ABILITY IS GREATER THAN MONEY!

I just read about Donald Trump and would like to express my kudos to him! It's his mindset, coupled with strong personal abilities that enables himself to climb to the top again.

ABILITY IS GREATER THAN MONEY BECAUSE IT CAN BE NEITHER LOST NOR STOLEN.

If you examine the lives of most successful people, you will find that they rarely climb to the top and stay there. They often reach the peak and fall to the rock bottom several times during their life, but they know that the one thing that got them where they are - their ABILITY - is always there to help them reach the top again.

Your ability is something that you own exclusively; no one can ever take it from you. You can built on it through repeated acts of analysis. This is the world of success, ability and result - not the world of money.

Money Management

An short and GOOD article on Money Management from traders.com.

I have been trying to find an article that talks about the right money management mindset, in the hope to remind many many many of my trading friends (and those who are going to join some trading courses in hope to make big bucks).

In my many years of trading, I realised sometimes the trading strategies is not the core of profitable trading. In fact, there is no trading strategy that works 100% (except it wins more and loses less).

Personally, I used to have a strategy that works monthly (and I assume it's 100% in the 'infant' stage of trading). That strategy works so well consecutively for 3 months, and everytime it gave a returns of 30% to 70% per trade. And every month, I used all my capitals (that capital belongs to my family account) to compound all I had. We started with US$10K that time and truly went up after 3 months. But on the 4th month, i lost everything as the strategy failed. And the account was left with US$137. This was the result of poor money management. And I'm the living testimonial of such a disaster.

1. Always look for strategies that works more than 60% of the time (ya, there is no 100% working trading strategy thus far), so those trading gurus (or should I say training gurus) mentioned blah blah blah blah blah blah, please take note.


2. Always consider if there is a predetermined profit take (PT) and stop loss (SL). I've been trading options with no predetermined PT and SL all these way.

If there is, ask about the magnitude of PT and SL. If the PT is less than SL, that's means you lose more. On the other hand, this means you always look for a PT that is more than SL. A rule of thumb: Look for PT > 150% SL (this means that you even breakeven when you lose 3 times and win 2 times), e.g. PT = 30 ticks/pips and SL = 20 ticks/pips.


3. Use less than 15% of your capital. If possible, use as low as 5%. This ensures you will not be 'emotionally' hurt when you lose. And you will not lose that much when you have consecutive loses.


4. It's ok to have a losing month once in a while. Actually, most successful trading strategies or systems tend to have an average of 2 losing months (within 1 years), based on my research.


It's your money, do take care of them!

Millionaire Mind Intensive (SG) - Day 2 & 3

More key concepts from the MMI to share:
1. 'The key to success us is to raise your own energy. When you do, people will naturally be attracted to you. And when they show up, bill 'em." - Stuart Wilde

2. Nothing has meaning except for the meaning you give it.

3. Daily VAKS: Visual, Auditory, Kinesthetic & Spirit

4. 4 reasons to be rich: Lifestyle, Contribution, For who you have to become in character, mindset and habit, Getting rich is proportionate to the problems you solve and the value you add to other people's lives.

5. E-motion = Energy in motion

6. Success breeds success.

7. Definition of Fear: Anticipation of Fear

8. The true warrior can tame the cobra of fear. The secret of success is to learn to act in spite of fear.


My Money Associations (at the end of Day 3)
1. Money is... in all our hands.
2. Money is... celebration.
3. Money is... able to do wonders and miracles to our lives and the lives beside us.
4. Wealth is... something that we can share.
5. Wealth is... accumulative.
6. Rich people are... very clear of what they want.
7. Rich people are... the ones who buy dinner!

T. Harv Eker 'Secrets of the Millionaire Mind'

"You can have all the knowledge and skills in the world, but if your "blueprint" isn't set for success, you're financially doomed." --T. Harv Eker

I'd been reading 2 books every month as part of my ongoing financial education. And typically, I will read them if I'm on a tour. In July-August when I was in Taipei, I read Adam Khoo 'Secrets of Self-Made Millionaires' and I bought (and read) a Chinese book there about the way of Investing by Warren Buffett.

And over the past 6 days, I just read T. Harv Eker 'Secrets of the Millionaire Mind' and Nicholas Tan 'Handbook of Forex Trading' The forex book is rather elementary and I recommend to those who know nuts about trading (it only covers the fundamental of forex and some trading basics - which I think personally will start your forex trading journey, but not able to propel it any further).

Anyway, what I'm interested now is to share more about Eker book. The #1 New York Times, Wall Street Journal and USA Today Bestseller is definitely one book for reshaping your millionaire mindset. There are 2 major sections: (1) Your Money Blueprint, and (2) The Wealth Files.

Eker likes to ask 'Who the heck is T. Harv Eker, and Why Should I Read This Book?'. I think the answer is simple. Many of us want to be a millionaire and mastering the inner game of wealth is definitely not an obvious science! This book really demystifies why some people are destined to be rich while others, hmm, otherwise.

Definitely one of the more powerful, persuasive, and practical wealth management / personal improvement / NLP book!



p/s: I will talk more about this book as I discover more about it.