CPO Futures High 3414 or 3402 ?

Today, CPO Futures hit another 2 types of prices on high at the opening - 3414 based on chart system and 3402 based on quotes on the screen. However, I will base on 3414 as the high price since it was traded as a spread against 3438 in January contract at the opening. This similar incident happened last week also, click this link CPO Futures Low 3179 or 3229 ?

10nov2010 - Articles To Share: Technical Vs Fundamental Trading In Futures

Articles being published in Ezine Articles: Technical Vs Fundamental Trading In Futures

03nov2010 - CPO Futures seems gaining momentum to sell down

Hourly crude palm oil futures indicator is showing a sign of possibility of selling down after hitting twice to the high. Since cut loss point is at 3100 or above at 1130am, in such a "calculated risk", risk reward is good for selling with first profit target 3063.

02nov2010 - Articles To Share: CPO Futures Involves Calculated Risk

Articles being published in Ezine Articles: Crude Palm Oil Futures Involves Calculated Risk

Lesson - Trend is a function of time

Trend is a function of time and why? In my opinion, majority traders succeed accumulating wealth through cpo futures trading because they managed to catch good trends which they always patiently waited for a right timing to maximise their profit. 

Therefore, timing is a main important skill you need to sharpen it with discipline and take a period of time to gauge trading experience on futures products. For example, Daily FTSE Bursa Malaysia KLCI ( FBM KLCI ) chart with indicator like RSI had repeated same pattern of trend in July 2006 and July 2010 which many still missed such a trend.

However, the main topic here is since you miss a trend and how you are going to deal with it. FBM KLCI this round has been run up more than 3 months and if you based the bar chart with indicator, it has long overdue for a 'sharp correction?!' even though now is hard to judge how low will it go as it needs to be monitored on every day especially on the closing price to confirm its correction. 

Here it may be a opportunity to sell better than buy now where the risk reward is much better if you count on the daily bar. Daily bar had also been run more than normally a trend go which mean now is time to ride on the correction trend to accumulate wealth. 

Lesson - Calculated Risk

How to establish a calculated risk in futures trading?

When you start trading in futures market, your broker will always ask you to place a 'stop loss' order. However, it is very common your stop loss order will be based on your margin available in your account especially when you trade with little margin. This is to protect you from over loss when market is against you.

In general, majority of smart cpo futures traders will know how to set their calculated risk so as to minimise the losses. Here, if you are a novice trader, you must establish a strategy on such a calculated risk method in consistent with your trading. Technical trading all have their own strategy of calculated risk precisely stated unlike fundamental trading.

Therefore, it is good to learn how to trade with technical indicators for a start. Buy some technical analysis books to learn how a technical book helps you maximise profits and limit your losses. The books should be able to teach you all the basics of technical trading. For example, when is the indicator sell mean you are either profit take turn sell or cut loss turn sell. Remember to calculate the profit and loss over a period of time to prove that the indicator is capable to help you accumulate wealth.

Lesson - Trader's Credo

Trader's Credo


To be a pro and smart trader
I always look for opportunity, not security
I will take the calculated risk to fail and to succeed
I will never choose to be just a normal trader
It's my right to be a successful trader.

Knowing trading is a mean to accumulate wealth.
I will exercise extreme discipline
As trend is my friend
I must maximise the profit and stop loss fast.
Dare to have more losing trades than winning trades.

Knowing my limit, honour it
Resist the greed of over trading
Sit tight by virtue of patience
Be proud and unafraid to tell the world
I have done a good trade.

Lesson - Trading Plan

A: what is L ?
B: L is long ( see page - " CPO Hourly Indicator " )... we deal with mat salleh...they like long or short...
A: ic
B: we asian always short ma they say
A: haha
B: Tehnical indicator is like your girl friend b4 get marriage...like stochastic indicator in this blog in page "CPO Hourly Indicator", a lot of people don't know how to use...
B: indicator need to be learned in a very simple way, but people teach wrong way...
B: so let it be, so that only we trader can make money lo
A: haha...true, we all still hv a habit of....take fast profit, let losses run
B: every trader must build own trading rhythm...you and him cannot have same rhythm so that both of you can succeed on your own way
B: tell him more discipline will do... when he get discipline, his rhythm is back.
B: you also, build ur discipline...you are a potential trader to succeed in this line, i think so.
A: ok
B: in short term trading...kill this - "mindset is sell, hard to turn buy"
A: ic
B: but specialise in one indicator first. Mean...master only 1 or 2 indicator only...dont learn to many
B: just like - fall in love with ur indicator like fall in love with a girl...see why it "change this change that" to attract u...
A: haha
B: when u have too many indicators to read, it is like u hv too many girls...too much distraction already...one ask u buy, one ask u sell, one in between...so HOW!!!
A: fainted...
B: ya, and your rhythm will be out....
B: build ur discipline and it can build ur rhythm... trading is a kind of business also...need time to build ur business network.
B: so, indicator is your business network...indicator is your discipline.
B: if indicators tell buy, buy...
B: indicator only tell u buy or sell....no wait or see how... but when u build ur discipline already, after sell or buy, with trend, u can then wait and see how to maximise profit with the indicator
B: so, from now, eat and sleep with ur indicator la
A: haha
B: read back all the level...why and when turn buy, how long it being turn long, how high indicator ever go...vice versa
B: how many days it already turned short...u can even test on short term chart like hourly...which u can see more things like in my page " CPO Hourly Indicator "
B: when u build up ur base already...then when u see other chart with this indicator...u can feel the market momentum too.
A: k...

Lesson - Technical vs Fundamental

If you are a small speculator in CPO futures trading, the access of fundamentals data and news will always be the last to receive or you won't have the first hand information, so to say. Therefore, what should you do to have a success trading in CPO Futures?

In my opinion, if you, as a novice trader, need to back up yourself certain technical skill of how to read technical indicators like moving averages, relative strength index, stochastic before you start trading. Do not ever follow broker's advice or other trader you know to trade as you may not have the same emotion or psychology on discipline that they have.

CPO Fundamentals data that always being closely watched by majority traders have been placed in this blog for you to refer and I think it is enough for you to learn as the beginner. Fundamentals data allows you to digest how are the major players try to do hedge for their next trading strategies after those data being released.