Market players have been extremely nervous over the past few weeks resulting in a smaller trading range and a choppy market that make trading very tough. Account 1 took a hit as we went long in the Simsci (Singapore Index) and shorted the TW (Taiwan Index) to hedge our position. We have not expected the TW to be the only one in the Asian market that went against the trend. Luckily we cut our losses to minimise the losses, it's a real short squeeze that kill many shorty.
Pit traders have always call the TW market the gangster pit, the big boys control the market and squeeze the smaller players. They are very good in pushing the market up and down sometimes for no apparent reason. But, it is precisely because of all these players that the TW market is very active with good daily trading volume as many professional scalpers join in for a piece of the cake.
I am more conservative in handling Account 2 and has built it up slowly taking mostly hedging position between Nikkei and Topix which I am very comfortable with. Could have done better if I have a tip top trading platform and once I fully recover from my operation.
From the performance of Account 1, I think Robert is having problem adjusting and focusing, we need to be patient and give him more time. I believe he will be able to do it.
We lost some ground and our profit to date is S$17,601.00.