A series of video tutorials to help you get started! (In collaboration with TradeHero & SGX)

Video Interview with Spencer: The 20 Most Burning Questions

In this latest video series, watch as Spencer answers the top 20 most commonly-asked questions by new traders & investors!

For those just starting out, this will be a big help in avoiding a lot of “beginner pitfalls” which 90% of all traders get stuck at.

 

Here is the full list of Burning Questions:

  1. What is the difference between trading and investing?
  2. Do you believe in the buy-and-hold value investing approach?
  3. What is your long-term investment strategy?
  4. Trading is risky, shouldn’t I just buy stocks with good fundamentals?
  5. What is your trading strategy?
  6. What products should I trade? How many different products should I trade?
  7. What is the difference between TA (technical analysis) and FA (fundamental analysis)?
  8. Do you use fundamentals in your trading?
  9. What technical indicators do you use to trade?
  10. What type of charts do you use to trade, and what timeframe do you use? What is your holding period?
  11. How much capital do I need to start trading?
  12. How can I become more consistent in my trading results?
  13. How can I predict the price of a stock? How do I know when the price will turn and start going up/down?
  14. What is a good % return per year I should aim for? How much returns can I expect from trading?
  15. When should I trade? During the day, or the night? When is the best time to trade?
  16. How do you trade the news? What news should I look at and how can I profit from news?
  17. Is trading safe? Can I end up losing all my capital and more? How do you manage your risk?
  18. If everyone uses the same trading strategies (your strategies), will they stop working?
  19. What is the difference between trading for a fund and trading your own money?
  20. How can I get started on trading and investing? Any good resources?

Click here to download for free: http://bit.ly/2D9j6gk

15 FREE Animated Videos on the Basics of Trading & Investing

In collaboration with TradeHero (now Ayondo) & SGX (Singapore Exchange), we have developed a series of 15 animated video tutorials that will make learning fun & easy for all beginners!

I have been tasked as the mastermind behind the content, drawing from my knowledge of the 200+ books I have read and 10,000+ hours of professional market experience as mentioned in the video.

The videos are divided into 5 parts:

Swing Trading vs. Intraday Trading: Which is Better?

When it comes to trading, most people think that trading is stressful and boring because it involves staring at a screen the whole day and watching prices move, and then having to execute trades at lightning speeds to make any profits.

That is quite often what is shown in the movies, and very much dramatized.

In reality, there are many different kinds of trading, and here is a simple infographic depicting the main categories.

Source: Forex Useful

 

Generally, what you see in the movies tend to depict scalpers and day traders, which is the most stressful kind of trading. I myself tried it for a couple of years, but it started to take a toll on my health, which I decided was not worth the money, even though it was pretty good.

Position trading is more useful in timing the market to build your long-term portfolio, as I mentioned in my previous blog post: http://synapsetrading.com/2018/05/how-to-build-a-1m-dollar-portfolio-by-30-the-practical-stuff/

Hence, I find that the most useful kind of trading for anyone who is doing it part-time, or does not want to get too stressed out, is to use a swing trading approach. This means taking tactical positions to capture the medium to long-term trends.

With just 15 minutes a day, it is more than enough for me to place and manage my swing trades, which leaves me more free time to focus on the things that matter in life.

Of course, there are some drawbacks to swing trading as well, for example your income will be more lumpy as compared to intraday trading, and you will need a ton of patience in waiting to enter the perfect trades, and also waiting for trades to play out.

In summary, the type of trading style really depends on each individual personality and amount of free time, but personally I prefer to use the swing trading approach because it gives me the best returns for my time and effort.

Do you know what is your preferred style, and does it play to your strengths? 😀

 

How to Build a $1M Dollar Portfolio by 30 (The Practical Stuff)

This is the dream of many millennials, to build a million-dollar portfolio as soon as possible, so that they can live off the passive income, and focus on pursuing their dreams, interests or hobbies, without having to worry about money any more.

When I was in my 20s, that was my dream as well, which was why I read hundreds of books ranging from investing, trading, psychology, motivation, philosophy, biographies, businesses, digital marketing, finance, accounting, etc. And that was when I realised that most of wealth creation boiled down to 3 simple core principles.

1) Multiple sources of Cashflow

The first thing you need to get started is a solid base capital, so at the start if you do not have much capital, almost all your time and resources should be focused on generating as much cashflow as possible to build up your ammunition.

If you have a well paying job, then you can start saving aggressively, but to speed up the process, most people will seek to generate multiple sources of income or cashflow. Some examples include working a side job, starting an online business, etc.

For me, I decided to use forex trading, because it did not require much capital to start, and also because I did not have much spare time, and could only afford to spend 15-30 minutes a day. Now, it provides me a steady monthly cashflow, which allowed me to move on to step 2.

2) Timing your portfolio purchases

Once you have sufficient capital and consistent cashflow, the next step is to start building your long-term portfolio. Start by having a rough idea oh what your ideal portfolio is, and what kind of risk/return profile you are looking for. Look out for assets that have a good chance of capital appreciation, as well as passive returns in the form of dividends or rental yield. Over time, I tend to favour having more “passive income” type of investments.

Do not be in a hurry to buy everything at once. Watch and study the market cycles, and aim to buy stuff only when they are cheap or “undervalued”. This can be done easily by looking at the charts of any product over the past 50-100 years of history. There is no need to spend hours reading financial reports or analyst reports. Remember, our goal is to get the most out of our limited time.

3) Re-invest the passive income

As your portfolio grows, and you continue to add to it via your monthly cashflow contributions, the real kicker is when the effect of compounding kicks in.

The best way to do this is to also re-invest the passive income which you get from the portfolio itself, creating a snowball effect which will literally grow your portfolio exponentially.

Once you have assembled your ideal portfolio, all you need to do is to check on it once every 3 months or so, and do some rebalancing. In the meantime, you can pretty much enjoy the fruits of your labour, and focus on living your life instead of having to worry about money.

For me, this means travelling around the world (50+ countries to date!), and sharing my knowledge to inspire and help others do the same.

Now, are you ready to start building your own portfolio?

What are Some of the Most Popular Crypto Brokerages?

To start trading, you will need to open a brokerage account. Here is a blog post on account opening: http://synapsetrading.com/2018/01/new-video-askspencer-anything-episode-2/

There are 2 types of accounts, and you will need one of each. The first is a “Fiat exchange” brokerage account, which allows you to change your money (SGD, USD) into the major coins like Bitcoin & Ethereum. If you only plan to hold these coins, then you will not need a “Coin Exchange” brokerage account.

To transfer your SGD to Coinhako, you need to go through xfers, as Coinhako does not have a SGD bank account. If you want to buy other coins, also known as Alt Coins, you will need to open a “Coin Exchange” brokerage account. This will allow you to exchange your major coins into Alt Coins, eg. Ripple, Monero, Litecoin, etc. Do note that you cannot fund these “Coin Exchange” brokerage accounts directly with cash, hence the need for “Fiat Exchange”. To make withdrawals, you will need to sequentially reverse the process.

List of Most Popular Crypto Brokerages:

 

How come I can’t find certain coins on my brokerage account?

To see which exchange has which coins, you can go to this website and click on the coin you wish to buy. https://coinmarketcap.com/coins/

Click on the “markets’ tab, and you can see which exchanges offer the coin.