25th June 06 - What Do You Foresee of Yourself 1 Year Down the Road?

One fine day, I was chatting with my friends over coffee. One of them popped this question "What do you foresee yourself to be 1 year down the road?" Typical answers like “I really don’t know”, “it depends on what my boss thinks of me” sprung up one after another.

To me, I know exactly what I want to achieve by June 2007 – to earn S$20,000 per month and to manage an S$5 million trading fund. A quantum leap from where I am now but I believe it’s possible, in fact very possible.

On that fine day, the question made me think deeper into the path I am going to take for the coming year. I realize that not only I want a decent income, I want more time to spend with my loved ones and also to do the things which I love – which is to nurture and mentor fellow traders.

In trading, time leverage can be achieved by position trading whereby trades are placed to maximize profits in the direction of the trend, sometimes lasting days to weeks or even months. Trends do take time to build up and blossom and one must be patient enough to hold on to a favorable position longer to reap more profits. At the end of the day, I want to spend less time looking at the markets and yet make more $$. Who doesn’t?

Currently, 99% of my trades are intra-day trades and I only remembered a handful of position trades throughout my one and half year of trading. Moving from a intra-day scalper to that of a position trader might seemed to be a quantum leap however if the switch is done in steps, it should be manageable. One of my immediate milestones is to convert 30% of my trades to position trades by end Sept 06.

On Friday, I decided to take a small step towards achieving my goal. After hours of looking at the market, I decided to initiate a position trade. Interestingly, at times, the ‘chicken little’ side of me would pop up and say things like “maybe it’s not a good idea, let’s do it some other time”. However, after gauging that I have 84% chance of profiting from this trade with limited downside risk, I decided to go ahead.

For that, I bought Taiwan @ 269.6.

I am so happy that I made the 1st step towards my goal and I hope you would do the same too :)


PS: I am now at the final stages of back-testing two position trading systems. They are armed with an amazing 90% accuracy and up to 25% of the entries are market turning points. I traded them and made $$. Exciting stuff, ya? Watch this space...