Saturday, January 30, 2010


As traders, fear and greed are the two emotions that we commonly handle in our trading decisions.

But I believe another emotion that we also sometimes experienced would be - anger.

Most traders have learned to be calm and sensible during trading. But there would certainly be times times when we fumed at missing out a fantastic trade, for not buying more contracts of a great trade, or frustrated for committing that same trading blunder again.

We would blame just about anything or anyone when our trading suffered. Somehow we didn't realize that the anger have originated from us.

I recently read a book called "Zero Limits" co-written by Dr Joe Vitale & Dr Hew Len. The book was quite an eye-opening read. It mentioned that we are the one who are fully responsible for any circumstances which are happening within & around us.

When we encountered another person pouring out his or her frustrations, whether they were meant for us or not, we should accept that we were partly responsible for that happening, since his or her frustrations had come into our lives.

Naturally, we are responsible for our own anger too.

The way to resolve this would be, strange it may sound, is to keep cleansing ourselves by constantly repeating the phrases "I love you", "I'm sorry", "Please forgive me" and "Thank you" to ourselves.

According to the book, these are simple but powerful words that we convey to the Divine. We connect to the Divine by expressing our love and gratitude to him. At the same time, we seek the Divine's forgiveness of our wrong doings.

Saying these 4 phrases will cleanse the memories of greed, fear and anger associated with anything (including trading) as we give in to the Divine to handle the situation for us.

We would experience a peace of mind that the Divine is taking care of us. Another positive outcome of cleansing ourselves is that we are now open to receive the inspirations from the Divine for us to act upon.

I encourage you to read more about this ancient Hawaiian practice called Ho'oponopono from "Zero Limits" to experience this positive feeling.

I hope that in time you will gradually banish your anger not only in your trading but also in other parts of your life.

"I love you", "I'm sorry", "Please forgive me", "Thank you".

Zero Limits: The Secret Hawaiian System for Wealth, Health, Peace, and More


Tony Chai

Wednesday, January 13, 2010

Swing Trading

Dear fellow traders,

I have totally stopped trading the earnings gapping technique for a while.

It is a highly unpredictable way to determine the price gapping direction after a company's quarterly earnings - which is more like a gambling strategy where you hope one big hundred percentage profitable trade could cover a few losing ones.

But in the long run you'll never grow your capital trading this way - mainly because each trade you take is an expensive one, where option premiums will normally cost more before earnings since they are inflated with high implied volatility. If the stock price gapped in the wrong direction or gapped too little, you'll lose the whole premium because that's when volatility crunch (ie. loss of all implied volatility in an option premium) kicks in after the earnings are announced.

I've currently switched to a swing options trading system which, in my opinion, is a more logical way to trade the US market. I'm referring to the Star Trading System. It's a step-by-step way to trading where :

1) you first check the trend of the market and trade according to this trend (not against it)
2) scan for qualified stocks to trade according to this trend
3) filter out suitable options to trade the stock(s) using the leverage power of options
4) check the rules for entry and once a trade is qualified and executed, a stop loss is set immediately
5) set a profit target immediately or hold on to the trade to milk a bigger profit until an exit chart pattern occurs
6) once a trade is made & the stop loss (and the profit target) is set up, you just switch off the pc and let the trade run

Detailed criteria & rules for executing the above steps would be given to you.

Unlike most options trading systems that you can buy online which you only get an e-book or training videos without much training support, this swing options trading system is packaged in such a way that you get not only an e-book but also daily email lessons (for a month) to provide you with additional materials beyond the e-book.

In addition, Mr Jason Ng, the creator of the Star Trading System, would also provide a one-to-one MSN mentoring service to you for 15 mins. every trading day for a month to make sure that you fully understand how to apply this swing trading system.

I have paper traded this technique for about 2 months and I've found 80% of the trades to be successful. But due to the terms of conditions I couldn't display the options trades here. I find the system logical and take the guess out of trading thus I have just started trading real money with it.

But do not treat this as a get-rich-quick system as you do need to put in efforts to carry out the steps mentioned above. But they would take less 30 minutes a day or less once you're familiar with the steps. And believe me, Jason have made every steps simple so that they would not be too difficult even for a beginner trader to follow.

Also, do not expect this system to produce 100% winning trades every time because frankly such a system don't exist. I target about 15% to 25% profit for every trade and would only aim for more profit when I feel I'm more proficient with the system. What I like is that the system keeps the trade in check since the stop loss is in place once the trade is put up, meaning I don't have to monitor the trade every hour of the day.

I find the course affordable since most of the trading workshops in Singapore cost at least S$3,000 to attend.

Mr Jason Ng is the President of Masters 'O' Equity Asset Management. He is also The Chief Option Strategist / CEO of the hedge fund "Master's Capital Inc.". He developed the "Star Trading System" and described the system as "the most objective, accurate and consistent, technical short term trend riding strategy that has ever existed". He even provide a LIFETIME Money Back Guarantee if you find that the system has not improved your trading.

If you still do not know what you're doing in your trading, why not give this swing options trading system a try - it may just change the way you trade from today.

Get the Star Trading System here.

Thanks & Best Regards,

Tony Chai

Related Posts
What is Swing Trading?
Why Options?
Money Management
Options Trading Risks

Here are the links to Jason's other informative web-sites :
Daily Market Analysis
Options Trading Knowledge