It is not a nice picture for STI. It , in fact, failed to stay above 50-day moving average and closed below 200-day moving average. And it formed a lower high. It is a bit difficult for me to stay bullish. I would prefer to stay at Short side. In addition, looking at stochastics, it is yet to enter oversold zone.

UOB sesdaq is on the line. It stays around on 50-day moving averages. It is likely for Sesdaq to ding-dong between 50-day and 200-day moving averages. Not so good for small cap, but I am not over bearish. I guess, a little bit patience is needed.

This is 15-min chart of MSCI Taiwan Index Futures (TIMSCI). It was easy to observe price set-ups were all for Short. I entered with entry and missing out good profit and taking silly losses.

I have been reading money management stuffs from Van Tharp and other web blogs. Thanks to TraderMike who has a well written entry on Position sizing. I am practising R-Multiples as introduced by Dr.Van Tharp for position sizing and evaluate my system expectancy.
Basically, the idea is to express all of my profits and losses in terms of my initial risk(R).

For example, if my risk for each trade is $300, then if I made $3000, then I have 10R gain. On the other hand, if I closed my trade with $150 loss, then I will have an 0.5R loss.

I learnt about the concept of expectancy. To make it simple, expectancy is the average amount you can expect to win(or to lose) per dollar at risk. Here is the formula:

More on this topic in my future posting.

Ahead of another new week, here is an great article to prepare myself.

Master the Four Fears of Trading

Merriam-Webster’s dictionary defines fear as “an unpleasant, often strong emotion caused by anticipation or awareness of danger, going on to explain that fear…implies anxiety and usually the loss of courage.” This definition of fear is useful in helping define the issues that traders face when coping with fear. The reality is that all traders feel fear at some level, but the key is how we prepare to address our concerns related to taking on risk as a trader. In this article I will review four major fears experienced by traders, and I’ll take it a step further by noting how the outcomes of these fears create undesirable trading behaviors. Basically, my aim is to have you walk away with an understanding of these dangers so you can and implement strategies that will address your fears and let you get on with your trading plan……..

Full article can be found at bigtrends.com

This is 15-min chart of MSCI Taiwan index Futures (TIMSCI). Nice downtrend setup and short entry. No trade for the rest of the day.

Though I was having two losing days in this week, I manage to close the day and the week in positive note.