"...by stretching yourself beyond your perceived level of confidence you accelerate your development of competence" - Michael J.Gelb
I have been busy the last 2 days doing live trading showing my students how I scalped the SGX contracts, doing spread trading and hedging. My brother was shocked when I told him that I will be doing trading on just a laptop with wireless connection in the training room. Obviously it's very challenging for me to do live demonstration without my edge.
The wireless Internet connection was interrupted on many occasions on the first day and I was frustrated. Luckily I kept my cool and patiently traded with caution and managed to make a few hundred dollars on each day.
In the trading arcade, I traded with 6 screens on lease line for execution speed while I have to make do with just a 14 inch laptop to squeeze my charts and trading platform together during the training. Glad that I didn't disappoint my students, I certainly feel a sense of achievement for imparting the trading techniques to them.
One of my student called it unconscious competency in the way I executed my trades with ease despite the obstacles that I faced.
Tuesday, January 19, 2010
Sunday, January 10, 2010
Discipline
"Some people regard discipline as a chore. For me, it is a kind of order that sets me free to fly" - Julie Andrews
We had a very successful AFACT "Time for Tea" event yesterday for members to catch up with each other and share their trading strategies. Didn't expect such a huge turnout of nearly 80 members, luckily the restaurant was big enough to accommodate all of us. We only have indicated interest of around 60 members who signed up 3 days before the event.
Of course, there were many who signed up for the event and didn't turn up and many more who turned up without signing up. It's really a huge challenge for us, the organiser to estimate the turnout for the next event and to look for a suitable venue.
So is there a lack of discipline? Many of us take things for granted in life despite the good fortune that we have. As a trader, we need discipline and more discipline.
Our next event will be the traditional Chinese New Year Lunch on the 27th February, "Lo Hei" a Cantonese saying for tossing up good fortune for a better Year. We have around 300 members, how many will turn up, especially the old birds?
One of the pioneer trader IAN, in his sharing reminded aspiring traders to be discipline, trade within their limit and not to fall in love with a position that has gone wrong.
Yes, any trader know discipline is important, successful traders are mostly discipline and follow strictly to their rules of engagement.
So, what is the meaning of discipline? Checking the wikipedia, one that applies to a trader is "The ability to do the right thing even when no one is watching or suffer the consequences of guilt which produces pain in our bodies, through pain comes discipline"
I remember telling a group of new traders some time ago that if I will to carry a cane and sit beside them, they will definitely make it as a trader in a very short period of time. A whack every time they don't know how to cut their losses, how cruel!
Can we train our self to be discipline?
Start with being punctual, I'm hardly late for any appointment in my life, unless there is a very good reason.
I'm always at the Phillip trading arcade 15 minutes before the market open to prepare myself.
I have never get myself drunk, hardly entertain except during weekends and no matter how late, I will still crawl back home.
Always think about others and be responsible for our own action.
I am sure most of us can accomplish these simple tasks to change our behaviour and attitude. Then we can become better traders.
We had a very successful AFACT "Time for Tea" event yesterday for members to catch up with each other and share their trading strategies. Didn't expect such a huge turnout of nearly 80 members, luckily the restaurant was big enough to accommodate all of us. We only have indicated interest of around 60 members who signed up 3 days before the event.
Of course, there were many who signed up for the event and didn't turn up and many more who turned up without signing up. It's really a huge challenge for us, the organiser to estimate the turnout for the next event and to look for a suitable venue.
So is there a lack of discipline? Many of us take things for granted in life despite the good fortune that we have. As a trader, we need discipline and more discipline.
Our next event will be the traditional Chinese New Year Lunch on the 27th February, "Lo Hei" a Cantonese saying for tossing up good fortune for a better Year. We have around 300 members, how many will turn up, especially the old birds?
One of the pioneer trader IAN, in his sharing reminded aspiring traders to be discipline, trade within their limit and not to fall in love with a position that has gone wrong.
Yes, any trader know discipline is important, successful traders are mostly discipline and follow strictly to their rules of engagement.
So, what is the meaning of discipline? Checking the wikipedia, one that applies to a trader is "The ability to do the right thing even when no one is watching or suffer the consequences of guilt which produces pain in our bodies, through pain comes discipline"
I remember telling a group of new traders some time ago that if I will to carry a cane and sit beside them, they will definitely make it as a trader in a very short period of time. A whack every time they don't know how to cut their losses, how cruel!
Can we train our self to be discipline?
Start with being punctual, I'm hardly late for any appointment in my life, unless there is a very good reason.
I'm always at the Phillip trading arcade 15 minutes before the market open to prepare myself.
I have never get myself drunk, hardly entertain except during weekends and no matter how late, I will still crawl back home.
Always think about others and be responsible for our own action.
I am sure most of us can accomplish these simple tasks to change our behaviour and attitude. Then we can become better traders.
Friday, January 1, 2010
Wishing all a Prosperous 2010
'Make Peace with the past so it won't screw up the present"
Almost everyday my cousin told me he learnt a new lesson at the end of the trading day, well, after 25 years of trading, I'm still learning. The market is so dynamic, no single day is the same and most tried in vain to spot a repeat of a past pattern for their perfect entry which is an illusion. The most common excuse, false signal!
2008 was a fantastic year for most traders while 2009 was for most, a lousy year despite the V shape recovery for most equity market and the economy. I wasn't happy with my performance last year, it's mediocre despite the hard work. I don't want to look for excuses, it's simply plain stubbornness and refusing to admit mistakes.
I look forward to doing some longer term day trading for the coming year, it will be challenging for a scalper who is so short sighted.
Almost everyday my cousin told me he learnt a new lesson at the end of the trading day, well, after 25 years of trading, I'm still learning. The market is so dynamic, no single day is the same and most tried in vain to spot a repeat of a past pattern for their perfect entry which is an illusion. The most common excuse, false signal!
2008 was a fantastic year for most traders while 2009 was for most, a lousy year despite the V shape recovery for most equity market and the economy. I wasn't happy with my performance last year, it's mediocre despite the hard work. I don't want to look for excuses, it's simply plain stubbornness and refusing to admit mistakes.
I look forward to doing some longer term day trading for the coming year, it will be challenging for a scalper who is so short sighted.
Sunday, December 27, 2009
Star Hedge Fund Trader
Mr David Tepper, Head of Appaloosa Management is set to collect a cool US$2.5 billion pay package for the year after staking huge bets that global banks would recover in 2009. That's about over a third of the US$7 billion profits generated by the firm in 2009.
The hedge fund said it made returns of over 120 per cent for the year to the beginning of December. He bought Bank of America when the shares were trading below US$3 a piece and Citigroup at US$1.
At the end of last year Appaloosa had a track record of generating an average of 30 per cent returns a year since it's inception in 1993. It's assets under management have tripled in just three years to US$12 billion. Pretty impressive.
Mr Tepper has built a reputation on judging value in panic situation.
My respect to him, he's got guts!
"Without courage, wisdom bears no fruit" - Baltasar Gracian
The hedge fund said it made returns of over 120 per cent for the year to the beginning of December. He bought Bank of America when the shares were trading below US$3 a piece and Citigroup at US$1.
At the end of last year Appaloosa had a track record of generating an average of 30 per cent returns a year since it's inception in 1993. It's assets under management have tripled in just three years to US$12 billion. Pretty impressive.
Mr Tepper has built a reputation on judging value in panic situation.
My respect to him, he's got guts!
"Without courage, wisdom bears no fruit" - Baltasar Gracian
Saturday, December 26, 2009
Asset Bubbles
"The instinct of ownership is fundamental in man's nature" - William James
Many bankers and economists voiced concern about asset price distortions in an environment of plentiful liquidity which may be sowing the seeds of financial instability, especially in emerging markets.
China's property and stock markets are a "bubble" that will burst when inflation accelerates in 2011, former Morgan Stanley chief Asian economist Andy Xie said. China's residential prices rose last month at the fastest pace since July last year, spurred by the 4 trillion yuan stimulus package and record lending.
Inflation is a concern, so is the depreciating value of our money when governments keep printing money.
In Hong Kong, a shop just 1,212 sq ft in one of the city's busiest districts was reportedly sold for a record US$108 million which work out to about US900,000 per sq ft. The shop houses luxury retailer Emperor Watch and Jewellery. How many watches and jewelleries they need to sell to justify the return on investment? Money laundering?
Here in Singapore, prime good class freehold landed bungalows rose 18.6 per cent for the year, setting fresh record high of S$1,447 per sq ft. More wealthy buyers are willing to fork out more for such properties, 17 were sold for above 20 million each this year. The rich poor gap is widening everywhere, the rich getting richer and the poor suffers.
My parents bought a 3 room HDB flat at S$11,000/- 35 years ago which is now worth more than S$200,000/- . A friend bought a 15 year old 3 room HDB flat in Queenstown, near the MRT station 2 years ago at S$300,000/-, I thought he was crazy to pay such a high price for a 65 sqm old flat. He recently sold it for a 20k profit nett, free lodging for 2 years.
Will there be a asset bubble? With Gold price hitting above US$1,000/-, Oil price above US$70/-, a plate of mee siam costing S$3/- with only half an egg and costly taxi fare, I don't see property prices crashing down. A crash will be a good buy!
A friend complained recently after having lunch at a restaurant in ION Orchard, he asked for 3 glasses of plain water, 2 of the glasses were refilled later. He was shocked when he was billed S$5/- for plain tap water, S$1/- each for the paper tower and S$3/- for a small plate of peanuts,++ (7% GST and 10% service charge.
The properties in Orchard are expensive and with big developers bidding high prices for them, the rental for the shops and restaurants is not going to be cheap.
Who benefits most from such high property prices? Who else but the biggest land owner! The government of course, adding much to their coffers and higher property prices would also mean higher property taxes as well, the government is getting so rich. We the citizen, need to work very hard.
Many of my friends are concern whether their children can afford to buy a property when they grow up with prices increasing at such an alarming rate. One solution by the government is in building ever smaller HDB flats, a 5 room flat have shrunk from 125 sqm to as small as 105 sqm now. More 3 room flats are built to be affordable and not comfortable, live with it if you are poor.
We are one of the most densely populated country in the world yet our planners are still trying to squeeze more people into this tiny island. To be more competitive? Higher growth? Better living standard? I think it's more stressful for the ordinary citizen.
Many bankers and economists voiced concern about asset price distortions in an environment of plentiful liquidity which may be sowing the seeds of financial instability, especially in emerging markets.
China's property and stock markets are a "bubble" that will burst when inflation accelerates in 2011, former Morgan Stanley chief Asian economist Andy Xie said. China's residential prices rose last month at the fastest pace since July last year, spurred by the 4 trillion yuan stimulus package and record lending.
Inflation is a concern, so is the depreciating value of our money when governments keep printing money.
In Hong Kong, a shop just 1,212 sq ft in one of the city's busiest districts was reportedly sold for a record US$108 million which work out to about US900,000 per sq ft. The shop houses luxury retailer Emperor Watch and Jewellery. How many watches and jewelleries they need to sell to justify the return on investment? Money laundering?
Here in Singapore, prime good class freehold landed bungalows rose 18.6 per cent for the year, setting fresh record high of S$1,447 per sq ft. More wealthy buyers are willing to fork out more for such properties, 17 were sold for above 20 million each this year. The rich poor gap is widening everywhere, the rich getting richer and the poor suffers.
My parents bought a 3 room HDB flat at S$11,000/- 35 years ago which is now worth more than S$200,000/- . A friend bought a 15 year old 3 room HDB flat in Queenstown, near the MRT station 2 years ago at S$300,000/-, I thought he was crazy to pay such a high price for a 65 sqm old flat. He recently sold it for a 20k profit nett, free lodging for 2 years.
Will there be a asset bubble? With Gold price hitting above US$1,000/-, Oil price above US$70/-, a plate of mee siam costing S$3/- with only half an egg and costly taxi fare, I don't see property prices crashing down. A crash will be a good buy!
A friend complained recently after having lunch at a restaurant in ION Orchard, he asked for 3 glasses of plain water, 2 of the glasses were refilled later. He was shocked when he was billed S$5/- for plain tap water, S$1/- each for the paper tower and S$3/- for a small plate of peanuts,++ (7% GST and 10% service charge.
The properties in Orchard are expensive and with big developers bidding high prices for them, the rental for the shops and restaurants is not going to be cheap.
Who benefits most from such high property prices? Who else but the biggest land owner! The government of course, adding much to their coffers and higher property prices would also mean higher property taxes as well, the government is getting so rich. We the citizen, need to work very hard.
Many of my friends are concern whether their children can afford to buy a property when they grow up with prices increasing at such an alarming rate. One solution by the government is in building ever smaller HDB flats, a 5 room flat have shrunk from 125 sqm to as small as 105 sqm now. More 3 room flats are built to be affordable and not comfortable, live with it if you are poor.
We are one of the most densely populated country in the world yet our planners are still trying to squeeze more people into this tiny island. To be more competitive? Higher growth? Better living standard? I think it's more stressful for the ordinary citizen.
Saturday, December 19, 2009
Competitive Edge
"Challenges are what make life interesting; overcoming them is what makes life meaningful. - Joshua J. Marine
Is having an edge that important to a trader?
What's your edge in trading? A question I asked many traders.
Unfortunately, most traders don't even know or understand why having an edge is so important to their success. Those who make good money consistently obviously know subconsciously what their edge is even though they might not have given much thought about it.
As a scalper and spreader, speed in trade execution is one of the most important factor contribution to my success, I need fast reliable Internet speed and a good trading platform. It gives me the confidence, which is a very important psychological booster to any trader.
With the advance in technology, I'm losing this edge to the Algos and the big boys who can afford superfast supercomputer such as the "Roadrunner" by IBM introduced in 2008. It operates one petaflop per second or one thousand trillion calculations per second! Unbelievable!
How fast is a petaflop? That's roughly equivalent to the combined computing power of 100,000 of today's fastest laptop computers. You would need a stack of laptops 1.5 miles high to equal Roadrunner's performance.
It would take the entire population of the earth - about six billion - each of us working a handheld calculator at the rate of one second per calculation, more than 46 years to do what Roadrunner can do in one day.
I heard from those AFACT members who have recently attended the Algo course about the amazing speed in execution by the RTD Tango Algo platform, more than 600 lots executed within seconds with a default of only 1 lot. There's no way we human can compete with the machine, it's probably 100 times faster than what we can click with our mouse.
Does that mean that we traders especially the scalpers and spreaders cannot make a living from trading?
Of course I don't think so, we now know our competitors, we need to take steps to change our strategies, probably taking more risk and working harder for our money. There are still plenty of day traders and position traders putting in sitting duck orders for their trades to be filled.
We must be ready for the challenges ahead against the big boys who can afford the fastest machines and the best programmers. List the the various factors that together contribute to be our competitive edge and work on it.
For traders who don't know what is their edge, the trades they put in have only 50% chance of making money. It becomes a gamble. I suppose many are in this category of struggling to survive, can't make enough to cover expenses. Over time they become demoralise and throw in the tower, what a waste.
Is having an edge that important to a trader?
What's your edge in trading? A question I asked many traders.
Unfortunately, most traders don't even know or understand why having an edge is so important to their success. Those who make good money consistently obviously know subconsciously what their edge is even though they might not have given much thought about it.
As a scalper and spreader, speed in trade execution is one of the most important factor contribution to my success, I need fast reliable Internet speed and a good trading platform. It gives me the confidence, which is a very important psychological booster to any trader.
With the advance in technology, I'm losing this edge to the Algos and the big boys who can afford superfast supercomputer such as the "Roadrunner" by IBM introduced in 2008. It operates one petaflop per second or one thousand trillion calculations per second! Unbelievable!
How fast is a petaflop? That's roughly equivalent to the combined computing power of 100,000 of today's fastest laptop computers. You would need a stack of laptops 1.5 miles high to equal Roadrunner's performance.
It would take the entire population of the earth - about six billion - each of us working a handheld calculator at the rate of one second per calculation, more than 46 years to do what Roadrunner can do in one day.
I heard from those AFACT members who have recently attended the Algo course about the amazing speed in execution by the RTD Tango Algo platform, more than 600 lots executed within seconds with a default of only 1 lot. There's no way we human can compete with the machine, it's probably 100 times faster than what we can click with our mouse.
Does that mean that we traders especially the scalpers and spreaders cannot make a living from trading?
Of course I don't think so, we now know our competitors, we need to take steps to change our strategies, probably taking more risk and working harder for our money. There are still plenty of day traders and position traders putting in sitting duck orders for their trades to be filled.
We must be ready for the challenges ahead against the big boys who can afford the fastest machines and the best programmers. List the the various factors that together contribute to be our competitive edge and work on it.
For traders who don't know what is their edge, the trades they put in have only 50% chance of making money. It becomes a gamble. I suppose many are in this category of struggling to survive, can't make enough to cover expenses. Over time they become demoralise and throw in the tower, what a waste.
Sunday, December 13, 2009
Feng Shui
"The best luck of all is the luck you make for yourself" - Douglas MacArthur
I'm just a half believer, still sceptical about the motives of the so call "Shi Fu" or Master in able to change my luck, avoid disaster or helping to turn a failing business around, fees upfront.
Being a trader, I still believe in a certain element of luck, a small percentage, probably if I feel lucky, most certainly I would make money on that day. I love to buy stones, crystals, glassware, Idols, etc that I think would bring luck to me, place them around the house and my trading table. My wife think I am nuts.
On my recent holiday trip to Taiwan, the tour guide brought us to this Feng Shui Shop and of course the soft and hard sell to change luck for the better. I was told Singapore has very good Feng Shui, and our MM is a firm believer, many projects were made with the consultation of a very famous Taiwan Feng Shui "Shi Fu"
Having bless to live in a good Feng Shui country, we need to have good Feng Shui at home too and to have good personal Feng Shui, always have a smiling face because that's the shape of the Chinese gold nugget, luck will be with you!
"Everything in life is luck" - Donald Trump, he is a damn lucky fellow!
I'm just a half believer, still sceptical about the motives of the so call "Shi Fu" or Master in able to change my luck, avoid disaster or helping to turn a failing business around, fees upfront.
Being a trader, I still believe in a certain element of luck, a small percentage, probably if I feel lucky, most certainly I would make money on that day. I love to buy stones, crystals, glassware, Idols, etc that I think would bring luck to me, place them around the house and my trading table. My wife think I am nuts.
On my recent holiday trip to Taiwan, the tour guide brought us to this Feng Shui Shop and of course the soft and hard sell to change luck for the better. I was told Singapore has very good Feng Shui, and our MM is a firm believer, many projects were made with the consultation of a very famous Taiwan Feng Shui "Shi Fu"
Having bless to live in a good Feng Shui country, we need to have good Feng Shui at home too and to have good personal Feng Shui, always have a smiling face because that's the shape of the Chinese gold nugget, luck will be with you!
"Everything in life is luck" - Donald Trump, he is a damn lucky fellow!
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