Market Beliefs

Update - 24 Dec 2016

1. Only 5% of traders makes money consistently from the market.

2. There are 3 types of market situation :
Uptrend
Downtrend
Sideways

3. There are 3 types of money market (in terms of risk profile) :
Securities (lowest)
Forex (mid)
Commodities (highest)

4. What successful trading is :
Protect principle
Lowest risks
Highest gains

5. Markets in terms of volatility :
Singapore (lowest)
Malaysia
US (highest)

6. Trading Uptrends and downtrend stocks is good for wealth accumulation.
Trading sideways stocks is good for income.

7. Income can be received via constant gain from trading or from dividends.

8. It is possible to become a millionaire in one market cycle (<10 years)

9. Market phase consists of 20 year periods.
Current phase is sideways (may continue for another 10 years)

10. To accumulate lots of wealth, Fundamental analysis is important.
To get income from the market, Technical analysis is important.
However, fundamental analysis is more difficult to grasp fully.
Technical analysis can be used in various markets.

11. Trader and investor have very different mindsets.
Trader emphasize Technical Analysis.
Investor emphasize Fundamental Analysis.

12. To have an edge over market, you must understand the market very well.

13. Trading components (from highest importance to lowest) :
- Self psychology (in trading)
- Market psychology
- (Other) Trader psychology
- Risk management plan
- Trading system
- Trading platform

14. Technical analysis is critical in :
- identifying where the money is (in which stocks) at the moment
- determine how to enter
- determine how to exit
- risk management

15. Even if you don't know fundamentals, you can still gain money from the market, just a matter of how much or less.

16. Stocks in market moves in cyles.

17. Capital preservation is the most important principle in trading. Followed by Risk Management.

18. To gain much from market, you must treat trading as a serious business.

19. I need hard work in first year to learn my trade.

20. Singapore market is the best place for me to learn trading due to low volatility. Thus easier to get out if trade goes wrong.

21. Learn from the Wizard traders.

22. Find and be the expert in my niche in market.

23. Position sizing is new to me but need to be learnt.

24. I am still a novice.

25. Trading is suitable for me as it suits my personality and is my hobby.

26. I will live and sleep by trading.

27. I believe in myself that I can control my emotions and I am rational enough.

28. It is possible to earn money from all type of markets anytime.
It is just a matter of earning more or less, fast or slow.

29. I need to improve my trading skills one item per month.

30. I only need to fully understand and be an expert in a few critical Technical Indicators; not all.

31. I need to create a trading system with good expectancy.

32. Technical Analysis components (start from highest importance) :
- Price Trend (MA, Fibonacci, Trendline, Bollinger, Support/Resistant)
- Price Pattern (Candlesticks, Flags)
- Volume (MFI)
- Indicators (divergence - MACD, Stochastics, RSI)


33. I need 1 hour pre-market preparation time. I need 1 hour post-market review time. Total of 2 hours per day.

34. Fundamentals are more important in US market than Singapore market. Singapore market is very much Technical Analysis.

35. Diversification is bad for professional trading.

36. Sometimes you need to be fully invest in market, sometimes you need to stay out of market (and that's the time to rest and review).

37. Major movement (in Singapore market) normally around 9.00-9.30am and 4.00-5.00pm

38. I still have a lot to learn.