Companies With Above 100k ha Oil Palm Plantation in Indonesia

Here is the excerpt from Jakarta Post on companies that have more than 100,000ha of oil palm plantation in Indonesia...

Source: Jakarta Post

There is the official website of Indonesia Palm Oil Association or Gabungan Pengusaha Kelapa Sawit Indonesia ( GAPKI ) that traders may have to read more in order to know the major producer of crude palm oil in the world now.

How Much Do I Need To Trade CPO Futures

Palm Oil Futures trading is considered a volatile futures product in local futures market, and Bursa Malaysia Derivatives has normally set its official initial margin maintenance in a range between 4000 and 5000 ringgit in view of the volatility range of about 5%. So, how much does a technical trend trader need to trade CPO Futures in order to ignore unnecessary disturbance of margin calls and focus solely on trading success?

Assume the palm oil futures price is traded at 2500, the 5% swing on prices to the top and bottom in a day already incur losses of more than the initial margin and trader will face "over loss" in his/her trading account. Even in my previous posts that had mentioned on multiple losing trades in a row can also easily wipe out trader's trading account if the trading account is highly leveraged on per contract basis methodology.

Technical trend trader must learn to be conservative, remember that you may encounter multiple losing trades when you follow strictly on STOP AND REVERSE technical trend trading strategy. 

Make it 4x on initial margin (Four times! OK!), say, 20000 trading account on 5000 initial margin. NO doubt your yearly rate of return may not be able to hit more than 100%, you will still be able to beat majority of fund managers yearly performance. Think about it, 25% ANNUAL rate of return in your whole life as technical trend trader, any extra will be your yearly bonus. If you cannot follow strictly on such a rule, you will probably encounter the above bad trades affecting your trading survival as a technical trend trader.  

Reuters Market Analyst Wang Tao On Palm Oil Q1 2014 Technical Outlook

Here is the excerpt from the Reuters market analyst, Wang Tao, about the Palm Oil Technical Outlook for the first quarter of 2014:

Click the above image for better viewing

He expected Malaysia palm oil to rebound into a range of 2883-3058 ringgit per tonne over the next 3 months as indicated by a Fibonacci retractement analysis and an inverted head-and-shoulders... more details by clicking the above image for better viewing.

FCPO FKLI Short Term Trading Profit And Loss for 2012-2013

FCPO FKLI short term technical trend trading based on 101indicators' key indicators has recorded its profit and loss for the year 2012 and 2013 for public viewing in its blog. The FCPO is based on RM25 per tick while FKLI is based on RM50 per index point, and here is the profit and loss table for traders to compare own performance:

Traders may just go to http://101indicators.blogspot.com/ or click HERE in the data page  which shows the same table as above. FCPO did a very good profit in year 2012 but did badly in year 2013 and there was a loss in one of the key indicators when year ended 2013. FKLI had mixed performance for year 2012 to 2013. 

New Book Release: 101indicators On Futures Trading

This will be the second book on futures trading being published by me after working 20 years in crude palm oil futures since 1994. My first book was published in year 2009, titled: Trading Crude Palm Oil Futures @ Bursa Malaysia Derivatives.

101indicators On Futures Trading - Mastering one technical trend indicator is the most easiest strategy in wealth creation but always neglected by majority novice trend traders who wish to succeed in trading. How will novice traders patiently learn over a long period of time in mastering a particular technical trend indicator is the one subject being written in the book.

The book will only be available for online purchase. It is through the publishing arrangement using amazon secured platform services and will be released early this year. Click HERE for more details.