I thought turtle trader uses moving averages close over, right?


    Abel

    ReplyDelete
  4. Mark ChangJanuary 10, 2011 at 3:18 PM

    Hi Abel,
    You didn't follow your stop loss limit?

    ReplyDelete
  5. AnonymousJanuary 10, 2011 at 3:55 PM

    Hi Abel,

    DMA - Direct Market Access... maybe your brother FBR should be able to know...

    As for turtle trader, breakout & trend trading..

    lengchai6

    ReplyDelete
  6. AbelJanuary 10, 2011 at 5:05 PM

    Hi,
    I am trying to 'repair' my trade now. My stop loss was at 1569 and I placed it as stop limit at this exact price. Unfortunately, the price never hit 1569 instead went all the way down to 1568.5 then continue the plunge.
    I am kind of stuck trying to get out now.
    No bound so far, what a day!

    It is important to give extra 2 to 3 pips for the stop loss limit so that it will get filled when ever needed.

    Abel

    ReplyDelete
  7. AnonymousJanuary 11, 2011 at 2:17 AM

    hi abel,

    could it be due to fast market? sorry, not much of a help here... lengchai6

    ReplyDelete

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