Saturday, September 1, 2012

FAT8023 week 2


Trader 8023 was busy this week with some part time project, thus was able to enter only 2 trades for the week.

Last night he average on the bad CAD position with another contract which is quite close to his initial stop lost at 53. Averaging on bad trade is not what I can stomach, but for him it's just in his strategy. It will be interesting to see how he manage this position next week.
 

16 comments:

coconut said...

yes i do agree with you on this one. he seems to take profit pretty fast but relunctent to cut his loss sooner, its a bad sign.

can only average losses (not average bad positions) after taking into account the overall position(s) size and max drawdown which in this case i have no clue.

coconut said...

2, 3 weeks ago i was accompany my HK friend to MBS haha. although gambling with the casino is a no no for me, i did fook out 1,000 to pool with my friend just for the fun, he do the playing.

he is a very experience gambler and you know what, when he started he was very cauious cos we was losing, placing small bets.

after his luck turn around, i can see him placing bigger and bigger bets so much so that eventually we are up almost 10,000, no joke!

at the end we still pocket i think around 3,000 each haha.

the tactic my friend employed was correct basically but the places we choose was obviously the wrong place to be in.

coconut said...

needless to say, 2 days later we were in the RWS!

Singapore Man of Leisure said...

1. Fat, glad to see you are back ;)

2. coconut, I am reading The One Good Trade now and the author Mike Bellafiore has a similar thinking to your "process" focus - less on whether the trade is profitable or not :)

Thanks to you, it's easier to catch what Mike was saying!

coconut said...

really?

ya, i just forcus on position sizing, meaning increase or decrease overall position size to control my risk exposure.

so you can clearly see that average losses is part of the game. i just make sure it stay within my boundary and not get out of hand.

and its very true one should stay less forcus on profit and just manage one trade properly. if after a while still cannot make profit, look to your trading strategy for the answer.

Fat88Trader said...

Coconut, the place should be in the Stock market, Futures market or Forex, you should invest in such a talent.

coconut said...

ya got what you mean. but if i did it, i'll be as "broke" as he is.

this friend of mine never shy to tell me about all his losses in the market, big time! he is now currently holding on to many rotten chinese stocks. if it is not of his family back ground, he would have...

funny things is that even knowing me for so many years doing what i did, he never question me about it, i guess its becos he never really need to worry about money, not yet.

as far as trading/gambling is concern, he is a wild horse and cannot be tame.

coconut said...

during our visits to the casinos, i explain in details why i didn't want to joint him on the tables after insisting i should, his respond was

"LC!" haha sorry about that.

coconut said...

and to cut it short, never ever place a bet if you know, before hand, that the edge is against you, like betting with the casinos, never!

in my mind, 2,000 is the maximium i'll let my friend get excited and be entertained. i never expect to get them back.

coconut said...

another trading day had pass, this song for fat for his honesty about his crises and back blogging again.

http://www.youtube.com/watch?v=XonFZjuyc6E&feature=related

Fat88Trader said...

Thank you coconut for dedicating this lovely song to me, this is the first time I hear this song even though I was in that Era.

For me now the Exchanges are the biggest Casino, I don't have the edge anymore, every trade I take is like a gamble, 50/50 chance of winning. With comm and other fees, the odd of winning is slightly against me.

coconut said...

first time? no kidding? although i'm a chinese educated, but my bros are not, so i listen to many of these songs.

if you don't mind, i like to write something below which i don't agree with you.

first the comms, you do relised that in order to save guard our positions, we need to generate a lot of orders, much like your (damn i forgot about the word) scarped? or cut loss or hedged. i know is a waste of comms but it is very neccessary. in my opinion, good traders usually generate lots of comms. i don't care how much i pay for my comms as long as i can make profit.

2, trade spreading instead of outright positions, along the way there will be opportunity to take directional trade by lifting one side of the trade, sure come one.

3, if not trade options, using both sell and buy option on both call and put to hedge, i'm not so good in this one.

4, forget about scalping!

5, look into stock market, use DMA CFD for both long and short or spreading.

i'm sorry to be so direct but i really hope you can succeed and continue to share.

coconut said...

even to run a casinos, they have to pay their dealers salaries and many expenses also. very much like we paying comms.

coconut said...

in another words, put safe guards or protection (by executing orders) on top of commission consideration. meaning you have to pay means you have to pay to play it safer.

Fat88Trader said...

Oh, when I was young, I lived in a Hokkien kampong in Redhill. I went to Primary school and secondary school whereby we conversed mostly in dialects. Thus English and Chinese language was a challenge, I find difficulty in expressing myself, my composition was horrible. I was really a slow learner. I listened to mainly Chinese songs during those days.

Coconut, I like your honesty and being very direct, no beating around the bush or trying to impress anyone, just your thoughts.

I certainly agree with you on "forget about scalping", that's why I have moved my operation back home, even the speed in the Trading arcade at Phillips can't beat any of the Algos (HFT). I have made my money in scalping and spreading over the past 20 years, it's difficult for a leopard to change it's spot and I know change is inevitable with the advance in technology, I just have to die die adapt and change my strategy in trading.

I used to trade few hundred contracts a day and contributed ten of thousand dollars per month in comm, that's of course I made much more money than that. There were plenty of opportunities then but now the competition is damn bloody tough with the Algos replacing us with their speed and narrowing down all the spread.

I am going into semi retirement to enjoy the fruit of my labour and leave the youngster to take over. I will still keep my mind active and monitor the market and trade at a much slower pace.

coconut said...

there you are, lots of comms but you also pocket a lot. right now i can immagin my brokers that is laughing to the bank but i too have little choice, ofcos they given me the "prefer" status in return.

i think even scalping can be profitable if you can find the right market for you, you just have to find them.

by the way, please don't retire cos the market still need your contributions haha.

just kidding.