Saturday, March 30, 2013

Online Guru Trader - Thomas Kum Wah Yin

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About 13 attended on 30-Mar-13 1.30pm-4.30pm at 6 Battery Road #20-01.




Formula for Financial Freedom
  1. Earn more than you spend
  2. Invest the difference
  3.  Re-invest for compounding results

10 Year Investment Returns (Real Return) by asset class
Gold                         509%       (408.5%)
Singapore Equity      119.5%    (101.9%)
Singapore Property    77.5%     (46.3%)
Global Equity             65.2%      (32%)
Fixed Deposit             8.8%       (-10.2%)
Saving account           2.5%       (-12%)

OGT (online guru trader)   4% per month and 48% per year.

Capital Size minimum USD5,000 to USD20,000.

Why Invest?
  1. Beat Inflation
  2. Purchasing Power (in real returns)
  3. Income

Which to Invest?  Risky or Safe?
  1. Index
  2. Futures
  3. Commodities
  4. Forex
  5. Stocks
  6. Options
  7. CFD

Cover-call Option Strategy
Buy Stocks and sell stock call options to achieve 5 to 10% return (on stock price)

If stock price move up, the profit on stock enough to cover the call options premium
If stock price move sizeway, keep the profit on call options premium
If stock price move down options expired worthless get to keep the total premium

The only time this strategy fail is if stock price move down a lot, the options premium will not be enough to cover the stock price loss.


When to Invest?
Timing is everything.

How to Invest?
Fundament and Technical

Fundamental
  1.  News
  2.  Earning Growth
  3.  Annual Reports
  4.  Potential Earnings
  5.  Earnings to Price Ratio
  6. Analysis Reports

Technical
  1. Indicators
  2. Price Action
  3. Mass Crowd Psychology
  4. Value vs Price

Tradingview.com
Thomas using tradingview.com for charting. It is Free!
Template using MA21 and MA100 cross over with MACD histogram cross over zero line.

Success in Trading
  1. Psychology of the Mind
  2. Systematic Method
  3. Money Management (Risk Control)

Two web-site to check investment climax

Profitable trades past few months
Newfield Exploration (NFX) bought US33.83 on 22Oct12 TP at US31.40
Boeing (BA) bought US 69.60 on 7Nov12 TP at 77.98 SL 69.02
Philip Morris (PM) bought 2Jan13 at US84.50 TP 85.36 SL 64.50
Merck & Co (MRK) bought at US41.30 on 11Feb13
Exxson Mobile (XOM) bought at US88.60 on 19Feb13 SL 87.60

The only one still open trade but floating loss is Broadcom – recommended to buy now as still not move yet.
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Thomas launched his OGT website in 2011 after perfecting his proprietary trading system,  after attending numerous trading courses,  after incurring years of trading losses,  and after countless hours of research, introspection and back-testing.
Thomas investment vehicles comprise spot forex, stocks, gold, CFD, futures and options.  He ignored fundamental analysis or news breakout.  He used price action together with moving average crossover (SMA 21/100) for trend direction and MACD Histogram (26,12,9) for timing. 

Upon further probing, Thomas disclosed that he used an array of eight checklists for his setup, entry and stop-loss.  However, he was only willing to share the following two parameters at this juncture:

For setup:  Get ready to Long when SMA(21) crosses above SMA(100).  Get ready to Short when SMA(100) crosses below SMA(21) for trend direction.
For entry:  Long when MACD Histogram (26,12,9) bars start to rise toward 0 level.  Short when MACD Histogram bars start to fall toward the zero level.

Thomas ignored MACD line and its signal line completely.   Thomas claimed that this stringent system would trigger five trading alerts per month and have a success rate of 80%.   Besides having this field-tested trading Methodology, Thomas stressed that a disciplined Mindset and sound Money Management (i.e. 3Ms) were equally important to achieve a consistent and profitable return.   His goal was to achieve a 4% ROI per month (or 48% per annum).   He then walked us through his websitehttp://www.onlinegurutrader.com  and showed us his 2012 and 2013 trading prowess as follows:
Jan to Dec  2012 records           Jan to Mar 2013 records (3 months)
Total trades done.....112           Total trades done......24
Total Wins..................60           Total Wins.................17
Total Losses...............52           Total Losses................7
Win Amount.......$26,647          Amount win ........$8,801
Lost Amount.......$20,501          Lost Amount........$4,288
Net Profit............$ 6,146           Net Profit............$4,513
% Gain......................61%           % Gain....................45% (based on $10,000 start-up capital)
We could try his one-month trade-alert notification service free-of-charge by agreeing to do a 20-sec video testimony and by allowing OGT to use it for advertising purpose.  His trade-alert notification would include stock name,  contract size,  order type,  buy/sell entry level,  take-profit/stop-loss level,  amount gained if call-alert was accurate,  potential amount lost if call-alert was incorrect,  and maximum holding period between 1 day and 60 days.  We noted that his recent calls were focused mostly on US stocks.  There was only one call-alert for a Singapore stock (Liongold).
Off-the-cuff, Thomas hinted that STI would close at around 3500 level by end-2013 based on his URA residential property price and STI correlation analysis (90% correl).   He also hinted that gold would continue to be bullish over the next 10 years (after the current retracement) owing to rampant money printing and rising inflation.  To drive the point home, he flashed the ticking world's debt clock website.  http://www.usdebtclock.org/world-debt-clock.html
Thomas said that he had just completed an OGT workshop from 2 to 5 March 2013 (11 attended from the picture).   
Next intake would be on 4 to 7 May 2013 (9.00 am to 5.00 pm).  The course fee was haggled down from $11,173 to $2,999 (payable by depositing $500 booking fee plus $208.25 * 12 monthly instalments).   In addition, Thomas would throw in the following freebies:
1.  12-month trading alerts subscription service worth $2,388;
2.  12-month OGT live trading sessions worth $2,388;
3.  two 1-hour trading clinic sessions with Thomas (1-to-1 coaching) worth $1,398;
4.  re-sit the 4-day OGT workshop at a nominal fee of $500 to cover overhead cost;
5.  50% discount for an accompanying spouse or family member to attend the $2,999 workshop;
6.  life-time phone and email support;  and
7.  200% money back guarantee if a graduate lost money after following his OGT trading alerts faithfully for one year.


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