Wednesday, May 16, 2007

End of a Chapter

Dearest friends, bloggers and passer-bys,
Its been two months since I started this blog and with great sadness, I am closing this blogging chapter of my trading journey. I sincerely thank everyone for their support either by participation or just reading the articles posted here. I noticed its even a breakout - 10,000 hits :).

After meeting the masters over the weekend, I realised the disparity is great, so great that I am left with no choice but to close this blog to find time. Time to strengthen my foundation, time to relearn what I have learned, time to unlearn what I have learned, time to get in tune with Nature.

Final Notes of My Stand
I do not know about luck but I know this - Luck is when Preparation meets with Opportunity. Yes, I have emphasized a lot about Preparations over and over again in my blog. Without proper preparation, one cannot capitalise on opportunities that arise. What is the will to win, if there is no will to prepare?

Continuous Learning
I have yet to meet with a master that thinks that no more learning is needed. A true master would never stop learning. The three masters I met have such high level of skill and yet, they are discovering new things each day. They have yet to stop learning, they knew one thing - when they took on this path, this trader's path, they have made the market their best teacher and vowed to continuously learn from it.
I have always correct anyone who tried to call me sifu. I know that they only meant respect or maybe out of politeness but seriously, I am unworthy. I have yet to attain such level of skill. I have yet to achieve anything that is worth shouting about. I have to decline the title.

Trading Plan
Before a trade is even made, a trading plan MUST, I repeat, MUST be drawn up. Else, one would be at serious disadvantage. In the market, we are up against people with more money than we have, more skill than we have. How can we possibly stand a chance if we do not even have a plan?

Stop Loss and Trailing Stops
To me, this is imperative, irregardless whether one is a trader or an investor. Perhaps the stop point would be different, but nonetheless, this is a life saver. Anyone who lived through the recession periods would understand this concept. Or they better do.
Even the most fundamentally strong company would not be spared. To watch your investment decline 80% of its value is not an easy sight. And it tests every bone of your body as an investor. Yes, the stock is undervalued but it may remain so. Yes, it will rebound - some day but you may need the cash. You may get retrenched, your children may need to further their studies, there could be other emergencies, countless and endless possibilities. In recession, Cash is King.

Average Down
I have not recommended anyone to average down. Its like compounding the initial error. Now, what about investors, should they average down? I do not know about shoulds or shouldn'ts but I know this - you may average down SUBJECTED TO identification of critical points where beyond would render the average down and the initial entry wrong and stop loss MUST be executed - this means an impeccable discipline and emotional control.

Feel the Market
Several months earlier, I was chatting with booffett - who draws chart with pen and graph paper. It was my lack of understanding that computers could replace this function. I am beginning to appreciate drawing charts by hand. I am drawing 50 charts per day by hand and I hope to increase this number. ;)

I speak about Nature. It may be too complicated to explain but remember the most important indicators where all are derived from - Price, Volume and Time.
Price, Volume and Time. Master this and the world will be your oyster.

Moving forward
For Fusion Picks - which I must add was not really successful, remember to place stops and trade according to initial plan.
Market - From what I see, the general KLSE is weak, while KLCI is strong. Bullish uptrend is expected to continue despite May Factor etc. However, remember your stops. Never forget them.
Stocks - KLCI or related should perform and give a better chance of success.
Futures - Well, doubt futures traders would find any comment from me useful. See you in battlefield :P.

There are many resources around on the net - this means tremendous savings in money - rather than buy books or attending seminars, one could read and learn by themselves. The money would be better spent paying for tuition to the market.

Kenneth Factor
Just in case anyone thought this is for Kenneth Factor, do visit this link - under the comments section. I take this as a peace treaty signed between Kenneth and myself. I have nothing further to add.

Brian McKnight has this song - Back At One. For trading there are steps too:
1) Learn
2) Analyse
3) Backtest
4) Foreward Test
5) Trade
6) Post Mortem
7) Back to (1)

And to Make Money from Trading
All that is needed is this -
1) Trading System
2) Emotional Control
3) Money Management and Discipline

Oh, if anyone is looking for me
I ll be around in forums, or you could mail me directly. :)

Once again, thank you everyone for your kind support and patronage.

Good Luck and Happy Trading!

Saturday, May 12, 2007

Meeting the Masters

Dearest bloggers,

For the past few days, there have been a lack of updates in this blog.
I would like to take this opportunity to thank everyone who still come and visit daily and also apologize for the lack of updates. Reason is I have been making some preparations to meet with three master traders during the weekend. I believe that the visits would be fruitful and I may be able to advance another level in TA.
Of course, once I am back, I will be updating the blog.
Stay tuned :)

Thursday, May 10, 2007

Comment Moderation

Free Image Hosting at
And so, most of you would have known about this Kenneth character.
And regretfully, due to this, I must enable comment moderation.
Only Kenneth's spam of same message over and over again using multiple names will be filtered.
This applies to both Fusion Trader and Fusion Pick blogs.
What this comment moderation means is that each time a comment is posted, I would need to allow the comment to be published. So there would be delay in seeing comments published.

So what is with this Kenneth character?
Well, the summary of chronology is this:
In a Google group called Bursamaster, the owner made a buy call from 0.26.
By end of the day, it shot up to 0.33.
He maintained his buy call, but the following day, it closed 0.305 followed by the next day 0.325 followed by 0.31. With these consolidation signals and supposingly some news that this counter would not be moving soon, the owner Bursamaster issued a sell call.
Come another commenter Sunny to ask everyone to hold the stock. And average down if price falls any further. Prices continue to fall. And when the people there asks about Infotec, came several other comments to ask to hold. Prices will not fall beyond 0.25 was the comment.
But it did. And when questioned about it, the answer was buying support comes from below 0.25.
I pointed out the simple trading rules - Never Average Down. Cut your losses.
Kenneth disregard, and question the practical usage of the trading rules I ve mentioned.
Thereafter he continued to encourage everyone to hold, and average down.
Today it close 0.22.

Someone by the name of Kaza, found out that the comments to ask to hold and to average down - Sunny, Kenneth, and many others, was in fact the same person - by virtue of using the same IP Address.
Kenneth tried to divert the attention and allege that Bursamaster, Kaza and myself are the same person - by virtue of Bursamaster suggested stop loss - which I supported as best course of action - and the fact that Kaza exposed him. So it must be same person, or so he claims.

Subsequently, he came over to spam my blog and continued to spam in Ben's chatbox as well.
Sample of his spam (which are all the same, so I deleted most of it) could be seen in 2 previous posts before this one.

For those who are interested of the Bursamaster's Google Group, the link is here

Thank you guys for all your support and jumping to my defence.
I sincerely appreciate it and would do my best to share more of what little TA knowledge I have.

Once again, thank you. :)

PS: Thank you Kenneth to you as well, for without you, my traffic counter would not have broken the 9,000 mark today :)

Tuesday, May 8, 2007

Fusion Pick Launched

OK, so finally I decided to blog about my picks. :P
Yeah, slightly overdue but oh well...
Enjoy and don't forget to read my disclaimers.
I ll post the disclaimer all around Fusion Pick when I find the time.

Friday, May 4, 2007

Why do I Trade? Part 4: The Trader's Path

I am a trader. I realised that I ve always been a trader - only that I did not realise until I was tested. And someone once said, "Man are like teabags, you will never know how strong he is until he gets into hot water". How true this is. Without being tested as I had (as mentioned in my previous post), I would never have known that I am a trader.

Money is not the main objective for me now. I know for a fact that I could trade for a living. I know that once I ve conquered the pain that I endured. I know that the experience though painful was there for a reason - to serve as a reminder not to be complacent and disregard the trading rules. To follow my own trading plan. To give me the strength that I need each and every time, that I must execute the inevitable stops. I ve grown and became wiser, though I ve yet to attain the wisdom that many readers of this blog has. I ve still much to learn.

One may wonder, could I have avoided the disaster should I have met with the wise people I met on the net? Whose wisdom I ve always revered? If previously, I ve met people like Ben, Lsb, Theng and Csong? To be frank, I doubted very much. Some lessons have to learned the hard way. Some mistakes need to be learned in order for one not to forget. Some experience is needed for one to advance to another level.

Today, when I trade, I look at points, I look at percentage. I really do not have much idea how much profit or loss I ve made until I close the books. I find by looking at points or percentage, I trade better. Perhaps there is less connection with the $$$, perhaps, I really do not know. But this is the manner I trade now.

But why do I still trade - Money? Freedom? Well, I ll be honest with you, they have bearings, and weightage to it. Its like once you ve tasted the money, you re tainted. Its most difficult not to be addicted. But there is considerable risks with a mere trading for money mentality, as evidenced by my horrifying experience.

Freedom? Well, I ve long know that I cannot work for others. I m a perfectionist. Perhaps the word is too strong but consider this - when I make a decision, I placed the highest importance for the betterment of the organisation. One may think, yeah this should be the way. But then, in reality, this is not the way. When top management makes a decision, the number one consideration is being placed in satisfaction of certain parties. Yes, I am referring to office politics. I, for one, when given the authority to make decision, does not bow to these inefficient, ineffective practices. When traveling, I do not buy wine for bosses, I do not lick boots, though my crime would involved laughing at boss' stale jokes during meetings, lunches or dinners.

Therefore, with such mentality and holding such principles, I am really not suited in the corporate world, particularly MNCs. However, I am not looking at trading merely as a means to be free from what I am not suited for. While I may be unsuitable for the corporate world, it does not automatically mean that I am suitable for trading.

Some of you may have heard me mentioning about "the charts talk to me". While I do not want to give an impression that I am a mad person, or I am talking bullshit, I feel a "certain connection" when I look at charts. And it is a feeling which I could not describe other than saying that the charts speak to me. I could as if hear the charts telling me the direction of where it is heading. OK, I realised I am beginning to sound like a lunatic. So I shall not continue about it.

But the long and short, I enjoy looking at charts, deciphering the hidden meanings. While doing something I enjoy, what's more, I could actually make some money out of it. Isn't it just perfect? Doing something you enjoy while able to make money out of it? To the end, why do I trade? Its the love of the game - love of trading itself. :)

And why is this important? Otherwise, when met with huge profits, I would be overly excited while when met with huge losses, I would be overly depressed. To which, both is detrimental to trading. There should be another motive behind the money making objective to trade. That said,

Good Luck and Happy Trading!

EDIT: For MTV - Told you its Youtube Mania here :)
This one by Clay Aiken, supposingly an American Idol (sorry, I don't watch :P)