The market is filled with full of great temptation. The temptation to make even more money from the market is very real. Today as i have made a couple of bucks from the forex market, I was really tempted to dive into the market even though it is not according to my trading plan. I turn to blogging instead of looking at the trading chart.

How do I counter the temptation?

Write up a trading plan
The trading plan will act as a defensive wall against any temptation. It serve as a warning and a guide for me. Without the trading plan, I will just be like a cowboy shooting any target and most likely i will end up with nothing in the end.

Shut off the computer
This is a good way to pull myself out of the temptation. It is also the most efficient and easy method. I just need to press the shut down button on the computer and there goes the computer. This will really kill off the temptation at least for a while.

Keep myself occupied with other work
After a while, I will feel very tempted to switch on the computer to check out the price to see if my judgement is correct. This is bad as if my judgement is correct then i will then to convince myself that today is the day to make a killing. Thus the next best method is to keep myself occupied for at least a couple of hour. Usually i will be either blogging, playing games or do some reading.

The above 3 methods work pretty fine for me. So i hope it will work pretty good for you guys too. Do not be greedy and fall for the temptation. Trade with a clear and cool mind.

Today i went down to Suntec City in Singapore for the Invest Fair. I was at the Adam Khoo Booth helping Conrad to promote his course and give awareness to the public. I got to interact with quite a lot of people. I love to interact with people (stranger) to find out what they really want in the market.

I guess many people get out off by me when i tell them the truth in the business of trading/investing world. I told them that at least they need to practice for 6 months to 1 year in order to be profitable. Most of them will quite disappointed and give me the “Sian Look”. This is because i think a lot of people are looking for quick and sure fire method in making money. People have the wrong concept that the stock market is a place with EASY MONEY …

This is absolutely not truth!!! part of the fact is that there are many so call gurus selling dream to people instead of teaching them the real stuff. Sad to be said … Reality is hard to accept and sometime it may seem to be a crush in the face. I rather put people off then killing them in the market.

People who really succeed in this business will have these following qualities …
- Discipline
- Passion
- Fighting Spirit (Never give up attitude)
- Patience
- Hardworking
- Strong Believer in yourself

Discipline is the key factor towards the success of trading/investing. Lack of discipline will result a bigger loses when you hesitate in cutting lost or when you enter a trade too early. Discipline no doubt is the bigger key deciding factor in any kind of field.

You need passion to drive you towards the success that you are hunger. You need the passion to do the boring job yet very rewardable at the end of the trading journey.

Tough time come you need to press it on. Never say quit attitude!!! Most of the Good Trader or Investor will experience a major downfall before they succeed in this business. If they did not fight back again then they will never succeed. Once again tell yourself press it on till you succeed.

Many people including me lack the virtue of patience. Trading and investing require plenty of patience as most of the time we are waiting at the sideline and let the newbies to kill each other. Once the market decide to go in the trend then we as a professional trader and investor will act upon it very fast. Being Patience alone will save you plenty and tons of money.

The more sweat you put in the greater reward you will get. Then again if you are doing the wrong thing every time again and again, this mostly likely tell you that your system of trading is not working and thus you need to change. There are a big different between hardworking and just stubbornly sticking to the failed plan. If the system of yours is CLearly not working after you put in months of efforts then you should just change your strategy.

Last but not least you need to strongly believe that you will be able to take money out of the market consistently. Believe that your Tested system will be able to last as long as the market condition do not change much.

I’m really very worried for the youth nowadays. Most of them spend money like nobody business. This is especially so in Singapore and the parent spoiled them with money instead of love.

Singapore used to be a fishing village not too long ago. One of the main factor contribute to the rapid growth of Singapore is due to Saving. I still vividly remember that when i was in primary school, the government encourage the citizen to save money even if you are still a kid. I can also remember the commercial by POSB with the their mascot. A saving country like Singapore spur up very fast and becoming a Rich Country in a matter of less than 50 years.

Learn To Manage Your Finance First Before You Start To Invest

You have to really start to invest since young. The very least you can do is to save 10% of your allowance or whatever money that you can grab hold with into a piggy bank. You can also start to read book about managing your finance.

Well most of the people including me only think about investing investing investing and nothing else … The truth of growing your wealth is rather how your MANAGE it. There is no point of knowing the skill of investing or trading yet you mismanage it and spend all the money.

Thus besides knowing the technical aspect of trading or the knowledge of investing, You still need to learn basic personal finance. Believe me … I have seen too many people lose back all the money that they made from the market as they just lack of the skill in managing the finances.

Personal Finance 101 …

Set aside 10% of your income (pocket money, prize money or whatever …) to INVEST in YOURSELF every MONTH …

I will be starting a series of Winning Trading Habit. I always find that to be successful in trading or investing, you always need get your mindset and habit right. What really differentiate a Master Trader and a Novice Trader is their habit and mindset. Without further ado, i will present you guys the ultimate and the most important habit that needed to be successful in the market.

No 1 Winning Habit - Preservation of Capital

It simply means that you do not lose money to the market. If you did not lose money to the market, then in long run you will be able to make money from those people who lost the money. Some of the famous investors quotes are base on this winning formula.

Rule No. 1 - Never Lose Money
Rule No. 2 - Never Forget Rule No. 1
- Warren Buffett

Survive first and make money afterwards
- George Soros

If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.
- Larry Hite

It is always easy to make money but to keep money is very difficult. People tend to look for entry without thinking and setting the exit. Whenever you go into a trade, you will need to have an exit price. Cut lost fast to preserve the capital. It is fine to lose a battle as long as you win a war. Look far ahead instead of near target. We will always make mistake and lose money. It is part and parcel of the game. The main thing is to make money at the end of the tunnel.

Trading or investing is always related to gambling. So what is the different between Gambling and Trading? Actually there are a lot of different between the both of them yet somehow or rather they are quite similar too. Well when you do not know what you are doing, then you are gambling. This is because you enter a trade base on hope and luck. Gambling in a casino is no different as you hope that you will get the best card or the roulette’s ball will hit at your stated price.

Professional Gambler always make money from the casino. This is because they aim to make a sum of money first. Then after they have make the money, they will use the money to play which will reduce their risk as they preserve their capital. So the most they can lose will be other people money. Playing with other people money will reduce the fear in them.

It is the same concept in trading. Make use of the money that you have make from the market to grow more of it. Trading with winning money will reduce your fear. Preservation of Capital is extremely useful during the bear market as Cash is King. There will be tons of opportunity(stocks) out there for you to buy. Usually people crash and burn during the bear market, thus they fail to capture the opportunity present to them in the bear market.

There is a saying… If you stay in the market long enough, you will be lucky enough to make a sudden windfall. I have been trading for the pass 20 months, I have experience a few windfall during this period of trading. TTWO, GS, GOOG and other have already give me a surprise windfall. I almost make tons of money on BSC put just before the drop from 60+ to 2 dollars. Even in this bear market, My account still up by as high as 15% and now is ding donging at 5% to 10%.

So Trade to trade well …
Preserve your Capital …
If you don’t lose money, money will come to you …