What to trade or invest or speculate?

A lot of our problems and obstacles in finding a path to success is due to our mindset. I have traded almost every products one can find on the Futures & Options exchange in USA except Treasuries not to forget the Bursa KLSE stocks & Futures products of course SGX - Stocks and SiMSCI.

It is fair to say, at most I may have 5 different products traded at any time or maybe 3. The reason is simply these products are not exact replica in term of cycle and timing. They will form peak, bottom at different time meaning in simple English trend changes at different time.

We need to find product(s) that we are comfortable that suit our temperament and lifestyle. Some are good for short term intra-day play and some are fitted for longer term trendy play.

Assuming one has developed a simple trend following or flow with the trend system, next will be selecting a time frame to suit and fit you. Finally is Total FUND =  (Margin+Mark to Market) +Buffer ratio. As a rule of thumb for me, Margin+Mark to Market value should not exceed 25% of the total Fund.

In theory if the Flow with the trend works after back testing, one should be able to determine the maximum draw down if that should happen.

The incorporation of indicators is to help evaluate the extreme strengths of the trends and potential trend underlying weakening setup in progress not visible to the naked eyes on simple trend flow on the price chart.

The more advance technique to the indicators analysis is to determine the current position versus the overall trend in progress. Indicators patterns and formations  help to determine the likelihood and probably of changes developing as the trend progress.

The orders in place to EXIT and REVERSE or to ENTER into positions.

A rising trend with LONG positions will need a SELL STOP to exit or take profits and Enter into NEW SHORT position as the trend reverse.


A falling trend with SHORT positions will need a BUY STOP to exit or take profits and Enter into NEW LONG as the trend reverse. 

The commonsense to all this is if ONE cannot determine the current status versus the overall trend position in progress, it is better to stay out and not participate in the market.

One can keep cutting loss until your funds are depleted and to blame the market is a very dangerous creature in actual fact the problem is you NOT the market.

When you can determine the current status versus the overall trend position, than you can determine your RISKs and REWARDs.

In my opinion market is NEUTRAL, it is US who are dangerous!!!