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


Options Trading said...

looks like this new trading system safer than the gapping system. Please share more based on your experience.

Tony Chai said...

Hi :

As mentioned, this is a swing trading system which picks stocks to trade following the current trend of the market.

I would update my progress with this system as I accumulate more experiences with it.

Thanks & Best Regards,

Tony Chai

Anonymous said...

Good dispatch and this mail helped me alot in my college assignement. Thanks you on your information.

文章 said...


Bruce said...

so how's your star trading system doing lately?

i was a student of Jason once. But I didn't have enough money to continue subscribing to the monthly data feed (I was a student only!) so i stopped.

if it's still good, i might consider rejoining...hope to hear from you.

Tony Chai said...

Sorry Bruce, for not replying you earlier. I was just going thru the spam folder and founder your comment inside.
Currently I am trading spot gold using the auto-trading EA taught by ETP Singapore.
Not much trades since I set the entry conditions rather stringent. But at least I'm preserving my capital.
Tony Chai