Posts

How to Identify Market Trends with Swing Counts

In my last video, I talked about the 3 main market trends that are in the market – uptrend, downtrend, and sideways market. In trading, it is very important to know the trend because trading in the direction of the trend gives you the best odds of profitable trades.

In this video, I share about Swing Counts — one of the most common techniques used by traders (including professionals) to identify the market trend and differentiate between the 3 main market trends.

Knowing this technique is important because it gives you a simple and objective way to not only identify the current trend, but also to spot when the trend is changing direction.

Enjoy the video! 😀

What are the 3 Main Market Trends?

When we look at price charts, we cannot help noticing that prices tend to move in a particular direction for prolonged periods of time, creating trends which we can take advantage of.

Generally, there are 3 main directions which trends take, and specific strategies which give you the edge once you are able to identify which trend the market is currently exhibiting.

Lastly, the video covers one major pitfall that many trend-followers miss out on, and as a result get trapped holding losing positions. This is something you want to avoid.

Enjoy the video! 😀

Technical Analysis vs. Fundamental Analysis

For many new traders, one of the most common question I get is regarding the method of analysis to use, and it usually boils down to technical analysis vs fundamental analysis.

So, what exactly does each form of analysis entail and how do we use it?

And more importantly, what are the pros & cons of each technique, and how to combine them to get the best of both worlds?

Enjoy the video! 😀

How Much Buffer Should I Use for Stoploss?

When placing a stoploss, one of the biggest struggles traders face is deciding how much risk to take, and how much buffer to use.

If your stoploss it too wide, you end up increasing your risk too much. But if your stoploss is too tight, you end up getting stopped out even if you are right.

So what is the optimal balance in making this decision?

Enjoy the video! 😀

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?