To The Moon

🚀 Trading With the Trend, Then Trading the Rebound

Every trading day tells a different story. Some days the market trends strongly in one direction, while other days it swings back and forth. The key lesson I continue to learn is that I don’t need to predict every move. Instead, I want to react to what the market is showing me.

Today, I traded the FTSE China A50 Index Futures September 2026 contract (CN2609) listed on the Singapore Exchange (SGX). My approach was simple. I first followed the bearish momentum by taking a short position. After locking in that profit, I observed signs that the selling pressure was easing and switched to a long position to capture a small rebound.

This article explains my trade, the contract specifications, and several futures trading concepts for educational purposes.

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📋 Contract Details

Contract Name: FTSE China A50 Index Futures – September 2026

Contract Code: CN2609

Exchange: Singapore Exchange (SGX)

Underlying: FTSE China A50 Index

Settlement: Cash Settlement

Contract Size: US$1 per index point

Minimum Tick: 1 point = US$1

Because this is an index futures contract, no physical shares are delivered. Profits and losses are settled in cash.

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📊 Reading the A50 Daily Chart

Before entering my trades, I reviewed the daily chart.

Several observations influenced my plan:

📉 The market had opened weak and was trading well below the previous settlement.

📉 Price remained below the middle Bollinger Band, showing that sellers were still in control.

📉 RSI was around the middle zone, indicating that momentum was weak rather than extremely oversold.

📉 KDJ was beginning to stabilise after the decline, suggesting that if selling pressure eased, a short-term rebound could develop.

Technical indicators do not predict the future. They simply help me build a trading plan with defined risk.

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🔴 Trade 1 – Following the Downtrend

The market remained weak during the morning session.

Instead of trying to catch a bottom immediately, I decided to trade with the existing momentum.

Position

🔴 Sell (Short) CN2609

Entry Price:

15,012

Later, after the market declined further, I closed my position.

🟢 Buy to Close

Exit Price:

15,005

Result

7 index points

Since each point equals US$1

Gross Profit = US$7 (before commissions and fees)

This was not a huge trade, but it followed my plan of taking a quick profit instead of waiting for a larger move that might never come.

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🟢 Trade 2 – Trading the Rebound

After covering my short position, I noticed that selling momentum appeared to be slowing.

Instead of continuing to stay bearish, I remained flexible.

The market began showing signs of stabilising, so I looked for a short-term rebound.

Position

🟢 Buy CN2609

Entry Price:

15,021

The rebound continued and reached my target.

🔴 Sell to Close

Exit Price:

15,030

Result

9 index points

Gross Profit

US$9 (before commissions and fees)

Again, the objective was not to predict a huge rally but simply to capture a reasonable portion of the move.

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📚 Futures Trading Terms Every Beginner Should Know

📌 Going Short

Selling first.

You expect prices to fall.

If prices decline, you buy back later at a lower price and profit from the difference.

Example:

Sell 15,012

Buy 15,005

Profit = 7 points

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📌 Going Long

Buying first.

You expect prices to rise.

If prices increase, you sell later at a higher price.

Example:

Buy 15,021

Sell 15,030

Profit = 9 points

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📌 Tick

Every movement of one index point equals one tick.

For CN2609:

1 Tick = US$1

A movement of:

7 points

equals

US$7 per contract.

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📌 Margin

Unlike buying stocks outright, futures require an initial margin rather than the full contract value. This allows traders to control a larger exposure with less capital, but leverage also increases risk because gains and losses can accumulate quickly.

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📌 Cash Settlement

CN2609 is cash settled.

There are no physical shares to deliver.

Instead, profits or losses are settled in cash.

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🎯 Why I Traded Both Directions

One lesson I continue learning is not to become emotionally attached to one market direction.

Some traders only like buying.

Others only like short selling.

I prefer letting price action guide my decision.

If the trend is down, I may look for a short opportunity.

If conditions improve and a rebound develops, I may switch to a long position.

Being flexible helps me adapt instead of forcing the market to fit my opinion.

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⚠️ Risk Management

Futures trading involves leverage.

That means both profits and losses can occur quickly.

Before entering every trade, I decide:

✅ My entry price.

✅ My target.

✅ My maximum acceptable loss.

If the trade no longer follows my original plan, I prefer exiting rather than hoping the market will recover.

Protecting capital allows me to continue trading another day.

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❤️ Final Thoughts

Today’s session demonstrated that successful trading is not about always being bullish or bearish. It is about reading the market, staying disciplined, and adapting when conditions change.

By first taking a short position during the decline and then switching to a long position when signs of a rebound appeared, I captured two modest trades while following my trading plan.

The profits were relatively small, but the experience reinforced an important principle: consistent execution and disciplined risk management matter more than chasing a single large trade.

Educational Disclaimer: This article is for educational purposes only and does not constitute financial advice or a recommendation to buy or sell any futures contract. Futures trading involves significant risk due to leverage, and investors should fully understand the product, margin requirements, and potential losses before trading.

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