28th July 06 - My Trading Strategy

After waiting 1.5 months, our (mine and Eric's) S&P System finally gave a buy signal for entry yesterday evening. The recommended signal was to go long @ 1277.00, with a target of 1282.00 and stop of 1272.00.

A pity, the market only went to a high of 1281.75 (for the e-minis), one tick shy of profit. As the market came off, I advised my fellow traders to shift the stop to breakeven 1277.25 which was shortly triggered. Rule of thumb: never let a winning trade become a losing trade. For yesterday, if we had not shifted up the stop to breakeven, the stop would have been triggered @ 1272.00 later in the session.

So far, I am quite pleased with the performance of the system. Not only there's no losing trades so far, 50% of the entries actually gave 20pts within 2 days of entry with little or no drawdown. A profit of 20pts equates to US$5,000 per big S&P and US$1,000 per e-minis. Interesting, ya? Let's see if S&P visits 1295.00 by next Monday, hehe... ...

Some of you may ask, "What has the S&P system got to do with his trading strategy?" In fact, the S&P system is the pivot of my trading strategy. Although the system only generates 1 -2 entries per month, it still accounts for the majority of my trading fund's profits. In April 2006, I devised a trading strategy which would greatly enhanced my odds of making $$ consistently month in month out.

The strategy is as follows: Everyday, I trade my other intra-day systems (which will all be shared in the Trading Mastermind Programme) with the target of making around US$200 - US$300 per contract which is not a difficult task :) With these trades alone, my fund should be able to grow at least 10% per month. In the meantime, I would wait for the signals of the S&P system. When the signals come, I would go in for the kill and that possibly add another 5% to the fund. If things don't turn out well, I am still buffered by the daily profits. As such, consistently making $$ month in month out should be easier to achieve, isn't it?

As a trader, it's very important to come out with a trading strategy that works for you. As the saying goes, "Fail to Plan, Plan to Fail". If one is just recklessly trading the markets everyday, sooner or later, he or she will burst the account and be forced to the gates.

I hope my 2 cents sharings here does allow you to learn something here. I am so happy that my daily page views smashed past the 100 barrier and registered 155 impressions yesterday. Once again, thanks for your time :)

27th July 06 - Stand Up for Singapore

Today, our home-grown SIMSCI did an amazing run, one-way traffic to the north pole from start till end. With Taiwan, Nikkei and Kospi ending near their highs, it's 2nd nature for me to buy August SIMSCI after lunch @ 286.0. I was not surprised that subsequently Hang Seng and SIMSCI also ended at their highs. Repeated patterns after all. I look forward to a strong move in US markets tonight. Once again, let's stand up for Singapore :)

24th July 06 - The Footprint of the Big Funds

Today is probably one of the easiest trading day of the month. Traded alongside the funds and trade aggressively today, buying 3 regionals markets at one time, namely Hang Seng, Taiwan and SIMSCI.

Basically, today all my entries are generated by this system called RUSE. The beauty of this system is that it can detect smart money movement and give almost perfect entries with little or no drawdown. Interesting, ya?

Below are the entries which I traded today. Personally, I was awed by the beauty of the entries , especially the Hang Seng one. Caught it right where the trend explodes. Enjoy ...



Can't wait to share the system to the Trading Mastermind Program people. My goal is to see all of them succeed. Cheers :)

19th July 06 - A Sweet KOSPI Trade

After waiting for 1 month, my KOSPI trading system finally generate an entry. Kudos to my partner in my trading fund for initiating the position. Eric, thanks for the belief in my system :)

Have to admit, this KOSPI trading system does not generate alot of entries. In fact, it only generate a measly 24 entries in 5 years. But out of this 24 entries, only 1 got stopped out, the rest are all outright winners. The unbelievable part is, 20% of the entries are market turning points. When I look at the potential profits, my jaw dropped to the floor.

Some of you might be shouting, "but there's so little entries...!" Well, my answer would be: I am more interested in the quality of the entries rather than the frequency of occurence. I am totally fine with trading lesser and spending more time with my loved ones, knowing that at the end of the day I am DEFINITELY PROFITABLE.

18th July 06 - 10 Winning Tips to Your Trading Success

Whilst researching for my Trading Mastermind Program (only 5 spaces left), I happened to chance upon an article (by Brian Lee) in which the stuff he generously shares coincide with my trading philosophy. So here goes:

1) Trading is simple, but it isn't easy. If you yearn to have a future in this industry, forget about "hope" and stick to your trading plan.

2) Get out a trade immediately when the reasons that supported your entry no longer exist.

3) Don't open a trade just because it is cheap. Only initiate a position is when it looks set up to make a decent move.

4) Good trading should be boring, like doing the same thing over and over again. If there's one thing I guarantee in trading, it's that "thrill seekers" or adrenaline junkies get their accounts grounded into tiny bits and pieces. It's just a matter of time.

5) The turning point of when amateur traders turn into professional traders is when they stop searching and hoping for the "holy grail in trading" and start managing their risk on each trade.

6) You are buying and trading on the emotions of other traders, not the actual stock. At any moment, you must be aware of the human psychology and emotions present in the markets.

7) Always acknowledge and be in control of your emotions. Failure to do so will bring you to the exit sooner than you think. If you are screaming at your computer screen, begging your position to move in your favor, you have to stop and ask yourself, "Is this rational?" Take a deep breath. No point screaming as it will not 'scare' the market away from your stops.

8) Always remember, trading is supposed to be a business. Don't get too personal when faced with losing trades. Like business, winning and losing are all part of the game.

9) Beware of your number one enemy, yourself! If you start to get too excited, beware! As excitement clouds your judgment, it starts to increases your risk.

10) If you come into trading with the idea of making "big money overnight," you're better wake up and smell the coffee. Most accounts have been blown because of this "account killer" mindset.

16th July 06 - Trading Mastermind Program (14th Aug 06 - 25th Aug 06)

It has been over a week since my last post. Was busy moving to my new home and setting up the internet connection there, hence the hiatus ...

I was surprised at the overwelming response when I wrote about my Trading Mastermind Program couple of weeks ago. Thanks for all the kind support. After weeks of preparation, the details of the program is finalised. It will be held from 14th Aug 06 - 25th Aug 06, Mondays to Fridays, 0900hrs to 1230hrs at the premises of Zone Financial Pte Ltd.

In this 10 days, I will share with 10 individuals all my trading techniques that allows me to grow my portfolio by 5-10% consistently every month. More importantly, I will also share 10 important concepts of trading (1 concept daily) that are paramount to any trader's success. They are as follow:
1) Trading Psychology: Managing Fear & Greed
2) Building Your Trading Business
3) Positioning Sizing
4) Importance of Risk
5) Systematic Thought Process (STP)
6) Planning Your Life
7) System Design, Testing & Optimization
8) Accelerated Learning Process
9) Traders Builder Groups
10) Trading Discipline

All the knowledge covered in the above topics are gathered from interviews of fellow traders, modelling of mindset of trading legends and also my trading experience. The program will be conducted in a proactive manner whereby all the participants will be encouraged to share their insights or trading experience, resulting in a synergy of learning. I can't help but to feel excited learning from 10 other participants too. Imagine how that can shorten your learning curve and prevent you from commiting unnecessary trading mistakes.

The 10-day Trading Mastermind Program will cost S$1,500. I am so confident of the program that I am throwing in a full money back guarantee. If you at the end of the program feel that the program does not benefit you at all, I will unconditionally return you the fee. Fair deal, ya?

For those who are interested, pls email me @ petechia@gmail.com . Likewise, if you still have any questions, pls email me @ petechia@gmail.com too. Remember, 1st come 1st serve, as there are only 10 spaces :)

PS: As of NOW, 4 spaces are taken, so 6 more left

Last Day in MSCI TW Pit

Interesting video of the Pit in my pet market, MSCI TW. Enjoy :)

6th July 06 - Futures Vs Stocks

Just happened to chance upon the website of Robbins World Cup Trading Championships.

Isn't that interesting that futures yield a better returns when compared to stocks? I know right in some of your minds, this phrase "futures high risk high return" maybe yelling at you. Yes, futures if not managed correctly can result in a trader losing the capital very quickly. However, stories of people losing their hard-earned savings in the stock market are commonplace too, isn't it? It's amazing how the stock players feel so much better losing their money slowly.


The fact remains that 90% of traders/investors lose $$ in the markets be it you stick your foot in stocks, futures, bonds or mutual funds. To me, I think the good thing about futures is that if one don't manage futures well, his/her account will suffer a hemorrhage and he/she will be out of the game and gets on with his/her life. On the other hand, stocks players' accounts usually suffer a slow death, depleting bit by bit until there's nothing left.

Enough of the doom and gloom... The most compelling reason why I stick to futures is that if I am capable to be the 10% that consistently make $$ in the markets, I will make alot more from futures than stocks. Cool, ya?

PS: I nearly fell off my chair when I got the response for my 1st Trading Mastermind Program. 40% of the seats are snatched up within 2 days of the sneak preview. Thanks for all the support :)

3rd July 06 - Sneak Preview into the Trading Mastermind Program

Yes, some of you have heard about it ... the buzz is definitely in the air :)

After much preparation, I will launching my Trading Mastermind Program soon. A mastermind group (derived from "Think and Grow Rich" by Napolean Hill) is a gathering of like-minded individuals who are commited to pushing one another towards their goals, very much like having a few performance coaches constantly on your side guiding and supporting you. The group also share new knowledge, thereby accelerating the learning curve for everyone in the group.

For my program, it will span over 2 weeks or 10 trading days. Only 10 members will be invited to join this trading inner circle. Each day, I will share 1 key concept about trading, be it position sizing, managing emotions, building a trading business. All the information gathered are painstakingly gathered through months and months of interaction with at least a hundred fellow traders. I will also share my thought process and almost all my trading knowledge and systems. Learning will take place at an accelerated pace as members contribute willingly their experience in the markets.

In this program, results are guaranteed if you have a thirst for trading success. More details out soon. Do email me @ petechia@gmail.com if you are interested to massively improve your trading skills in the shortest time.

30th June 06 - The Enemy Within

"We have met the enemy, and it is us" - Walt Kelly as Pogo

As you might already realise, my blog never talks about indicators or techniques, but focus more on psychological aspects like discipline, patience and mental attitude. The message is clear: The key to success in the markets is internal, not external.