I was doing some housekeeping on my bookmarks, here are some trading links I thought it might be useful to my readers.
Trading Plan:
General trading readings
That’s all for the time being. Busy week for me, I am trying hard to allocate some time for trading, research and reading.
A lady from Shanghai office was complaining to me. She has been working hard and save but, yet, still unable to buy a small apartment back in Shanghai, China. According to her ‘source of information’, there will be a second round of price hike, inflation after Beijing Olympic game.
I can’t solve the housing affordability problem for her.Her question to me was “which currency should I buy now” (what she meant was, which currency is worth buying now, she sees Chinese Yuan (CNY) is going to depreciate soon for some reasons). I did not have a quick solution for her. I first response was GOLD.
“But Gold is expensive now, how about USD?”
“Dollar is in trouble and weak, I am not into it, and there is no clear positive perspective of the American economy”
“But, it has been depreciating for so long, it should be bottomed now”
“……”
We read or hear this kinda conversation again and again. Inside our mind, we are afraid of high, and we like to bottom fish. How many times have we made our investment/trading decision based on the feel and fear of high?
Did you ‘feel’ Dollar was cheap a year a ago? Did you ‘feel’ GOLD was expensive a year ago?
Think……
OK, most of you may have listened to this song by Ed Seykota from other blogs’ links. But, I am going to post it here again, as back up. 😆 Man, it is an interesting song. Enjoy. Trading should be fun, like this, no? 🙂
Here is the lyrics ( From The Trading Tribe)
[Read more…] about The Whipsaw Song by Ed SeykotaHat tip to John for the link. I took the test twice (as I did not read the questions carefully in the 1st run), and it ended with the same result. So, I believe I am a detailed trader now. LOL. Seriously, I can’t agree more with the result of my trading strength and challenge. It actually reflects in my working life as well. I am pretty good and confident in execution, but, I can be very wrong by working and researching something in the wrong direction. What the …..
Anyway, give it a try.
These are news from mainland China. One of the hottest equity market under the sun. The recent breaking down of Shanghai stock index, below 4000 level gives china traders/investors/punters whatever you wanna call a wake up call. Here is the result when you are trading a big R that beyond your capability.
A 70-year-old man collapsed and passed away in stocks exchange, and a university lecturer committed suicide after serious trading loses. What’s next?
I might be a little bit too slow on this, I just received an email from MF Global talking about the loss caused by one of their trader in U.S. Here is the news from my ‘googling’.
MF Global Hires Risk Consultant after Rogue Trader Loses $145.5 million
Brokerage MF Global has hired external risk consultants to review its order entry systems, after a rogue trader lost $141.5 million when he was able to exceed his limit order and place unauthorized trades.
The incident comes just weeks after Soc Gen revealed that a rogue trader lost more than $7 billion by placing unauthorized bets on European stock indexes.
Both these incidents have raised new questions about risk controls at financial institutions.
MF Global said its rogue employee, Memphis-based Evan Dooley, was trading in wheat futures in his personal account. He “substantially exceeded his authorized trading limit,” the brokerage said.
OK, here is the poll/bet. How many more busted rogue trader do you think we will see in 2008? 😀
