Sunday, December 07, 2008

Training Up to Be a Better Trader

Greetings Fellow Options Traders :

It’s been almost 5 years since I started trading stock options. I’ve decided not to trade the earnings gapping analysis technique any more. It has too much 50/50 elements of chance involved in it. I’ve experimented with many different indicators to predict the anticipated direction of gapping after earnings but alas, these indicators did not point to the correct direction of gapping consistently.

When trading this technique, I have to treat every position as potential 100% losing trades because most of the time the option would become worthless once the stock price gapped in the opposite direction after earnings announcement.

I’m currently attending Mr Michael Woo’s TFAL trading course and I’ve almost completed it. In my opinion I find Michael’s course provides the soundest foundation for anyone who truly wish to embark on the journey to become a serious, professional trader. The course is divided into 20 lessons (2-hours each) spread over 5 months. Michael's lessons encompass mainly on the skills of technical analysis. He taught us some very good trading setups based on certain technical indicators and/or chart patterns recognition. I felt the most important point that he has driven home was stressing the need to wait for price confirmation before entering any trade. Let the price action determines the entry instead of entering a trade prematurely even though you might have spotted a fantastic trading setup. Michael's course also covers other significant aspects of trading like money management, trading psychology & trade management.

Michael said to be a successful trader is easy as long as one follows the trading rules. I felt that these words were a great wake-up call to most of us since we would have, at certain points in our trading journey, allowed our hard-earned capital to be devastated by our in-disciplined trading habits like impatience, over-trading, not using & sticking to stop loss etc.

Currently, I would like to take some time to train up the trading methodologies & other aspects of trading that I’ve learned from Michael's course. I would certainly return to share my trading experiences once I’m ready.

Best of luck in your trading.

Yours Truly,

Tony Chai

16 comments:

Wayne said...

Yes, I also wanted to attend Michael 's TFAL program....
Trading earning...too bad...like you said...50/50 game...

Daniel Ng said...

Hi Tony,
Just stopping by to say hi to you, i am glad to see you posting again and happy to knew that you have equip yourself with new knowledge, looking forward to see you share about your learning and knowledge here.
Take care!

Tony Chai said...

Hi Daniel & Wayne :

Thanks for dropping by.

Wishing You a Merry Christmas and Prosperous, Healthy 2009 !!!

Tony Chai

Jacklyn Ker said...

Hi Tony,

I know you and your blog through MyBlogLog. Thanks for visiting my blog. Hope you have enjoyed your journey there.

I am very inspired by your determination to move on in life regardless what life has to come. Have you heard of Nick Vujicic from Australia? I blog about him too. You are an inspirator just like him!

Jia You! And I hope to write about your inspiration one day.

Love, Jacklyn Ker

Tony Chai said...

Hi Jacklyn :

Thanks for dropping by.

I know I have physical limitations but I try to overcome my obstacles to the best of my ability.

I felt good to be able to help others at times. I'm glad to have met up with former grads in these past few years although I felt my sharing couldn't really improve our success with the earnings gapping technique.

I hope to apply the correct trading technique now and inspire others to adopt the correct technique in the future :)

Regards,

Tony Chai

Anonymous said...

5 years being misled by Clemen Chiang's freely course playing earnings gap and finally attending a real trading course. Best to your trading. Now we know the Dr Freely bought his phD.

Online Options Trading said...

Michael Woo? i've never heard abou him before? is he that good?

Tony Chai said...

Hi :

You can find out more about Mr Michael Woo's course at

http://www.tfal.com.sg/

Regards,

Tony Chai

Tony Chai said...

Hi Anonymous :

earnings gapping analysis has too much 50/50 elements of chance involved.

Preferred a technique which shows me high probability of success but only enter a trade once there's a price confirmation. Would then manage the trade with immediate stop loss.

Regards,

Tony Chai

Covered Call said...

Although you have traded options for 5 years and found out your strategy is not working, you didn't give up. Two thumbs up for you.

Thomas said...

Hi Tony,

Great to see you moving forward with new trading strategies. Let's share with us after you have applied it.

And, do you know what happened to Joul Ooi's options trading blog? Do you know what happen to him? He used to shared great trading results.

Thomas

Tony Chai said...

Hi Covered Call :

If the strategy is not working, I guess I should not be blinded to presume that if I keep doing it, it will eventually create successful results. On the other hand, if a strategy is workable, I don't think I should re-invent the wheel either. I just have to follow it and keep practising till I've accumulated enough experienced with it. And never forget about stop loss & money management.

Dear Thomas :

No problem about the sharing of experiences.

Yes, I've realized Joul's blog is inaccessible. Hope he could invite us to access his blog if he sees this.

Regards,

Tony Chai

Hi! I'm Grace said...

Your post is very informative. May your life is filled with good things.
Have a nice weekend. :)

Tony Chai said...

Hi Grace :

If there's one thing that you can take from this entry, that will be :

Be patient to wait for the trading setup (yes, it might take days,weeks or even months) which will give you a high probability of winning & then wait for the price confirmation before entering the trade.

I believe this is Michael's and most good traders' invaluable advice for a more successful trading journey.

Regards,

Tony Chai

Investing said...

His training style is different from most of option gurus. Hopefully, Michael Woo training program would be the answer for my trading problems.

Merry Christmas and Happy new year.

Tony Chai said...

Hi :

Remember to give yourself some time to practise what you've learned.

Regards,

Tony Chai