Saturday, July 4, 2009


"Imagination is more important than knowledge. For while knowledge defines all we currently know and understand, imagination points to all we might yet discover and create" - Albert Einstein

More Computer Science graduates are now employed as traders, to write trading software programmes for the increasingly powerful and fast machines. Can we beat the machines or black boxes in the futures trading game? These machines trade without emotion, they trade according to the rules and parameters set by their masters. More importantly, they are obedient and discipline.

I am using a simple programme, the auto spreading from the TT system to execute some of my trades, it save me plenty of time from the constant need to monitor the market, making me a bit lazy. The machine is not 100%, sometimes it fails too, giving a worst fill from my intended price level. I vomited blood using the Pat's System to do auto spreading, cursing and swearing many times when it fail to fill the other leg leaving me with some bad positions.

With more traders using black boxes, the competition is tough with razor thin margin, but which business is easy? Which business have no competition? Do we have a better choice? The learning process is often fill with disappointment, that's life! Be realistic about your expectation, work hard and learn from your failures.

It took me more than 2 years after the open outcry trading to be successful in converting to electronic trading. Despite my wealth of experience as a trader, it took me so long to learn, I survived with the savings from my past earnings, I felt terrible during those period. How I wish I have a mentor to guide me, that would have save me the 2 years that I have wasted.

One of the reasons it had taken me so long is the lack of focus in trading, doing it half heartily on a part time basis while trying to branch out to other businesses. Not being a shrewd businessman, I lost more precious capital, it's a new learning process again, why so stupid!

I realised my folly and return to full time trading at the arcade in February 2008.

"Knowing is not enough; we must apply" - Goethe

I negotiated with the manager for a free booth for a month in the arcade and a month free trial for using the best trading platform, the TT system. I gave myself one month to focus and concentrate only in trading, no room for failure, if I don't make it, I will be out of trading for good.

I worked very hard for the month and with some trading advice from a few fellow traders, I managed to make S$20,000.00 in February. My world brighten up again and I have not a single losing month since then. This is the best money I have seen since the trading pit closed in June 2005.

The profit for the special account is S$11,745.00 to date, very slow indeed. My good friend has given notice to withdraw his capital soon to invest in property as it is getting hot again in Singapore with many projects well received by investors and flippers. Total trading profit since December 2008 is S$29,607.00

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