I got inspired by this guy, Nick Vujicic a few months ago. I did post a clip on him before my blog got hacked. I want to share with you guys how Nick Vujicic has make an impact on my life. 

This is a guy who born without limbs and arms. He has to fight the disability since the day he saw the daylight. He did not give up and continue to live a normal life. He did not blame anybody and yet he thank God for the life. He know that everything happen for a purpose even though he did not know the purpose when he was young. He has faith in God.

What really inspired me was the way he lead an normal life. He do all the stuff all by himself like cooking, bathing, surfing the net, get to town, swimming, playing football and trading TRADING. Yes he is an option trader. He is a professional option trader. He make a lot of money from option trading. 

Whenever I feel lerthargic, I will look up to him and watch his clip. If he can do so much things without limbs and arms, I think we can do more things as we are blessed with both legs and hands. 

Everything Happen For A Purpose …

Things or Events happen for a purpose. It is normal for every human being to feel sad or low or blame others for the event occurs to us. Well we cannot control the event. This does not mean we cannot control how we feel or think. We cannot control the market, we can control ourself and let not being carried away by the market. 

Look at yourself … How do you react when you lose money? Did you blame the market? Did you blame the people around you? Did you give excuse? How do you react when you make tons of money? Did you bless the market? Did you thank the people around you? 

We have to take control of ourself especially in the dog eat dog stock market. This is a place where you will discover your true self. 

So I would like you guys to spend a couple of minutes watching this short clips … 

A longer version of the last speech …

http://www.crystalcathedral.org/hour_of_power/videos/nick.php 

This is a 10 minutes scalp i made yesterday on 21/7/08. I’m very satisfied with this trade even though i did not make a killing. This is because everything go according to my trading plan or system. I went in at the correct timing, studies and indicators.  I got out at the pre plan profit. No less no more. 

I strongly believe that every successful trader or investor will have their own sort of trading rules, plan or system. Without a proper system, you cannot go very far. It is not the money that really does the trick in trading. You have to see the big picture which is Trade To Trade Well. If you focus too much on money, you will be so obsess with it and neglect the important stuff like indicators, money management, risk/reward ratio and ultimately your trading plan. 

Money has no value, it is YOU who give the value to Money. 

Focus on the target or goal that you have set for yourself. Focus on the trading system which work well for you. Focus all your energy in Trade To Trade Well. You will be rewarded eventually. 

Hello everybody … I guess you guys have been wonder where have i been to for the pass few weeks. I went to a course POE conducted by Adam Khoo and Stuart Tan. This course really create an impact on my life. I shall talk about POE in some other days.

Today I decided to use POE skill to enhance my trade. I make it a must to trade. The above statement is a prove. One of the POE skill that i have learn is visualization. Our Mind is very powerful and the stupid brian cannot differentiate reality and fake. Our Brain will only think is true. So before i start my trading, I visualize the price of GS. I visualize GS 165 put july option will hit 6.50 and above. I keep on repeating saying the price and visualize for an intense of 1 minute. I also visualize myself saying yes after the trade.

Does it happen according to my command ?

Well life like to play with us. It will make us suffer and test our determination. At a point of time i almost cut lost and accept the fate of losing more than 300 plus dollars. I did not give up and believe on all the chart pattern. I keep focus on the price that i want GS to reach. My experience tell me that I will only make money if I truly believe in myself.

The wall street has a saying, “The Bull and Bear will be the WINNER not the Sheep or others”

The above statement is so true as the bull and the bear has their own opinion on the market direction and not the others.

Therefore think positive and believe in yourself. Your thoughts will manifest and grow to become reality. Watch your thoughts when you trade. If you are tired, just go to bed as your brain will send out brian wave to make you lose focus and as a result you will lose money. If you are feeling lousy, just go do some exercise as it will release your stress.

Feel Good in trading will lead you to the path of success (make money $$$)

So next time when you are going to trade, check your feeling and thoughts before you jump into the big pool of Greed and Fear.

Im not sure if you guys know how do i make money from the stock market. Im quite sure that a lot of people think that i make plenty of money from Strangle/Straddle Google.

Well I do make money from GTS but i can’t make money everyday from this strategy. It is not everyday sunday as you need to wait for the right IV and opportunity for you to enter this trade. The risk to it can be quite high if you do not have the knowledge in constructing this strategy.

Today i shall reveal to you guys my bread and butter way of trading. As you can see from the topic above, it is none other than Day trading or Scalping. I have make tons of money from using this way of trading style. I can easily take home US50 everyday scalping the same stock. The stock i scalp is … Goldman Sachs (GS).

What are the differences between scalping and day trading?

The main different is time. Scalping is a faster action than day trading. Well it doesn’t really bother me as i enter base on technical and exit base on technical too. Sometime if i buy and close early, it will be a scalp, otherwise will be a day trade. This is because i would love to maximize the profit.

I hearing something from you guys out there … Hmm Is it dangerous? It is very dangerous if you do not know how to handle YOURSELF. Yes the answer is yourself. Scalping or day trading is a very intense game. You have to stick to the screen like a glue. You need to have a steel of nerve and you need to be multitasking too. The most important thing is you need to master yourself.

Why do i keep Saying Yourself?

Trading is all about mastering oneself. This is because trading is all about psychology. The market is make up of human. Human being trade due to greed and fear. Scalping or day trading is like having the fear and greed coming to you at a GREAT PACE. You need to react fast or else you will get slaughter by the market.

The reward of day trading and scalping is enormous yet it can be quite tiring. Someday you might just waste your time seating there looking at your computer without any trade.

This is the main reason why i want to move on to swing trading and do something that is passive income as i let the money do the work rather than i do the work, even though i have make consistent money through scalping or day trading.

Well i know that a lot of people still do not know how I day trade or scalp. Here is a simple illustration … I will setup my trading platform before the market open. I will observe the market once it open till around 10+. Depend on the market condition, i will usually scalp GS at around 10+. Usually i will scalp GS when it has clear direction. That’s mean it is either going up or going down. I will only do it once GS start the trend or having a pullback.

The trick to scalp or day trade is to have patient. Do not be the first to go into the lion den. Ride with the trend or wait for the pullback. Just yesterday i make 25 bucks on GS with 1 contract. I close the trade early as i need to visit the toilet. If not i would be able to make 100 bucks ++. This is because as i puke in the toilet, GS puke too … HAHA …

Okay enough of my nonsense …

I would love to leave with you guys a parting note for today …

It is wiser to lose a battle than a war

Hello!!!

Nowadays I seldom post or update the blog. I also didn’t post any trades or update my trading account. I guess you guys might wonder where did i go? or maybe you guys think that i have crush my trading account.

I would like to say that my trading account is growing at a healthy rate. My account is up till 15% at the very least. It is actually higher than 15% but i just wanna say 15% cos the ongoing stock will fluctuate up and down.

My forex account has taken a beat since the fateful day of being hacked. I have stop trading forex for awhile now and concentrate in trading stock using options. Well My forex account down by 90%. In term of money wise, I still make money from trading as my forex account is very small and is a joint account. Maybe that explain why i lose money on forex as i didn’t pay much attention to it. My forex account just constitute 10% of my trading account.  

Why didn’t I post any trades now? or update my account?

I didn’t want to update my account is because trading is not about daily. By updating daily of the account, it will kind of force me to trade daily. This will blind my sight as i might just indulge with the day gain or lost and miss the bigger picture. Well i do keep a record of my trades if i do traded.

I will start to share with you guys my trades again … Well don’t think that you will get fish from this post yet. All i want to share is how do i trade a certain stock and make money out of it.

Recently i have change the my trading style. I guess you guys have know by now. The way i trade is also known as swing trading. Well i still scalp and day trade. I started off swing trading quite badly as i didn’t do paper trade and go straight into the lion den. Swing trading is so much different from day trading. How are they different? I will write a post about it soon.

Oh i just notice that i didn’t have a write up on day trading and swing trading … Okay i shall do it by this week. So do keep a lookout.

Hi everybody … I have been missing for a Month … Wao !!! Recently i’m having a break and also quite busy with my work. Well busy till cant blog … haha it is just my excuses … Actually i have a lot of article i want to share with you guys, just that i’m quite lazy =P.

This topic has been bothering me for quite some time as many people still mix them together due to the popularity of options.

Is there a Different between Pure Option Trader and Trader just using option?

Many people does not see the different. The Truth is they are totally different as they traded differently.

Option Trader

Option Trader are people who know how to use options expertly. They know all the stuff about options like implied volatility, option greeks, bell curve and the construction of options. They seldom construct a single long call or put. The way they trade usually involve the calculation of Greeks and thus they constructs spreads or multiple combination of spreads. Spreads are like vertical, horizontal and diagonal spreads.

Usually they will need to wait for the construction of option to expire to make money.

Trader using options

These are the people who actually can use stock to trade. They are day trader, swing trader, momentum trader or long term trader. These are the people who buy option in only 1 direction. These also mean that they will no hedge their position. The main purpose for them to use option is for leverage.

You see, a lot of the people only know about stock. Thus they think that options trading is just using option to trade like how they trade for the stock. This is wrong as option trading actually is a hedging game or a calculative game which involve the construction of multiple calls and puts. Therefore many people are losing money thinking that options is a cheap way to substitute stock.

Come On … No free lunch in the world … Thus how can an option being a leverage tools without having its disadvantageous.

What you think might not be what you think …
Learn from the Professional …
Ask them what kind of traders are they?
Learn the art of the game correctly before you jump into the ocean.

All the best in your trading … Do not be fool by the so call Gurus …

Today headline in Sunday Times caught my attention. 

Pay $4k for ‘get rich’ trading tips 

Do you really believe in get rich quick scheme? 

Do you really believe it is so easy to make money without putting in hard work?

If your answer is YES then i have to tell you something that really blow off your mind. 

There are no such courses or seminar in the world that give you the SURE WIN method of making money. You wont make tons of money just by attending seminars or workshop or even reading books. 

Will you be able to learn cycling just by reading books or attending cycling course without yourself riding a bike? 

The answer again is a BLOODY NO NO … So how would you be a successful trader or investor without gaining the experience you need by trading day in day out or a seasonal investor. Do you still remember the time that you fall down when you first riding a bicycle? Oh i think is yes … 

Have you ask yourself why do you need to fall before you start to learn how to cycle?

The problem with human being is we will only learn something through hard experience. This means that we WILL LOSE MONEY first before we learn how to MAKE MONEY. No doubts some of you will make tons of money at first. But i guarantee you that you will lose back all the money if you do not have the basic grounding of trading or investing. 

I have a student that make tons of money during the year of bull run which is around in the year of 2005 to 2008. He made plenty of money during that period of time. Only recently during the bear market, he lost everything back to the market + incur more loses within 3 weeks time. 

All i have to say is … Do not cheat yourself that money is make easily … and by attending some so call good course you will make money within a few days. Trading is a skill that need time to master. You can ask any musician how long did they master their own instrument. The answer will most likely be i haven’t master anything yet even though they spend years after years of practice. 

So once again do not kid yourself … 

I always wonder why when people attend trading or investing course, they will want to make money after the courses but when they attend marketing, financial and IT courses, they will not want to make money out of it. 

Aren’t it the same? You are paying a sum of money to learn the art of the game or the knowledge of a certain field. Why are there such a big different in perspective? 

So next time when you want to attend a course or even choosing a degree to learn, ask yourself if you are really interested in the topic or you just want to make money out of it. 

Ask yourself these question especially when you want to join a trading and investing courses …

Did the course teaches you the art of something? 

Did they teach you how to fish instead of giving you the fishes? 

Did you think logically before you sign up for the course? 

Did you really think that the course is so special that they promise you everything where people like Warren Buffet in trading, Thomas Edison in inventing and even Beethoven in music spend years after years to perfect their own field of art?

Think for yourself and make the wise choice … 

Fed will most likely to cut a quarter point interest rate to 2% in this coming Fed Policy Meeting. May will be a crucial month in this trading year. Will it be a bearish month as sell in May go Away ?

From the technical point of view, if Dow can break above the 13k, and May is a bullish month then the market will most likely recover in the end of the year. If May happen to be sell off, then we have to see if there are any strength in the month of October. Finally the official start to admit that US is in Recession. This will be confirm by this week GDP data. If it is confirm that US in Recession, then there will be a mini roller coaster in the market. Well when people see it as bad news and react to the FEAR, I will be sitting sideline of short a few stock down and be ready to pick up value stock as the market fall by irrational fear.

This is because the stock market already price in for the recession. Economy always lag behind the market as the market predict the economy. Well anything can happen in the market so i shall trade with cautious.

Last week when the EUR/USD make the all time high, I was shorting it. This is because the Fed interest rate has been already so low. This means that after the .25 cut in this Wednesday, the Fed will most likely to hold the interest rate and thus the EUR/USD will be coming down as the Dollar will be bottom up and stable. I will be keep on monitoring the dollar as strong dollar will also boost up the economy and in turn boost up the market.

So if you do not know what to do with your money, please to not let the so call “Pro” to handle your money. The best person to handle your money is yourself. Invest in yourself so to invest smartly. You will be able to beat the inflation rate with the right set of education. Well it is better to put your money in the FD when you do not know how to invest your money. At the very least you will not lose too much money by parking your money in the bank.

Have Fun Making your money work for YOU.

I will be starting a series of Winning Trading Habit. I always find that to be successful in trading or investing, you always need get your mindset and habit right. What really differentiate a Master Trader and a Novice Trader is their habit and mindset. Without further ado, i will present you guys the ultimate and the most important habit that needed to be successful in the market.

No 1 Winning Habit - Preservation of Capital

It simply means that you do not lose money to the market. If you did not lose money to the market, then in long run you will be able to make money from those people who lost the money. Some of the famous investors quotes are base on this winning formula.

Rule No. 1 - Never Lose Money
Rule No. 2 - Never Forget Rule No. 1
- Warren Buffett

Survive first and make money afterwards
- George Soros

If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.
- Larry Hite

It is always easy to make money but to keep money is very difficult. People tend to look for entry without thinking and setting the exit. Whenever you go into a trade, you will need to have an exit price. Cut lost fast to preserve the capital. It is fine to lose a battle as long as you win a war. Look far ahead instead of near target. We will always make mistake and lose money. It is part and parcel of the game. The main thing is to make money at the end of the tunnel.

Trading or investing is always related to gambling. So what is the different between Gambling and Trading? Actually there are a lot of different between the both of them yet somehow or rather they are quite similar too. Well when you do not know what you are doing, then you are gambling. This is because you enter a trade base on hope and luck. Gambling in a casino is no different as you hope that you will get the best card or the roulette’s ball will hit at your stated price.

Professional Gambler always make money from the casino. This is because they aim to make a sum of money first. Then after they have make the money, they will use the money to play which will reduce their risk as they preserve their capital. So the most they can lose will be other people money. Playing with other people money will reduce the fear in them.

It is the same concept in trading. Make use of the money that you have make from the market to grow more of it. Trading with winning money will reduce your fear. Preservation of Capital is extremely useful during the bear market as Cash is King. There will be tons of opportunity(stocks) out there for you to buy. Usually people crash and burn during the bear market, thus they fail to capture the opportunity present to them in the bear market.

There is a saying… If you stay in the market long enough, you will be lucky enough to make a sudden windfall. I have been trading for the pass 20 months, I have experience a few windfall during this period of trading. TTWO, GS, GOOG and other have already give me a surprise windfall. I almost make tons of money on BSC put just before the drop from 60+ to 2 dollars. Even in this bear market, My account still up by as high as 15% and now is ding donging at 5% to 10%.

So Trade to trade well …
Preserve your Capital …
If you don’t lose money, money will come to you …

Options can be use for many purposes. One of the useful purpose is leverage. This mean instead of buying the stock for 40 bucks, you will be able to get it for 20 bucks but the trade off is the TIME.

The steps of Options Leverage

- Pick a stock (sector rotation, upgrades/downgrades, favorites, fundamental …)
- Decide on the trend (up or down / Call or Put )
- Decide the Target Profit
- Decide on the Time to hit the target profit
- Decide on the Strike (ITM or OTM)
- Decide on the Greeks
- Theo value (undervalue or overvalue)
- Make Money $$

Whenever you enter a market, you need to have the target profit and also its stop lost. Once you have decided then you can go to find a suitable options. Never ever choose the option first then the stock. Always choose the stock to trade first then you choose the option suitable for the stock.

All the best in choosing the right options.