Tuesday, March 30, 2010


Attended a course on blogging over the weekend, spending 2 long days learning from an expert that's half my age. Just like trading, it won't be easy, there are so many new things to learn, the tricks and the shortcuts that's equivalent to the Yums in trading.

It's worth every cent if you are going into blogging for a living, shortening the learning curve, saving precious time. I'm still uncertain how to go forward from here especially with my busy schedule, being only just a weekend blogger.

In the past I have experienced my blog post being block for unknown reasons, probably over some sensitive issues I might have written. Whatever I have written in blogspot don't belongs to me, thus I have decided to migrate to www.fat88trader.com and pay a yearly hosting fee.

I would like to thank all my readers and please visit me at my new website.

Saturday, March 20, 2010


"You know what, it doesn't matter if you're big or small, you've got to believe in yourself, believe you can do it and you've got to be able to dream the big dream." - Mr. Teo Ser Luck, Singapore's Senior Parliamentary Secretary for Community Development, Youth and Sports. Few thought it possible that tiny Singapore would win the rights to host the first Youth Olympic Games.

So, what's your dream?

Most traders have big dream when they first started out but somehow or rather, after a few months they ended up having nightmares instead. Dream is the driving force for anyone who aspire to achieve a goal that might seem impossible and full of obstacles.

I would suggest new traders to have smaller dreams instead in the beginning while working hard towards that big dream. Nothing comes easy and there's no free lunch.

Successful traders not only need to work hard, they need to work smart as well. They need to know when is the right time to trade and the right size to trade.

My new batch of students were very realistic when I asked them about their expectation, most had some experiences trading in stocks or Forex, having attended other courses and know how difficult it is to be a successful trader. They just wanted to learn how to survive and make a decent living.

It's an eye opener for them to see and learn how a real trader trades live in front of them. It's no doubt really stressful for me. I justify each of my trade with an explanation, the mistakes I made and the various emotions expressed especially the frustration when the trade goes against me. Most were stunt to see how I cut losses with such ease, something that is so difficult for them to do so.

I'm glad and happy to enlighten them on their new journey in life as most have quit their job to be full time traders. Their success will make my hard work worthwhile. I hope to guide them towards the big dream I have achieved long time ago.

Saturday, March 13, 2010

Cutting losses and riding profits

Which is easier to execute, cutting losses or riding profits?

A simple question that traders should ask themselves to determine the trading style that suits them. Long term position trader FSK revealed that it's difficult for him to cut losses but it's so easy for him to ride profits. He can hold a position for months and even years to ride the long term trend until there is a U-turn sign. There is almost no cut loss level for him, he invest in a few countries that offer the best returns through his proprietary formula.

As a scalper, it's the total opposite, it's so difficult for me to ride a profit and I won't be making money if I don't cut my losses fast. And for those who find it difficult to execute both, will find themselves struggling to survive in this very competitive game.

Saturday, March 6, 2010

How long it take to learn?

"Learning is not attained by chance, it must be sought for with ardor and attended to with diligence." - Abigail Adams

I have been asked frequently by the newbies how long will it take for them to learn how to trade and start making money. It's a question that is rather difficult to give a correct answer. It depends on the individual.

Everyone is born differently, some are fortunate enough to be bestowed with higher IQ, smarter and more intelligent while others are handsome and beautiful. I realised from young that God is never fair because I had to study very hard yet my academic performance was something I have never been proud of while one of my classmate breezed through so effortlessly with all the As. He was smart, the only one in our class that went to RI and studied overseas with government scholarship.

Nothing in life is fair, being average, I just have to work harder to catch up with those more intelligent who are miles ahead. I'm a slow learner, I take longer to learn anything, I try avoiding anything complicated and look for simple solutions. I know my limited ability and weaknesses, thus trading is the simplest business for me, just 2 decisions, either buy or sell, then take profit, scratch or cut loss.

There are so many things to learn in trading , I believe smart people will learn faster in using the trading platform, the different functionality in enhancing trading, charting, analysing the market and forecasting.

But, apart from learning the basic, trading involves emotions, focus, guts, hard work and passion, that's where the playing field becomes more level. There are many smart people who failed to trade successfully, they think too much and worry too much.

Those who are very successful and make tons of money in trading have a very common trait, they have guts. They dare to bet big once they believe the odds is in their favour. They take calculated risk which differentiate them from a gambler.

My father, a vehicle mechanic told me that he worked many years as a apprentice in a small workshop with no proper training, paid pittance and did all the dirty work. He learnt from stealing glances and assisting the mechanic in the repair job, pure hard work.

Trading is so much easier, there are so many books written on the subject and one can simply borrow them from the public library, learn from the Internet or attend the various courses available to shorten the learning curve.

So, how long it take to learn? A few months will do to learn the basic but to start making money, it might take longer to gain the experience, from constantly learning from the same mistakes repeated again and again daily.

No joke, this is what's happening to most newbies, they just freeze holding a bad position praying that it will come back to their level and get out once they have a small profit. One of my student just did that despite my repeated exhortation to cut the losses fast, he averaged further and happily told me later that he finally made a profit from turning the losses to profit. When will he learn?

After the trading floor closed in 2005, it took me more than 2 years to get back on my feet, to focus and concentrate on trading before finally seeing the light. Many of my fellow floor traders were making good money during this period of time because they were smart to stay in the trading arcade with fast trading platform and Internet speed.

Being a scalper and spreader my whole trading career, it took me just one month to realise my edge, "speed" when I went back to the arcade to trade. My brother-in-law who struggled trading from home joined me in the arcade later and was profitable immediately. He couldn't afford to lose. My younger brother, the smartest in the family and a former floor trader took a year to start making consistent money.

It's a matter of time that a passionate trader who persevere starts to mature by gaining the experiences through daily engaging the market, learning from past mistakes, understand the nature of the market and finally self discovery.