Monday, December 01, 2014

Books And Ideas - 1

"...the book is an extension of the eye..." - Marshall McLuhan.

Going through the kind of business of taking risks, mostly with money, on crude palm oil futures trading in Kuala Lumpur Commodity Exchange (now Bursa Malaysia Derivatives) in the end of 1990s, I did see with my own eye some of my seniors were so successful in trading the commodity futures but there were also traders who failed and bankrupt.

After the commodity futures was migrated to electronic trading, all traders had since been doing in a quiet and "peaceful" environment, and some (including me) felt loss and missed the loud and noisy shouting open-outcry trading pits. This had prompted me to write my first book - Trading Crude Palm Oil Futures at Bursa Malaysia Derivatives - since there were plenty of time in a single room playing solitaire game in my personal computer while monitoring the futures market.

The book was published with ideas of leaving some good memory in printed copy that what open-outcry traders like me did in the hoo-ha super busy trading day when the 1997 Asian Financial crisis hit the commodity futures market (just do a google search on the 1997 Asian Financial crisis and you may know more than I do!). The book had the basic ideas in technical trading that I learned from my senior who was one of the biggest traders in crude palm oil futures trading in early 1990s.

Inside the book, there are three basic technical trend indicators that can be easily constructed using Microsoft Excel or any spreadsheet software in simple formulas (I was actually taught by my "ex-girl friend"!). Remember, "success must have a trading plan" - traders' wisdom.

At page 40 of the book, that is the trading plan that did help me to succeed in trading crude palm oil futures after acquiring the skill of how to use the three technical trend indicators. The table and the technical trend indicators has been part of my trading life that I still have them until today.

In trading success, I still like to advice novice traders: read 100 times a book is better than read 100 books.