Thursday, January 1, 2009

Introduction

This blog will track my investment style, thoughts and philosophy.

I am a full time trader after spending time in corporate managements and start-ups of 5 companies.

I have decided to move to Vancouver, Canada in 2006 from Singapore. Moving here allows me to focus on my trading skills although I have been active on the US market for 13 years.

Being a trader allows me to make my money work harder.

It was a tough 2008 although I went through relatively unscathed. My biggest mistakes were my over confidence in gold stocks which went against every fundamentals and go down with the market. Longer term, I am still optimistic about gold and pessimistic on the US dollars but this is a classic example of why fundamentals do not often relate to the market short term.

If I had followed conventional investment advice of strictly following fundamentals, "buy and hold" philosophy, I would have lost at least 50% of my investments.

2008 happened to be the first lost in my trading on the stock market for more than 10 years. The key reason was that I did not follow my discipline. I thought the market could not go lower in September.

The key lesson is to keep to your trading plan. It is fundamental that if you keep strictly to your trading plan ,you will do well by the end of the year. There are many trading plans possible but you need to keep to one that you have developed and fit your personal beliefs. If I were to do "paper" trading on any reasonable plan, I will end up positive because there were no emotions involved. I can demonstrate it easily with back testing over daily trades over a 1-2 years period on any stock.

My trading plan is based on the following assumptions:

- stock markets move with a trend and often overshoots. The main objective is to capture the trend early when it changes.

- I will take risk to catch the trend early establishing tight stop losses. It may take a few attempts before I can ride on a trend. Support, resistance and multiple time frames are used to establish the change in trend.

- Once on the trend, always take profit on the way and get out when the market clearly shows that it has changed. If wrong, I will not hesitate to get back on the direction of the trend again.

I will elaborate more as I continue to blog.

It is my sincere hope that his blog will help people who are seeking to manage their own money.

Trading is a complex task with multiple factors of technical, emotions, fundamentals and probability in play. It is fun and challenging because it really make use of all your fundamental knowledge, technical skills, temperament, risk profile and psychological stability competing against the very best to win.

It is my objective to make oversize returns in the market so that I can deploy the money to support my relatively simple lifestyle. Money making is not the primary objective. I have clear purpose in life. Having money, however, will allow me to fulfill meaningful purpose I am establishing for my life.

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About Me

An engineer by training graduated with B.Sc (hons) and MBA from Strathclyde university in Glasgow, Scotland. Started as an engineer in R&D for 3 years with Philips. Then, worked with DuPont for 13 years. Last job was VP, Marketing for Asia Pacific. Left to start a number of companies in various segments which include a large electronic distribution, a VoIP provider, an internet trading portal in Australia,and an executive training consultancy firm. Have listed companies in NYSE, Australia Stock Exchange, Singapore Stock Exchange Main Board. I was on the Board of Directors for 1 company listed in Thailand, 1 in Singapore and 1 in Australia. Was in the senior management of a company listed in NYSE. Still holding major share positions in the VoIP and Executive training companies. Both are private companies.

Disclaimer

These articles merely reflect the opinions of this author and are by no means a guarantee of future economic conditions, market or stock performance. Though the author strives to provide accurate and relevant data, he sometimes relies on external sources and cannot assure the reader of the accuracy of these external sources. Additionally, these articles are provided for INFORMATIONAL PURPOSES ONLY and are NOT MEANT to provide investment advice to anyone. For investment advice, please consult your professional adviser.