I traded using CFD (contracts for difference) for the first time in my life using my own real money.
Counter: Sembcorp (Long)
Open: 14 Jul 2011
Close: 25 Jul 2011
(click on the picture for a bigger view)
What did I trade and why?
- Bullish reversal hammer on 12 Jul, followed by a white candle stick closing higher above hammer’s real body on next day.
- 20 EMA: Price is at MA
- Stochastic in middle. Not overbought or oversold region.
- MACD just going to cut signal line from top.
- High volume on the hammer day
- Chart pattern: N.A.
Thoughts, Feelings & Action
Trade solely based on candlestick signal. High volume on hammer day may signal the end and the start of uptrend reversal.
Market was very volatile for the past few days. Euro’s Italy debt problem causes the market to plunge on 12 Jul. The following day was bullish due to good news from China’s growth.
Very uncertain. Don’t know where the market is heading. Traded for the 1st time in my life using my own money.
Where is your stop and limit and why?
Set stop loss just below the previous day’s low
Updated: As price rises, adjusted stop loss at $4.08
Did the trade work out as planned?
Due to the US debt ceiling not solved and stalled, the overall market falls on Monday.
Price gaps down from $5.14 to $5.10. Since the ATR is about $0.10, there is a very high chance that my stop loss will be hit. True enough, my stop loss was soon hit at $5.08.
I was expecting the price to continue move up towards the upper channel but market sentiment was not good. But overall I am still satisfied with the trade as it was my first ever trade using my real money and it ends up a positive one.
The 2 Doji formed may not be a good sign, so it might be wise to get out too.
As I am very new to trading, I don’t expect to make big money. I am in it to learn first. My #1 goal now is to protect my capital. With more learning, more experience, I am sure the money will come later.
I also have a proper trading record and trading diary. A disciplined trader WILL BE a successful trader.