Saturday, October 13, 2012

Challenging myself

After some consideration, I have decided not to post the daily trading results of trader FAT8023 on a regular basis, as his performance is by far mediocre and nothing much we can learn from him. Probably will mention some of his trades once in a while.
 
 
 


Looking at the daily S&P cash chart, there is high possibility that the market will head further south for the time being, any retracement offer good opportunity to go short.

What is consider good return for our money?  The world financial system is flush with cheap money from irresponsible governments that keep printing money. With such low interest rate of less than 1% from a Fixed Deposit account and high Inflation rate, our money is gradually being devalued. The prices of everything from houses, cars, food, drinks, etc have increased tremendously over the past few years.

Going into semi retirement from active trading, I am looking into how best I can perform for a decent return from taking longer term position trading. Recent corporate bonds yield less than 4%, some even less than 3% and still being over subscribed. There is just too much money floating around looking for some safe return.

After some thought, I shall re-activate a dormant account and challenge myself for 10% return for a year. No stress, anything above 10% would be a bonus. It's going to be a patient game looking for the right contract and waiting for the right level for an entry. I will also use options to enhance the return.

18 comments:

Bala said...

My best wishes. I am very sure that your valuable experience will help you win the challenge.

coconut said...

is there other ways of betting on the interest rate beside shorting the little bond markets we have, especially on the corporate bonds?

anyone?

coconut said...

10% return?

a year or 2 ago my bro who only invest in stocks recently, told me he bot a reits call aims something, it was at 1.00 and yield more than 10% a year! (thats the reason why he choose that stock)

being inexperience, i advise him high return high risk and he understood. i also told him to "lock up" his stocks.

luckily for him, he still own that stock and is now trading around 1.50!

what can i say?

coconut said...

and if singtel is trading around 12x earning, put in a little leverage and we can also get 10% return easily, wow!

great time to invest in share market haha.

coconut said...

haha, my brother, he is very cute and never invest in anything before, and very against gambling (against me that is).

to my understanding, being a hard working man all his life, he manage to buy up a lot of reits after the crises (thanks to my encouragement) using most of his life saving.

i repeat and repeat warn him that if he were to trade stocks, its equal to gambling and i will take my revenage on him.

every now and then i will point my finger at him and ask "did you sell your stocks", "no", "did you sell your stocks", "no" is the answer until today.

he is 10 years older then me haha.

coconut said...

this month i'll be lucky and happy if i can break even.

being busy on other things, i kind of lost my momemtum and on hint site, i should have hedge all my positions and not leave them expose.

i got 2 more weeks to catch up.

rbt said...

My song choice

http://www.youtube.com/watch?v=qW_Z3X1jTrw&feature=related

Fat88Trader said...

Yes, my best investment in the stock market is still in good blue chip stocks and reits.

Just hold them and look at the dividends you receive at the end of the year and it will put a smile on your face.

In term of returns, nothing compare to the Property market, you will never lose money over the long term if you know where to buy them.

Fat88Trader said...

Hey Robert, thank you for this Song of Freedom, never heard it before, peace and no war, nice lyrics.y

But unfortunately, trading is like fighting a war, you gain what others are losing, hahaha. The Exchanges and brokers sell us the arms and keep encouraging us to fight so that they can make more money.

GNY said...

I like the part about "exchanges and brokers selling us the arms and keep encouraging us to fight so that they can make more money"... very aptly put, haha.

coconut said...

that shows human does not want peace though they say it all the time.

they fight "wars" in all front.

gust what, we might be supplying the raw material that builds those arms, and eventually kill us.

GNY said...

Humans can be a contradictory lot, who also have a knack to self destruct.

coconut said...

another bob dylan classic

http://www.youtube.com/watch?v=o9V_ZrXP6aw

rbt said...

Very interesting on what it takes to be a successful trader.

http://www.youtube.com/watch?v=ew1L6SLpHgM&feature=BFa&list=PL4DA4A6F9568A24DB

ENJOY!!!!!!!!!

coconut said...

in olders day, only the best can appear on stage,

http://www.youtube.com/watch?v=8Iw5kUQMnuA&feature=related

today, everyone can, its hard to filter the good from the bad, you have to look through a thousand, or hundred of thousand before you even get one, most of the time all you hear are noise.

Ross Taylor said...

Great article. I think, it's a great situation to investment in share market. With such low interest rate of less than 1% from a Fixed Deposit account and high Inflation rate, our money is gradually being devalued. Yes, my best financial commitment in the currency markets is still in excellent azure processor shares. Once you can invest in share market then wait for some months definitely you will get a better benefits. I also like the aspect about "exchanges and agents promoting us the hands and keep motivating us to battle so that they can create more money". SWOT Analysis Report

Unknown said...

Hi Mr Fatt88Trader....I found this blog interesting.....may i know what charting and datafeeds show on the blog....?

I am interested to trade currency futures( day trades partly due to overnight margin ) after doing my research seems the the COST is high for currency futures ( data feeds and charting ) ...

care to advise how one can cut down the overheads for trading futures ....my set up is abt the same like yours mention on the blog i need a (Day,) 4hrs(trend) 30min(trading ) 3 min exucute.....

Fat88Trader said...

You can get this free chart from www.dailyfx.com and trade fx instead of futures if you don't have enough margin. For fx, you can trade the mini contracts and learn from there, your learning cost would be cheaper.