Thanks for visiting Jinnie Planet

Again, I've neglected my own blog. The only reason I can think of is, I'm lazy; not busy. No matter how busy life is, if I'm passionate enough and committed enough, I'll blog. But I'm not. Anyway, it's not important anymore. I started this blog three years ago when I left the place I called second home. To me, it's not an easy journey to leave everything behind and start all over again. But hey, I did it. Not only I struggled through all the ups and downs; I learnt to enjoy my life journey, no matter is good or bad; ups or downs. I learnt about letting go, cutting losses, start a new game everyday. I have to say I've grown up so much in the past three years. Something I've gone through where no schools or universities can taught me. I'm glad I've gone through everything and glad to have someone supported me all the way. Thanks dear!

Today, I've left the company I had worked for almost three years and I'm now in a partnership starting a brand new business. Nothing is forever, life goes on and things change overtime. There will be no updates about Jinnie Planet anymore; so today mark the first and last and only blog in 2011. Thanks for visiting Jinnie Planet and I hope you enjoyed the journey!

Profit Taking

In trading, it is never wrong to take profit. How much profit do you want depends on your risk apetite and how greedy you are. Some people who are easily contented are happy with small profit, adventurous or ambitious people anticipating bigger profit. It is never wrong to take profit in the trading world, as this is the money you are earning. If not, what's the point of trading? At the end of the day, you just want to make money, increasing your capital for the next trade.

However, there are always two scenarios will happen:

1. At this moment, you decided to take profit, realized the profit and take a rest and get ready for the next trade. However, the market go further in your favour after profit taking. You regretted of taking profit and wonder whether you should jump in to join the boat. But, what will happen next??

2. You think at this point the unrealized profit is too little and you might see more realized profit if you hang on for a while. But, that might not happen. Instead of making money at that particular moment, this could end up to be a losing trade. What do we call this? Greedy!

We will never know what will happen in the market, as the market is full of excitements and uncertainties. If there's sure win cases, there will be no poverty in the world and everyone will be a happy millionaire. However, that's not true in the reality.

So, moral of the story is, if you think whether should you take profit at that particular moment, I would say, yes, go for it. At least this is what I think. Trading world is like reality show. Either you take the money home now, or fight for better money; or go home without anything or lesser than what you are getting now. We will never know what is going to happen in the future, the market is always there; realized the profit, take a rest and start a new game with better confident. Well, at least this is what I think, you might not agree with that.

Cut Loss

I've read articles and books telling us about how to make profit from investments, but I've never come across anything telling us about cut loss. When comes to investment, it doesn't mean that we always make money. There are times that we make wrong decision and the investment instead of making money, it turns out to be losing money. So, when you are in a wrong position, what do you need to do and what's the next plan?

Cutting loss, a very important decision especially trading in a fast and volatile market like futures and commodities. Cutting loss means you involved in a wrong decision and seeing your position turning into unrealised losses. Who wanna admit that they actually make a wrong investment decision? Moreover, it is so painful in cutting loss. Cutting loss in other words mean losing money. How could people actually believe that they are losing money and not making money??

In a normal circumstances, human always think that it's just a temporary moment and the investment will come back to your price. But, sadly to say I've seen a lot of people, when seeing unrealized profit, realized profit very quickly, but when comes to lossing money, keep holding and holding till one day when they decided to cut loss, the damage is too big. It is also possible that their stubborness and ignorance could make them lose out the initial capital.

It's not easy to cut loss. It's pain, I know. That's why it is important to have a trading plan before enter the market. And we need to be disclipline when the cut loss price is triggered. Wrong means wrong, when it's time to cut loss means cut loss. When you've loss something, you'll know what to look for in the next step.

Cut loss, it's an essential decision in any investment. It could be also applied in any situation when we've made wrong call in life decisions.

Happy trading

I finally made some profit I lost in Nikkei futures market after several mistakes and cut losses few weeks ago. As my initial plan was to do a short in Nikkei, I hold on to my plan and further selling as the market came down few days ago. Till I think I had made enough, I closed all the positions and happy that I've made few hundred points within 3 days.

After more than 2 years in futures market, I realized it's not too hard to make money, yet it's too easy to lose money. Specially when you are not disclipine in cutting lose and too hurry to take profit when see some small profits, I guess that's human nature.

Specially as a broker, I always see clients stubbornly holding unrealized losses positions and refused to cut loss. When it's too tired and ready to cut loss, the damage is too big. This happen to everyone.

To sum up a few important notes in futures trading, I think it is very important to:

1. To have a plan before enter any markets. Know the entry level and exit level, which includes the cut loss or profit taking level. Always know whether it is a long term or short term trading

2. When it's wrong, must be disclipline enough to cut loss. Don't make the wrong term into long term and let the damages grow bigger and bigger

3. Always follow trend. Don't hold a wrong term buy in a bearish market and don't hold a wrong term short in a bull market. In a volatile market, always know the cut loss point and realized the money when it's in the money

Well, saying is easy and action is difficult, specially when you are trading with emotions!

Always prepare for the worse and hope for the best. Happy trading!

Lesson of the day

When comes to investment and making money, everyone has different preferences. Some goes for high risk high return financial products, some choose to stay with low risk thing. I've been learning to diversify my portfolio in the past few months, but one thing I've learned from the lesson: be disclipline and go for it if you know this is what you want.

The market came all the way down in February 2010, it was the time I've missed in shorting futures, and since I've missed one opportunity, I thought, it's not too late to invest in other products. I've been thinking about buying Euro dollar; since the Europe Debt issue, the Euro has came all the way down. Of course, just like the 2008 financial crisis, no one knows what will happen to Europe or Euros, and no one will know when is their recovery. Apart from Euros, Singapore Dollars is one of favourites, giving the fact that I go Singapore every often nowadays. Apart from that, two of my target shares were Air Asia, my favourite "everyone can fly" budget airlines and CIMB, one of the blue chip banking share in Malaysia.

Imagined if I followed all my plans, today I've been making money. Time frame, just in 5 months time. In reality, I only bought Singapore dollars but not others. Did I really missed out the opportunity of making money? In a way, yes; but on the other hand, I think I've learned a good lessson.

These investments takes time to see the money grow. In a fast money world, like what I've been doing in palm oil futures and a virtual Hang Seng Index market. Yes, I could have made more money within a few days or a few hours. But bear in mind, easy money easy goes. One very good lesson in trading fast money market-- always know when to cut loss when market is against you and always know when to protect profit or realize profit when in the money.

Lesson of the day, It is very important to be DISCLIPINE in any kind of investments.

Who wants to be millionaire?

Who wants to be a millionaire? Of course everyone wants. But, what are the ways of making yourself rich?

Some people are lucky enough that they are born in a rich family and hence inherited wealth from their previous generation. Some may not be that lucky, but is hardworking enough to work hard and save more money and build their wealth through investment. If you falls in the category of being a not very hardworking person, or coming from a rich family; the easiest way is to marry a rich person. Of course, you must be a lucky babe!

There are ways of building your wealth. Engaged in business is one of the way but it might not suit everyone. The safest type is the low risk fix deposit that takes ages to build your wealth. Moving into a higher level, you can find mutual funds or stocks investment or another way accummulate wealth is through properties investment. To start off with properties, you'd require a higher capital compared to other investments. If your risk apetite is good enough and happy to enjoy volatile market movement, think about derivatives such as index trading, FOREX or commodities. These are get rich quick ways of building your wealth; but bear in mind, high risk high return, it is not impossible that you will lose what you make as well.

When comes to high risk investment, first need to think about your own risk apetite and what kind of products suit you. If you are a risk adverse person, it doesn't mean FOREX or index or commodities trading doesn't suit you, just that you need to find a very comfortable level to enter the market, plan your exit level in terms of cut loss or profit taking points.

These are the things I've been telling my clients since I'm in the market. Saying is easy, but when comes to action, it will be a different story. To become a millionaire, it comes with hard work and disclipine. Sleep earlier and dream big tonight!

Hello again after months of hibernation

My Jinnie Planet had gone for hibernation for almost 6 months. It's now July, first month of the second half of the year and I wonder what I've done for the past 6 months?

Apart from work, can't remember what I've done lately. One thing really cheer me up was my getaway trip to Hong Kong for a week with my lovely hubby during the World Cup Season. Well, not that the World Cup is held in Hong Kong, at least the quiet period at work is alright for me to be away from work. The previous time we went was 7 years ago. 7 years, can't imagine we are still together after 7 years. Caught up with our ex-housemates and friends we knew back in Melbourne; shopping everyday and hop over to Macau and casinos visit were our activities. I really think I should be a travel agent instead of a broker. So much fun of travelling!

Straightaway back from the trip, Jinnie participated in the 2010 KL Standard Chartered Marathon and completed 21km. I've come a long way in this journey, from someone who doesn't like exercise to completed 21km. Although I didn't complete the whole marathon with full running since I pulled my muscle, but at least I didn't catch a shuttle in the middle of the way. Good sporting spirit!

Work, work has made me busy for the past few months and especially with the volatility in the market nowadays, it suffocates me and sometimes felt like being killed softly. Working spirit is getting lower and lower and I wonder how should I move on from here. Life is not heading anywhere, just like our market; no matter how high it went or how low it goes for the past few months, it's still trading within the range of 1280-1340. The market needs a break up or break down to show a better direction, just like I'm waiting for a clearer direction to have a breakthrough in my life.

I've been following the market closely for the past 2 years, especially in the past 6 months, I know what I want to do in the market. If you asked me, have I made big bucks lately? The answer is certainly No. Have I been losing badly lately? Not really. This shows that I'm not heading anywhere.

After things happened this week, I think I get a clearer picture of how to make money in the market. Maybe I won't write a book about how to make big bucks in the futures market, but I certainly can tell how to avoid losing big money. In other words, minimise your losses and maximize your profits. Will tell you more about it, so, be patient and wait for my first book!