Saturday, January 17, 2009


Robert and I are extremely happy that we are slowly getting back into the game for this special account. We have been trading very cautiously, in fact taking such small positions that we don't even need so much margin for trading. We still have to remind each other to consciously put in trades and encourage each other. We derive great satisfaction from making money for this account.

To date we are up about S$8,190.

We hope to improve further and grow with this account. One of the major challenges is to put in bigger trade to justify the margin and that would definitely increase the risk. The reward would be a much higher return from our targeted 12% return per annum.

Capital preservation is one of the most important concern in my over 20 years of trading, not losing money in a single month during the open-outcry days. After getting back into the trading arcade for electronic trading, I am still preserving that record for the past one year. The reason is simply that I traded small in comparison to my available margin. There is less stress, thus I am able to have a clear mind.

Many of my trader friends have done even better, with some not even losing a single day for months. With that many good professional traders in a negative sum game, it's no wonder more than 80% of the amateur losses their pants.

For this special account, I would be slightly more aggressive once I build up foreign capital.

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