Thursday, July 16, 2009
Wednesday, July 15, 2009
10:40 am - Trading seminar next week - July 27-28 2009
Trading hot KLSE shares can put you on the Financial Freedom Road.
Learn how to grow your capital at Bill's and Martins famous Master the Markets Foundation Course.
We cover on line trading, reading the price and volume screen, risk management and trading simulation as well as CPO and CI Futures.
Small class size, real time environment.
Next intake 27 28 July. Regular price RM 788 but for readers of my blog only RM 588 for 1 1/2 day program. Registration details on our brochure
Learn how to grow your capital at Bill's and Martins famous Master the Markets Foundation Course.
We cover on line trading, reading the price and volume screen, risk management and trading simulation as well as CPO and CI Futures.
Small class size, real time environment.
Next intake 27 28 July. Regular price RM 788 but for readers of my blog only RM 588 for 1 1/2 day program. Registration details on our brochure
9:23 am - FKLI has hits triple resistance at 1085 level.
It need some time to consolidate first before breaking higher.
Look to accumulate if FKLI dip lower but not closing below 1063.5
Tuesday, July 14, 2009
Monday, July 13, 2009
11:02 am - FCPO Market Statistics
FCPO Market Demography for June 2009
Category May09 Jun09 Change
-------- ----- ----- -------
Foreign institution 16% 18% +12.50%
Domestic institution 17% 17% unch
Foreign retail 1% 0% -100.0%
Domestic retail 25% 26% + 4.00%
Locals 41% 39% - 4.88%
Proprietary 0% 0% unch
----------------------------------------------------
(# of contracts)
Total Volume 400,822 328,826 -17.96%
Average daily volume 20,041 14,947 -25.42%
Month end open interest 79,041 63,973 -19.06%
Category May09 Jun09 Change
-------- ----- ----- -------
Foreign institution 16% 18% +12.50%
Domestic institution 17% 17% unch
Foreign retail 1% 0% -100.0%
Domestic retail 25% 26% + 4.00%
Locals 41% 39% - 4.88%
Proprietary 0% 0% unch
----------------------------------------------------
(# of contracts)
Total Volume 400,822 328,826 -17.96%
Average daily volume 20,041 14,947 -25.42%
Month end open interest 79,041 63,973 -19.06%
10:54 am - Market Outlook by Bill Wermine
Dear Traders,
Last week, I shared some research on Dopamine by Dr Dorn, a psychaitrist and trader from Arizona. www.thetradingdoctor.com.
Dopamine is the chemical that is released in our brain when our greed is stimulated
Dopamine is a powerful drug perhaps like cocaine and we need to be awaire of its dangers and affects that can cause us to lose our reason and lose our money in the markets. It can cause us to buy the high because of greed.
This week will share Dr Dorn's research on Serotonin, the fear chemical. Our brain releases this chemical when we experience fear- it is so powerful that it can cause us to panic and sell at the low. If we have a period of losses it can cause us to withdraw from the market into a shell and we miss good trades because we are afraid to pull the trigger.
I am not a medical professional but I know this is true because I have suffered the effects of these powerful chemicals. Through long and costly experience, I have found ways to overcome the problems of dopamine and serotonin and I share with you that having a trading plan and a mechanical system with fixed backtested rules are 2 ways. Maintaining your good health by diet, exercise and taking frequent holidays is another.
Below is Dr Dorns answer to me and her research. If you have any psychological issues you should subscibe to her service.
as trading in my opinion is 90 % psychology. Her website is below. If you wish me to send you the attachments supporting her research please let me know.
Serotonin is a chemical whose levels in the brain are decreased in the presence of depression. Studies have shown low levels of serotonin in people who are suicidal or who have committed suicide. In other words, in the presence of low serotonin, people tend to retreat. They become either depressed or anxious or both. Small stimuli are magnified and there is a general sense that something is not right and that an otherwise-innocuous stimulus is something to be feared.
VERY very simply—the way that serotonin decreases in the brain is this: Ordinarily serotonin is released at nerve endings in parts of the rat brain and also in other parts of the brain. Brain cells communicate electrochemically. The first attachment shows a two nerve cells—a sender and a receiver. The serotonin is relapsed into the space between the nerve cells. This space is called a synapse as shown in the second attachment. There are as many synapses in the brain as stars in the known universe, so showing just one is pretty simple—but you get the point!)
In a normally-functioning brain, t serotonin released into the synapse by the sending neuron, taken up by the receiving adjacent nerve cell and the transmission continues. This serotonin transmission from sender to receiver ensures a high degree of “normal” mood control.
When something happens ( say loss of money, death of a loved one or something related to loss), the serotonin from the sender sell does NOT get taken up into the receiver cell. Instead, it get taken up by the sender cell! In other words, there is serotonin “reuptake” by the sender cell and the receiver cell never gets the message. Smooth transmission along serotonin nerve cells stops. Depression, sadness, anxiety and fear results from this. It is a failure of what is called “serotonin reuptake.” Many medications prescribed for depression ( Prozac, Paxil, other anti-depressants) are called SSRIs. This means that they are :Selective Serotonin Reuptake Blockers. In other words, they prevent the REUPTAKE of serotonin by the sender cell, and allow the serotonin to get into the synapse, be taken up by the receiver cell and the smooth transmission to proceed.
Also, it is good to know that the majority of both dopamine and serotonin transmitting neural nets are in the primitive rat brain and its connections. Additionally, we believe there are more than 300 brain chemicals ( so-called neurotransmitters) so serotonin and dopamine, although the best studied so far, may be just the tip of the iceberg re: mood control by our most powerful trading tool—the human brain!
So- in the presence of fear, anxiety or depression, serotonin transmission essentially crashes. To make matters worse, it is believed that the dopamine transmission also crashes—a double whammy as it were!IF you would like me to expand on this further, or to write something special for your group, please let me know, Bill?Otherwise, please feel free to use this with a mention of me and my site: www.thetradingdoctor.com.
The KLSE has been resilient in the face of a 10 % drop in the Dow and the onslaught of bad news, pessimism and currency volatility. What is Malaysia doing right that the US is not doing ? Obviously, large funds such as Aberdeen Asset Mgt and Fidelity who are slowly moving into the KLSE must know something that the crowd of pessimists and doom sayers do not know.
Continue to focus on only the highest quality blue chip dividend shares and carefully manage your risks on these positions.
We recently took profit on all our F & N positions and I plan to reestablish should supports be tested. I like their dividendand that stimulates my Dopamine. By the way it is OK to be greedy but manage your positions.
Avoid all speculative shares that have risen quickly in the last 2 months. I know the media has been hyping many lower quality shares lately as smart money is offloading their low quality inventory to the sheep. Remember the media is the tool of the smart money. In the US it is CNBC and CNN. - Jim Cramer is like the hungry wolf who leads the crowd of retail sheep traders to the slaughter house.
Have a prosporous week,
Bill
Last week, I shared some research on Dopamine by Dr Dorn, a psychaitrist and trader from Arizona. www.thetradingdoctor.com.
Dopamine is the chemical that is released in our brain when our greed is stimulated
Dopamine is a powerful drug perhaps like cocaine and we need to be awaire of its dangers and affects that can cause us to lose our reason and lose our money in the markets. It can cause us to buy the high because of greed.
This week will share Dr Dorn's research on Serotonin, the fear chemical. Our brain releases this chemical when we experience fear- it is so powerful that it can cause us to panic and sell at the low. If we have a period of losses it can cause us to withdraw from the market into a shell and we miss good trades because we are afraid to pull the trigger.
I am not a medical professional but I know this is true because I have suffered the effects of these powerful chemicals. Through long and costly experience, I have found ways to overcome the problems of dopamine and serotonin and I share with you that having a trading plan and a mechanical system with fixed backtested rules are 2 ways. Maintaining your good health by diet, exercise and taking frequent holidays is another.
Below is Dr Dorns answer to me and her research. If you have any psychological issues you should subscibe to her service.
as trading in my opinion is 90 % psychology. Her website is below. If you wish me to send you the attachments supporting her research please let me know.
Serotonin is a chemical whose levels in the brain are decreased in the presence of depression. Studies have shown low levels of serotonin in people who are suicidal or who have committed suicide. In other words, in the presence of low serotonin, people tend to retreat. They become either depressed or anxious or both. Small stimuli are magnified and there is a general sense that something is not right and that an otherwise-innocuous stimulus is something to be feared.
VERY very simply—the way that serotonin decreases in the brain is this: Ordinarily serotonin is released at nerve endings in parts of the rat brain and also in other parts of the brain. Brain cells communicate electrochemically. The first attachment shows a two nerve cells—a sender and a receiver. The serotonin is relapsed into the space between the nerve cells. This space is called a synapse as shown in the second attachment. There are as many synapses in the brain as stars in the known universe, so showing just one is pretty simple—but you get the point!)
In a normally-functioning brain, t serotonin released into the synapse by the sending neuron, taken up by the receiving adjacent nerve cell and the transmission continues. This serotonin transmission from sender to receiver ensures a high degree of “normal” mood control.
When something happens ( say loss of money, death of a loved one or something related to loss), the serotonin from the sender sell does NOT get taken up into the receiver cell. Instead, it get taken up by the sender cell! In other words, there is serotonin “reuptake” by the sender cell and the receiver cell never gets the message. Smooth transmission along serotonin nerve cells stops. Depression, sadness, anxiety and fear results from this. It is a failure of what is called “serotonin reuptake.” Many medications prescribed for depression ( Prozac, Paxil, other anti-depressants) are called SSRIs. This means that they are :Selective Serotonin Reuptake Blockers. In other words, they prevent the REUPTAKE of serotonin by the sender cell, and allow the serotonin to get into the synapse, be taken up by the receiver cell and the smooth transmission to proceed.
Also, it is good to know that the majority of both dopamine and serotonin transmitting neural nets are in the primitive rat brain and its connections. Additionally, we believe there are more than 300 brain chemicals ( so-called neurotransmitters) so serotonin and dopamine, although the best studied so far, may be just the tip of the iceberg re: mood control by our most powerful trading tool—the human brain!
So- in the presence of fear, anxiety or depression, serotonin transmission essentially crashes. To make matters worse, it is believed that the dopamine transmission also crashes—a double whammy as it were!IF you would like me to expand on this further, or to write something special for your group, please let me know, Bill?Otherwise, please feel free to use this with a mention of me and my site: www.thetradingdoctor.com.
The KLSE has been resilient in the face of a 10 % drop in the Dow and the onslaught of bad news, pessimism and currency volatility. What is Malaysia doing right that the US is not doing ? Obviously, large funds such as Aberdeen Asset Mgt and Fidelity who are slowly moving into the KLSE must know something that the crowd of pessimists and doom sayers do not know.
Continue to focus on only the highest quality blue chip dividend shares and carefully manage your risks on these positions.
We recently took profit on all our F & N positions and I plan to reestablish should supports be tested. I like their dividendand that stimulates my Dopamine. By the way it is OK to be greedy but manage your positions.
Avoid all speculative shares that have risen quickly in the last 2 months. I know the media has been hyping many lower quality shares lately as smart money is offloading their low quality inventory to the sheep. Remember the media is the tool of the smart money. In the US it is CNBC and CNN. - Jim Cramer is like the hungry wolf who leads the crowd of retail sheep traders to the slaughter house.
Have a prosporous week,
Bill
10:53 am - FKLI market demo - June 09
FKLI Market Demography for June 2009
Category May09 Jun09 Change
-------- ----- ----- -------
Foreign institution 21% 23% + 9.52%
Domestic institution 2% 3% +50.00%
Foreign retail 0% 0% unch
Domestic retail 51% 54% + 5.88%
Locals 26% 20% -23.08%
Proprietary 0% 0% unch
----------------------------------------------------
(# of contracts)
Total Volume 225,927 190,223 -15.80%
Average daily volume 11,296 8,647 -23.45%
Month end open interest 17,865 17,187 - 3.80%
Please refer to the attachment for historical graphs.
Regards, CIMB Futures
Category May09 Jun09 Change
-------- ----- ----- -------
Foreign institution 21% 23% + 9.52%
Domestic institution 2% 3% +50.00%
Foreign retail 0% 0% unch
Domestic retail 51% 54% + 5.88%
Locals 26% 20% -23.08%
Proprietary 0% 0% unch
----------------------------------------------------
(# of contracts)
Total Volume 225,927 190,223 -15.80%
Average daily volume 11,296 8,647 -23.45%
Month end open interest 17,865 17,187 - 3.80%
Please refer to the attachment for historical graphs.
Regards, CIMB Futures
Saturday, July 11, 2009
Friday, July 10, 2009
9:36 am - FKLI wud test 1066/1068 for the second time today !
If it failed, it wud likely to crash down or congested sideway !
Thursday, July 09, 2009
Wednesday, July 08, 2009
Tuesday, July 07, 2009
Monday, July 06, 2009
9:34 am - Market Outlook from Bill Wermine !
Dear Traders,
Expect a 300 to 400 drop in the Dow and a drop in UK European markets and a short rally in the USD in the short term as fear grips the markets - perhaps to mid August. Use this rally to offload any US Dollars or US assets - central banks around the world will use any rally to offload their USD.
The US economy has not bottomed despite the talking heads on CNN/ CNBC and Bloomberg. Unemployment is at a 26 year high, the average work week in June fell to 33 hours, the lowest on record since 1964, house prices are still falling, foreclosures are up, California is bankrupt, the government has nationalized the auto companies, Citi Bank, AIG, Fanny Mae and may soon pass a cap and trade bill which will increase taxes, create a huge new bureaucracy and raise the prices of energy-
My brother just retired and took a holiday accros America. He told me of boarded up shopping complexes and a mood of uncertainty-
The US is moving to socialism the same as Europe. It will mean more regulations, less freedom and slower growth.
The KLSE is holding up well and use this opportunity to sell all your speculative shares- especially those that have had a good run. Only hold super blue quality dividend shares.
For CPO and CI futures traders, I wish to share some advice from Dr Janice Dorn, Trading Psychaitrist and writer of the Trading Doctor.
When I first started trading grain futures 20 years ago, I noticed a pattern in my trading. Every time I made a big profit- I would give most of it back on the next trade.
This happened several times and cost me a lot of hard earned profits and I never knew the reason. I finally committed to taking a holiday every time I made a big winner and stop trading for at least a couple of weeks. My account grew after this but even so I never knew the reason until reading Dr Dorn's blog about a month ago.
The reason is that we have a chemical in our brain called dopamine. The word dope comes from this word. Dopamine is the greed chemical. A big winner will release this chemical and in order to get another dopamine fix we will aggressively get back into the market to make another kill. Emotion will blind us. We will disregard our trading plan. We will forget about position sizing.
and we all know the result.
The reason Genting casino has all the lights, and 3 million dollar jackpot signs, Mercedes S class cars waiting to be won is to stimulate player's dopamine. The world class entertainment are all designed to release dopamine and get us to lose all our money at the tables.
There is another chemical in our brain called serotonin. This is the fear chemical. It happens after a big loss and can cause us to crawl into our shell and make us afraid to pull the trigger. I am not sure how this chemical works and will ask Dr Dorn to clarify.
If you wish to subscribe or wish information contact her at support@thetradingdoctor.com . She is the real deal.
Have a profitable week ahead
Bill
Expect a 300 to 400 drop in the Dow and a drop in UK European markets and a short rally in the USD in the short term as fear grips the markets - perhaps to mid August. Use this rally to offload any US Dollars or US assets - central banks around the world will use any rally to offload their USD.
The US economy has not bottomed despite the talking heads on CNN/ CNBC and Bloomberg. Unemployment is at a 26 year high, the average work week in June fell to 33 hours, the lowest on record since 1964, house prices are still falling, foreclosures are up, California is bankrupt, the government has nationalized the auto companies, Citi Bank, AIG, Fanny Mae and may soon pass a cap and trade bill which will increase taxes, create a huge new bureaucracy and raise the prices of energy-
My brother just retired and took a holiday accros America. He told me of boarded up shopping complexes and a mood of uncertainty-
The US is moving to socialism the same as Europe. It will mean more regulations, less freedom and slower growth.
The KLSE is holding up well and use this opportunity to sell all your speculative shares- especially those that have had a good run. Only hold super blue quality dividend shares.
For CPO and CI futures traders, I wish to share some advice from Dr Janice Dorn, Trading Psychaitrist and writer of the Trading Doctor.
When I first started trading grain futures 20 years ago, I noticed a pattern in my trading. Every time I made a big profit- I would give most of it back on the next trade.
This happened several times and cost me a lot of hard earned profits and I never knew the reason. I finally committed to taking a holiday every time I made a big winner and stop trading for at least a couple of weeks. My account grew after this but even so I never knew the reason until reading Dr Dorn's blog about a month ago.
The reason is that we have a chemical in our brain called dopamine. The word dope comes from this word. Dopamine is the greed chemical. A big winner will release this chemical and in order to get another dopamine fix we will aggressively get back into the market to make another kill. Emotion will blind us. We will disregard our trading plan. We will forget about position sizing.
and we all know the result.
The reason Genting casino has all the lights, and 3 million dollar jackpot signs, Mercedes S class cars waiting to be won is to stimulate player's dopamine. The world class entertainment are all designed to release dopamine and get us to lose all our money at the tables.
There is another chemical in our brain called serotonin. This is the fear chemical. It happens after a big loss and can cause us to crawl into our shell and make us afraid to pull the trigger. I am not sure how this chemical works and will ask Dr Dorn to clarify.
If you wish to subscribe or wish information contact her at support@thetradingdoctor.com . She is the real deal.
Have a profitable week ahead
Bill
9:21 am - FKLI is ready to test support low @ 1063 today !
This is the 3rd test to break 1063/1064 level.
Friday, July 03, 2009
Thursday, July 02, 2009
Wednesday, July 01, 2009
Thursday, June 25, 2009
Wednesday, June 24, 2009
Tuesday, June 23, 2009
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