Kelvin’s Pork Belly Real Life Trade (Part 2)
Posted by admin in Charting Video in Youtube, Futures Pick, Kelvin's True Life Trading Stories, Market AnalysisHello Everyone,
As promised, here is the second part of the true life story of the Pork Belly trade… but before that, let me share with you a recent trade that we made some good money on the NIKKEI Futures.
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Being a Leo and always want to be a winner in everything in life, losing 60% of my small capital within 30mins in my first maiden trade was something I cannot accept. And with Mr.Lim turning from me and joking about it with his other friends… it was pure salt rubbing onto a bleeding wound of mine. It was unbearable…
I couldn’t hold back my tears and anguish, went to the male toilet and let go the frustration by yelling on top of my voice… after a few round of shouts.. I returned back to the office and we can see almost everyone was just sitting around since the Pork Belly counter closed at Day Low, locked Limit Down and not moving.
I search for Mr. Lim among the smoking crowd which literally made the entire office looked like a house on fire (then in 1999, smoking in the office is still okay).
” Mr. Lim, what can we do now?” … I asked him, with a clear look of disappointment towards the trade.
” I told you right ya… market is like that, it goes UP and Down so if you are wrong, you get stopped out. If you right, you make. That’s all. We cannot always win but we also cannot always lose right? No worries, either you can sit around and hear our war stories or make your way back home now since you are still young and its getting late.. come back tomorrow and win it back from the market… I will help you.. “ he clucked and return to talk ‘cock’ with his friends who show me no sign of sympathy for my losses.
Deep inside me, so young and have lost more than 50% of my SAVINGS, I was dying for attention and console but I received nothing.
Alone, I took the lift down, returned home and keeping this trade in my heart.
The next day, I returned to the trading office and expect only one thing in mind; is to recover my losses. I was quite early and begin to read the US Commodities market reports that was printed for clients. It seem that the market sold down because of an upsurge of the supply… I tot the reports were saying there was an increase of demand for pigs the previous day… sigh… ;-(
(FIRST LESSON FOR ME: Never read too much into what you see in news as they are made to explain why things/events happened. They don’t forecast.)
Mr. Lim walked behind me as I engrossed into the reports..
“Kelvin, from the chart, the news and the feel, what does the market tells you?” he asked with a cheeky smile.
“Based on textbooks, the chance of going down is going to be high right?” I replied.
“YES! Of course and I am going to SHORT too!” Mr. Lim exclaimed with a high pitch with confidence.
(At this junction, I wanted to ask him whether he bought Pork Belly Futures yesterday when he advised me to buy… I just feel a little ‘cheated’ if I bought and he didn’t buy BUT we are too near stranger to ask and I’m afraid to get the answer that I don’t wish to hear.)
US Pork Belly Opened and the market begin to sell and I quickly look over Mr.Lim for guidance and he just show me the ‘ THUMB-UP’ sign. So I quickly hit the market with a market order to sell 1 contract of the Pork Belly future. SHORTED 1 contract.
For the first 10mins, things seem too perfect, the Pork Belly is down 50points from the Opening price and I am in profit of 30points… I moved to Mr.Lim for more advice (but this time, I am more positive since I am in profit).
” Kelvin, since you are in profit and lost so much money yesterday, hold the position and enjoy the selling since everything points towards sell. ” he answered.
” Mr. Lim, sorry to ask, did you sell too?” I asked with enthusiasm.
He just smile at me and signalled to me that he is going to get himself some coffee from the pantry.
The market goes down lower, down by 65points now.
Down 75points..
Down 80points…
Down 80points..
Down 85points..
Down 85points…
(When I was begining to count my winnings… and things begin to change)
Down 80points..
Down 75points..
Down 70points..
Down 65points
Down 60points
Down 50points
(I thought the market is supposed to go down alot?)
Down 40points!!
Down 30points!!!
My heart is racing like mad!! Should I cover? Where is Mr.Lim when you need him most!!!
Down 10points
Positive 10points
Positive 40points
Positive 60points
Positive 100points
(Am I seeing the wrong market or dreaming?)
Positive 150points
Positive 200points!
(Holy Cow!! My capital is burning up as fast the market is running UP!)
Positive 225points!
Positive 255points!!!
(WHERE THE HELL is MR.LIM when you need him most now!!!??)
LOCKED LIMIT UP!!!
I slumped on the chair and I could feel the cold sweat trickling down my face and on my hands.. I know I’m in deep shit… not only I lost again, consecutively, I have most likely hit OVER-LOST position instead and I lost every single saving of mine! My Mum is going to slaughter me for sure…. and this Mr. Lim emerged into the scene… and said….
(Story to continue in 2days time)
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