What hapen when you dont listen to your own advice?

You get burned! Yeah, that what happen to me last week, RM3000 loss! The world of trading is like a fierce monster! If you cant tame it. It will devour you to the last drop of blood, literally! Remember my last post before this one? I wrote about protecting your money. I don’t follow it last week. I did have a stop loss but I hope for a rebound so I don’t stick to it. That’s one of my biggest mistakes. The price keeps pummeling further and further and I end up loosing more. If I use my stop loss figure, my loss would be a measly RM250 but look what happen? I lost more then 10 times the amount!

So, please, please and please don’t make this stupid mistake. You’ll curse yourself at the end of the day. Do have a stop and trailing loss and do stick to it or you’ll end up losing more then you ever thought. And one more thing, do set a target or a sensible and achievable target profit and when the price reaches around that amount, just clear your position. Try it and you’ll be amaze how much you can make with so little risk. Happy trading and always wear your ‘cool’ hat!

Protect your profits

Well, by now most of u have heard about stock market and some lucky ones had tried and make money from it. I lost a lot of money in stock market. I'll share with you some tips to protect your profits. There are a lot of ways to do it but i'll show u the most important in my point of view. these are :

1. Have a stop lost and stick with it. let say u buy something at 1.oo ringgit. put a stop loss (a value u can live without) of let say 20 cent and when it reaches 80 cent immediately sell!

2. Traling stop. if let say u've made a profit but still hoping it go up have a trailing stop. eg. if u buy something at 1.00 ringgit then it go to 1.50 and u still dont want to sell, make a trailing stop (amount u might satisfied with) of let say 1.30 ringgit.. if it goes up again.. ride the flow but if it changes direction i.e price lowed, sell when u reach ur trailing stop which is at 1.30 something is better then nothing. if u dont use it u might turn profits into losses and i would hate to have that.

New alternative to stock trading

I'm sooooo sorry for not writing for some time. I've been busy studiying charts! its soo addictive to use one in trading stocks. And wanna know why charts are good? u can also use charts in futures trading and Forex! it uses the same principle. Charting is just another tool to help u trade. its an alternative to fundamentalist approach to trading. it gives u signals on when to enter and exit the market.

Well, todays point is not about charting. I want to introduce to u commodity trading in Malaysia which is crude palm oil. the market is attractive as its a 2 way market which means u can make money when the market is on an uptrend, downtren or sideway trends as oppose to stock market where can can make money only during an uptrend. The break even point is also lower in cpo trading. Its 2 point to breakeven and the range it can go in one day is as high as 25 points and maybe more.

However, if u want to trade in this market u have make fast decisions as its a fast game. u can make big money and lose more money. yesterday i make a loss of 250 ringgit from 1500 initial investment and today ive made 50 buck. (actually i make a lost of 400 but manage to make 450 b4 the day end. one point equalys to 25 ringgit. to those interested i suggest u to learn some charting techniques as it helps.

I'm also new in the game so i can say much. maybe you're so much better than me. so gimme some tips!