May 11

Is trading risky for you?

By Online Guru Trader | Blog , Newsletter , Trading Article

Risks comes from not knowing what you are doing
Quote from Warren Buffet

Sometimes, when I have talks sharing on trading, I would ask my participants whether they feel trading is risky. And most of them would say yes. Well, the reason why they feel that it is risky is because they do not know what they are doing when it comes to trading. It is the same with most areas of our lives as well.

Ask a established driver whether driving is risky, he will tell you that it is not risky because he knows what he is doing and he has been driving everyday for years with a record of zero accident. Others who have never driven before and do not know how to drive will feel driving is risky because they do not know what to do even if you put them behind the wheels. Ask a professional mountain climber whether mountain climbing is risky, and he would tell you that when it comes to mountain climbing it’s not risky because he knows what he is doing. Everything we humans do in life has risk but if we know what we are doing then it is not risky. This is especially true for trading. Trading will be risky if you do not know what you are doing. It will be safe if you know what you are doing.

Knowing what you are doing also means to be able to know all the possible scenarios that will happen in the future and be prepared and be able to handle it when any scenarios happens. A established driver would know how to react if the car in front of him makes an emergency brake because he has prepared and was mentally ready for it way before the incident happen. He would know how to react even if one of his tyres suddenly punctured on the road while he is driving. He was prepared and knows what he should do to react. He basically knows what he is doing when it comes to driving.

For trading, most people feels it’s risky because they do not even try to look at what they are getting into when they go into a trade. They always intend to go into a trade wanting to win that trade with lots of profits. That’s it. And they go into the trade after that without mapping out the possible scenarios that can happen. So when the trade goes against them and start to go into losses, they start to panic because they did not expect such scenario to happen and do not know what to do next. This few questions start to run through their mind. Should I buy more to average down? If I average down then at what price level should I average down? Or should I get out and cut my losses? If I want to get out and cut my losses then what is the price level to get out? Should I just hold on to the losses as it may rebound? How much losses am I able to take while I hold? What is the maximum losses I can take? Should I hold the trade till it reached the maximum losses I can take? All this should have been asked before putting a single cent at risk. Before even trading the security, all this should have been answered. A proper trading plan would have address this. All possible future scenarios that may happen and how to react to them should be in your trading plan. Below are some of the important items you need to have in your trading plan.

Before going into a trade, pre-determine beforehand,
(A) How much are you willing to lose in this trade such that if you lose that amount(in dollar terms), you will be totally fine with it?
(B) At what point should you cut loss? (This is the point or price level where you say to yourself that your analysis is wrong and you are willing to take limited losses to get out of the trade)
(C) What is the price level or entry point to go into the trade?
(D) How much shares or units should you commit into buying/selling to open this trade? (Once you have pre-determine A, B & C, you will have able to calculate D by using the difference between B & C and dividing the result by A)
(E) If the trade goes in your favor, at what price level are you going to get out with the profits?

Now ask yourself this, would you feel much safer if you do the above, have a trading plan before trading and would know beforehand how much you are going to lose if you lose. Know beforehand how much you are going to make if you win the trade. Would you be closer to knowing what you are doing in terms of trading? Would you feel trading is much safer if you did your plan? Most of my participants after my sharing with them walk out of my sharing session saying they feel much safer trading the markets from then on. It is important to to have a plan to map out all possible scenarios and also in that plan, how to deal with all the possible scenarios. Be prepared before it happens whether for good scenarios when you win or for bad scenarios when you lose. Once you are able to map it out in your trading plan and follow it. Trading will not be risky because you will know what you are doing and is prepared for all the possible scenarios that will happen and is ready to react if they do.

You know what most people out there do? Most people out there do not have a plan. They do not have a life plan let alone a trading plan. That is why most people who trade the markets lose money to the markets. I am not saying that if you have a trading plan you will succeed. But instead, I am saying if you have a correct trading plan and follow it through, you increase your chances of succeeding in trading by a lot. People ask me what if I don’t do that plan. Well, you just increased your chances of failure pertaining to trading. That’s all. I will leave you with a quote I like and benefited a lot in my life and in trading as well which I feel applies to life and particularly to trading as well. I hope you will benefit from it like I do. You may have heard it before but didn’t react to it much back then. I hope it does now after reading my sharing here.

If you fail to plan, you are planning to fail.
Quote from Benjamin Franklin

Cheers and enjoy, Wishing you consistent income from trading.

Aug 25

Student traded and made over 300%

By Online Guru Trader | Blog , Gallery , Newsletter , Testimonials , Trade Results

This is what one of my student said on my student’s smartphone chat group yesterday on 24th August 2015, who shorted Philip Morris International (PM) based on my trade alerts sent out real-time on 28th July 2015. Some people even said yesterday was black monday with the dow jones going down by 1000 points. It was certainly not a black monday for my students yesterday on 24th August 2015. In fact, most of us made over 300% return because of the downward move. Knowing the correct way to trade is the key to profit from any market conditions.
Tina makes 300percent  on PM_hightlight

Aug 18

Profits of US$462.50 after 30 minutes of trade entry

By Online Guru Trader | Blog , Gallery , Newsletter , Testimonials , Trade Results

Below is a screen capture from one of my student who only trades Futures. He posted this screen capture into my private student’s smartphone chat group yesterday on 17th August after I mentioned to the group that I see the S&P Futures going up for the day and he traded it. I was very happy for him as that one trade only lasted around 30 minutes and he made US$462.50 in that one trade.
student traded ES futures

Jul 22

Trade To Win July 2015 Penang Malaysia

By Online Guru Trader | Blog , Gallery , News , Newsletter

Last weekend was Trade To Win Intensive in Penang Malaysia. It was held on 18th and 19th July. The group was mainly consist of experienced traders. Most of them have been trading for some time before attending OGT Trade To Win Intensive. Lots of questions was asked by them and answered promptly. I believe the course made them a better trader and improve their trading skills and techniques. I like to thank everyone for attending and I am honored to be able to share with them OGT methodology. Special thanks goes to June for arranging the event. Without her, the event won’t have been possible. I like to also thank Adrian who is in charge of his group of traders for attending together with his group of traders. All the best and I wish everyone forever lasting consistent returns through trading the financial markets.

Jul 15

The best financial advice I’ve ever received

By Online Guru Trader | Media , News , Newsletter , Testimonials , Trading Article

I am happy and honored to be ask by Karen Foo to reveal what was the best financial advice I’ve ever received so that it can be shared to benefit others. And Karen did not stop there, she went on to get another 29 financial experts to share their best advice they have ever received as well. Very grateful and may blessing be with her for her selfless deed. Below is the link to the article she wrote publishing my advice including the other 29 expert’s advice as well. I am sure you will benefit from it even if you are not into trading or investing in the financial markets. So please feel free to read it @ http://streetsmartuniversity.info/30-of-asias-top-financial-experts-reveal-the-best-financial-advice-ive-ever-received/

 

Jul 13

What I am monitoring, as of 13th July 2015

By Online Guru Trader | Blog , Newsletter , Trading Article

Since my previous post on 22nd June 2015, some trades went into profit while some went to stop loss. Overall, it was still profitable for me. Though my view on the markets to break new high was wrong, my view on shorting the EUR/USD was right and that trade alone was enough to cover the losses I did on other trades. Below are some of the stocks I am monitoring to trade to go long. They are Amgen Inc (AMGN), Maxim Integrated Products Inc (MXIM), L Brands Inc (LB), Colgate-Palmolive Co (CL), Weyerhaeuser Co (WY).

For shorts, I will be monitoring Discovery Communications (DISCA).

Some of the above have been traded while some have not fully passed my criterias for entry yet so they are still in monitoring stage. Take note that the above are all short term trades and not all will be traded by me. For those interested to know how I trade the financial markets for more than 50% annual returns since 2012, please register for my Singapore free seminar by clicking on the link @ http://www.onlinegurutrader.com/free-seminar/

Jul 13

Trade with an edge through Options July 2015

By Online Guru Trader | Blog , Gallery

Held the first options course in Ho Chi Minh on 4th and 5th July. Some has already attended other options courses before while majority was new to options. I was there to share how to trade options the right way.

Jun 22

What I am monitoring for, as of 22nd June 2015

By Online Guru Trader | Blog , News , Newsletter , Trading Article

Since my post on 10th June 2015 stating that I have turned neutral from bearish, the markets has since rally up. I have turned bullish going forward. Good thing is that since 10th June, I have done a few long trades and still holding onto them. Most of them are now in profit and I am looking to ride the trend with more profits. In less than 2 weeks since my post on 10th June 2015, counters like Amgen Inc (AMGN), Celgene Corp (CELG), Comcast Corp Class A (CMCSA), Host Hotels & Resorts Inc (HST), Kroger Company (KR), Linear Technology Corp (LLTC), the stock price have move up more than 5%. Those that have move up but less than 5% were Kohlberg Kravis Roberts & Co. (KKR), Pepsico Inc (PEP), Symantec Corp (SYMC), Sysco Corp (SYY), Weyerhaeuser Co (WY). As for shorts posted on 10th June 2015 till up to now, Huntsman (HUN) has went up a bit and US Steel Corp (X) has gone down more than 5%. Please scroll down in my blog to read my 10th June post for more details.

The following are the list of potential counters I am monitoring to go up and they are Bed Bath & Beyond Inc (BBBY), Hewlett-Packard Company (HPQ), H&R Block Inc (HRB), NextEra Energy Inc (NEE), Pepsico Inc (PEP), Raytheon Co (RTN), Seagate Tech Hldgs (STX), Symantec Corp (SYMC), United Technologies Corp (UTX), Western Digital Corp (WDC). On the futures front, I see the S&P index is going for another new all-time high, going above the previous high of 2134.

As for shorts going forward, I will be monitoring Caterpillar Inc (CAT), Cameron International Corp (CAM), HollyFrontier Corporation (HFC). On the forex front, I will be looking for opportunity to go short on the EUR/USD.

Some of the above have been traded while some have not fully passed my criterias for entry yet so they are still in monitoring stage. Take note that the above are all short term trades and not all will be traded by me. For those interested to know how I trade the financial markets for more than 50% annual returns since 2012, please register for my Singapore free seminar by clicking on the link @ http://www.onlinegurutrader.com/free-seminar/