Tuesday, June 4, 2013

June 04 - TRADING is all about PSYCHOLOGY...

Hi All.

After seeing FKLI closed at 1,777.5 high today in a Long White bar, suddenly feel the urge to record down the sequence of observations & decisions I've made since Monday (June03) opening gap down to below 1,770 mark.

I try my best to describe everything alongside the charts, hopefully its not too messy to read :)

FKLI - It's all about Trading Psychology (June 04)

Well, the conclusion is, no matter how godlike is your technical skills, its always the psychology that will eventually determine your trading success.
"Plan your trade, Trade your plan."
Yes, trade your plan, is the only way to get rid of that little voice within ourselves, that's constantly interfering our judgement & actions. 
We all know that, but most of the time we don't do what we know we should be doing....
Anyway, that's just a lame excuse.....:p

Following my recent research in the field of trading psychology , I've learned to truly believe in my trading setups, which I know has a slight edge over the random market outcomes.
Nonetheless, today's event has tested & proven that I have yet to give my setups that much needed UNCONDITIONAL trust & belief.
Hmm....still have room to improve there....:)

Also, from a positive & empowering point of view, I manage to identify a potential trend/sentiment change, execute my 1st trade (though turned out a losing one) according to plan.
Furthermore, I've already lay out a plan to maximize the opportunities tomorrow may offer.
This time it WILL go according to my almost perfect plan...hehe...:p


Back to the technical part,

As discussed in my previous post, I'm expecting an upside breakout from the triangle consolidation after May06 massive thrust.

Today's strong rebound after several tests on the 1,764 low over the past two days, signalling commitment from the Bulls, has brought price one step closer to a potential upside breakout.

Tomorrow, we'll most likely see the climb continues, will be watching:
R @ 1,781.5 | 1,785-88 | >1,790
S @ 1,776.5 | 1,771.5 | 1,765.5



Price finally gave in & fall below its 1mth-old uptrend line from 2,230 low.
However, selling is subtle & support is seen near 2,370 region. Probably, sellers refrained from going all out ahead of the May MPOB report on June10.

Technical wise, expect further weakness ahead.

S @ 2,350-60 | 2,335 | 2,295-2,305
R @ 2,380-88 | 2,396 | 2,405-2,420

FCPO - Gap below Uptrend line Extending from 2,230 low (June 04)

A quick one on NIKKEI, as it hits my first downside target, as discussed in my May24 post, following the flash crash that has started on May23 from near 16,000 peak.

NIKKEI - Bump & Run target hit (June 04)

Happy Hunting for tomorrow!! :)

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