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My 5 Biggest Trading Mistakes in Stock Market

29 May

All stock traders had their good and bad days. In my years of trading in stocks, index futures, commodities, and options, I would say that I made a lot of mistakes and therefore lose money or make profits lesser than what I am supposed to earn. The worst of all these was that I kept repeating my same mistakes again and again. I knew where I had gone wrong in my trading strategies. I would like to put up this blog post to share with you of my trading mistakes as well as to serve as a reminder to myself so that I will not repeat it. I look at financial speculation as a serious business and I am adamantly committed to this course to unlock the secrets of the stock markets. It is one thing to know the workings of the stock markets, and another to get rid of our natural habits that are not built for financial investment and speculation profession. We must work hard to improve our trading skills and accuracy as well as getting rid of the bad habits that is in-built in us that cause us to lose money in the long run.

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5 Sure Ways for Stock Traders to Lose His Money

27 May

I have to write this. During this recent bull-run, some of my friends lose quite a substantial amount of their trading capital by shorting the index futures. Instead of cutting their losses quickly, they compound to their mistakes by adding short positions as the index futures traded higher each day. In this post, I would like to bring out 5 sure ways to lose your money in the stock market, commodities market, or forex. You will be surprised that many of the index futures traders out there are practicing these and therefore on their ways to financial ruins. Don’t do this as it will hurt your pocket and causes you to lose your precious trading capital. Apart from sharing with you on these few key points on stock trading wisdom, I will also share with you on the traders’ psychology and why they kept making these mistakes and were not able to rescue themselves out of this financial mess.

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3 Crucial Moments of Time when Investors and Traders Lose Money

14 Dec

Losing money in investment and speculation is part and parcel of this business. However, most of the time, these losses can get carried away too far and too big for anyone of us to handle. When we see negative returns on our investment, we tend to just forget about it and ignore all the pain that this financial disaster brings to us. This would not help us and in fact it might just compound to the problems that we have. So, in this blog post, I would like to talk about when the exact moments that these huge losses come knocking at our door. If we would just learn from our experiences and take heed on the advice of my experience, we would save ourselves from big losses. Are you ready to know when are the 3 moments of time when our investment and trading capital are at huge risks?

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Key crucial levels to watch out for in KLCI

23 Oct

Hello guys…

I guess that it was really a long time since I write any full blog post. Well, I apologized for the irregular blog post as I am quite busy with many things in life and that includes my recent exploration on various techniques to further improve my trading skills. Time seems to be short for me. Well, I have some key dates to look out for next year. In fact, it could be major date to be aware of. I am not releasing the information now due to the fact I need to back test my finding to confirm whether my analysis is correct or not. Many of us wonder where and when will the bottom be for the global financial markets? For this post, I will address key levels to watch for in Kuala Lumpur Composite Index (KLCI).

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Another breakdown leg for crude palm oil coming!! Short opportunity!!

29 Aug

On the August 19th, crude palm oil futures (FCPO) made a low of RM 2351 which is quite close to my target of RM2300 – 2330. Looking at the chart again, I saw why the FCPO bounced from the low of 2351. In just a few days, the FCPO Nov contract made its high at RM 2753 on the August 22nd before reaching the low of RM 2406 on the August 26th. Crude oil has been edging up and this has been lifting the crude palm oil too. How do the defaults from China and India crude palm oil importers affect the price? Let us see explore further to see if there is a short opportunity in FCPO and what are our risks?

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Mathematical reason for cutting losses quickly

19 Jun

Let me tell you a bad news. Losses are inevitable. You are sure to loss some amount of money in your trading journey. If you think otherwise, then trading is definitely not suitable for you because 100% profits all the time is an illusion. However, the good news is that we can manage our losses in such as way it will not destroy us. In trading, we often times hear that we should let our winners run and cut our losses quickly. For most of us, we know it in our heads but not in our hearts. We human are creatures of hope and that is the main reason we are able to survive no matter how tough the situation is. However this habit of hoping is not good for trading. That is the main reason why many people are not successful with trading as a profession. Today we will look from the perspective of mathematics and see why we need to cut losses quickly.

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The power of confirmation in trading

14 May

You got a trade setup forming. It looked like it was going to break out to continue moving up. Now what? You tell yourself that it is going to move up now. You got to jump in at a better price before anyone else get to know about the stock. You have a great deal of confidence in that particular stock. Quickly you called your broker and place the order in the early morning. Things are going smooth until you came back from lunch. The stock that you bought was drifting downwards. When the market closed, the stock price was at the low of the day. You started to question what was going wrong. You looked at the chart again at the end of day and you realized that you jumped right at the top. There was no confirmed trade setup. It was just hype. Does this sound familiar to you? That is why confirmation is so important in trade setup. In fact it is so vital that without it we are just taking too much risk with our trading capital.

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Success recipe for trading and investing

14 May

Many people are searching for the holy grail of trading and investing. Is there one out there? Surely there are techniques to give us a trading edge but that alone is not sufficient for us to be successful in the profession of trading. The way to be successful in this field is to take a holistic approach. I have break down the success recipe for trading and investing into 3 main pillars. They constitute the main ingredients for trading and investment success. Follow the recipe below to achieve your financial goals in the financial market.

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