Keane started with a review of past gatherings. He said those of us who did not trade and rode the trend have to feel guilty for the wasted opportunity. He felt that these people still have a lot of fear in them. To eliminate the fear, he suggested a few options:
1) backtesting – based on past price data, observe how you would do if you buy at every break peak and sell at every break trough for an uptrend stock (or even sideway stock like Capitaland). Although there maybe many cut losses, but in the end you will still make money. He recounted the story during the last gathering, “3 feet short of gold”, where the gold digger gave up. If he persisted by 3 feet, he would have got the gold. Persist and be as mechanical as possible, do not second doubt the system because your emotions cannot be as consistent as logic. Once you are convinced of the backtest results, you will feel more confident.
[Personal thought: I remembered one of the successful T3B members said in her success story, "break peak buy, break trough sell. Other things I do not care".]
2) attend mentor session – learn from the mentors and senior T3B traders. You can consolidate your learning if you attend mentor session regularly. It is also about the energy and emotional support during these sessions. No man is an island so do not trade alone. Small fish swim in groups.
Are there any more upside in this bull market?
Yes. Keane mentioned about the Coppock curve previously. 47 out of 50 times the Coopock curve turns, the market supercedes it’s previous high. Now we still have 25+% away from the top.
Anyway, he believed that we should not read too much into the indices and the news to trade. We get very affected by them. Especially the newspapers are always very misleading and enhance the fear in us. Sometimes, we think too much and that is how doubts arise. Just follow the rules and trade!
Do Long & Short at the same time
This is a phase in the bull run where good stocks continue to go up and “cursed” stocks continue to go down. We should go long and short at the same time. If the market turns down, we are already in good profits with the short positions. It is a form of hedging. (if you are doubting, you are thinking too much)
Take care of the downside and the upside will take care of itself
Rich people like Donald Trump and Sheldon Adelson have failed many times in business. The most important lesson they have learnt is to take care of the worst in business. Always think about how much you can lose. Keane shared his story about playing table ice hockey with his son. His son asked him why he always win. Keane explained that he was always concentrating on defending while his son was focused on attacking. By attacking, his son was exposing his goal to a large extent such that there are many ways for the hockey disc to leak through to his goal. Like his kid, we are always focusing on how much we can win. In the end, we are not prepared psychologically when we cut loss. We get so emotional about the loss such that we cannot make the next trade, which can be the real break.
[personal note: one good recent e.g. for myself is OSIM. I wanted to long it after it retraced from a great uptrend. I caught the peak but it was one step earlier. It broke trough. I did not go in the second peak which proved to be the right one. One feet short of gold for me. This is what happened why I try to be discretionary on my trades. No one can outsmart the market]
Lastly, Keane quoted Tom Krause, “there are no failures, just experiences and your reactions to them.” It just reminded me of the formula that Jack Canfield used, E + R = O, which means Event + Response = Outcome. Events will occur, but we should not look at it in a bad way. We should instead ask ourselves what are we going to do about it so that we have a desirable outcome. Keane shared the example of a newspaper article on SMRT ridership went up to 2 million mark. Most people responses will be complaining about the congestion and crowded cabins. Keane will look positively at the news, which imply that he can buy SMRT stocks and share the profits. What outcome did the complainers have? And what outcome would Keane have?
Switching broker
Those with MFGlobal knows that our funds are no longer safe and segregated. T3B has found an alternative broker from Australia, Kinetic Securities. Some better features of KS is that 1) add stocks to short – conveniently done via phone call 2) cash market and CFD in one account 3) “if-done” order available – we can immediately initiate a stop loss order after our entry order is done.
IF YOU HAVE SPARE CASH…
Property Mastery System – consortium to buy land or old houses in Singapore
US Distressed Properties – consortium to buy in US foreclosed properties from the bank and flip for profits
Renminbi - park your spare cash in RMB fixed deposits at Bank of China
FX Cashflow System – an algorithm trading system which places trades for you automatically. The algorithm will not disclosed to you but it is simply basing on price action and thrives on volatility. It is currently offered to T3B members for free. The agreement is that 20% of your profits are to be given to the ICT Technology Group who formulated this system. If you do not have profits, they will not take your fee. You can only use it with Kinetic Securities Metatrader 4 platform as they are an ECN forex broker. A market maker will destroy the effectiveness of algorithm trading. Keane suggested minimally to invest US$5k so that in the event of account drawdown, you still have enough capital to break even and make profits. Another thing is that you would need to on your computer 24/7 or subscribe to a virtual server for US$60/mth to keep the trades running automatically.
If you have large capital, it makes sense to diversify into any of the above mentioned investments.
If you have limited capital, Keane suggested you should just trade stocks. It is an important skill to learn. He do not want us to be lazy, just put the money into FX Cashflow or properties and wait for the fish. He wants us to learn how to fish.
You may also like:
- T3B Gathering 24 Jan 10
- T3B Gathering 5th Apr 09 – Wealth Creation Portfolio Management Part 1
- Olam (long) – closed on 10 Dec 09
- Suntec REIT (long) – closed on 22 Jan 10
- Lessons Learnt as a Trader (so far) Part 2
- UOL (long) – closed on 11 Jan 10
- Protect Yourself Against Irrecoverable Loss
- Venture (long) – closed on 22 Jan 10
Discover the Secrets of Singapore Trading Gurus!
Interviews with Singapore stocks, forex, futures and options traders and trainers! This book is written for you:
- learn how professionals trade
- discover their strategies, money management and approach to the markets
- understand their stories and motivation behind trading
- know your trainers before attending their courses
{ 16 comments… read them below or add one }
how much is the T3B course fee?
is it auto pilot, as in, automatic buy at the price you set, and sell at the price you want to profit or cut loss?
how much is the T3B course fee?
is it auto pilot, as in, automatic buy at the price you set, and sell at the price you want to profit or cut loss?
the course is about 3k.
Not auto pilot. You need to make decision and selection of stocks. But it does have rules to follow.
the course is about 3k.
Not auto pilot. You need to make decision and selection of stocks. But it does have rules to follow.
Hi Alvin,
what I meant by auto pilot, is after you have set your buy price (and you manage to get the trade successfully at that price), can you also set the sell price (and it is able to sell at the price(profit/loss) you are after)?.
Kind of semi auto-pilot, like auto trading for forex, where you need not monitor the price, since it is traded 24/7, 5 days a week, over different exchange like london, us, japan etc
Hi Alvin,
what I meant by auto pilot, is after you have set your buy price (and you manage to get the trade successfully at that price), can you also set the sell price (and it is able to sell at the price(profit/loss) you are after)?.
Kind of semi auto-pilot, like auto trading for forex, where you need not monitor the price, since it is traded 24/7, 5 days a week, over different exchange like london, us, japan etc
Hi Alvin,
from your acticle,you mention that 25%. Do you mean its STI still got so much to go to its top???Pls advised
Hi Alvin,
from your acticle,you mention that 25%. Do you mean its STI still got so much to go to its top???Pls advised
SC – You can set stop orders for buy and sell which will ‘automatically’ execute for you. The broker must offer this function. The trading system does not do it for you. T3B is not a robot.
Alan – I think it does not matter who predicts how much more the market can go up. In fact, I do not think anyone can. So it is better to have a method that can give you an edge in the market and not listen to what other people say.
SC – You can set stop orders for buy and sell which will ‘automatically’ execute for you. The broker must offer this function. The trading system does not do it for you. T3B is not a robot.
Alan – I think it does not matter who predicts how much more the market can go up. In fact, I do not think anyone can. So it is better to have a method that can give you an edge in the market and not listen to what other people say.
buy buy buy….i am thinking of putting another 50k into the markets….and wait forver like warren buffet!
buy buy buy….i am thinking of putting another 50k into the markets….and wait forver like warren buffet!
Is T3B system of stock trading can be made applicable to Australian stock exchanges?
Is T3B system of stock trading can be made applicable to Australian stock exchanges?
I have not tried personally but the system is used in US, Malaysia, Indonesia, HK and SG markets.
I have not tried personally but the system is used in US, Malaysia, Indonesia, HK and SG markets.
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