Professional Documents
Culture Documents
4 Step Formula Ebook Kathlyn Toh v4
4 Step Formula Ebook Kathlyn Toh v4
4 Step Formula Ebook Kathlyn Toh v4
Content
The
real
secret
to
success
3
Taking
the
first
step
to
investment
success6
Timing
for
buy
and
sell
opportunities
9
Protecting
your
investment
..12
Multiplying
your
profits
..13
Recommendations
..20
The
path
to
millions
..21
Final
words
..24
About
the
author
..25
You
can
certainly
also
check
with
a
professional
on
how
this
is
done,
and
I
do
also
cover
it
in
much
detail
during
my
classes.
Please
remember
-
making
money
consistently
is
all
about
risk
management
being
your
first
priority,
profits
secondary.
If
a
trader
thinks
about
how
not
to
lose
money
first,
he
will
then
focus
on
managing
risk
of
his
trades.
Reason
#3
Trading
without
a
Plan
Trading
without
a
plan
is
planning
to
fail
at
trading.
Question
is
how
should
one
plan
for
their
trading?
Anatomy
of
a
Trading
Plan:
1. A
Trading
Plan
should
be
designed
to
meet
ones
financial
objectives,
and
hence
the
objectives
must
be
clearly
defined.
For
example
if
one
desires
a
30%
return
per
annum
based
on
a
$10,000
capital
then
the
plan
has
to
be
based
on
the
30%
returns
per
annum
objective.
2. A
Trading
Plan
will
be
a
reflection
of
a
persons
personality
and
time
availability.
I
have
met
traders
who
tried
to
use
short
term
strategies
or
even
day
trading
strategies,
without
realizing
that
their
personality
or
time
availability
are
better
suited
for
medium
and
long
term
strategies.
From
my
observations
it
is
very
difficult
for
a
trader
who
is
trading
against
his
personality
nature
to
have
any
consistent
success.
3. A
Trading
Plan
should
also
include
clear
entry
and
exit
criteria
that
govern
every
trade.
Which
would
mean
every
trade
must
be
opened
and
closed
according
to
what
has
been
defined
in
the
plan
and
not
based
on
intuition!
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I
need
to
stress
that
it
is
very
important
for
everyone
to
know
his
or
her
own
investment
/
trading
style.
There
are
a
thousand
and
one
ways
to
make
money
from
the
stock
markets,
we
all
just
have
to
start
with
just
ONE
way!
After
training
and
coaching
more
than
a
thousand
traders,
I
realized
that
the
majority
of
traders
have
an
identity
crisis.
For
example
I
have
seen
many
who
claimed
that
they
are
value
investors,
however
when
they
see
a
big
move
in
the
stock
market
they
will
chase
after
it
without
considering
the
fundamental
value
of
the
company.
And
that
is
the
major
reason
why
most
people
cannot
get
consistent
in
trading
they
dont
have
a
style
or
method/system
that
they
can
repeat.
Let
us
look
at
one
of
the
most
important
criteria
in
any
stock
selection.
Whenever
we
buy
a
companys
stock,
we
would
want
to
make
sure
the
company
can
grow
its
business
but
how
much
growth
are
we
looking
for?
Let
us
put
the
numbers
into
perspective
if
we
put
our
money
in
fixed
deposit
with
a
bank,
we
will
be
getting
2-3%
returns
a
year.
Since
returns
from
the
stock
market
are
not
guaranteed
surely
we
have
to
expect
much
more
than
2-3%,
isnt
it?
Now
it
is
a
generally
accepted
rule
of
thumb
that
a
company
has
to
generate
at
least
15%
returns
per
annum
to
be
considered
a
viable
business,
otherwise
it
will
not
be
worth
the
effort
and
resources.
So
I
personally
choose
companies
that
are
making
at
least
30%
per
annum,
i.e.
for
every
$1
invested
in
the
company
-
the
company
should
be
generating
at
least
$0.30
net
profit.
Technically
this
criterion
is
called
Return
on
Equity
(ROE),
it
is
also
one
of
the
key
criteria
that
Warren
Buffett
applies
when
selecting
his
evergreen
portfolio.
The
reason
why
this
works
is
very
simple
if
a
company
is
generating
30%
profit
or
more
for
every
$1
invested,
and
if
all
the
profit
is
retained
in
the
company
then
the
companys
value
will
double
to
around
$2
in
3
years
time.
Of
course,
nothing
is
ever
guaranteed
in
the
market;
but
this
means
is
that
this
type
of
companies
will
have
a
higher
probability
of
doubling
its
stock
price
in
3
years.
Whenever
the
market
is
affected
by
major
crisis,
these
are
the
stocks
that
will
bounce
back
the
fastest,
the
most
resilient!
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The
essence
of
what
I
want
to
share
here
will
give
you
an
idea
on
how
to
spot
a
good
time
to
buy
and
sell
a
stock
you
have
selected
this
knowledge
is
commonly
called
Technical
Analysis.
There
are
a
few
important
points
you
must
know
about
Technical
Analysis:
The
importance
of
Technical
Analysis
depends
on
your
approach
in
the
stock
market.
In
general,
Technical
Analysis
can
be
used
by
both
Traders
and
Investors.
Traders
buy
assets
they
believe
they
can
sell
to
others
at
a
better
price,
so
typically
they
are
looking
for
returns
within
a
day
to
a
few
months.
Investors,
on
the
other
hand,
buy
assets
they
believe
will
increase
in
value,
and
they
tend
to
take
a
long-term
view
on
their
returns.
The
subject
of
Technical
Analysis
can
often
get
complicated
with
hundreds
of
indicators
out
there.
I
can
personally
testify
to
the
fact
that
you
only
need
to
know
a
handful
to
be
successful,
and
I
have
verified
that
with
many
successful
investors
and
traders
I
know.
So
the
key
here
is
keeping
it
simple.
Next
I
would
like
to
share
an
example
of
how
technical
analysis
is
used
and
why
it
is
important
to
know
the
fundamentals
whether
you
are
an
investor
or
trader.
I
will
use
a
stock
listed
in
U.S.
market
as
example,
not
only
because
I
specialize
in
that
market
but
also
because
there
are
many
stocks
that
almost
all
reader
recognize.
Lets
look
at
the
price
chart
of
Starbucks
stocks
(I
was
sure
you
know
this
brand
pretty
well)
between
October
2010
and
April
2011
below
and
I
will
explain
how
an
investor
or
a
trader
would
use
it.
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Lets
say
you
decide
to
buy
Starbucks
stocks
back
in
November
2010
at
the
price
of
$30
per
share
in
anticipation
of
the
year-end
really
and
Starbucks
aggressive
plan
to
expand
in
US
and
Asia.
Come
late
March
2011,
if
you
know
your
basics
of
technical
analysis,
you
would
have
seen
a
clear
sell
signal
because
of
the
double
top
chart
pattern,
and
you
will
be
able
to
sell
it
off
at
$36
at
least.
Hence
you
would
have
earned
20%
return
in
6
months.
If
you
check
the
charts
you
would
have
seen
that
the
stock
stayed
sideways
for
another
3
months
after
that
before
it
climbed
above
$36,
so
in
that
3
months
would
you
have
preferred
to
enjoy
the
profit
and
invest
your
capital
in
other
stocks
with
more
upside
potential
in
those
timeframe?
So
that
is
my
message
to
you
-
if
you
understand
the
fundamentals
of
reading
chart
patterns
you
will
be
able
to
utilize
your
capital
more
efficiently
and
make
your
returns
faster,
by
merely
spending
a
few
minutes
a
week
to
monitor
your
portfolio
of
stocks
if
you
are
an
investor
or
few
minutes
a
day
if
you
are
a
trader.
Lets
see
what
a
trader
who
is
watching
the
market
more
frequently
could
do.
10
By
reading
the
chart
pattern
you
could
have
identified
several
sell
and
buy
signals
in
between
the
6
months,
and
make
$13
profit
per
share
in
total.
So
with
a
bit
more
effort,
your
return
on
investment
would
have
been
43%
in
6
months.
So
the
difference
between
making
20%
returns
in
6
months
versus
43%
returns
in
6
months
is
spending
a
few
minutes
a
day
to
monitor
your
portfolio.
Whether
it
is
worth
spending
the
extra
time
for
the
additional
returns,
its
entirely
up
to
your
financial
goals
and
discretion.
The
good
news
is
you
can
also
preset
these
buy
entry
point,
stop
loss
and
profit
taking
points
in
the
broker
system.
Now
lets
stretch
the
time-line
longer
and
look
at
the
stock
price
today
(at
28th
September
2012,
the
time
of
this
writing),
at
$50.71.
If
you
are
a
long
term
investor
holding
the
stocks
since
November
2010
without
paying
much
attention
to
it,
your
returns
would
have
been
70%
in
2
years.
How
much
more
would
you
have
made
if
you
spend
more
time
watching
your
portfolio?
Perhaps
I
will
leave
this
as
a
case
study
for
you
to
look
at.
(Note
2)
Note
2:
SBUX
is
trading
at
$71.12
on
3rd
February,
2014,
during
the
4th
edition
of
this
book.
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11
While
it
is
too
much
to
cover
in
this
short
article,
rest
assured
that
Technical
Analysis
is
a
subject
you
can
learn
in
a
short
time
to
put
into
use.
I
personally
use
the
basic
chart
patterns
and
less
than
a
good
handful
of
indicators
when
I
trade
and
thats
how
we
teach
people
who
came
for
our
investing
and
trading
courses
as
well.
I
would
like
to
stress
again
that
selecting
fundamentally
strong
and
growing
stocks
is
essential
to
increase
your
success
rate.
One
should
not
depend
on
technical
analysis
skills
as
a
mean
of
speculation
unless
you
really
know
what
you
are
doing.
Having
said
that
learning
and
applying
this
skill
can
definitely
accelerate
your
success
in
investment
and
trading;
so
if
you
havent
done
so,
I
strongly
encourage
you
to
learn
from
online
material
and
find
out
more
about
courses
that
cover
this
subject.
This
3rd
step
is
the
main
differentiator
between
the
successful
investors
or
traders
from
those
who
did
not
make
it
or
gave
up
half
way.
It
is
about
how
you
protect
your
investment
or
trades,
staying
in
the
game
despite
of
losses
to
prevail
for
long-
term
success.
12
"It's not whether you're right or wrong thats important, but how
much money you make when you're right and how little you lose
when
you're wrong." said George Soros, investor and philanthropist
with net worth of US$20 billion.
I
hope
I
have
stressed
enough
that
the
skill
and
attitude
to
manage
losses
is
a
must
have
for
all
investors
and
traders.
Lets
talk
about
the
Risk
Management
principals
that
I
personally
adhere
to.
Capital Preservation
So
what
if
you
have
a
strategy
with
a
50%
winning
probability
which
means
you
are
right
only
half
the
time.
Can
you
still
make
money?
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The
answer
is
YES!
If
you
follow
the
capital
preservation
rule
we
have
discussed
earlier,
AND
you
only
choose
to
invest
or
trade
when
the
reward
over
risk
ratio
is
AT
LEAST
2
to
1.
Which
means
for
every
$1.00
you
risk
in
a
stock,
you
should
have
enough
data
to
support
the
expectation
that
the
stock
will
go
up
to
$2.00
to
make
it
a
good
deal.
Figure
1
-
is
an
illustration
of
a
2:1
Reward/Risk
ratio
strategy/system
with
50%
winning
probability
making
$500
at
the
end
of
the
10th
trade.
Of
course,
if
the
strategy/system
has
a
higher
winning
probability
(more
than
50%),
then
the
ultimate
gain
will
be
even
higher!
As
you
can
see
from
the
example
assuming
you
start
with
a
capital
of
$5000
Figure
1
a
series
of
10
trades,
assuming
a
maximum
loss
of
RM100
each
trade.
and
enforce
the
2%
per
trade
rule,
you
will
still
end
up
with
a
10%
profit
with
10
trades
($500
over
$5000)
even
if
you
are
only
half
right!
To
summarize
what
we
have
gone
through
so
far
following
strict
risk
management
rule
and
choosing
only
trades
with
good
reward
over
risk
ratio
is
the
key
to
protect
your
investment.
14
This
4th
step
is
about
LEVERAGE,
i.e.
how
you
can
accelerate
your
return
from
stock
market
investment,
and
how
to
make
your
money
work
harder
for
you.
The
two
leverage
instruments
I
will
talk
about
next
are
CFD
and
Options.
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What
is
CFD?
CFD
stands
for
Contract
for
Difference,
it
literally
mean
a
contract
between
2
parties
to
trade
the
price
difference
of
a
stock,
at
a
fraction
(usually
10%)
of
the
stock
price.
For
example
person
A
thinks
that
Apple
stock
price
will
go
up
to
USD
550
within
a
month
time
and
person
B,
with
a
different
point
of
view,
thinks
that
Apple
stock
price
will
go
down
to
USD
500
within
a
month
time.
Through
a
broker
this
two
person
can
then
enter
a
contract.
Lets
say
the
current
price
of
Apple
stock
is
currently
USD
525
person
A
will
need
to
come
up
with
10%
of
the
stock
price,
which
is
USD
52.5
per
unit
of
stock.
So
lets
say
in
a
months
time
the
stock
price
actually
went
up
to
USD
550,
then
person
A
can
now
close
the
trade
earning
a
profit
of
USD
25
per
unit.
His
return
on
investment
will
be
USD
25
USD
52.5
that
is
about
48%
in
a
month!
You
can
see
the
effect
of
leverage
here
because
if
person
A
were
to
buy
the
stock
itself
at
USD
525
per
unit,
then
his
return
will
be
a
mere
4.8%
a
month
(which
is
still
not
bad
actually).
Lets
highlight
the
advantages
of
trading
with
CFD:
You
can
invest
in
stocks
and
build
your
desired
portfolio
with
less
capital.
This
advantage
is
useful
for
younger
investors
who
are
just
starting
out.
With
lower
investment
(about
10%
of
stock
price),
it
allows
you
to
diversify
with
the
same
amount
of
capital.
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You
can
trade
on
both
the
upside
and
the
downside
of
a
stock
or
index.
E.g.
if
you
think
that
the
stock
price
or
market
is
going
down,
you
can
short
the
stocks/index
(means
you
sell
first
at
high
price
and
buy
back
at
lower
price
when
the
stock/index
goes
down).
That
means
more
opportunities
to
make
profit
from
the
market
instead
of
being
constrained
to
make
money
only
when
the
market
or
the
stock
is
bullish.
It
also
gives
you
the
opportunity
to
invest
in
good
stocks
that
are
otherwise
too
expensive.
Many
great
companys
stocks
are
expensive.
E.g.
Google
stock
price
is
more
than
USD700
for
1
unit.
In
CFD
you
dont
have
to
buy
in
multiple
of
100
units
(1
lot
concept
like
Malaysia),
you
can
even
buy
1
unit
or
10
units.
However
you
need
to
take
care
of
the
commission
impact
for
smaller
size
per
trade.
As
a
CFD
buyer,
you
will
earn
dividends
as
well
if
the
stock
declares
dividends.
It
is
very
useful
as
a
protection
against
unexpected
market
movement,
because
you
can
have
a
mix
of
stocks
that
you
trade
on
the
upside
and
downside.
What
to
take
note
of
when
trading
with
CFD
When
you
trade
CFDs,
the
leverage
is
provided
by
your
broker
(just
like
how
banks
provide
leverage
through
loans),
so
you
will
need
to
pay
interest
charges
to
the
broker
while
you
are
in
the
contract.
The
amount
of
interest
is
very
reasonable,
e.g.
it
is
just
about
3%
to
4%
per
annum
for
U.S.
stocks
depending
on
the
broker.
It
is
critical
to
trade
with
strict
money
management
rules.
Just
because
CFD
lets
you
buy
a
stock
at
10%
of
its
price,
it
doesnt
mean
that
you
can
buy
the
same
stock
10
times
more,
because
that
means
you
are
not
managing
your
risk
properly.
There
are
many
CFD
brokers
in
the
market
and
the
choice
depends
on
your
startup
capital,
market
you
want
to
trade,
trading
style
(buy
and
hold
vs.
momentum
vs.
intraday),
size
of
contract
and
frequency
of
trades
(as
it
will
affect
commission).
Its
also
very
important
to
find
a
dependable
broker
in
terms
of
safety
of
funds
and
reliability
of
the
trading
platform.
Some
brokers
provide
mobile
access
that
may
be
important
to
you.
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What
is
Option?
By
definition,
an
Option
is
a
contract
that
gives
the
Buyer
the
right,
but
not
the
obligation
to
buy
or
sell
a
stock
at
a
specified
price
on
or
before
a
specified
expiry
date.
There
are
2
types
of
Option
Contract
Call
Option
and
Put
Option.
A
Call
Option
for
Stocks
gives
the
Buyer
of
the
contract,
the
Right
but
not
the
obligation
to
Buy
the
Stock
at
a
Specific
price
on
or
before
an
Expiry
Date
by
paying
a
small
premium
now
(typically
2-10%
of
the
stock
price).
A
simple
analogy
to
Buying
a
Call
Option
think
about
buying
a
property.
When
we
buy
a
property
we
will
normally
pay
a
booking
fee,
which
is
normally
about
10%
of
the
property
price.
That
booking
agreement
gives
us
the
right
to
purchase
the
property
at
the
agreed
price
at
a
future
date
(usually
within
3
months
to
get
the
loan
approval).
However
as
a
buyer
we
are
not
obligated
to
buy
the
property
(in
which
case
we
will
lose
the
booking
fee),
but
the
seller
has
the
obligation
to
sell
if
we
decide
to
buy
it.
It
is
also
possible
for
us
to
transfer
the
right
to
another
person,
at
a
higher
price,
should
the
value
of
the
property
goes
up
before
the
agreed
date.
A
Put
Option
for
Stocks
gives
the
Buyer
of
the
contract,
the
Right
but
not
the
obligation
to
Sell
the
Stock
at
a
Specific
price
on
or
before
an
Expiry
date
by
paying
a
small
premium
now
(typically
2-10%
of
the
stock
price).
Put
Option
can
be
used
as
an
insurance
for
your
Stocks.
E.g
if
you
buy
100
units
of
Starbuck
stocks
@$60
but
worried
the
market
will
crash
anytime
this
month.
Then,
you
can
buy
1
contract
of
Starbucks
Put
Option
which
allow
you
to
Sell
100
units
of
Starbucks
stocks
at
$60
within
1-2
months
expiry
by
paying
a
small
premium
now.
Beyond
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Option
has
all
the
advantages
mentioned
above
for
CFD
except
the
dividend
part,
which
the
Option
holders
are
not
entitled
to
any
dividend.
Despite
that
Option
is
actually
a
much
more
powerful
instrument
because
of
the
following
features
and
advantages:
Options
is
one
the
most
powerful
and
versatile
financial
instrument
as
it
can
be
constructed
to
meet
many
trading
objectives,
protection
or
hedging.
Ability
to
make
money
in
any
market
direction
(uptrend,
downtrend
and
even
sideways)
means
more
opportunity
to
trade
and
meet
your
financial
goals
faster.
Higher
probability
of
winning
as
you
can
make
money
in
more
than
1
direction
concurrently
(eg.
Win
as
long
as
a
stock
stay
above
a
certain
price
or
below
a
certain
price).
As
option
buyer,
your
risk
is
only
limited
to
the
premium
paid
in
worse
case
scenario
(usually
2-10%
of
stock
price).
A
trade
can
cost
as
low
as
$20
but
its
better
to
start
with
a
capital
of
about
$2000.
Can
be
used
as
insurance.
Careful
combinations
of
2
or
more
Options
contract
can
lead
to
many
powerful
strategies
to
take
advantage
of
different
market
trend
and
protection
requirement.
19
Here
are
some
key
points
that
an
investor
or
trader
should
know
when
deciding
to
start
using
CFDs
or
Options:
CFDs
are
useful
for
investment
and
single
directional
trading
(i.e.
stocks
on
a
clear
up
trend
or
down
trend)
and
you
can
get
dividends
if
you
are
a
buyer.
Options
can
also
be
used
for
Non-Directional
trading,
where
you
can
win
concurrently
in
more
than
1
direction
including
sideway.
Options
whilst
more
powerful,
presents
a
steeper
learning
curve
as
you
have
to
learn
how
to
choose
the
right
contract
with
different
exercise
prices
and
expiry
date,
and
how
to
use
them
in
correct
combinations
to
achieve
your
trading
objectives.
Hence
for
those
who
are
new
to
the
stock
market,
we
would
recommend
them
to
start
with
CFDs
as
it
is
easier
to
comprehend
and
then
proceed
to
learn
options.
Recommendations
Whether
you
are
a
short
term
trader,
mid
term
trader
or
a
long
term
buy
and
hold
investor,
CFD
and
Options
gives
you
the
leverage
to
achieve
your
profit
target
faster
and
the
a
ability
to
diversify
with
your
capital
while
protecting
your
investment
much
more
effectively.
It
is
definitely
worth
learning
if
long
term
success
and
consistent
income
stream
from
the
stock
market
is
your
goal.
There
is
much
more
I
can
share
about
how
I
have
used
them
to
generate
average
of
300%
returns
in
since
2010
and
I
conduct
free
seminars
from
time
to
time,
check
out
our
website
www.beyondinsights.net
for
the
next
session.
Whatever
strategy
you
choose
to
take
up,
please
remember
what
was
mentioned
in
the
first
page,
90%
of
your
success
is
in
your
psychology
and
discipline.
And
thats
the
same
as
anything
else
in
life,
isnt
it?
In
the
next
section,
I
would
like
to
cover
some
suggestions
on
how
you
should
manage
your
expectations
and
strive
towards
your
financial
goals
by
income
from
trading
and
investing.
Beyond
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If
you
intend
to
take
stock
market
investing
and
trading
seriously
and
make
it
a
vehicle
to
generate
a
substantial
portion
of
your
wealth,
then
you
have
to
treat
this
venture
exactly
like
a
business
that
you
manage.
To
succeed
in
this
business,
you
must
have
the
following
traits:
Aptitude
to
learn.
Discipline
and
commitment
to
plan
and
execute
accordingly.
Ability
to
master
your
psychology
(as
I
stressed
before).
Perseverance
to
overcome
your
limitations
while
you
go
through
this
journey.
On
the
other
hand
be
relieved
that
you
dont
have
to
deal
with
the
following
challenges
that
a
normal
business
owner
have:
Competition
this
is
only
between
you
and
the
market.
Human
resources
issue
no
need
to
manage
people
and
their
performance.
Customer
issues
no
customers
to
deal
with!
Geographical
limitations
you
can
do
this
from
anywhere.
Setting
Expectations
Now
let
us
look
at
what
is
the
amount
of
return
you
can
expect
from
stock
market
trading,
using
the
table
below
as
a
guide:
21
The
first
column
was
there
as
a
standard
reference
how
much
return
can
you
typically
expect
by
saving
your
money
in
a
fixed
deposit
at
a
bank.
With
a
fixed
deposit
you
can
hardly
get
a
20%
return
after
5
years,
not
a
very
exciting
proposition
isnt
it.
Please
note
that
we
are
making
one
assumption
in
this
set
of
calculations
that
you
will
retain
all
your
earnings
in
your
trading
account
for
continuous
utilization.
If
you
will
be
making
withdrawals
from
your
account
then
it
is
a
different
calculation
altogether.
If
you
are
a
long-term
buy-and-hold
type
of
investor,
then
you
would
probably
want
to
use
the
great
Warren
Buffet
as
the
benchmark.
Buffett
has
been
able
to
achieve
an
average
of
about
22%
per
year
over
the
past
20
or
more
years.
22%
a
year
means
about
1.8%
a
month
on
average.
If
you
can
master
the
S-T-P-M
formula
I
described
earlier
and
put
in
the
effort
required,
then
you
will
have
a
chance
of
doing
better
than
1.8%
a
month.
Remember
that
with
proper
use
of
leverage
instruments
like
CFDs,
you
can
multiply
your
return
per
trade
by
10
times
and
thats
the
main
reason
you
can
aim
for
an
average
3%
to
5%
return
a
month
if
you
are
also
using
leverage
instruments
(again,
I
have
to
stress
the
word
properly).
The
amount
of
effort
required
would
be
something
between
5
to
10
hours
per
week,
maintaining
and
executing
your
trading
plans,
an
effort
that
most
people
can
manage
as
a
part
time
venture.
So
if
you
are
able
to
achieve
5%
a
month
consistently,
then
you
would
be
able
to
multiply
your
capital
by
18.7
times
in
5
years.
However,
it
is
important
to
note
that
you
have
to
give
yourself
an
allowance
of
minimum
1
to
2
years,
going
through
the
necessary
period
of
paper
trading
to
test
and
stabilize
your
trading
plans,
before
you
can
achieve
the
consistency
required.
And
to
also
give
you
a
reference
on
the
high
side
a
top
performing
individual
trader
who
is
doing
this
full
time
can
target
an
average
of
10%
return
per
month.
If
this
can
be
consistently
achieved
then
you
can
multiply
your
return
by
about
300
times
in
5
years,
i.e.
if
you
start
with
$10,000
you
will
accumulate
about
$3
million
at
the
end
of
5th
year.
Needless
to
say
this
type
of
performance
will
take
several
of
persistent
practice
and
staying
through
the
different
cycles
of
the
stock
market.
The
reason
I
have
this
chapter
in
the
book
is
so
you
can
use
it
as
a
reference
to
set
your
goals.
All
you
need
now
is
a
computer
and
a
spreadsheet
Beyond
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There
is
no
secret
here.
Investing
and
trading
is
an
exercise
where
over
aggression
can
be
harmful,
so
you
have
to
give
yourself
the
time
and
space
to
trade
with
peace
of
mind.
The
recommended
way
to
grow
your
account
faster
is
to
make
consistent
addition
to
your
trading
account.
Have
a
look
at
the
table
below:
23
The
calculation
shows
that
if
you
started
with
only
$2,000
(5
times
lesser
than
the
earlier
example)
and
you
managed
to
take
out
$1,000
from
your
savings
to
add
your
account
every
year
then
you
would
be
able
to
accumulate
more
than
$3m
in
10
years,
assuming
a
consistent
return
of
60%
a
year
(or
average
5%
a
month).
So
what
if
you
can
start
with
$10,000
and
add
another
$2,000
to
your
account
every
year?
You
can
work
out
the
scenarios
accordingly.
Planning
and
goal
setting
is
absolutely
critical
as
the
first
step
to
success
in
investment
and
trading,
so
I
urge
that
you
take
this
important
step
if
you
have
not
done
so.
Final Words
When
you
educate
yourself
properly
in
the
area
of
investing
(long
term
holding)
or
shorter
term
trading,
this
can
become
a
unique
business
venture
with
promising
returns.
Risk
is
always
present
but
it
is
manageable
by
limiting
exposure
per
investment/trade,
as
what
Warren
Buffet
says
risk
comes
from
not
knowing
what
you
are
doing.
We
encourage
you
to
educate
yourself
properly
for
this
valuable
lifetime
skill
that
can
bring
you
financial,
time
and
location
freedom.
24
25