FKLI Dec 05 Trades – Nov 28, 2005 - Closed with a net gain of RM175

Trade Planning and Management for ID-NR4

FKLI Nov 05 Chart as at Nov 25 05

November 28, 2005
1. Entry Strategy for Buy stop order
a. Option 1: The price opens higher than 888
i. Do nothing
ii. If the price near MOC is a whiplash, do nothing.
iii. If the price near MOC is higher the open, buy at MOC with risk <>
b. Option 2: The price opens lower than or equal to 888.
i. Put a buy stop order at 888.5 after FKLI opens for the whole day.
ii. If the order is triggered, put a sell stop order at 885.
iii. If the price closes down below the entry price, cover your long.
c. Option 3 If the market does not appear what you expect, do not trade and stay side-lined to analyze.

2. Entry Strategy for Sell stop order
a. Option 1: The price opens lower than 885
i. Do nothing
ii. If the price near MOC is a whiplash, do nothing.
iii. If the price near MOC is lower than the open, sell at MOC with risk <>
b. Option 2: The price opens higher than 885
i. Put a sell stop order at 885 after FKLI opens for the whole day.
ii. If the order is triggered, put a buy stop order at 888.5
iii. If the price closes above your entry price, cover your short.
c. Option 3: If the market does not appear what you expect, do not trade and stay side-lined to analyze.

3. Pyramiding and Re-entry Strategy
a. No Pyramiding and Re-entry Strategy

4. Trailing Stop
a. The protective stop cannot increase your risk (loss) and reduce your profit unless No 6 and 7 below.
b. The protective stop cannot give back more than 6 points of unrealized profit.
c. When the trade is profitable, move your protective stop to the breakeven point. Trail your stop.
d. Short Position: Move your stop to 1 tick above the open or high, whichever is lower, for sell stop but must be lower than your previous stop. Long Position: Move your stop to 1 tick below the open or low, whichever is higher, for buy stop but must be higher than your previous stop.
e. If the price moves in your favor, the trade is profitable and the prior day bar is a long bar (more than 8 points), move your stop 1 tick above or below the middle of the bar.
f. Short Position: If prior-day's bar is a long bar (8 points or more) and the today's open is higher than prior day's close but below the middle range of prior-day's range, put your stop at 1 tick above the middle of prior-day's range. Long Position: If prior-day's bar is a long bar (8 points or more) and the today's open is lower than prior day's close but above the middle of prior-day's range, put your stop 1 tick below the middle of prior day's range.
g. Short Position: If prior day bar is a long bar (8 points or more) and the today's open is lower than prior day's low, put your stop at 1 tick above the prior day's low. Long Position: If prior day bar is a long bar (8 points or more) and the today's open is higher than prior day's high, put your stop 1 tick below the prior day's high.
h. Short Position: If prior-day's bar is a long bar (8 points or more) and the today's open is higher than both prior day's close and middle range of prior-day's range, put your stop at 1 tick above the prior-day's high. Long Position: If prior-day's bar is a long bar (8 points or more) and the today's open is lower than both prior day's close and middle of prior-day's range, put your stop 1 tick below the prior day's low.
i. The maximum loss is 10 points or high/low of the next bar if the price gaps

5. Exit Strategy for Buy Stop Order
a. If the price does not move up above your entry price and the trade is not stopped out for 3 trading days, get out at MOC on the third day.
b. Let the trailing buy stop follow the price until it is taken out.

6. Exit Strategy for Sell Stop Order
a. If the price does not move up below your entry price and the trade is not stopped out for 3 trading days, get out at MOC on the third day.
b. Move stop order to breakeven point if the price moves in your favor.
c. Use trailing stop based on the chart’s support and resistance for trade management.
d. Get out of the trade when the price hit extreme and get in at different direction if the price gaps.

7. Today’s Entry strategy and Trade Management:
a. Call Apex at 8:45am to check the open. Both spot and next month contract should act the same. Then I will put in buy and sell stop orders.
b. If either order is triggered, ask Apex to call you.
c. Move stop order to breakeven point if the price moves in your favor.
d. Use trailing stop based on the chart’s support and resistance for trade management.
e. If the price closes lower than the entry price for buy stop order, close the position at MOC. If the price closes higher than the entry price for sell stop order, close the position at MOC.
f. Get out of the trade when the price hit extreme and get in at different direction if the price gaps.
g. If the price does not move up or down fast in 3 days and the trade is not stopped out, get out at MOC (Market on Close) on the 3rd day.

8. My actual Entry Strategy and Trade Management
a. I called Apex at 8:45am to check the open. Nov and Dec contract opened flat at 896.5 and 887 respectively. I put in a buy stop at 888.5 and sell stop at 885.
b. I did not monitor much as I was bringing Eric and friends around KL.
c. Apex did not call me until lunch. I know the price was moving slow
d. Apex called me at 3pm and told my stop is triggered. I thought my buy stop was triggered.
e. Later, I called Apex to check the price. They told the price is at 885. I thought that I was stopped out. Joanne clarified that my sell stop was triggered at 885 and my buy stop is still in force.
f. I did not check the price until 5:13pm. The price is for Dec is at 885.5. It closed at 885.5. It is 1 tick above the break-down.

9. Trade executed according to plan? Yes

November 29, 2005
1. Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher, flat or lower, put your buy stop order at 888.5.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high or a long black candle with the close near the low with blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy or sell stop follow the price until it is taken out (if there is a down-trend)
v. Use Fibonacci 161.8% as a target if it is trend-following Oops!
d. Subsequent Trailing Stop:
i. The breakeven point, 885, after the price breaks 879.

2. My actual trade management:
a. I called Apex at 8:46am to check the Opening. The November contract opened lower and the December contract opened flat at 896 and 885.5 respectively. I immediately put my buy stop at 888.5.
b. The price of December contract moved up closer to CI even CI is falling. The December contact is moving down as the crowd buy November contract to cover and sell December contract.
c. I did not monitor until 10am. The price then moved down to 883.5 and stayed at 883.5-884.5 range until 11:45am.
d. The price then moved down to 882.5 at 12pm.
e. I did not monitor as I was with Eric visiting tourist attractions in KL.
f. At 5:10pm, I called to check the price. Foong informed me the current price is 882.5 and 883 with low at 881.5.
g. I will stay with the trade as the price moved below my entry price as ID-NR4 is working.
h. The price moved in tight range and was slow in this roll-over period. It is hard to trade as CI kept moving down but the futures were moving at very slow pace.

3. Trade executed according to plan? Yes

November 30, 2005
1. Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price. Ask them whether I can sell another contract with the account.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher, flat or lower, put your buy stop order at 888.5.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high or a long black candle with the close near the low with blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy or sell stop follow the price until it is taken out (if there is a down-trend)
v. Use Fibonacci 161.8% as a target at 856 if it is trend-following.
d. Subsequent Trailing Stop:
i. 885, the breakeven point, after the price breaks 879.
ii. 883, after the price breaks recent Next month contract’s low at 876
e. Possible Pyramiding:
i. Put one sell stop at 879, 1 tick below recent Spot month or November contract low at 879.5.

My actual trade management:
a. I called Apex at 8:46am to check the Opening. The November contract opened flat and the December contract opened flat at 897 and 883 respectively. I immediately put my buy stop at 888.5.
b. The price of November contract moved up closer to CI even CI is falling. The December contact is moving down as the crowd buy November contract to cover and sell December contract.
c. The price then moved up for both contracts as CI opened higher and moved higher.
d. The price moved down to 882 for the rest of the morning.
e. The price then fell and broke previous day’s low at 881.5 and hit 880 at 4pm. The price then broke the recent spot month low of 879 to hit low at 878
f. It closed at 879.5 as the CI closed only 2.5 points. CI has lost 7.3 points in a few minutes.
g. It is a tough trade as the price moves within the range of previous day’s range.
h. I did not pyramid as I will wait for my account to be more than RM5000 before doing it.

Trade executed according to plan? Yes

December 1, 2005
Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price. Ask them whether I can sell another contract with the account.
b. Initial Trailing Stop:
i. Since there is a big gap between November and December contract after the expiry of November contract, the price will open gapped-down. In addition, DJIA lost 82.29 points overnight. Therefore, I will not close my position for gap down. I will check whether the price will open gapped-down from December contract. If the price opens gapped down from December contract, place my stop 1 tick above the mid-point of previous day’s bar at 882, not 1 tick below previous day’s bar to avoid whipsaw. 882 is a profitable point.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher, flat or lower, put your buy stop order at 888.5.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high or a long black candle with the close near the low.
iii. If there is 10-point profit.
iv. Let the trailing buy or sell stop follow the price until it is taken out (if there is a down-trend)
v. Use Fibonacci 161.8% as a target at 856 if it is trend-following.
d. Subsequent Trailing Stop:
i. 885.5, 1 tick above previous day’s high, if the price stays below 885 after 10:30am.
ii. 885, the breakeven point, after the price breaks 879.
iii. 883, after the price breaks recent Next month contract’s low at 876

My actual trade management:
a. I called Apex at 8:46am to check the Opening. The December contract opened lower at 880. I put my buy stop at 888.5.
b. The price then moved up to 882 and moved down to 879. If I were to pyramid, it is to sell additional contract at 879, 1 tick below recent spot month low of 879.5.
c. The price then stayed at 880.5 and 879 for a while.
d. At 12:30pm, I called to check the price. It broke 878 and hit 876, the next month contract’s low.
e. I lower my stop to 885, my break even point at 12:40pm.
f. The price then broke 876 to hit new low at 872 before closing at 874 as CI closed down 8.5 points.

Trade executed according to plan? Yes

December 2, 2005
Today’s Trade Management:
a. The price may open higher as DJIA gained 106.7 points overnight
b. Call Apex at 8:45am to check the opening price.
c. Initial Trailing Stop:

i. If the price opened gapped down, put a stop at 877.5.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher, flat or lower, put your buy stop order at 882.5.

d. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high or a long black candle with the close near the low.
iii. If there is 10-point profit.
iv. Let the trailing buy or sell stop follow the price until it is taken out (if there is a down-trend)
v. Use Fibonacci 161.8% as a target at 856 if it is trend-following.

e. Subsequent Trailing Stop:
i. 880.5, if the price stays below 872 after 10:30am.
ii. 878, the breakeven point, after the price breaks 865.

My actual trade management:
a. I called Apex at 8:46am to check the Opening. The December contract opened higher at 876. I put my buy stop at 882.5, 1 tick above previous day’s high.
b. The price then moved down to 870.5 but moved up to hit high of 878.5 as regional market rebounded.
c. Luckily, I did not lower my stop at 877.5, 1 tick above previous day’s mid-point
d. The price then moved around 875 and 877.5 for the whole after.
e. I did monitor the price at KLSE library from 3:30pm to 5:00pm
f. The price closed at 876 with higher volume. It formed a black hammer.

Trade executed according to plan? Yes

December 5, 2005

Today’s Trade Management:
a. The price may open lower as DJIA lost 35.06 points overnight
b. Call Apex at 8:45am to check the opening price.
c. Initial Trailing Stop:
i. If the price opened gapped down, put a stop at 875, 1 tick above the previous day’s mid-point.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher or flat, put your buy stop order at 882.5.
iv. If the price opens lower, put your buy stop order at 879.

d. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high or a long black candle with the close near the low.
iii. If there is 10-point profit.
iv. Let the trailing buy or sell stop follow the price until it is taken out (if there is a down-trend)
v. Use Fibonacci 161.8% as a target at 856 if it is trend-following.

e. Subsequent Trailing Stop:
i. 880.5, if the price stays below 872 after 10:30am.
ii. 878, the breakeven point, after the price breaks 865.

My actual trade management:
a. I called Apex at 8:46am to check the Opening. The December contract opened flat at 876. I put my buy stop at 882.5, 1 tick above 2nd previous day’s high.
b. The price then moved up to 879.5 and fell down to 877. The price then moved up again to 879.5 and fell again. It then broke 879.5 to hit 880.5.
c. It looked like a ascending triangle breakout in intra-day chart.
d. Based on my trade management, I should be out by 879. 879.5 is the previous support level. It is the resistance now. The price may go side-way or up if this level is broken convincingly. Moreover, I should not give up more than 10 points of gain in my trade.
e. I closed my position at 880.5 when the 880 level is broken. I instruct Foong of Apex to close at 880.5 and cancelled my buy stop at 882.5
f. The price felt to 879.5 and broke 880.5 to hit high of 822 resistance level.
g. The price then fell as CI fell after more than 2-point gain
h. The price hit 878 and hit 876.5 before closing at 877.5. There is an evening shooting star after a morning shooting star. The price may go side-way.

Trade executed according to plan? Yes. But I waited for more confirmation.

What I have done best:
a. I follow ID-NR4 trade management.

What I need to improve:
a. I need improve my exit rule so that I can stay consistent.

What I have learned:
a. A hammer with higher volume has high probability of bearish reversal.

FKLI Trades Nov 21, 2005 to Nov 25 2005 - Closed with a net loss of RM50 commission

FKLI November 2005 chart on Novemeber 18 05

Date Contract Open High Low Close
Nov 18, 05 Nov 05 888 897.5 888 897

Trade Planning and Management
November 21, 2005
1. Entry Strategy for Oops! Buy stop order
a. Option 1: If the price opens gaps down from prior day’s low, put a buy stop order 1 tick above prior-day low after FKLI opens.
b. Option 2: If the price opens flat or higher than prior day’s low, do nothing.

2. Entry Strategy for Oops! Sell stop order
a. Option 1: If the price opens gaps up from prior day’s low, put a buy stop order 1 tick below prior-day low after FKLI opens.
b. Option 2: If the price opens flat or lower than prior day’s low, do nothing.

3. Entry Strategy for Oops! Buy stop order during Rollover period (starting 22nd of the month):
a. Option 1: If the price of both Spot and Next month contract opens gapped down from prior day’s low, put a buy stop order 1 tick above prior-day low after FKLI opens.
b. Option 2: If either the price of Spot and Next month contract opens gapped down, do nothing.
c. Option 3: If the price opens flat or higher than prior day’s low, do nothing.

4. Entry Strategy for Oops! Sell stop order during Rollover period (starting 22nd of the month):
a. Option 1: If the price opens gaps up from prior day’s low, put a buy stop order 1 tick below prior-day low after FKLI opens.
b. Option 2: If either the price of Spot and Next month contract opens gapped up, do nothing.
c. Option 3: If the price opens flat or lower than prior day’s low, do nothing.

5. Pyramiding and Re-entry Strategy
a. No Pyramiding and Re-entry Strategy

6. Trade Management
a. If the stop order is triggered, put a stop order:
i. 1 tick below the intra-day’s low for Buy stop order.
ii. 1 tick above the intra-day’s high for Sell stop order.
b. Exit Strategy
i. MOC – if the price hits extreme in your favor. The extreme is when a long outside-day is formed with Close near Low or High. Close at 5:14pm.
ii. Next day‘s Open – if the trade is profitable but the price is not extreme, leave it over-night. Exit next day’s Open if the price gaps in your favor.
iii. Next day’s Close – if the price hits extreme in your favor. The extreme is when a long candle is formed with Close near Low or High. Close at 5:14pm
iv. 10 to 16-point profit. – Exit immediately

c. Trailing Stop for Exit on Next day Close or subsequent days
i. The protective stop cannot increase your risk (loss) and reduce your profit unless No 6 and 7 below.
ii. The protective stop cannot give back more than 6 points of unrealized profit.
iii. When the trade is profitable, move your protective stop to the breakeven point. Trail your stop.
iv. When the trade is profitable, move your protective stop. Short Position: Move your stop to 1 tick above the open or high, whichever is lower, for sell stop but must be lower than your previous stop. Long Position: Move your stop to 1 tick below the open or low, whichever is higher, for buy stop but must be higher than your previous stop.
v. If the price moves in your favor, the trade is profitable and the prior day bar is a long bar (more than 8 points), move your stop 1 tick above or below the middle of the bar.
vi. Short Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is higher than prior day’s close but below the middle range of prior-day’s range, put your stop at 1 tick above the middle of prior-day’s range. Long Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is lower than prior day’s close but above the middle of prior-day’s range, put your stop 1 tick below the middle of prior day’s range.
vii. Short Position: If prior day bar is a long bar (8 points or more) and the today’s open is lower than prior day’s low, put your stop at 1 tick above the prior day’s low. Long Position: If prior day bar is a long bar (8 points or more) and the today’s open is higher than prior day’s high, put your stop 1 tick below the prior day’s high.
viii. Short Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is higher than both prior day’s close and middle range of prior-day’s range, put your stop at 1 tick above the prior-day’s high. Long Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is lower than both prior day’s close and middle of prior-day’s range, put your stop 1 tick below the prior day’s low.
ix. The maximum loss is 10 points or high/low of the next bar if the price gaps

7. Today’s Entry strategy:
a. Call Apex at 8:45am to check the opening price. .ASK Apex for the following before entering a trade:
i. Open
ii. High and Low
iii. Last Done
iv. Prior day high / low
b. If the price opens gaps up or down, put a stop order
c. Ask them to inform you when any trade is done. If the stop order is triggered, put a protective stop order based on intra-day High or Low.
d. Exit on MOC, next day‘s Open, next day’s Close or 10-point profit.
e. Let the trailing buy stop follow the price until it is taken out.

8. My actual Entry strategy
a. I called Apex to check the Open. The price opened gapped up at 898. I checked the OI. It dropped 1,400 to 19,768. It may be bearish when the OI drops when the price moved up. The crowd may be trading the December contract.
b. I put a sell stop order at 897, 1 tick below previous day’s high, at 8:46am. I told myself to put in buy stop order when the sell stop order is triggered.
c. I plan to stay with the trade if the price closes higher than 897 with a shooting star formation if I am not stopped out as then trend is down.
d. My buy stop order was triggered at 897 at 11am. I put in my stop at 902, 1 tick above the intra-day’s high of 901.5. I hope that it is not another gapped-up and close-up day.
e. I did not monitor the price as I was busy with my work outside.
f. I checked the price at lunch. The price closed at 898 flat even the CI close 3 points up.
g. I check the price at 4:30pm. The price stayed at 897 and 898 range after hitting high of 900 after lunch. However, the CI is up 6.5 points. There must be more sellers than buyers
h. The price hit 895 low before closing at 895.5. The Ci is more than 5.2 points

9. Trade executed according to plan? YES

November 22, 2005
1. Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher, flat or lower, put your buy stop order at 902.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. The breakeven point, 896, after the price breaks 890.
ii. 895.5, 1 tick above the low of the previous day’s bar, if the price breaks 888.

My actual trade management:
a. I called Apex at 8:46am to check FKLI Nov open. It opened at 897. I immediately place my protective buy stop order at 902 with hesitation.
b. I was outside working. So I let the position open. I called Apex at 10am to check the price. Joanne informed me that the price is at 898.5 with Low of 896, High of 898.5 and volume of 465.
c. I thought that I may be stopped out today.
d. I did not receive any call after 12:45pm. My trade may be safe.
e. During noon, I checked the intra-day chart. The price hit high of 900.5 twice to form a double top and the price moved down to close for noon at 894.
f. At 2:30pm, I called to lowered by stop to 901 to reduce my potential loss at 901, 1 tick above intra-day high. If the price hit this level again, the price may be moving side-way with a lot of whipsaws.
g. The price then moved lower to 893 and hit 890 low before closing at 891.
h. I think that my previous trades have taught me to be patience with trend-following Oops! Sell.

November 23, 2005
Today’s Trade Management:

The price may open higher as DJIA gained 51.15 overnight.
Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher than 891 but does not gap up, put your buy stop order at 901, 1 tick above previous day’s high.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. 897, the breakeven point, if the price moves below 890.
ii. 895.5, 1 tick above the mid-point of the previous day’s bar, if the price breaks 888.
iii. 890.5, 1 tick above previous day’s low if the price breaks 885.

My actual trade management:
a. I called Apex at 8:46am to check FKLI Nov open. It opened at 893. I immediately place my protective buy stop order at 901.
b. The Dec contract opened gapped-down.
c. I did monitor much as I know the price may move up ahead of roll-over as the sellers will buy spot month and sell next month contract. I have to let the market decide.
d. I did not receive any call after 12:45pm. My trade may be safe.
e. During noon, I checked the intra-day chart. The price hit high of 896.
f. At 2:30pm, the price moved up to 898. I thought that I should cover but I let the market decide. I am trading a trend-following Oops! I need to give the trade more spaces to move but my stop stayed at 901.
g. The price then moved lower as CI is moving down.
h. Some of the short sellers are rolling over their positions.
i. The price then moved down to 895
j. This form an ID-NR4 pattern but the pattern does not exist in the Next month contract. It may be a whipsaw.

Trade executed according to plan? Yes

November 24 2005
The price may open higher as DJIA gained 51.15 overnight.
Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher but lower than 898, put your buy stop order at 901, 1 tick above 2nd previous day’s high.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. 897, the breakeven point, if the price moves below 891.
ii. 895.5, 1 tick above the mid-point of the previous day’s bar, if the price breaks 888
iii. 890.5, 1 tick above previous day’s low if the price breaks 885

My actual trade management:
a. I was able to get the OI from Apex online price after 7am
b. I called Apex at 8:46am to check FKLI Nov open. But it was not open yet with pre-quite 896.5 and 897.
c. Joanne of Apex called to inform that FKLI Nov opened at 897. I just put in my stop at 901. It may be hit today.
d. I called at 9:15am again to check the price. It was at 898 and 898.5. It is a breakout of ID-NR4? But the trend is down.
e. I was a bit nervous with the trade as the price moved up and down. But the trend is like that.
f. I did monitor at 12pm as the price moved around 895 and 897.
g. The price then moved down at 883 as the CI dropped 1.9 points. However, the price moved back to 895 as CI gained 0.75 at closing.
h. The volume is higher as there is some roll-over but it is not strong. It is interesting to see how the market will perform tomorrow as DJIA is closed for Thanksgiving holiday on Thursday.

Trade executed according to plan? Yes

November 25 2005
DJIA is closed for Thursday.

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped up.
iii. If the price opens higher but lower than 898.5, put your buy stop order at 901, 1 tick above 3nd previous day’s high.
c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)
d. Subsequent Trailing Stop:
i. 899, 1 tick above previous day’s high, if the price moves below 893.
ii. 897, the breakeven point, if the price moves below 891.5.
iii. 895.5, 1 tick above the mid-point of the 2nd previous day’s bar, if the price breaks 888.
iv. 890.5, 1 tick above previous day’s low if the price breaks 885.

My actual trade management:
a. I was able to get the OI from Apex online price after 7am
b. I called Apex at 8:46am to check FKLI Nov open. The price opened flat at 895 as DJIA is closed for Thursday.
c. The price hit 897 and came back to 895 with heavy rollover.
d. The CI dropped 1 point but the price stayed at 895.
e. I regretted for not closing my position before the rollover started yesterday on 24th of the month. During rollover, the price may not move a lot or moved not according to CI.
f. I decided to close my position as I felt not right and the trading window of November contract is getting smaller.
g. I called Apex at 0:30am to check the price. The rice is 896.5 and 897.
h. I closed my position at 897. It is a break-even trade with a loss of RM50 commission.
i. The price then moved back to 895 and stayed there even CI dropped 2.9 points.
j. It closed at 896.5 as CI closed 0.63 higher with thinner volume than that of previous day.

Trade executed according to plan? No. I felt not right and the trading window of November contract is getting smaller. That’s why I got out.

What I have done best:
a. I follow Oops! entry.
b. I let the order for the whole day before MOC.

What I need to improve:
a. I need to find out the spread and volatility of FKLI during rollover (24th to 30th of the month)

What I have learned:
a. The rollover period is not very suitable to trade as the price may not moved according to CI.
b. If there is an open trade, close your position 1 day before rollover to avoid some whipsaws.

My FKLI Technical Analysis (November 18, 2005)

Roll-over Week: Yes
Contract: Spot month - November 2005

Trend Stage: 3

Crowd Psychology:
Yesterday
The price opened higher, moved higher and closed higher as CI closed higher and DJIA gained 45.46 points.
Today
The price may open higher or gapped-up as DJIA gained 46.11overnight.

Candlestick
- There is a long white candle after a black candle. It is bullish.

Wyckoff Chart Analysis


Support, Resistance, Trend-lines and chart patterns
- Candlestick support for Spot month: 879.5, resistance: 897.5
- There is a breakdown on a Head and Shoulder Top and followed by further breakdown and lower high and lower low.
- There is a possible Descending triangle formation with height of 38.5 and target of 857.5 from 895.5 on daily chart
- There is a bullish flag formation in the weekly chart and there is a rising wedge on the monthly chart

- Trends: Stay Short because
-- Immediate Trend: up
-- Medium Trend: Down after H&S Top Breakdown
-- Long-term Trend: Down after Descending Triangle Breakdown
-- The price broke a down-trend line and is moving above an up-trend-line.
- The price broke the resistance of 895.5.

- The price is below 200 SMA (breaks 200-SMA):
- 200-SMA: 900.24 (falling)

Trend-Following Indicators
- ADX (27 and flat). The market is trendy as ADX > 25.

Oscillators
- Stochastic %K (70.34 and rising) > %D (Rising). The price hit new low but the %K does not hit new low. There is a bullish divergence.

Volume and OI
Date Price | Change | Volume | OI Change
November 18, 2005 | +11 | 3049(Average) | -1400(Bearish)

CI Direction and Confirmation


- Stage: 3
- Immediate Trend: Up, Medium Trend: Down
- Trend line: The price broke a down-trend line. The price is moving up.
- The price broke the critical resistance line of 902.39. Need to wait for next day to confirm.
- There is a possible descending triangle formation with height 29.27 and target: 873.12 from 902.39.
- There are some stocks keep moving up even the market is weak. These stock are defensive or growth stocks:
-- IOICorp (Growth – Palm Oil)
-- IOIOle (Growth – Palm Oil)
-- Malakoff (Defensive – IPP)
-- YTLPwr (Defensive) – IPP)
-- Nestle (Defensive – Consumer Daily Products)
-- F&N (Defensive - Consumer)
-- Guinness (Defensive – Consumer Beer)
-- PPB (Defensive – Palm Oil, Consumer Necessities and Transportation)
-- PBBOil (Growth – Palm Oil)
-- MISC (Growth and Defensive – LPG and Petroleum Transporter and Shipping)

- Candlestick: There is a long white candle after a black candle. It is bullish.
- ADX (34 and start to fall). The market is trendy as ADX > 25.
- Momentum Oscillator: Stochastic %K (%K=48.29 and rising).
- 200-SMA=903.95 (falling). Price <>

Weekly Motivation

FKLI Trades – November 07, 2005 to November 15 05

FKLI November 2005 – Oops! Trade 39 – Closed with a net gain of RM1175

FKLI Spot Month Chart on November 02 05

Trade Planning and Management

November 7, 2005

Entry Strategy for Oops! Buy stop order
a. Option 1: If the price opens gaps down from prior day’s low, put a buy stop order 1 tick above prior-day low after FKLI opens.
b. Option 2: If the price opens flat or higher than prior day’s low, do nothing.

Entry Strategy for Oops! Sell stop order
a. Option 1: If the price opens gaps up from prior day’s low, put a buy stop order 1 tick below prior-day low after FKLI opens.
b. Option 2: If the price opens flat or lower than prior day’s low, do nothing.

Pyramiding and Re-entry Strategy
a. No Pyramiding and Re-entry Strategy

Trade Management
a. If the stop order is triggered, put a stop order:
i. 1 tick below the intra-day’s low for Buy stop order.
ii. 1 tick above the intra-day’s high for Sell stop order.

b. Exit Strategy
i. MOC – if the price hits extreme in your favor. The extreme is when a long outside-day is formed with Close near Low or High. Close at 5:14pm.
ii. Next day‘s Open – if the trade is profitable but the price is not extreme, leave it over-night. Exit next day’s Open if the price gaps in your favor.
iii. Next day’s Close – if the price hits extreme in your favor. The extreme is when a long candle is formed with Close near Low or High. Close at 5:14pm
iv. 10 to 16-point profit. – Exit immediately

c. Trailing Stop for Exit on Next day Close or subsequent days
i. The protective stop cannot increase your risk (loss) and reduce your profit unless No 6 and 7 below.
ii. The protective stop cannot give back more than 6 points of unrealized profit.
iii. When the trade is profitable, move your protective stop to the breakeven point. Trail your stop.
iv. When the trade is profitable, move your protective stop. Short Position: Move your stop to 1 tick above the open or high, whichever is lower, for sell stop but must be lower than your previous stop. Long Position: Move your stop to 1 tick below the open or low, whichever is higher, for buy stop but must be higher than your previous stop.
v. If the price moves in your favor, the trade is profitable and the prior day bar is a long bar (more than 8 points), move your stop 1 tick above or below the middle of the bar.
vi. Short Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is higher than prior day’s close but below the middle range of prior-day’s range, put your stop at 1 tick above the middle of prior-day’s range. Long Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is lower than prior day’s close but above the middle of prior-day’s range, put your stop 1 tick below the middle of prior day’s range.
vii. Short Position: If prior day bar is a long bar (8 points or more) and the today’s open is lower than prior day’s low, put your stop at 1 tick above the prior day’s low. Long Position: If prior day bar is a long bar (8 points or more) and the today’s open is higher than prior day’s high, put your stop 1 tick below the prior day’s high.
viii. Short Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is higher than both prior day’s close and middle range of prior-day’s range, put your stop at 1 tick above the prior-day’s high. Long Position: If prior-day’s bar is a long bar (8 points or more) and the today’s open is lower than both prior day’s close and middle of prior-day’s range, put your stop 1 tick below the prior day’s low.
ix. The maximum loss is 10 points or high/low of the next bar if the price gaps

Today’s Entry strategy:
a. Call Apex at 8:45am to check the opening price. .ASK Apex for the following before entering a trade:
- Open -High and Low - Last Done - Prior day high / low
b. If the price opens gaps up or down, put a stop order
c. Ask them to inform you when any trade is done. If the stop order is triggered, put a protective stop order based on intra-day High or Low.
d. Exit on MOC, next day‘s Open, next day’s Close or 10-point profit.
e. Let the trailing buy stop follow the price until it is taken out.

My actual Entry strategy
a. I called Apex to check the Open. The price opened gapped up at 917. I asked Quek of Apex whether I had enough margin to trade since the market requirement was raised before the long holiday. He said that it should be enough.
b. I asked the open, high low and previous day’s high. I then put a sell stop at 915.5.
c. At 8:50am, my stop is triggered at 915. It was my 3rd trade with slippage. According to Joanne, there are several of her clients using the same method as I do.
d. I told myself that I will not monitor so much the price so that I could maintain detachment. Anyway, I will follow Oops! trade management:
i. Let the trade run for the day unless you are stopped out.
ii. Close your position if there is a loss at MOC
e. The price went down 911 and never moved up to 915. I knew that I was right. Oops! has given too many whipsaws in the last few trades. That’s trading. Sometimes, a trade has to wait for 3 to 4 consecutive loss after a win. The win is usually big.
f. The price moved down. I am more worried on how I will handle the trade tomorrow.
g. The price moved to 909 near MOC. I will let the trade overnight.

Trade executed according to plan? YES

FKLI Spot Month Chart on November 07 05 after the trade is triggered at 915

November 8, 2005

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.

b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped down.
ii. If the price opens higher, flat or lower, put your sell stop order at 918.5.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)

d. Subsequent Trailing Stop:
i. The breakeven point, 915, after the price breaks 908, previous day’s low.
ii. 913.5, 1 tick above the middle point of the previous day’s bar, if the price breaks 905.

My actual trade management:
a. I called Apex. Quek told me the pre-quote is 910. I asked him to call back me when FKLI Nov opens.
b. He called to inform that the Nov contract opened at 910. I put my sell stop at 918.5. I am worried about whipsaw if I put my stop too close to the open. But I did follow my trade management.
c. I was at KLSE library so I was able to check the price. I tried not to monitor too close by reading books.
d. At 10:20am, the price broke previous day’s low of 808 to touch 906.5. I lowered my sell stop order to 915, the breakeven point.
e. I then let the price moves as CI is weak.
f. The price closed for the morning at its low of 905.5.
g. At 3pm, I lowered my stop to 913.5, one tick above the mid-point of previous day’s bar according to my trade management. Now, it is a profitable trade.
h. The price moved further down to 900 and close 902 with heavier volume.

Trade executed according to plan? YES


November 9, 2005

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.

b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped down.
iii. If the price opens higher, flat or lower, put your sell stop order at 911, 1 tick above previous day’s high.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high and blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)

d. Subsequent Trailing Stop:
i. If the price broke 900, move the sell stop order to, 909, 2 ticks above the 2nd previous day’s low. ii. If the price breaks 895.5, move your sell stop order to 905.5.

My actual trade management:
a. I called Apex. Joanne told me that Nov contract opened at 900. I put my sell stop at 911. I am worried about whipsaw if I put my stop too close to the open. But I did follow my trade management.
b. The price moved down and broke 900 at 9:40am. I wanted to wait until 10:30am to lower my stop.
c. At 10:35am, the price lower my stop to 909 as planned as the price hot low of 894.5 and rebounded. The price stayed at 895 and 897 range for the whole morning and afternoon.
d. The price broke 894.5 and hit 893 as the crowd who bought at the support closed their trade at 4:40pm.
e. I did not do much as I watched the price. I should have lower my stop to 905.5 as the price stayed at 893 and 894 range.

Trade executed according to plan? Yes


November 10, 2005

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped down.
iii. If the price opens higher, flat or lower, put your sell stop order at 902, 1 tick above previous day’s high.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high and blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)

d. Subsequent Trailing Stop:
i. If the price breaks 890, move the sell stop order to, 897.5, 1 ticks above the previous day’s mid point of 897.
ii. If the price breaks 885, move your sell stop order to 895.5.

My actual trade management:
a. I was driving and did not have call Apex. Joanne from Apex called me to inform me the open and OI. The open and OI is 894 and 19694 respectively. I put in my buy stop order at 902, 1 tick above previous day’s high.
b. The price then moved along 893.5 and 895.5. The price later felt to 892.5. I got away from the screen.
c. At noon, the price hit 890.
d. I regretted for not adding additional contract as the price broke 895.5 support as my margin is enough. However, I will not do so unless my account is more than RM6000.
e. At 3pm, the price moved further down as CI is losing as much as 7ppoints.
f. I decided to lower my stop to 897.5, 1 tick above the mid-point of previous day’s bar.
g. The price then moved down to the low of 887 before moving up to 888.5. I saw an AT formation. The price may hit as high of 892. The price did hit 892.5.
h. The price then moved up before closing as some traders closed their position for Friday. The OI tomorrow can give the cue of the crowd is doing.
i. The price then moved down to 889 and closed at 890.5 with lower volume than that of previous day.

Trade executed according to plan? Yes


November 11, 2005

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped down.
iii. If the price opens higher, flat or lower, put your sell stop order at 897.5, 1 tick above previous day’s high.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high and blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)

d. Subsequent Trailing Stop:
i. If the price stays below 890, move the sell stop order to, 896.
ii. If the price breaks 885, move the sell stop order to, 891.5, 1 tick above the previous day’s mid point of 891.25.
iii. If the price breaks 880, move your sell stop order to 887.5, 1 tick above the previous day’s low of 887.

My actual trade management:
a. I was driving and did not have call Apex. Joanne from Apex called me to inform me the open and OI. The open and OI is 894 and 19694 respectively. I put in my buy stop order at 902, 1 tick above previous day’s high.
b. The price then moved along 893.5 and 895.5. The price later felt to 892.5. I got away from the screen.
c. At noon, the price hit 890.
d. I regretted for not adding additional contract as the price broke 895.5 support as my margin is enough. However, I will not do so unless my account is more than RM6000.
e. At 3pm, the price moved further down as CI is losing as much as 7ppoints.
f. I decided to lower my stop to 897.5, 1 tick above the mid-point of previous day’s bar.
g. The price then moved down to the low of 887 before moving up to 888.5. I saw an AT formation. The price may hit as high of 892. The price did hit 892.5.
h. The price then moved up before closing as some traders closed their position for Friday. The OI tomorrow can give the cue of the crowd is doing.
i. The price then moved down to 889 and closed at 890.5 with lower volume than that of previous day.

Trade executed according to plan? Yes

November 14, 2005

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped down.
iii. If the price opens higher, flat or lower, put your sell stop order at 896.5, 2 ticks above 2nd previous day’s high. This because the market may move side-way.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high and blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)

d. Subsequent Trailing Stop:
i. If the price breaks 885, move the sell stop order to, 895, 1 tick above the previous day’s high.
ii. If the price breaks 880, move your sell stop order to 890.5, 1 tick above the intra-day’s high

My actual trade management:
a. I could check the opening. FKLI Nov opened at 890. I checked the OI is down 139. I put in my buy stop order at 897, 2 ticks above previous day’s high. I
b. I found out that it is 896.5, not 897. I lowered my stop to 896.5. I did not lower so much because the price may go side-way.
c. At 10am, the price hit 885.5. After 11am, it went down to 883.5. I lowered my stop to 895, 1 tick above previous day’s high.
d. I sit tight and started reading Tom Basso’s book on investment psychology. It really give me a lot on investment wisdom that I can use. I learned a lot.
e. The price moved between 882 and 884.5 in the whole after even some technical rebound in CI. The price closed 882.5 even the CI was down only 2.9x points.
f. The volume of CI is lower than prior day even the price moved lower and there is 2nd black hammer on CI. Be prepared.

Trade executed according to plan? Yes


November 15, 2005

Today’s Trade Management:
a. Call Apex at 8:45am to check the opening price.
b. Initial Trailing Stop:
i. If the price opens gaps down, close your position immediately. Remember, Oops! is most powerful this time. It is also price-extreme.
ii. If the price opens gapped up, do nothing initially. Close your position after 10:30am if the price stays gapped down.
iii. If the price opens higher, flat or lower, put your sell stop order at 890.5, 1 tick above previous day’s high.

c. Possible Exits:
i. MOC
ii. There is a price extreme – a long white candle with close near the high and blow-off volume.
iii. If there is 10-point profit.
iv. Let the trailing buy stop follow the price until it is taken out (if there is a down-trend)

d. Subsequent Trailing Stop:
i. If the price breaks 880, move the sell stop order to, 886.5, 2 ticks above the previous day’s mid-point.
ii. If the price breaks 875, move your sell stop order to 881.5, 1 tick above the previous day’s low.

My actual trade management:
a. I checked the opening online. FKLI Nov opened at 883.5. Since the price opened higher, I put my stop at 891.5, 2 ticks more than my planned stop at 890.5. The OI reached all-time high of 20782. The moving bandwagon is over-loading.
b. The price then moved down to 881 and broke 881 to hit low of 879.5. I lowered my stop to 890.5, 1 tick above previous day’s high.
c. But the price rebounded to the area of 881 and 884 at 9:50am.
d. I knew something was not right. But I just follow my trade management and get out until my stop is hit.
e. At 10:24am, the price shot up and reached 889 and the price moved down to 886.5 and 888 area. There is short-covering.
f. I asked myself should I cover now since the price is lower. I did not. I just follow my stop until I am stopped out.
g. The price hit 889 again at 11 something but failed to break it. The price then felt to 886. I thought that I am safe.
h. After CI closed for lunch, the FKLI Nov hit my stop at 890.5 and hit 891 high before closing for lunch.
i. After lunch the price moved down to hit 887 and close 886.5 with high volume of 4163. I also saw the downtrend line is broken. The short could not wait to take profit.
j. I follow my trade management to win. Money is not important.
k. However, I felt guilty for not taking profit at 883 when I felt not right after the price hit 879.5. The speculator takes profit after the price hit 880.

Trade executed according to plan? Yes

FKLI Spot Month Chart on November 15 05 after the buy stop is triggered at 890.5

What I have done best:
a. I follow my trade management rules strictly.
b. I let my stop is stopped out..

What I need to improve:
a. I need to back-test Oops! with trend following.
b. I need to change my emotion after being stopped out. I :
i. Felt guilty for not taking the profit earlier.
ii. Kept thinking of what I should have done better.
I can think of these:
i. It is part of the game of being stopped out and waste some profits.
ii. As a speculator, I just take a bit of the trend.
iii. Following the trade management rules to win is more paramount than counting the lost profit.
iv. Let’s move on to the next trade.

What I have learned:
i. I can pyramid my trade but each pyramid increases my risk. The stop has to be tightened.
ii. When the OI hit 20,000, the bandwagon is overloading, the momentum may stop. When those crowds cover their position, the price can shoot up or down very fast. When it happens, after the price shoot up or down, cover at a cheaper loss or profit.

FCPO Trades November 17, 2005

FCPO February 2006 – Descending Triangle Breakout Trade 3 – Closed with a net loss of RM280

Trade Management
November 17, 2005
Entry Strategy for DT: Sell stop order
a. Option 1: If the price opens gaps down from prior day’s low, use Oops! Buy Trade Management
b. Option 2: If the price opens flat or lower than prior day’s low, put a sell stop order at 1406 after FCPO opens.
c. Option 3: If the price opens gapped up, do nothing
Pyramiding Strategy
a. No.

Trailing Stops
a. If the stop order is triggered, put a stop order as the initial trailing stop at 1416.
Exits
a. When your initial stop order is triggered
b. Exit on MOC if the price closed above 1406.
c. When the projected DT target of 1366 is hit.
d. Exit MOC or the next day’s open when there is one long black candle with blow-off volume.
e. Let the trailing buy stop follow the price until it is taken out.

Today’s Entry strategy:
a. Call Apex at 10:30am to check the opening price. Put in your sell stop at 1406. Ask them to inform you when any trade is done.
b. If the stop order is triggered, put a sell stop order 1 tick below the intra-day’s low.
c. Exit on MOC if the price is more than 1406 or my stop is being triggered.

My actual Entry strategy:
I did not monitor FCPO much. But I thought it will not break 1407 support level.
But the price broke 1407 level at 11:30am. My last analysis told me that I can short at 1406 level. The price hit low of 1405.
I called Joanne of Apex to short at 1406. I got it.
The price then moved down to 1403 and rebounded to 1406 during the mid-day.
The price then hit low of 1402 but rebounded to 1406 level. It then moved up to 1412.
At 5:40pm, I told myself to follow to close my position if the price closes higher than 1407.
The price then hit 1414 at 5:54pm. It then moved down to 1410 at 5:56pm. But it moved to 1414 again.
I called Joanne to close my position. She told me that tries to enter at 1414. But the price moved so fast during the last 3 minutes and it hit my stop of 1416.
I lost a net RM280 (RM250 + RM30 commission).
I felt regretted for not taking the cheaper loss earlier.

Trade executed according to plan? YES



What I have done best:
a. I follow the Descending Triangle trade management rule.
b. I do not monitor the price very often.
c. I do not get nervous during my trade.

What I need to improve:
a. I need to improve the rule on MOC exit for failed descending triangle breakout.
b. I should close the position between 5:55pm to 5:56pm because crowd losers usually wait the last minutes.
c. Do not be fool by last minute move.

What I have learned:
a. When I ready to get out, call Apex and tell them “Get Me out now”. I should not care the price because I know that I was wrong. It is a cheaper loss.
b. The best time to close a losing position is at 5:55 and 5:56 time.

My FKLI Technical Analysis (November 17 05)

Roll-over Week: No
Contract: Spot month - November 2005

Trend
Stage: 3

Yesterday
The price opened lower, moved higher, moved lower and closed higher as CI closed higher even DJIA lost 10.73 points.

Today
The price may open flat or lower as DJIA lost 11.68 overnight.

Candlestick
Ø There is a white candle after a long-legged white. It is bullish.

Support, Resistance, Trend-lines and chart patterns
Ø Candlestick support for Spot month: 879.5, resistance: 895.5
Ø There is a breakdown on a Head and Shoulder Top and followed by further breakdown and lower high and lower low.
Ø Trends: Stay Short because
o Immediate Trend: Down
o Medium Trend: Down after H&S Top Breakdown
o Long-term Trend: Down after Descending Triangle Breakdown
o The price broke a down-trend line..
o The price is below the resistance of 895.5.
Ø The price is below 200 SMA (breaks 200-SMA):
o 200-SMA: 900.54 (falling)

Trend-Following Indicators
Ø ADX (26 and rising). The market is trendy as ADX > 25.

Oscillators
Ø Stochastic %K (28.15 and rising) > %D (Start to rise). The price hit new low but the %K does not hit new low. There is a possible bullish divergence.

Volume +3.5 2238 (Average)