I'm still in the office today so I thought I might as well post the summary now.
Here are the charts for today.
FKLI Daily Chart
KLCI Daily Chart
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Alright.. where do I start.. We traded to these following levels today:
FKLI
Opened 1582
High: 1585
Low: 1577.50
Closed: 1578
Cash Index:
Opened: 1591.03
High: 1594.03
Low: 1584.90
Closed: 1584.90
Alright.. we traded in a tight 4 point range of 81-85 for most of the day. Price was choppy and there wasn't much to trade. I did park an order to sell at 85 in the afternoon but price never got there. I sold because at that time if I remember correctly, Cash index was at 86 while futures was trading near 84.50 which was too close, so if I got filled at 85, it would be quite safe as I don't expect cash to go back up suddenly until the close. So no fill for this trade.
After lunch opening, we traded within the same range for most of the afternoon and at the same some, the cash market was steadily becoming weaker. at one point it did recover but always came back to the 85-86 level.
Alright, first I was making assumption that cash was going to be matched up again like the last two days. So I park an order to buy at 80.50 which was below the low hoping to catch a spike down to fill me, and then ride the wave up to maybe 82-83 for a nice scalp.
So after nearing cash close, cash came down to close at its low at 84.90. Futures followed and sank and on the way down, it took my buy order at 80.50. Price continued to go down as stop losses were hit and day traders continued to sell to close their positions as the market was going to be closed in 15 minutes. We reached a low of 77.50 but I managed to get out at 78 for a 2.5 points loss.
Today was a small loss compared to the break even trade yesterday, but I still feel quite bad about it as I should have known better than to hope for an artificial matching up to help me in my trade. I fell for the trap today. In the market, what looks too good to be true is certainly not good! Always remember that. There are no free lunches in the market. Once you spot one, either sit out and not trade, or even consider to go contrarian and take the opposite of the obvious trade.
So lessons learned today:
1) When an obvious profit seems to be laid our there for you to take, do not fall for the trap. sit out or consider to take the opposite trade.
2) When it is quite late in the day, for example, there is 30 minutes left in the trading day, try not to take any position unless there is really a good opportunity or you are planning to hold the position over night.
On the bright side, our trading levels posted this morning was working well so not all went wrong today.
Take care and see you all tomorrow.
Ciao!
Best Wishes,
Tech Trader
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