FCPO Mar 06 Ascending Triangle Trade 5 - Closed with net gain of RM15

Trade Management

FCPO Chart as at Dec 29 05

December 30, 2005

Entry Strategy for AD: stop order
a. Option 1: If the price opens gaps up from prior day’s low, put a buy stop at 1420 after FCPO opens.
b. Option 2: If the price opens flat or lower than prior day’s low, put a buy stop at 1420 after FCPO opens.
c. Option 3: If the price opens gapped down, put a buy stop at 1420 after FCPO opens.

Adding more contracts
a. No.

Trailing Stops
a. If the stop order is triggered, put a stop order as the initial trailing stop at 1410, 10 –tick stop loss.

Exits
a. When your initial stop order is triggered
b. Exit on MOC if the price closed below 1420.
c. When the projected AD target of 1458 is hit.
d. 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 buy stop ay 1420. Ask them to inform you when any trade is done.
b. If the stop order is triggered, put a sell stop order at 1410, 10-tick stop loss.
c. If this is a first-time ascending triangle breakout, exit on MOC (5:55pm) if the price is less than 3 points from 1419 or my stop is being triggered
d. If it is a second ascending triangle breakout, there is no MOC exit unless the stop is triggered.

My actual Entry strategy:
a. I did not plan for this trade.
b. However, after seeing FCPO hit high of 1423. I decided to put in my buy stop at 1420, the original ascending triangle breakout point.
c. I called Apex at 11:30am to buy at 1420 with sell stop at 1410. The buy order is triggered immediately after I place the order.
d. The price moved down from high of 1423 to hit 1414 before closing at 1415.
e. I did not close my position as I think that second breakout is more real.

Trade executed according to plan? No. I let position open even the price fell below 1419 as I just formulate the second breakout rule for ascending triangle formation.

January 3, 2006

Today’s Trade Management:
a. Soy Oil March gained 74 points on Friday.
b. Call Apex at 10:30am to check the opening price.
i. If the price opens gapped-down, do nothing initially. Closed the position after 11:30am.
ii. If the price opens gapped-up, put my sell stop at 1410.
iii. If the price opened lower, flat or higher, put my sell stop order at 1410.
c. Possible Exits
i. When my stop order is triggered
ii. When the projected AD target of 1458 is hit.

d. Trailing Stops:
i. The initial stop is 1410.
ii. Let the trailing buy stop follow the price until it is taken out.

My actual trade management:
a. I called Apex. Foong told me the price opened gapped up at 1525. But Joanne called on my hand phone. She informed me about the opening.
b. I hesitated for a while about what point to put my sell stop. I decided to put in 1410, my initial sell stop order.
c. I was not able to check the on-line prices as the web site is down.
d. At noon, I called to checked the price; the low is 1422 and Close is 1423 with volume of 766.
e. AT 4:10pm, I called again to check the price. The price was at 1424 with volume of 16xx.
f. I told myself that I would close the position if the price is below 1420 near MOC.
g. I called Apex again at 5:24pm, the price is at 1427 with volume 1908. I knew that today is a real breakout.
h. At 5:47pm, I called again; the price is at 1429 with volume 2773.
i. I checked the price again at 5:57pm, my position checking time, the price hit high of 1430 with volume of 3266. I will stay at the position.
j. I called at 6pm to check the closing and the prices for both March and April contract. The March contract closed at 1429 with volume of 3383.

Trade executed according to plan? Yes


January 4, 2006
Today’s Trade Management:
a. Soy Oil March gained 134 points overnight.
b. Call Apex at 10:30am to check the opening price.
i. If the price opens gapped-down, do nothing initially. Closed the position after 11:30am.
ii. If the price opens gapped-up, put my sell stop at 1417.
iii. If the price opened lower, flat or higher, put my sell stop order at 1417.
c. Possible Exits
i. When my stop order is triggered
ii. When the projected AD target of 1458 is hit.

d. Trailing Stops:
i. The initial stop is 1410.
ii. Let the trailing buy stop follow the price until it is taken out.

My actual trade management:
a. I was having a chat with my friend. Joanne of Apex called me to inform me that the price opened gapped up at 1440 and hit high of 1446. It was trading at 1439 now.
b. I immediately put a sell stop order at 1417 according to my plan. 1417 is the mid-point of previous 2nd day’s bar.
c. At noon, I called to check the price. The price hit low of 1437 but it was trading at 1438 with volume of 1853.
d. After checking the chart, I decided to raise my stop to my break-even point of 1423. 1423 is also one tick below the high of 1424, the recent high.
e. The price then moved around 1427 and 1440 for the whole morning.
f. At 4pm, I called to check the price. The price hit low of 1436 but it was trading at 1439 with volume of 2635.
g. At 4.58pm, I called to check the price. The price was trading at 1439 with volume of 2841.
h. At 5:48pm, I called to check the price. The price was trading at 1437 with volume of 3131.
i. At 6pm, I called to check the price. The price hit low of 1434 before closing at 1437. It formed a whiplash sell and black shooting star.
j. I did not close my position. I will wait the market to take me off or the price hit my target.

Trade executed according to plan? Yes

January 5, 2006
Today’s Trade Management:
a. Soy Oil March gained 36 points overnight.
b. Call Apex at 10:30am to check the opening price.
i. If the price opens gapped-down, put a sell stop at 1423
ii. If the price opens gapped-up, put my sell stop at 1423.
iii. If the price opened lower, flat or higher, put my sell stop order at 1423.
c. Possible Exits
i. When my stop order is triggered
ii. When the projected AD target of 1458 is hit.

d. Trailing Stops:
i. The initial stop is 1423.
ii. Let the trailing buy stop follow the price until it is taken out.

My actual trade management:
a. I called Apex at 10:32am to check the open. The price opened higher at 1440. Quek of Apex reminded me to put in my stop. I put it at 1423, my break-even point.
b. I did not monitor the price as the on-line price was down and I was monitoring FKLI as I miss again the big run
c. At 4pm, I called to check the price. The price hit low of 1431 but it was trading at 1432 with volume of 1008.
d. At 5:02pm, I called to check the price. The price was trading at 1432 with volume of 2167 and low of 1430.
e. At 5:46pm, I called to check the price. The price was trading at 1433 with volume of 2331.
f. At 6pm, I called to check the price. The price closed down at 1435 with volume of 2865
g. I did not close my position. I will wait the market to take me off or the price hit my target.

Trade executed according to plan? Yes

January 6, 2006
Today’s Trade Management:
a. Soy Oil March lost 39 points overnight.
b. Call Apex at 10:30am to check the opening price.
i. If the price opens gapped-down, put a sell stop at 1423
ii. If the price opens gapped-up, put my sell stop at 1423.
iii. If the price opened lower, flat or higher, put my sell stop order at 1423.
c. Possible Exits
i. When my stop order is triggered
ii. When the projected AD target of 1458 is hit.

d. Trailing Stops:
i. The initial stop is 1423.
ii. Let the trailing buy stop follow the price until it is taken out.

My actual trade management:
a. I called Apex at 10:32am to check the open. The price opened higher at 1432. I still remembered to put in my stop. I put it at 1423, my break-even point.
b. I did not monitor the price as the on-line price was down and I was outside doing my personal stuff
c. At 11:30apm, I called to check the price. The price hit low of 1430 anfd high of 1435 but it was trading at 1433 with volume of 787.
d. At 12:30pm, I called to check the price. The price was trading at 1435 with volume of 1092 and low of 1430.
e. At 4:00pm, I called to check the price. The price was trading at 1435 with volume of 1221. It is a quiet day.
f. At 6pm, I called to check the price. The price closed down at 1433 with volume of 1346. The April contract closed at 1437 with volume of 901
g. I did not close my position. I will wait the market to take me off or the price hit my target.

Trade executed according to plan? Yes

January 9, 2006
Today’s Trade Management:
a. Soy Oil March lost 22 points overnight.
b. Call Apex at 10:30am to check the opening price.
i. If the price opens gapped-down, put a sell stop at 1423
ii. If the price opens gapped-up, put my sell stop at 1423.
iii. If the price opened lower, flat or higher, put my sell stop order at 1423.
c. Possible Exits
i. When my stop order is triggered
ii. When the projected AD target of 1458 is hit.

d. Trailing Stops:
i. The initial stop is 1423.
ii. Let the trailing buy stop follow the price until it is taken out.

My actual trade management:
a. I called Apex at 10:31am to check the open. The price opened gapped-down at 1429 for March contract.32. I still remembered to put in my stop. I put it at 1423, my break-even point.
b. I did not monitor the price as the on-line price was down and I was outside doing my personal stuff
c. At 11:30apm, I called to check the price. The price hit low of 1427 and high of 1431. if I use Oops!, my buy stop of 1431 will be triggered.
d. I did not add more contracts as the price kept falling.
e. At 12:30pm, I called to check the price. The price was trading at 1427, the low, with volume of 343.
f. At 4:00pm, I called to check the price. The price was trading at 1426 with volume of 538 and low of 1425. It is a quiet day. I told Apex that my stop will be hit.
g. My stop is hit at 4:40pm at 1423. I have a net gain of RM15 ([3 x RM25] - RM60 commission).
h. At 6pm, I called to check the price. The price closed down at 1423 with volume of 1080 and low of 1422.
i. I let 23 point gain varnished as I use trend following too much. I should have exited when the price opened gapped up 11 points.

Trade executed according to plan? Yes


What I have done best:
a. I follow re-entry of Ascending Triangle breakout entry.
b. I do not let a sure-profitable trade to become a losing trade.

What I need to improve:
a. How do I not give up number of points if my trade is right.

What I have learned:
I will wait the market to take me off or the price hit my target. Sometimes, it does not happen.