Wednesday, May 16, 2007

End of a Chapter

Dearest friends, bloggers and passer-bys,
Its been two months since I started this blog and with great sadness, I am closing this blogging chapter of my trading journey. I sincerely thank everyone for their support either by participation or just reading the articles posted here. I noticed its even a breakout - 10,000 hits :).

After meeting the masters over the weekend, I realised the disparity is great, so great that I am left with no choice but to close this blog to find time. Time to strengthen my foundation, time to relearn what I have learned, time to unlearn what I have learned, time to get in tune with Nature.

Final Notes of My Stand
I do not know about luck but I know this - Luck is when Preparation meets with Opportunity. Yes, I have emphasized a lot about Preparations over and over again in my blog. Without proper preparation, one cannot capitalise on opportunities that arise. What is the will to win, if there is no will to prepare?

Continuous Learning
I have yet to meet with a master that thinks that no more learning is needed. A true master would never stop learning. The three masters I met have such high level of skill and yet, they are discovering new things each day. They have yet to stop learning, they knew one thing - when they took on this path, this trader's path, they have made the market their best teacher and vowed to continuously learn from it.
I have always correct anyone who tried to call me sifu. I know that they only meant respect or maybe out of politeness but seriously, I am unworthy. I have yet to attain such level of skill. I have yet to achieve anything that is worth shouting about. I have to decline the title.

Trading Plan
Before a trade is even made, a trading plan MUST, I repeat, MUST be drawn up. Else, one would be at serious disadvantage. In the market, we are up against people with more money than we have, more skill than we have. How can we possibly stand a chance if we do not even have a plan?

Stop Loss and Trailing Stops
To me, this is imperative, irregardless whether one is a trader or an investor. Perhaps the stop point would be different, but nonetheless, this is a life saver. Anyone who lived through the recession periods would understand this concept. Or they better do.
Even the most fundamentally strong company would not be spared. To watch your investment decline 80% of its value is not an easy sight. And it tests every bone of your body as an investor. Yes, the stock is undervalued but it may remain so. Yes, it will rebound - some day but you may need the cash. You may get retrenched, your children may need to further their studies, there could be other emergencies, countless and endless possibilities. In recession, Cash is King.

Average Down
I have not recommended anyone to average down. Its like compounding the initial error. Now, what about investors, should they average down? I do not know about shoulds or shouldn'ts but I know this - you may average down SUBJECTED TO identification of critical points where beyond would render the average down and the initial entry wrong and stop loss MUST be executed - this means an impeccable discipline and emotional control.

Feel the Market
Several months earlier, I was chatting with booffett - who draws chart with pen and graph paper. It was my lack of understanding that computers could replace this function. I am beginning to appreciate drawing charts by hand. I am drawing 50 charts per day by hand and I hope to increase this number. ;)

I speak about Nature. It may be too complicated to explain but remember the most important indicators where all are derived from - Price, Volume and Time.
Price, Volume and Time. Master this and the world will be your oyster.

Moving forward
For Fusion Picks - which I must add was not really successful, remember to place stops and trade according to initial plan.
Market - From what I see, the general KLSE is weak, while KLCI is strong. Bullish uptrend is expected to continue despite May Factor etc. However, remember your stops. Never forget them.
Stocks - KLCI or related should perform and give a better chance of success.
Futures - Well, doubt futures traders would find any comment from me useful. See you in battlefield :P.

There are many resources around on the net - this means tremendous savings in money - rather than buy books or attending seminars, one could read and learn by themselves. The money would be better spent paying for tuition to the market.

Kenneth Factor
Just in case anyone thought this is for Kenneth Factor, do visit this link - under the comments section. I take this as a peace treaty signed between Kenneth and myself. I have nothing further to add.

Brian McKnight has this song - Back At One. For trading there are steps too:
1) Learn
2) Analyse
3) Backtest
4) Foreward Test
5) Trade
6) Post Mortem
7) Back to (1)

And to Make Money from Trading
All that is needed is this -
1) Trading System
2) Emotional Control
3) Money Management and Discipline

Oh, if anyone is looking for me
I ll be around in forums, or you could mail me directly. :)

Once again, thank you everyone for your kind support and patronage.

Good Luck and Happy Trading!


Anonymous said...


I hope u won't close this blog, it is like breakfast, lunch, dinner and tibits for me, what a waste if close it.

Please consider, I think most of us will miss it a lot.

zewt said...

what? no!!! at least leave this blog as it is.... dont need to close it...

Marcus Fei said...


Not sure what has driven you to your decision but you are always welcome to share us your thoughts over on our site.


Ben Gan said...

Knowing where you stand yourself is great. Now you can prepare for the next level.
Manual charting will give you an immense feel of the market. Don't forget as you draw, and don't forget to make a come back.
You have my best wishes.

Seng said...


Reading this reminds me of the old kung fu masters who are never satisfied with their current skill level, and would from time to time, retreat to the mountains, cave, or forest for a few weeks (or months) to discover, develop and continuously improve their skills.

When they are ready, they would then return to their village / community.

So, when you are ready, I hope to read the next Chapter!

Best wishes,

Anonymous said...

Don't know what to say. Just came back from Tiara Beach Resort, taken days off to read what u guided. Then only came to know about ur farewell blog upon arriving Melaka.

Max, I salute u. nothing more that I can say now since u have made up ur mind.

No blogs, but please stick around at Ben's chatbox.

U r a friend, even though we never met.

Thks Max for the guidance.

ToeBear said...

All the best Max!
Looking forward to your comeback.

Trader Max said...

Thanks guys for the support :)
The blog will remain here abandoned without further updates. Thats what I meant by close - not delete :P

Investorntrader: Hahaha, funny :P
Zewt: Yeap
Marc: Dont worry, Tradesignum will not be forgotten ;)
Ben: Thanks I ll remember that ;)
Seng: Hehehe yeah I m going to live as a recluse now.
Tcs: Thanks mate and I hope you have learned from the blog and would continue to learn :)
Toe: Thanks mate. Good luck on your trades :)

grahamsmun said...

Hi Max,
Is seems that u operate your blog like TA, close after only 2 mths operations.
Should be a bit long-term lah like FA.
Anyway wish u all the best,hope u make a comeback soon!

halim said...

Thanks for the ebook!!

lsb said...

Max, its good to take time off to walk through ur convictions, but some words of caution. Give urself a dose of reality everyday to keep u firm down to earth, n not on clouds 9 at all times. I did that in earnest in 1994 and ended as a junkie trader n needed to trade every hour. Best wishes and again to repeat, don’t get immerged, be detached.

Trader Max said...

Grahamsmum: Haha, thanks for the support despite our differences in views and approaches.

Sciencegto: You re welcome

lsb: Thank you for the dose of wisdom. I ll remember it. I must admit, that is one major problem which remains a challenge to me. Working on it. :)

Anny said...

I follow your blog when I was in my I able to find you back you here but you are closing the side.

Anyway, there must be a reasonable reason for you to stop. Wish you all the best! :)