Tuesday, September 22, 2009

Trade For A Living (TFAL) Stocks FX - Michael Woo

http://www.tfal.com.sg/ Trade For A Living (TFAL)

CEO and Cheif Trainer Michael Woo is a qualified accountant with 40 years of financial experience behind him.

Michael acquired his trading skills by attending various seminars & workshops in the US on investing & trading, but most importantly, he spent countless hours on research into what makes a successful trader. He obtained most of his inspiration from people like William O’Neil, Richard Dennis, Ed Seykota, Linda Raschke, Peter Lynch, Warren Buffett, Dr Van Tharp, to name just a few.

An opportunity then came along where a large US investor education company - Investools, was looking for someone in Asia to teach their methods. Investools then set up an office in Singapore & Michael became the 1st instructor in Asia to teach people the art of investing in the stock markets. Subsequently he was also engaged as an investment instructor for three other US Institutions, namely Business Week, CNBC & Teach-Me-To-Trade. Other than conducting investment seminars in Singapore, he also taught in Hong Kong, Indonesia & Malaysia.

The demand for investors’ ducation was growing so fast that many new locally set-up companies started jumping onto the bandwagon. In 2004, Michael decided to establish his own school and formed Trading For A Living Pte Ltd.

Fundamental Analysis - is a process of determining whether or not a particular company is a good investment. It focuses on all factors that determine the price and real value of a stock based on its earnings, assets, dividends etc. Fundamental Analysis will reveal the good and bad, thereby reducing risk and emotion in making an investment decision.

Technical Analysis - TA is the study of historical price patterns and volume characteristics through the use of charts and indicators to predict the future price of a stock. It is the study of trends where price movement is more psychological than logical. This course will introduce a special combination of indicators to time your entries and exits allowing you to get in at the bottom and get out at the top.

Searching For Stocks - How do you find stocks?
Powerful search engines from the worldwide web.
Pre-built stock screening searches make it easy to screen stocks
Search for stocks according to your criteria.
Find stocks easily with no emotions attached.

Navigating Your Trading Platform - Total hands on approach in order to put on a trade. How to configure your trading screen to give you the optimum and fastest way to trade. You will learn about the various times in force, types of trades, stops, trailing stops, how to buy, how to sell and how to put on combination trades.

Setting Up Your Charts and Candlestick Charting - Detail explanations of all necessary indicators to be used in determining swing and pivot points, support and resistance thus giving you entry and exit points and stop levels. How to configure and save all these indicators on your charts so that these are there ready to be used whenever you need them.

Candlestick charting technique is almost exclusively used in Technical Analysis as opposed to bar charts. Traders normally concentrate on candlestick charts made up of daily and intraday data to forecast short-term price movements. Investors normally focus on weekly and monthly charts to spot long-term trends and forecast long-term price movements. Longer-term investors will use longer-term charts (typically 1-5 years). Others may combine both long-term and short-term charts. Long-term charts are good to get a broad perspective of the historical price of the stock while a daily chart can be used to focus in on the last few months.

Trends and Advanced Charting - First thing is to identify a trend with swing points. A swing point is where a stock pivots off. A high swing point is a point surrounded by two lower high points and a low swing point is a point surrounded by two higher low points. An uptrend is a series of higher swing highs and a series of higher swing lows ie higher highs and higher lows. An uptrend line consists of three or more higher swing lows. A downtrend is a series of lower swing highs and a series of lower swing lows ie lower highs and lower lows. A downtrend line consists of three or more lower swing highs.

Covered Calls, Combos, LEAPs - A covered call is a combination of 2 trades: purchase of stock and sale of a call option on those shares. This is why the position is a “covered” call - the stock you bought covers the call sold. Covered Calls allow you to generate monthly cash flow from stocks you own. The income (option premium) you receive from selling the call option gives you some downside protection should the stock drop.

Money & Risk Management - Recognize that in the equity markets there are both risks and rewards. Do not expect quick profits and to double or triple your money overnight. The markets do not offer get rich quick schemes. What you want to achieve is to make consistent profits in the long term. Position sizing is absolutely essential as is the discipline not to overtrade. The first rule of trading is to always use Stops.

Trading Psychology - Trading is an art form and is about probabilities. There is no magic formula. A trader must be in the right frame of mind before he sits down to trade. You have to be in complete control of yourself and be totally disciplined. Discipline is always the key. This will allow you to achieve a state of impartiality where you will be able to accept losses as readily as accepting gains. Fear and greed is taken out of the equation.

Vertical Spreads - A vertical spread involves the simultaneous purchase (long) and sale (short) of options of the same class (call or put) and expiration date but at different strike prices. A vertical spread can be considered a hedged strategy; where the cost of the purchased option is partially offset by the premium received from the written option. It basically functions to limit risk at the cost of limiting profit as well.

TAB Market Timer and Divergence - Whoever said you can’t sell tops and buy bottoms has never traded with the TAB market timer. TAB stands for tops and bottoms. The TAB uses a combination of the RSI, Slow Stochastics and the EMA to identify entries and exits.

Divergence is a very powerful indicator because of its potential to indicate an impending trend reversal. This will assist you in anticipating a stock reversal ahead of it actually occurring.

Gaps & 10am Rule - What are Gaps? A hole/space of price action in a chart. Gap Up is when the market or a particular stock opens higher than where it closed the previous day. Gap Down is when the market or a particular stock opens lower than it closed the previous day. Market will over exaggerate sentiment often and sell off too much, same as it will buy too strongly on good news. Stock prices are exaggerated at the open one way or the other, and thus if we are GAPPING UP, it is often an exaggerated price move.

Short Iron Condor - It does not occur to most people that a system of simultaneously buying and selling options might be even less risky than owning the stock. This is the case, but most people never take the next step and learn the truth. The truth is that a properly-executed options strategy is considerably less risky than the purchase of stock or a mutual fund. However, it takes work. You will have to learn a little about how options work, and be an active part of the investment process. You can’t plunk down your money like you do with a mutual fund, and passively ignore your investment.

Fibonacci - A basic application of retracement levels according to the Fibonacci ratios. We will also look at levels beyond retracements like projections, extensions and expansions. You will learn the wrong way and the right way to apply Fibonacci and also how to actually draw such Fibonacci levels on your charts. Used for entries, exits, stops.

Trading Off An Inside Bar - Whenever a stock is consolidating into a tight range of low volatility an inside bar might be formed. A stock will always explode out of a tight range. A stock will not explode out of a range that has already run up. There is always more profits to be made when you catch a move out of low volatility.

Shorting and Single Stock Futures - You sell a stock to someone in the hopes that it will go Down instead of Up. If it goes down you make money. If it goes up you lose money. Stocks tend to fall faster than it takes them to rise thus it can be a great way to make money.

A single stock futures (SSF) contract is an agreement to buy or sell 100 shares of a particular underlying equity at some point in the future at a price determined today. All futures are derivatives, ie their price is derived from another instrument such as commodity, currency, equity or index.

2 comments:

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