Another Yum Trade!

"Anger dwells only in the bossom of fools" - Albert Einstein

I missed the yum trade in the SGX December Taiwan contract on Friday, a Singapore holiday, Hari Raya Haji. I was concentrating on the Futures Yen contract that went crazy, up almost 300 ticks from overnight, and forgot about the Taiwan opening. I was frustrated for missing this Haji "ang pow", though it was not a contract that I focused on.

The December Taiwan was sold down almost 80 ticks after opening for no apparent reason before rising immediately up almost to the opening level. I didn't know what happened. I guessed the order filler must have keyed in the wrong big figure, a very costly mistake for the company. A few hundred lots traded down, can't imagine the losses!

This type of yum trade happens once in a blue moon, only for those who are alert, hardworking and know something about calendar spread. It was almost risk free trade with the November contract bidded heavily, of course most traders would not have expected this to happen.

There were a few in the trading arcade that managed to get "ang pows", two of them hardly trade the Taiwan contract but everyday just wait for the durian to drop especially during the opening of the various contracts and rollover period. One made more than 400 ticks and the other I was really surprised, never heard him trading the Taiwan and yet managed to Yum 140 ticks for just few minutes work. Really put me to shame.

The survival instinct of these traders are commendable, they deserved it because they are hardworking and know what is their edge. They are like the cheetahs waiting patiently for their prey. So, are you the hunter or the prey? Maybe just a spectator waiting for things to happen.

I was frustrated for missing the Yum trade and began to trade with anger, blaming myself for not being alert. This emotional behaviour is detrimental to the mental state of health for a trader. I tried very hard to control it but still ended up trading so many different contracts, Yen, S&P, Nikkei, Taiwan and later Simsci at the same time.

Did I make money for the day? NO! I was lucky to break even, but what a waste of time.

My good friend gave notice to pull out from the special account to invest in a Japanese restaurant since I have not been performing for the past 6 months. I feel bad about it for not able to reach my target and under performing the stock market. I have been too conservative to take risk.

Performance for the year since we started in December 2008 is S$30,809.00, a 6.8% return per annum, way below my target of 12% return.

From December, what is left will be my own fund of S$200,000.00 to trade, mostly outright position and spread trading. It will be interesting to see whether I can overcome the "FEAR" factor and have a more systematic approach to trading.