A Systematic Trader's Journal

Hi all, If you have been a loyal follower of Warren Buffet, I am sure the following report on Berkshire Hathaway's 2008 Annual Report would be of interest to you. Berkshire Hathaway's per share book value shrank 9.6%, which was the largest decline since 1965. The company which he owns the largest percentage portion of company ownership is The Washington Post Company, where he owns 18.4% of the company, which he invested US$11 million in it, and its current market value as of 31/12/08 was worth US$674 million. Largest investment cost to date, US$7 billion on ConocoPhillips where he owns 5.7% of it, and its current value as of 31/12/08 was worth US$4.39 billion. I love the way how Warren Buffet pans out his letter. He made an explanation on the way how an option worked and his argument towards the Black Scholes Formula. The 22- page letter is considered to be one of the best article I had read from him. To access the article, click here . Post me your views after you had read it...

Remaining holdings in Ascendas has been exited at $1.68. Reason for this exit is due to 'event risk' in tonight's Lehman CDS holdings announcements. I will continue to look for opportunities to go long in EUR/USD or GBP/USD over the next 24 to 48 hours. Good trades to all.

Continuing from my previous blog, how did I fair in the market as a trader today, after the market has adopted to the tight spreads and no commission trading environment? I made money, that is my humble answer. Is it a lot? Is it that simple? Some may ask, but the answer is no. It was never easy. Simply, what is the difference between trading on the current environment versus an environment that requires you to make back wide spreads and huge commissions from the market? Well, in my opinion, the difference is just that other than being able to allow you to exit at a price that could end you up with lesser losses, if not it will end you up with a small profit. But if you relook at it again, do you think the market has also became less trendy over the years? If time allow, it would be excellent if you could take a close look at the Average Daily Range data on some of your favourite currency pair that you trade on frequently. You will discover that right after when trading became more e...