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ZFT

ETERNUS
©
2018

ZFT ETERNUS © 2018 1


We are group of people, who share a passion for trading in the market.

Our members are driven by the same principles:


Learning and improving as traders, being profitable in the trading mar-
ket, and being socially responsible.

We help the community by: knowledge transfers to aspiring traders via


ZFT

formal programs (Subasta, Project Seed, and Spark), as well as informal


ZEEFREAKS TRIBE
channels (vlogs, blogs, and social media); and outreach work through the
group’s Random Acts of Kindness (RAK) campaign, which encourages
ETERNUS

members to help people in need outside of the trading community.

Project Seed is a formal course for aspiring traders, who want to im-
©

prove their craft and contribute to the trading community by serv-


ing as teachers and mentors for the next batches of aspiring trad-
2018

ers. In addition, members of Project Seed are encouraged to serve


as inspirations for social responsibility by continually engaging
themselves in acts of kindness for people around them.

To know more about us:


https://www.facebook.com/pg/ZFT.ProjectSeed

The contributors of this book are students from Eternus Batch -


who recently completed ZFT's Project Seed Program.

ZFT ETERNUS © 2018 2


ZFT
ETERNUS
©
2018

ZFT ETERNUS © 2018 3


Belief is much more palpable when shared with a community, and trading is a pro-
fession that will require you to stubbornly believe long before you start reaping.

In the Philippines, trading remains ambiguous. In fact, only a handful of the entire
population has even heard of the stock market. If you don’t believe me, try telling
ZFT

some of your friends and loved ones that you’re a trader—chances are, it won’t
draw the right questions or even arouse any curiosity.
ETERNUS
©

So, what do you trade? Most people would associate it with bartering, an ancient
market system, and would leave it at that. You can try your best to explain, but it’s
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likely that it would still leave them confused. It’s as if the more you try to explain,
the less interesting it gets for people on the other side of the conversation.

But you can’t help but wish there was someone to share your journey with. Some-
one who would tell you things you wish you knew, things you still don't know, or at
the very least, feel the same way you do.

If only you could talk to them: traders who made it somehow; ones who are still
struggling; and those who are only just beginning.

ZFT ETERNUS © 2018 4


This book is for those who wish they had a trader companion—not one that teaches you
technical analysis, no. One that shares rich, insightful conversations.
ZFT

It will feel as if you shared a drink with fellow traders, along with an unedited talk about
the art and science that is trading. They will tell you stories, share advice, talk about cau-
tionary tales, and discuss everything else between life and trading.
ETERNUS
©

Trading is an art, with very few artists. In this long and arduous journey, our book is
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meant to keep you company—a much-needed reminder that there are people walking the
same path. And if some of them made it, then who’s to say you can’t?

www.rootingforceleste.com

ZFT ETERNUS © 2018 5


Abishai Mishil Alkaia
Aristodemus Panday Pira
Bjorn Ironside Rey Kalipulako
ZFT

Hannibal Barca Sun Tzu


ETERNUS

Isabella de Castile Simo Häyhä


Jumong Sun Wukong
Kawakami Gensai Valentino
©
2018

ZFT ETERNUS © 2018 6


Outlook / Perspective
Time is the Most Valuable Commodity …………………………………….………… 12

That Elusive Golden Ticket ……………………………………………….……………… 16


ZFT

Trading is a Marathon, Not A Sprint ………………………………………….……… 19


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Look at the Overall Portfolio ……………………………………………..……………… 22

My Window of Opportunity ……………………………………………………………… 26


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The Road Less Travelled …………………………………………………...……………... 29


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Trading is a War. The Stock Market is a Battlefield. ……………..…………….. 33

Trading as a Fair Game ……………………………………………………………...……... 38

Perseverance is a Prerequisite ……………………………………………………..…… 44

What are your Whys in Trading? ………………………………………………………. 50

Beyond your Targets ………………………………………………………………………… 54

Art and Science with a Twist ……………………………………………………………. 59

Losses are Part of the Journey ………………………………………………………….. 63

Real Talk ………………………………..………………………………………………………… 66

ZFT ETERNUS © 2018 7


Take on Technicals
Your Edge …………………………………………………………………………………………. 13

Overrated ………………………………………………………………………………………… 16
ZFT

Adjust Accordingly …………………………………………………………………………… 19


ETERNUS

The Art of The Chart …………………………………………………………………………. 23

Just the Tip of The Iceberg ………………………………………………………………… 26


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Mindset Matters ……………………………………………………………………………….. 29


2018

Building and Mastering a System ………………………………………………………. 34

Learn Before You Earn ……………………………………………………………………… 39

The Holy Grail …………………………………………………………………………………... 45

Rules or Guts? ………………………………………………………………………………….. 51

The 'Aha'nalysis ……………………………………………………………………………….. 55

Simplicity Works ………………………………………………………………………………. 60

Price is King …………………………………………………………………………………….. 63

Technicals: Your Map to Success ……………………………………………………….. 67

ZFT ETERNUS © 2018 8


Process / Strategies
Focus on the process ………………………………………………………………………… 14

Hope is Not a strategy ……………………………………………………………………….. 17


ZFT

Managing Risk ………………………………………………………………………………….. 20


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Own the Process ……………………………………………………………………………….. 23

Do Not Gamble ………………………………………………………………………………….. 26


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Trust the Process ………………………………………………………………………………. 30


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Paper Trading and Backtesting: The 10,000 Kicks of Trading …...…………. 35

Journaling – The Power of Writing your Reflection for Each Trade….……. 41

Tech or Funda? …………………………………………………………………………………. 47

Always a Student ………………………………………………………………………………. 52

Consistent Repetition …………………………………………………………………………56

Respect the Process ………………………………………………………………………….. 60

It’s a Simple Process …………………………………………………………………………. 64

Follow a System, Results Will Follow …………………………………………………. 68

ZFT ETERNUS © 2018 9


Opinions on Emotions
Keeping Your Emotional Capital Intact ………………………………………………. 14

Master Your Emotions ………………………………………………………………………. 17


ZFT

Understanding FOMO ……………………………………………………………………….. 20


ETERNUS

Keep Emotions in Check ……………………………………………………………………. 24

Be Objective ……………………………………………………………………………………… 26
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Emotions Make or Break a Trader …………………………………………………….. 31


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Less Noise, Less Trading Mistakes …………………………………………………….. 36

Conquering Thyself is Winning Half the Battle ...………………………………… 42

Anything Can Happen ……………………………………………………………………….. 48

Control Your Worst-Case Scenario …………………………………………………….. 52

Scope and Trigger …………………………………………………………………………….. 57

Preserve Your Emotional Capital ……………………………………………………….. 61

Execution Trumps Emotion ………………………………………………………………. 64

ZFT ETERNUS © 2018 10


Our Views about Mentoring
The Beauty of Having One ………………………………………………………………… 15

A Practical Approach to Learning ……………………………………………………… 18


ZFT

A Learning Process …………………………………………………………………………… 21


ETERNUS

Mentors Were Once Students …………………………………………………………….. 25

Share Your Journey and Save Yourself Some Time ……………………………... 28


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Follow a Lion ………………………………………………………………………………….… 32


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Mentor: The Blacksmith to Mold and Sharpen You ……………………………… 37

Mentors: More Than Just Teachers …………………………………………………….. 43

Find A Lion’s Den ……………………………………………………………………………… 49

Finding Guidance Through Mentors …………………………………………………… 53

The One Thing I Should've Had from The Start …………………………………… 58

Knowledge ROI …………………………………………………………………………………. 61

The Rule of 33 Percent ………………………………………………………………………. 65

Mentors Get You There Faster ……………………………………………………………. 68

ZFT ETERNUS © 2018 11


Abishai
ZFT
ETERNUS

I never saw myself as a 50 year-old, working an 8-5 job dealing with the tremendous
amounts of pressure and stress that come with a corporate career. Nevertheless, such was
the path I was initially on.
I spent most of my time in the office, doing overtime work even during weekends. Then I re-
alized I had lost so much time to my job. Time I could’ve spent with the people I love, but
there was no way to get this time back.
©
2018

I asked myself, “When would I be able to retire from the corporate world so I could spend
more time with my family?” I could always answer this with a date, but it was always fol-
lowed up by the question of “how am I going to achieve that?”

At the time, I was a long-term investor with a shaky portfolio at best—subscribed to a paid
group and constantly getting hyped by another group. It struck me, “until when am I going to
be dependent on others for my profitability?

As the saying goes, “love your neighbors as you love yourself.” This was why I pursued a full-
time career in trading. I wanted to make time for the people that mattered the most for me.
This included my wife, my daughter, my parents, my siblings and friends.

My trading performance needed improvement, so I started reading up on basic technical


analysis, talking to some traders, and attending seminars. Then, finally, I was fortunate
enough to be able to join the program and be mentored by proven and experienced traders.

ZFT ETERNUS © 2018 12


People keep asking me: “why do you keep spending so much on trading?” To which I answer,
this is my chosen career path and I see it as an investment. Apart from that, it’s not always
about money and tangible rewards. For me, it’s about the passion. I love what I am doing. I
am learning new things, and I have the opportunity to share these lessons with others.

Again, it’s not always about the money. Yes, profit is the main goal of trading, but—for me—it
is the most effective way to fulfill my higher purpose in life.
You can multiply your money and wealth in whatever way, but never your time. You can nev-
er measure success by the amount of money you have.
ZFT
ETERNUS

Technical analysis is your edge over other traders in the market. It helps you identify good
©

stocks, find your entries, exits, cut points, and stops. It familiarizes you with high-probability
setups, as well as the pros and cons of each trade—their risks and potential rewards.
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Still, technical analysis is not the be all and end all of trading. Consider this: you find a room
filled with gold, laced with trap bombs all over. To get the gold, you have to navigate through
the bombs. You’re leaving the room either filthy rich or dead broke. Technical analysis isn’t
how to get the gold. It’s how to find the room.

Taking the gold home is a different story—taking into account your objectives and knowing
your risks and rewards. But how about the pressure you feel and your mindset during the
trade? They are whole other thing altogether.

Technical analysis is not the only ingredient to our success as traders, but it is one of the
most important ones. You can be well versed in technicals, but without proper execution and
management of emotions, it would be useless.

ZFT ETERNUS © 2018 13


After studying technical analysis, I thought trading would be much easier. I started back trad-
ing and looking at the potential rewards of a given trade. I skipped steps, and focused on earn-
ing and making X amount of money.
While I had gains sometimes, my trading skills didn’t improve—I couldn’t replicate winning
trades and failed to understand why I won some trades in the first place. Worst of all, I ended
up having a net loss.
ZFT

The lesson: when you are too focused on earning, you tend to overlook everything else—
including your process. When this happens, you lose and you lose a lot. Not just money, but
ETERNUS

self-confidence, morale, and sanity as well.


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You have to understand that it’s never going to be a fire-free trading experience. The most we
can do is make it fire-proof, and that’s what the technicals are for.
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There will always be losses and selldowns, but they shouldn’t stop you. They are part of the
process and we cannot escape or skip that process. Focus on the process and you’ll come clos-
er to success and consistency.

Cut-loss is life. I am in the market to milk it. My mindset is on maximizing its rewards. But I
reached a point when I almost lost my mind because of losses. I overlooked risks, and didn’t
focus on protecting my capital.

Whenever I was in a losing streak, my immediate recourse was to allocate more money on the
trade on the hopes that this was the quickest way to get my money back. Again, I was too fo-
cused on maximizing rewards and—consequently—ended up piling more losses.

Stop loss is lifer. Mistakes came with both wins and losses. Whenever a winning trade broke
my losing streak, I secured profit right away without being objective. I stepped out of the
trades blindly, thinking that the market would only penalize me for staying too long.

ZFT ETERNUS © 2018 14


Strategies like position size scaling were alien to me. My mentor introduced it to me and it was
an "aha" moment. It involves reducing your position size to manage risk, especially in high-risk
trades.

Starting small is wisdom. After learning all the technicals, one advice I took is this: don’t go big.
And a question popped into my mind after few weeks: what if I did not take that advice? My
portfolio would have suffered a tremendous loss.

In trading, the devil is always in the details. If you don’t apply the basics in trading and you suc-
ceed, hats off to you. Otherwise, I suggest you start with the basics, start small, and build up.
ZFT
ETERNUS

Trading is a journey of ups and downs and it always helps to have a mentor to share it with. I
have an outlet; someone who understands my struggles and situations; someone and who is
willing to share his time and walk with me in this path.
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I am very grateful for having mentors who correct me when I make mistakes, guide me when I
am unsure, and teach me when I do not know. I am afraid of committing mistakes; however,
2018

my mentor assured me that they are unavoidable in the market because we are trading the
probabilities.

My two cents on having a mentor? Be open and let your mentor appraise your skills as a trad-
er. There’s no room for pride. Be teachable. Be humble. Be respectful.

While Abishai has been an engineer for over 7 years now, as a young man he
dreamt of being a musician.

He pursued trading because he wanted to spend more time with his family—
to travel and do random acts of kindness whenever they can.

ZFT ETERNUS © 2018 15


A ristodemus
ZFT

I see trading as my ticket to financial independence.


ETERNUS

I remember my first day in the corporate world. I was an IT professional, but I wanted to leave
as soon as I got there. From the first day I started working, I planned on saving my money with
the goal of setting up my own business someday. I would work 12 to 16 hours a day just to save
money for future capital.
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2018

Trading has given me that opportunity. Now, I am my own boss. I am a business owner, control-
ling my own capital, risks, and expenses.

Most traders tend to focus too much on the technical part of their game. While definitely essen-
tial, the technical aspect is easy to learn and often overrated. So much so that traders often
blame their losses on lack of technical know-how.

If you’ve done your part studying and are still failing, try to focus on your execution and manag-
ing your emotions. After all, you may be poorly executing a well-laid-out plan. Who knows? This
might change your game.

Even the most rudimentary techniques can work if executed properly. Nicholas Darvas only had
boxes to work with! And he did it via telegrams while dancing his way around the world! What’s
your excuse?

ZFT ETERNUS © 2018 16


We traders have heard it thousands of times before. Always, always look to refine and improve
your system and execution. Embrace the process. Do not focus on the money. The profits will
come in later.

One thing that can help you vastly improve is a trading journal. With it, you will be able to re-
ZFT

view your trades, see your mistakes, and find areas of improvement. With it, you will also be
able to build statistics.
ETERNUS

What plays are you good at? What plays do you need to work on? What signals work for you?
What don’t? If you are unable to answer these questions with certainty, maybe it’s time you start
journaling your trades.
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2018

This is one of the most underrated, overlooked, and often even unknown, aspects of trading. To
master your trading, you have to master your emotions. Did you buy because of greed? Were
you unable to buy because of fear? Were you unable to sell because of greed? Did you sell too
early because of fear?

As traders, this is the aspect we want to minimize, if not totally eliminate. Trading should be as
mechanical as possible. We buy when we see buy signals. We sell when we see sell signals. Rinse.
Repeat.

That’s why a predetermined trading plan is absolutely necessary. Prepare for the battle so you
could win the war.

Trading is a game of emotions—like greed and fear. We buy on greed and sell on fear.

ZFT ETERNUS © 2018 17


In trading, having a mentor isn’t just essential—it’s practical. It will save you thousands of
hours studying; it will help you avoid countless mistakes. A mentor can point you in the right
direction. With his/her knowledge and experience, a mentor adds perspective, allowing you
to avoid mistakes that he/she already made.
ZFT
ETERNUS
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2018

Aristodemus has a passion for music.


In fact, he used to dream about building a life as a musician.

.
These days, he busies himself by building a business through trading—which he
sees as a reliable source of steady and passive income.

ZFT ETERNUS © 2018 18


Bjorn Ironside
ZFT

Most new traders see trading as a quick money-making scheme. Nothing could be farther from the truth.
ETERNUS

One of the most common questions people ask me is “Magkano ba kinikita mo dyan?” (How much are
©

you earning on that?). I always answer with a subtle “Sakto lang.” (Just enough). This is because no
2018

trader is actually sure of how much he will be earning. For some it can be as high as 200 percent,
for others it can be an outright loss.
The right question is “Is trading sustainable?” It is consistent? Can it feed me if I quit my day job?
The answer is both yes and no. Yes, if you put significant effort and focus to it. Otherwise, don’t quit
your day job.
As one of my mentors always says,
“Kung tamad ka (if you’re lazy), don’t expect the market to reward you.”

When analyzing charts, I always consider both sides of the coin so to speak.
Whenever a chart points in a particular direction, I do not discount the possibility that it could
go the opposite direction in an instant. In these cases, it is important to know the overall health
of the stock, and adjust accordingly.
Don’t focus on a single indicator or form-fit your analysis based on your position on that partic-
ular stock.

ZFT ETERNUS © 2018 19


I believe a good chunk of success in trading is based on good risk management. I see trading as a
game of probabilities. And since we cannot guarantee whether a stock will rise or fall, a good risk
management system should be in place.
ZFT
ETERNUS
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2018

Fear of Missing Out or FOMO is a common emotion among traders. This happens when a particu-
lar stock rises and a trader regrets not having to enter the stock prior. This causes emotional dis-
tress, leading to hesitation when it comes to trading other stocks or, worse, overtrading different
stocks in hopes of finding the same payoff.

For a trader to succeed, it is essential to always keep FOMO in check.

To deal with FOMO, I remind myself that the market will always give us plays. Missing out on
one trade doesn’t mean that you can’t enter a trade in that stock again when the opportunity
presents itself.

Those entries will be dictated by your trading approach, which is based on your technical analy-
sis methods and setups.

ZFT ETERNUS © 2018 20


For me, trading is a learning process.
I went into trading without prior knowledge on technical analysis. Initially, I relied on recom-
mendations from friends who made money in the market.
Like any learning process, the most valuable lessons are born from mistakes. I committed vir-
tually every trading error when I was starting, from overtrading to buying a down trending
stock. And I lost real money.
ZFT

Fortunately, simple errors can be avoided if you have a proper mentor.


ETERNUS

Before I joined Seed, I thought I knew enough about technical analysis to make money. I was
dreadfully wrong. There are nuances that only a mentor can teach you.
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2018

Don’t look for ones who post green ports every time. Find those who post even their losses. I
believe they are the ones who can truly weather the best and worst market conditions.
And most importantly, they can help you overcome the most challenging obstacle in trading:
your own emotions.

Bjorn Ironside intends to travel the world.

For him, trading is an avenue to financial freedom


and his ultimate dreams.

ZFT ETERNUS © 2018 21


Hannibal Barca
ZFT

What attracted me to trading was the unconventional setup. No need to be trapped inside a con-
fined office space for the whole day. You can execute trades from anywhere, as long as you have a
laptop and a good internet connection.
ETERNUS

Second, it was the compensation. You get what you deserve:


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2018

Lastly, the idea of earning while being in control of your time – this was really my main motivation
in learning how to trade.

As a student in this program, one important thing I realized was: the basic purpose of trading is
not to get the most out of every single trade, but to grow one’s portfolio. While this is a common
principle among traders, it took me awhile to get a full grasp of it.

I used to dwell on the performance of each trade I made. In fact, I’d hold onto losing positions
hoping that it would fix itself. And when I finally gain a winning position, instead of taking the
profit, I would also hold—hoping that the gains would cancel out my losses from other trades. In
the end, this kind of thinking was useless.

Today, I’m more mindful of the overall health of my portfolio. I see trades working together to
benefit the entire account. Learning about risk management taught me to focus on the overall
portfolio performance, instead of single trades.

ZFT ETERNUS © 2018 22


After learning techincal analysis from this course,

As the class moved from one lesson to the next, I began reviewing my charts prior to Project Seed.
ZFT

While I already saw these charts, it was like seeing them for the first time and understanding—
clearly—what they meant.
ETERNUS

Reading and analyzing charts is very important. It’s a skill that beginners are encouraged to devel-
op before buying their first stock. It should be approached with a positive attitude to avoid being
overwhelmed by its different components.
©

As you study more and more, you’ll be able to determine the most essential parts. This will keep
2018

your charts simple, but complete.

I used to have a very disorganized way of trading. I would try out different strategies, leaving
plenty of room for second guessing and what-ifs.

With the ZFT system, the challenge is focusing on the process and, at the same time, adapting the
system to my personal preference. As traders, our task is to learn a system and make it our own.

Taking a closer look at yourself will help you determine your risk appetite and the specific trader
profile you can grow into. Knowing so will stop us from forcing trades or trading setups we can-
not monitor.

My goal is to be disciplined not just in actual trades but also in paper trades. I document them in
my journal, so I can be aware of the kind of setups I can manage. With constant practice, the trad-
ing process becomes second nature.

ZFT ETERNUS © 2018 23


ZFT

In my trading journal, I make it a point to note my emotions upon entering and exiting a trade.
ETERNUS

My mentor told me that there will come a time when I will no longer need to do so, because I
will eventually learn how to be an ‘emotionless’ trader—which is the ideal.

I think it will take a lot of discipline to get there: following trade rules strictly and sticking to
©

the plan without being influenced by emotions.


2018

Our mentor taught us to consider possible results from a given trade and plan accordingly. Ac-
counting for different scenarios beforehand allows us to become mentally prepared to act as
the trade unfolds. Should the trade go against our expectations, at least we already know what
moves to execute. Minimizing emotions enables us to objectively manage each trade we make.

ZFT ETERNUS © 2018 24


Having a mentor goes a long way in fast-tracking the learning process.

Since I started trading, I’ve always been looking for a mentor. Through the Project Seed pro-
gram, I was fortunate enough to receive direct mentoring. I actually learned more from the
three-month course compared to the entire two years I was self-studying.
ZFT
ETERNUS

Always remember to be humble enough to receive criticism, especially coming from people
who have more knowledge and experience. Be humble enough to ask questions—you can nev-
er have too many.
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2018

Remember: before becoming mentors, they were once students too, in the same position you
are in today. So if anybody can understand you, it’s likely them.

Hannibal Barca is a dentist by profession and a trader by heart.

He believes trading is the key to achieving financial freedom


—which is the dream he fights for day in and day out.

ZFT ETERNUS © 2018 25


Isabella de Castile
ZFT

Although I was hesitant at first, I knew that joining Project Seed was the window of opportunity I
ETERNUS

was waiting for to improve my trading skills. I immediately prayed and I distinctly remember say-
ing, “Lord, if this is for me, let Your will be done. The second half of the year is usually a very busy
year for me at work, can I do this? There is always next year.”

Eventually, I decided to give it a shot. A few weeks after posting my RAK activity, I was notified that
©

I got in. Everything still seems surreal. I still cannot believe I survived the course with only 2-4
2018

hours of sleep almost every day. Despite the physical struggle, my whys kept me going and I am still
eager to learn more from my mentors.

I learned more than expected in 3 months with Project Seed. Every class was mind blowing. I have
never been with a set of students so hungry to learn under mentors so dedicated to share their
knowledge. My perspective changed drastically, I did not just learn technicals but even the im-
portance of trading psychology. More than just a group composed of students and mentors, this
community is a family and I am honored to be part of it.

Technical analysis is often said to be the Holy Grail in trading—meaning that once you have a firm
grasp of its concepts, you are good to go. Contrary to this, however, is that this is just the tip of the
iceberg. The technicals merely serve as your weapons in trading.

Don’t get me wrong, I am not saying it isn’t important at all, it definitely is. A trader must master this
to give him an edge but there are deeper aspects to know within yourself to be able to execute your
trades better.

ZFT ETERNUS © 2018 26


Just when you think you know everything about trading, a loss reminds you that you still have
much to learn. You will go through many trades but always remember to focus on the process
and execution. Plan your trades beforehand, do paper trading as often as possible, and do not
ever let your losses run.
ZFT

When I was starting, I made a lot of mistakes: I never paper traded and I never started small.
My mindset was focused on “high risk, high reward” when unbeknownst to me, this was my
ETERNUS

form of gambling.

Always make sure to follow your plans and manage your risks—your ability to do so is essen-
©

tial to your success as a trader.


2018

Losses are part of trading, so you’d do well to accept that as you are dealing with probabili-
ties and uncertainties. Consecutive and big losses, however, are things you can prevent. If
you ever you go through them, remember to remain objective.

If on the other hand, you are winning consecutively, the same rule applies—be objective. Do
not assume nor expect that the uptrend will go on forever and remember to take those prof-
its as planned.

ZFT ETERNUS © 2018 27


If there is one thing I appreciate the most, it is having a mentor to guide me every step of the
way. Yes, you can forgo the idea of having a mentor and go through the entire learning pro-
cess on your own. However, you will subject yourself to a cycle of trial and error. Hence, you
ZFT

may still find yourself back at phase 1 even after many months or even years of studying.
ETERNUS

At the same time, make it your goal to be as good as your mentor. At the end of the day, this
would then push you to put in the work to become a better trader.
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2018

Ever since she started working , Isabella de Castile always wanted to be


a full-time trader even before.

Her goal is to be financially free and to have enough time


and capital to put her ideas into motion.
Along her journey, she plans to help as many people as she can.

ZFT ETERNUS © 2018 28


Jumong
ZFT

Have you ever heard a kid say ‘I want to be a trader when I grow up’? Unlikely. Most children
dream of being firefighters, doctors, lawyers, or engineers. Trading is not a possibility you see
ETERNUS

when you’re younger, because it’s rarely discussed in school.

Only recently have Filipinos started talking about investments (e.g. stock market, foreign ex-
change or cryptocurrency). In fact, only 1 percent of Filipinos know how to invest. Needless to
say, when I was first introduced to trading I was very curious. You could say I was drawn to it like
©

love at first sight.


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For me, trading is an essential step to achieving one of my personal goals: financial freedom. I also
see it as a great opportunity to be profitable without having to hire and manage people, invest
capital for expansion, and pay rent.

Like any business, trading requires hardwork. I believe, however, once you master trading, your
journey to financial freedom becomes faster. All you need are know-how, a laptop, a reliable in-
ternet connection—and you’re good to go!

Building a system grounded on technicals gives you an edge in trading.


While there are different books about different indicators (e.g. moving averages, RSI, Ichimoku
Kinko Hyo, harmonics, and many more), a lot of traders still have problems implementing them.

Recognizing patterns can only get you so far. Indicators can tell you if a stock is bullshit or not. It
will tell you your entry and exit. But why do some traders keep on incurring losses despite these?
In my opinion, this is all about mindset. This pertains to mastering your emotions and maintain-
ing neutrality, as well as analyzing previous trades. I believe mindset can make or break your
trading performance.

ZFT ETERNUS © 2018 29


You may know of many success stories of traders and are eager to follow in their footsteps.
What you don’t know is that it takes a lot of sacrifice and struggle to get there. These traders
likely incurred huge losses before mastering their craft.
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For a trader to earn, he/she must build a trading system and proceed to mastering it. This
takes a lot of hard work, but it’s worth it. First, focus on the process and not the profit. The
gains are only the result of completing the process—which entails discovering a system that
works for you. And finding the right system is really a matter of personal preference.
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2018

I’ve been given advice to only trade when my personal schedule permits. I focus on trend-
following plays. So, when I’m planning my trades, I make sure my schedule allows me to moni-
tor the trade.

I believe in learning to crawl before walking and running. Run your own race, at your own
pace. While the market will always give us plays, always consider that funds are limited. Start
small. Try to master a few plays, then go from there.

How? Start with paper trades then go to small-volume trades. When you are consistently prof-
iting from certain plays, you can proceed to conviction trades with bigger volumes that you
can handle.

Log every play you make in a journal and revisit them to assess which plays work best for you.
Reflect on your emotions when you enter or exit a certain trade. Find your niche. If you profit
from only one type of play, then—by all means—focus on that play.

ZFT ETERNUS © 2018 30


As traders, how we handle emotions can make or break us. Even if we have a concrete trading
plan, emotions can cause us to deviate from it.

Greed can compel us to allocate even more money to a stock that already has 30 percent of our
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overall port. Fear of Missing Out (FOMO) can make us chase stocks despite technicals showing
that it has already hit the resistance point. Pride can force us to hold on to a downtrending
stock, because we don’t want to admit that we made a mistake.
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These are just a few examples of how emotions can force us to deviate from our plans.
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Personally, I compare trading to a woman enamored by one man. While she can be aggressive
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in pursuing the man, strategy tells her to position herself as the prize—thus, the man should
be the one to initiate the chase.

The same goes for trading. You shouldn’t chase any moving stock. Moreover, let the stock tell
you if the uptrend is real. You do this by checking the charts for signs of bullishness.

ZFT ETERNUS © 2018 31


As the old saying goes: to become a lion, you should surround yourself with lions.

This is particularly true in trading. Given a chance, you should seek out a mentor—one with cre-
dentials to come with the title. I am very fortunate to have one that is not only a teacher, but a
friend as well.

Mentors guide you and point out your mistakes. They share valuable lessons, so you come pre-
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pared for different situations in trading.


When I started trading, I did it on my own. I incurred a lot of losses. To this day, they serve as
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painful lessons. With the help of a mentor, my trading performance greatly improved. He gave
me advice on trading pyschology, executing plays, and how to approach trading in general.

When interacting with your mentor, keep an open mind. Be humble enough to trust a different
perspective. A mentor can identify which areas you need to work on. Also, don’t be shy—ask as
©

many questions as you can.


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And, lastly, always be grateful,


because they are sharing insight and time that they will never get back.

Jumong consider trading as a way


to reach financial freedom,
see the world, and do more charitable acts.

ZFT ETERNUS © 2018 32


Kawakami Gensai
ZFT
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Did that scare you? Well, it should. But that shouldn’t stop you.
Many people enter the stock market without even knowing how it works. In fact, some of my
friends opened trading accounts without even knowing how to buy stocks. All they want is to
earn without even giving the smallest bit of effort, like reading the FAQs of their online broker
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on how to make transactions. They want to win without giving a single ounce of sweat. That’s
not how the market works.
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Imagine you wake up tomorrow and all of a sudden you find out that you’re being deployed to
war. What do you think would happen? If you’re unprepared, you’d likely die the moment you
stepped in the battlefield, or if you’re lucky enough, you’d last a few days.

That is no different from entering the stock market without having the proper knowledge—
your money would be wiped out in an instant. Why enter trading when you don’t even know
how the market works? You think a soldier would go to war without knowing how to fire a
gun?

Trading is a war and the stock market is the battlefield. And if you want to win this war, you’ve
got to come prepared. Learn the tricks of the trade. Have the right mindset. And since this is a
war, you need a weapon.

ZFT ETERNUS © 2018 33


Your system. This is your weapon. This is what will keep you alive in battle. It could even win
you the war.
I will not tell you what weapon to choose. It’s your journey to find that out.
I can give you the best weapon in the world. But if you’re not comfortable handling it, if you
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don’t know how to use it, then—for all intensive purposes—the best for me could easily be
the worst for you.
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©

I have been trading for five years. I have failed a lot of times, and while I’ve had my share of
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success, I believe I am still learning. I am constantly embarking on new journeys to learn new
things. My life as a trader is always evolving.

Now, I’ve had a lot of trading mistakes, but the biggest of them all is trying to learn everything.
I’ve always known that I need to study to be a successful trader. So I studied. And I studied a
lot. But the problem is I was studying without any direction, without any goal. I studied for the
sake of knowing. I learned about different indicators, and once I knew how to plot them, I
went on to the next ones. I never focused on a few. There was no mastery. And that is my big-
gest regret.

Ang technical analysis parang babae, mas simple mas maganda. Keep things simple. You don’t
need to know them all. Find that indicator you’re most comfortable with and master it. Build a
system around it. Know it by heart and trust it like your life depends on it.

As Bruce Lee said,

“I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced
one kick 10,000 times.”

ZFT ETERNUS © 2018 34


What do Bruce Lee, Michael Jordan, Muhammad Ali, Tiger Woods, and Michael Phelps have in
common? They’re all universally regarded as the greatest in their fields. So how did they
reach that level of greatness? Were they just born with it? Of course not. They spent hours of
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rigorous training and sacrifices to be who they are today. They perfected their skill not in live
games but through thousands and thousands of hours of practice.
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But how do we really do practice in trading? Through back testing and paper trading.

Back testing is simulating your system based on previous data to see how it performs. With
this, you can gather sufficient data to evaluate your system and apply necessary tweaks for
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improvement. Paper trading is just live trading through either a virtual portfolio or logging
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trades on paper—in any case, it doesn’t use actual money.

These two are often neglected by most traders because they think they’re just wasting their
time and possible gains. I once had the same misguided sentiment on back testing and paper
trading. I used to apply what I learned on my actual trading portfolio, and I lost real money.

Paper trading does not only save you from losing your hard-earned money, it also gives you
the confidence to trade your system.

This is how you master your 10,000 kicks. Don’t feel bad when you’ve spotted a bagger on
your paper trade and did not trade the stock on your real account. Remember, we are here for
the long run. The stock market is not a sprint, it’s a marathon.

ZFT ETERNUS © 2018 35


What is market noise? For me, market noise is anything that distracts you from following your
trading plan and causes you to act on impulse.
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There are a lot of noises in the market, but the good thing is it’s easy to muffle them.
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Do you follow a lot of stock market gurus giving different stock recommendations? Unfollow
them.
Are you a member of various stock market trading groups? Leave while you can.
Do you know people who constantly hype and bash stocks? Don’t pay attention.
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2018

We can also find noises from within us, based on our personalities. For example, the default
candlestick charts are colored red and green. Whenever I see that the current candle is red,
this tells me that I should get away from these stocks because they’re about to go down, even if
the setup is still in play. In contrast, when I see the candle is green, I instinctively think the
stocks are already shooting up.
These noises made it hard for me to follow my trading plans. So I changed the candle colors to
black and white. Yes, I know it’s rather simple but I would always encourage traders to do
what’s comfortable and effective for them.
These are small details that traders often overlook, but could have huge impact on their trades.

Find those noises. Mute them. You’d be surprised how these small details can improve your
decision making—for both your trades and emotional status.

ZFT ETERNUS © 2018 36


I have always seen myself as a lone wolf. I love doing things on my own and learning on my
own.
For five years, I traded alone but it did not get me to where I wanted to be. I lost money I didn’t
have to lose and credited it to experience. In the end, I found out the wolf is only as strong as
the pack.
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Mentors guide us, and help us win our battles.


A good mentor is passionate about teaching you and dedicated to helping you grow, not just as
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a trader, but as a person as well.

My advice? Find a mentor that is willing to share his mistakes so you won’t repeat them. Make
sure your mentor can walk the talk and is not just after your money. If you find a mentor who
©

is willing to teach you all that he knows and is happy to see you become better than he is,
you’ve found yourself a rare treasure.
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Kawakami Gensai is a Frustrated Mountaineer.

His ultimate dream is to climb at least one mountain


in all the provinces of the Philippines.

Kawakami also wants to travel the world and learn its different cultures.
He wanted to became a trader to have full control of his time.

ZFT ETERNUS © 2018 37


Mishil Alkaia
ZFT

Trading is considered a profession—yes. And one must understand that taking the road to-
wards it is not easy. Definitely not easy.
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People might see it as a way to earn big. Who wouldn’t be attracted to the idea of making money
out of money, right? But little do they know, trading is not only about watching prices on your
computer screen and clicking the buy and sell buttons.
Moreover, it is about what happens when you are not watching the prices. It’s about all that time
©

studying, scanning stocks, charting, backtesting, paper trading, journaling, reviewing trades, keep-
ing yourself in the zone, having the correct mindset and proper trading psyche. These are the
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things that epitomize trading.

When you come to think of it, what are the risks involved when you enter the corporate world?
The biggest risk is probably getting fired for breaking company rules. But aside from that, what are
the other things which can impact your salary? Other than under times, your salary in the corpo-
rate world rarely gets deductions. For missing certain job functions, the likely penalties are a
memo from your manager, a conversation with HR or a note in your employee record. In case you
get laid-off or fired, you can always find a new job. There is always an option to work for other
companies, and—in the end—your monthly income is secure.
On the other hand, when you become a full-time trader, it comes with 100% accountability. No
boss and clients to deal with, no time-in and time-out, no commute, no workloads to finish. What a
carefree life, right? On the contrary, it entails a lot of hardwork and discipline. And since you’re re-
lying on yourself to make all the big decisions, you’ll need self-mastery.

ZFT ETERNUS © 2018 38


As a trader, you are responsible for every mistake you make. And in this game, one grave mistake
can deplete all those gains that took you time to make. There aren’t any paychecks waiting for you
every 15th and 30th of the month. Sometimes, you’ll even incur losses for months and that’s some-
thing you must be prepared for.
If you don’t do your homework, the risks are financially fatal. The same goes if you approach trad-
ing casually. Without the right amount of dedication, you will only produce half-baked plans and
inconsistent results.
Trading is a very fair game—in that, you simply get what you deserve. Your commitment to mastery
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will determine whether you can or can’t stay in this field. Your outcomes are the reflection of your
hard work. No subjective judgments involved.
ETERNUS
©
2018

When I started in the corporate world, I was always looking for good investments. For many,
the simplest way was to put money in the bank. But we all know that the interest would only be
overpowered by yearly inflation rates.
That’s why I looked for alternatives. I learned about the stock market, specifically about peso-
cost averaging. Most of the references I found claimed that investing in blue chips can yield up
to a 12-percent return, a growth rate that easily trumps anything the bank can offer.
So I opened an account and started. After sometime, I learned about active trading, and I was
enticed by the idea that some people are actually consistently making money through trading. I
was a fresh graduate, new to the corporate world, and earning an average salary. And I quickly
saw that trading could earn me my entire month’s salary (or more) in just one day. So, how else
would I react?
Needless to say, my perspective changed. I left my initial goals of climbing the corporate ladder
and becoming a valuable employee.
I wanted to make extra money on the side, so I thought trading a few thousand pesos wouldn’t
be a bad option. It seemed so easy. But I couldn’t have been more wrong.

ZFT ETERNUS © 2018 39


I was too focused on the money, and I didn’t profit from that mindset. While I had some win-
ning trades, my losing trades ate up my gains and eventually my capital. I was trading without
any kind of system. I have also been a victim of hype. What do you expect?

A lot of things happened before I got here, being trained with technical analysis and being giv-
en a system that can make me a consistently profitable trader. But let me share what I realized
along the way.
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A common trap for people new to trading is the idea that they will earn big money right off the
bat. Yes, some may have beginner’s luck, but that’s not what determines your staying power as
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a trader. You need a correct mindset that aims for continuous excellence. Just like athletes and
musicians, traders need years and years of practice to flourish.
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Same with any other skill, you cannot automatically be great at it.
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This is why many people quit trading. They want success without the necessary hardships that
come with it. They want a one-time-big-time gain, and not consistency. They want to skip the
process of backtesting, paper trading, and documenting trades. And that type of work ethic
will not get you anywhere in life, and it surely won’t get you anywhere in trading.

Just like what I have said previously, trading is a real profession.


To be a consistently profitable trader, you must embrace the process of learning. Being a slack
-off or putting up a part-time effort hoping for a full-time trader’s gain is not a good idea to
stick with. Half-hearted effort will only get half-hearted results.

ZFT ETERNUS © 2018 40


In school, there are report cards. At work, there are yearly reports.
In trading, there are journals.
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A trader can process hundreds of trades in the span of a year. Whether a trade wins or loses,
they have a purpose—they serve as our references for future scenarios. This is why both need
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to be documented with equal importance.

Trade documentation is a major contributor to your success as a trader. If you want to go full
time, treat trading as full-time work, giving it full-time effort. For traders, keeping a journal is
©

part of good work ethic.


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Journaling is more than listing your entries and exits. It also includes your reflections after
each trade. This can be done on a weekly basis, considering the following questions: Why did
you win? Was it because of execution or luck? Did you execute the winning trade better than
the others? Did the trade fail despite being properly planned? Indicate what went wrong with
your execution and how you could have done it right.

Write down the emotions you encountered, pinpoint the moments you felt fear and hope.
Write a reflection for every trade you make -- This lets you: track your progress as a trader;
distinguish the differences in your trading approaches; and assess your reactions on previous
trades.

ZFT ETERNUS © 2018 41


Stock Market trading is a big game of paradox.
And one way to survive it is to conquer yourself.
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Let’s say you already have all the tools and a well-built system to trade. You have the deepest
of all whys to keep you motivated and focused. You always make time for studying and prepa-
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ration. Despite all these, you still keep losing trades.

Look within yourself. It is very likely that your emotions are getting the best of you, without
you even realizing it.
©
2018

The secret is to keep calm at all times. When you gain, suppress that feeling of euphoria. When
you lose, you have to get back up and not let it stop you. A breakdown of our neutral state can
hamper our performance.

Fear and hope. These are the common causes of mishaps in trading. Fear prevents you from
hitting that buy button, even if the chart is telling you this is the right time to take a position.
Hope makes you hold on to a stock longer, even if it is obvious that you should exit the trade.

Your biggest enemy and competitor in trading is yourself. Once you master your emotions and
find your neutral zone, you’ve already won half the battle.

Having your “WHY” in trading will only keep you going.


Having a WINNING MINDSET will only help you recover from your setbacks.
But managing your EMOTIONS well is the greatest factor that can drive your success as a trader.

ZFT ETERNUS © 2018 42


I strongly believe in mentoring. Having a mentor helps you fast track your learning curve and
progress. Mentors are more than just teachers. Their dedication, commitment, and passion are
very evident. They not only want you to learn, they want you to be successful, and even urge you
to outwork them.

Trading is one of the most commonly misunderstood professions, and it can get lonely not having
a person to share it with. Have you ever had the feeling of wanting to share your current experi-
ences in trading, but no one was willing to listen? Or maybe some would, but later on say…
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“I don’t get what you’re doing, it seems complicated.”


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Later on you may find a fellow trader who you can occasionally chat with, one who is embarking
on the same journey as you are. What a relief right?

But what if you were given more than just a friend? What if you were given a person who guides
you, advises you, and teaches you? One that you can turn to when you are down; a confidant you
©

can open up to when you make mistakes; a person that motivates you to do better when you tell
them about your setbacks.
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That’s the beauty of having a mentor.


If teachers are meant to explain subjects in school, determine if you pass or fail, then just move on
to the next batch of students, mentors—I believe, are meant to be with you throughout your en-
tire journey. So don’t ever, ever take them for granted. Appreciate them and make them proud.

If Mishil could start college all over again,


she’d take Psychology as her major.

You can read about her trading journey


through her blog—
mokshasanctuary.wordpress.com

She simply wants to live in a house by the beach,


travel the world, and immerse herself in different cultures.

ZFT ETERNUS © 2018 43


Panday Pira
ZFT

Before the course began, the mentors asked us to write down our “deepest whys” in trading. He
said we would use this to consistently visualize our motivations. He added that we would refer
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to it whenever we experienced setbacks and challenges—serving as a reminder to stay the


course.

I admit, when I started this journey, my only goal was to earn extra money, nothing else. I had a
job, which—I believed—could sustain the needs of my family. But like most, I wanted to be in
©

control of my own time.


2018

When I started trading, my account was overblown with losses. I suffered a -35% in my portfo-
lio, which had all my savings. My poor performance in trading began trickling down to my day
job.

With a series of losing trades and very few winning ones, I was afraid that my port would have
a drastic drawdown with just one wrong execution. This was compounded by a series of prob-
lems at work and at home.

I felt that I had hit rock bottom. Depression followed and I took a break from trading. I couldn’t
sleep. I kept asking myself, “Why am I in this mess?”

With the help of my partner, I found myself in the service of others—doing random acts of
kindness and being active in church ministry service. This gave me new, meaningful reasons to
return to trading—not just for myself, but more importantly, for others as well. This remains
one of my strongest whys in trading.

ZFT ETERNUS © 2018 44


As I write this, I just finished the program and I’m looking forward to applying what I’ve learned. I
don’t expect it to be easy. In fact, I expect a whole new set of challenges and setbacks. But I believe
I’m ready to face them, carrying lessons from the past and new motivations in the present. I’m de-
termined to be among the 1 percent of traders, who successfully ‘beat this game.’
I draw inspiration from Sir Alpha, who once incurred a -40% loss, but it didn’t stop him from trying
again. I will persevere as he did.

P.S.
I tried joining the Subasta Program twice and failed. I also applied to Project Seed three times and I
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was blessed to be given an opportunity to be in the current batch of Eternus.


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I liken my journey to a Multiple Point Bullish Life Divergence, because as life keeps pushing me
down, I become more determined to be the best version of myself. I will experience ups and downs
of it, but in the end I’m confident I’ll push through and reach my goals and dreams. My advice to my
fellow newbie traders out there: don’t ever quit, because like you, God is always at work.
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2018

I used to overlook the value of developing a trading mindset. I was so focused in studying different
technical indicators and other market variables, that I forgot the “intangibles.”

Even when I’m reading books and blogs or watching video tutorials, I found trading mindset to be
kind of boring as a topic. I do not mean to generalize, but most aspiring traders go through this
stage, believing that they will find the “holy grail” in trading by focusing on charts.

As Kapitan Kidlat says, only 1% of success in trading is seen on the charts, the rest depends on the
intangibles, which we never see on technical indicators or analysis. Unfortunately, most traders tend
to focus on nothing but indicators and analysis. We underestimate the intangibles that may have a
big impact in improving our trading skills.

According to Mark Douglas (author of Trading in the Zone), in order for us to attain the
“consistency” that we have been dreaming of, we need to know how we think before, during, and af-
ter the trade, how we become aware of our emotions and behaviors, and how we perceive opportu-
nities that the market presents to us.

ZFT ETERNUS © 2018 45


We may have experienced revenge trades or whipsaws on stocks, leading to huge losses. But
often times we never take the time to analyze the emotions that got us there. More often than
not, anger and regret drove us, and little by little, they swallowed our neutral state of mind.

The same goes for winning trades as well. They can easily wipe out previous gains (consider
Superman Syndrome).

I’m not saying these happen again and again, but traders need to prepare for all possible sce-
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narios through better habits and “intangibles.” These are ways we can do so:
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Before the Market Opens

Practice possible scenarios that may happen during market hours. You need to be able
to act without hesitation if the price breaks out or breaks down.
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During Market Hours


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List down all your good behaviors, bad behaviors, and mindset while the trade is hap-
pening. Sirius Lee recommends getting the top common denominators among them
and working on them.
Be self-aware or religiously assess your emotions during the execution of the trade.

After Market Hours

Revisit your journal and assess your behavior, mindset, and emotions. Familiarize
yourself with your own strengths and weaknesses.
Read books and blogs about the psychology of trading, and watch videos about grit,
habit, and emotion (c/o Kap)
Take on a hobby that can help develop your mental focus

We may not see results immediately, but if we put in extra hours and effort in applying these
simple steps, they can speed up our effectiveness as traders. Because always remember, a
good student of Ms. Market always focuses on the things that matter.

ZFT ETERNUS © 2018 46


Technical analysis or Fundamental approach? Pick one. You can’t choose both, because these
are two conflicting ideas that influence your judgment when you’re making trading decisions.

They are contrasts, like heaven and hell or oil and water. Of course, this is just my point of
view, and I am not against any Fundamentalist out there, as it can be equally effective in anal-
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ysis. In fact, I once tried to use the fundamental approach, but reading and analyzing long fi-
nancial statements became a headache for me. For me, both approaches require rigorous fo-
cus, effort, and dedication.
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The Fundamental Approach became popular in the early periods of studying the market. It
uses different mathematical models to determine the potential market value of a certain
stock. It was not until later that some analysts countered this model, suggesting that it only
works under certain parameters and is hampered by “reality gaps.” These are the gaps of
©

“what should be” and “what is,” which make the analysis even more complicated from the
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perspective of traders.

The Technical Approach not only closes the “reality gap,” but also presents infinite opportuni-
ties to profit from the market. This is where we examine the previous price action in relation
to its current trend, enabling us to make predictions. It can also measure behavioral patterns
of participants, as they can become the triggers for higher probabilities of winning trades.

In sum, we use different ways and systems on how to interpret the market—from different
indicators to Trendlines, Ichimoku, Harmonics, and many more. What is important is that we
have a firm mastery over the weapons we choose. This means understanding its strengths
and limitations.

Practice it daily and create your own trading system from its theoretical foundation. Shape it
in a way that complements your own personality. If you’re a pure technician, stick to the
charts, nothing else. Everything else is just a noise.

ZFT ETERNUS © 2018 47


What’s the difference between a casual trader and a professional one? If you answered their
level of technical comprehension or emotional awareness, you may be right. But, I believe
their biggest difference lies in how they see probabilities.

In the words of Sir Boaris, one of our mentors from the course, “walang sureball sa merkado
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[there is no sure thing in the market].” We can be consistently wrong with the positions we
take and we can be subject to a rollercoaster of emotions during any given trade.
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Even the ZFT System, which is already proven and tested, can’t guarantee a 100% win rate.
Our setups can fail again and again. But, a professional trader is able to minimize losses when
he makes mistakes and maximize wins, when he does right. And this is what thinking in
probabilities is all about.
©

Thinking in probabilities requires two things, which go hand in hand. First, we must accept
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that the outcome is random, unpredictable, and uncertain. There is an unsystematic distribu-
tion between wins and losses. Even our “bread and butter” setups will not materialize every
time. We do not control the situation and we must only react on what the market is trying to
say.

Second, if you’re already confident in your own system, exercise it with conviction—live with
the results. The goal is not to be winners all the time (that’s not possible), but to be con-
sistent winners. Strictly adhere to your rules, minding risk management and position sizing.

Acknowledging that there are always risks in every trade is a prerequisite to thinking in
probabilities. We must expect all possible scenarios and prepare for them by plotting differ-
ent trading plans, so Ms. Market will no longer be able to surprise us. If Stock X continues its
upsurge, we go to Plan A; if it goes sideways, Plan B; and, if it made a sell off, then Plan C. One
stock needs different strategies in place.

From there, it’s all about planning without emotion and hesitation, and neutralizing any
sense of expectation.

ZFT ETERNUS © 2018 48


Famous motivational speaker Jim Rohn says that “You’re the average of five people you spend
the most time with.” For me, this applies in life and learning.

So, what if you’re surrounded by people with no goals or ambitions? They would not be able
to push your own limitations, hampering your capacity to grow. Find an environment where
you will be a cub in a lion’s den, where people around you are much skilled and learned than
you.

Find a coach or mentor that will influence you to be the best version of yourself. It doesn’t
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have to be someone you personally know. Your mentor can be an author, a motivational
speaker, or a podcast host. The important thing is you spend time with them on a daily ba-
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sis—this will bring out your potential.


©
2018

As a child, he dreamt of being a professional


tennis player.

Panday Pira strongly believes that trading


is a way to escape the rat race.

ZFT ETERNUS © 2018 49


Rey Kalipulako
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Growing up, I had a concrete idea of the life that I wanted. I wanted to retire at a young age,
and I believed hard work and a simple lifestyle were essential to achieving this. But 3 years in-
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to the corporate world, I quickly realized it wasn’t going to be this simple.

Consequently, I left my parents, friends, and country behind to be an OFW in 2011. It was a
risk—be it a calculated one. At the time, I was convinced that a career abroad was the only way
I could retire earlier, allowing me to focus on the things that mattered the most for me, mainly
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my family.
2018

However, the years abroad took their toll on me. Every time I came home: my parents got old-
er, my friends’ lives changed, and even my pets got older. I became less interested in my work
and more concerned about the things I was missing at home.

I stopped creating personal milestones at the office, which used to be one of the ways I moti-
vated myself. Instead, I felt empty whenever I got ready for work. I had to drag my feet to get
to the office.

At the same time, the reality of being a foreign worker was creeping in: each time I applied for
my visa renewal, I felt nervous; and each night, I prayed that I would not be replaced by a local
with lower salary demands. Needless to say, I never felt this farther from the life I wanted.

Trading successfully and consistently creates more time for me to focus on the things I value
the most.

ZFT ETERNUS © 2018 50


With trading, my time at home is no longer limited to the number of vacation days that are
granted to me. I can take better care of my family, and even travel to countries I’ve always
wanted to see. No more choosing which holidays to celebrate in the Philippines—I can be with
my loved ones for both Christmas and the New Year!

Being a scholar, I am very patriotic and passionate about serving my country and giving back
to my fellow Filipinos. Trading has likewise given me more time to pursue these things.
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Thinking about all of these possibilities keeps me motivated. These are my whys in trading.
That’s why I believe trading is not just a skill and a profession—it’s a gift, one of the best ones
you can ever have.
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I just transitioned from being a “buy-and-hold investor” to a trader in the stock market.
2018

Believe it or not, I never methodically planned my trades when I was starting out. I opened
stock positions based on my gut, sometimes haphazardly so. I would even let my percentage
losses become double digits, losing almost ¼ of my position. Since they were only paper losses,
I never really worried about them.

Of course, after a few lessons learned, I adjusted my strategy by implementing a few key rules
here and there. Having the discipline to follow these rules is really as important as the rules
themselves. Also, putting in the time to study and understand technical analysis and applying it
dutifully has been critical to improving my trading performance.

Lastly, believing in myself that I can do this and I deserve to succeed has really helped me be-
come better at trading.

ZFT ETERNUS © 2018 51


I believe part of being a trader is always being a student. I study 3-4 nights a week. Whenever
I’m not travelling, I reserve my Sundays for charting. During these days, I am either looking for
a stock to trade or compiling charts for my studies.

I avoid setting unrealistic goals for myself when it comes to studying. For me, cramming all the
lessons in one sitting only affects the quality of learning. So, I find time to digest each lesson
thoroughly over an extended period. For instance, I squeeze reviews during my commute to
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work. This study style fits me best.


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In trading, I’ve set some rules on when I can trade and which stocks to trade. I’ve also set rules
on when I can take a loss. Rules are very important for me, because my previous trading style
was very unstructured.

I think no one really becomes successful in trading without discipline. Now that I have set
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some rules, I follow them religiously and, I’m proud to say, I’ve been getting consistent results.
2018

We are often discouraged by fear. For example, I’m afraid of being unemployed. So much so
that even when I had the opportunity to take a break between jobs, I didn’t. I just didn’t feel
comfortable doing so.

The challenge of fear also exists in trading. What if my trade results in a loss? Would I beat my-
self up about it? What happens if it results in a win? Will I be tempted to take another similar
trade and would it result in another win? These are all questions that can cause you to miss op-
portunities to execute your plans in trading.

For me, the best way to belay these concerns is to set a ceiling for the amount you can afford to
lose and live by it. Keep in mind, this should be an amount you’re prepared to lose during worst
-case scenarios. Another way is not to keep your eyes glued to the chart all day long. Being a
newbie, I tend to get easily affected by its movements, and I can get impulsive. For some posi-
tive reinforcement, I always remember to give myself a pat in the back whenever I get out of a
losing trade.
These are just some of the things I do to help myself become fearless in trading.

ZFT ETERNUS © 2018 52


Surrounding myself with successful traders, many of whom were once like me with day jobs,
really changed my perspective on trading. Witnessing their success and humility is inspiring.
They represent who and what I want to become in the future.

Each time I consult with my mentors, we go over what I did well, as well as review my mistakes
so I can avoid making them again in the future. Take note, these consultations are all done after
the trade. My mentors never give stock recommendations nor do they influence my overall
strategy. They encourage me to craft my own approaches to trading—and I think that’s what all
great mentors want for their students.
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While my mentors are always available for consultation, I know that their guidance has to be
paired with hard work and study when I’m on my own.
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It is an honor to be mentored and I’m still working on thanking my mentors.


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Rey Kalipulako’s goal is to retire by the age of 30


—this is what drives him as a trader.

Ultimately, he envisions himself free from his job


and financially secure after years of grinding.

ZFT ETERNUS © 2018 53


Simo Häyhä
ZFT

Why do some traders progress faster than others? How did the best traders get to where they
are? What made them stay in the game? Like any other trader, I used to ask myself these ques-
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tions.

I quickly learned that this game isn’t just about targets and technicals. There is a much deeper
perspective to trading if you look beyond the numbers.
©
2018

Every trader has targets. But it’s a trader’s whys that separate him from every other trader in
the market. Whys push a trader forward, despite seemingly insurmountable odds. They’re the
very reasons for getting into trading in the first place and, the deeper the whys, the stronger the
motivation.

After finding your whys, it’s a matter of continuing to strengthen your foundation. Find a solid
indicator and master it, one that fits your profile. Keep practicing your system until your convic-
tion gets stronger and stronger.

Once you think it’s ready, start small. Dream big, but start small. We’re running a marathon, not
a sprint. Remember, it’s about progress not perfection. Increase your trade volumes little by lit-
tle. When you add up these little increments of progress, you’d have achieved something greater
than the sum of its parts.

ZFT ETERNUS © 2018 54


Trading is a mystery you solve with agile thinking. And you always do it your way.
I emphasize ‘your way,’ because traders have different perspectives and biases. They interpret
technical analysis differently. Essentially, it’s to each his own in the world of trading.

That’s why hyping is one of the biggest problems in trading. Hyping prevents you from doing it
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your way. Many new traders fall victim to this trap. They meet a so-called veteran trader, who
advises them about which stocks to buy. In the end, this veteran recommends stock with the
intention of selling it to the newbie.
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Building a culture of trust is important in trading. Not for socials and trading groups, but for
your system. Find a system you trust and are comfortable with—be it Ichi Moku, Harmonics, or
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Elliot Wave. I tried all these systems in the past, but Breakout Trading, Simple Moving Averag-
es, and RSI stole my heart. I may have a different perspective when it comes to technicals,
but—again—I advise you to do it your way. This is mine.

The sooner one finds a niche on a given system, the better. There are many options: Buy on
support, Buy on breakout, Momentum plays, Range Trading, Bounce plays, Bottom Fishing, and
many more. Though from my experience, it’s better if you specialize in a certain field.

That first glance at the target as it gains momentum, a buy signal—a trigger towards a target
you can hit even with your eyes closed. It’s going to be a target hit, of course, as long as you’re
Lean and Agile with Proper Risk Management in every trade.

ZFT ETERNUS © 2018 55


My mentor once told me, “Don’t shoot everything that moves.”

Trading takes a ton of practice and discipline. Don’t give in to Fear Of Missing Out (FOMO). For
example, just because a stock is among the top gainers, it doesn’t mean you have to buy it now.
The careful consideration of each stock’s condition is key—whether it’s on an uptrend, down-
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trend, or sideways. Of course, first priority goes to uptrending stocks and momentums, as these
are the biggest signs of strength.
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Being a trader is just like being an athlete—in that you need to rely on muscle memory. In trad-
ing, it is ideal that you have a memory of a given setup so you have a clear idea of your next
move. Repetition in charting is key to achieving this.
©

In my experience, repetition in charting led me to that one ideal setup. Well, in trading, better
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decisions can only be obtained through tons of practice. We can train ourselves to see the gains
from our small predictions everytime.

No one trade is always right, after all, trading is a game of probabilities. But with lots of practice
in a given setup or in my case breakouts, we can learn how to find opportunities that would
lead us to that breakout trade.

As the old saying goes, “If the wind will not serve, take to the oars. Destitutus ventis, remos ad-
hibe.”

It means that if the wind won’t steer the ship properly, then you have to take it upon yourself to
direct the ship using the oars. In other words, if something isn’t happening, make it happen. Fo-
cus on the process and the process of success follows.

ZFT ETERNUS © 2018 56


Trading is like building a house—the first thing you need is a blueprint. A trader needs to ad-
here to the rules and goals set under his system, his blueprint.

Most of the time, a trader’s mind can be clouded by upside mentality. That’s why he needs to be
able to anticpate what happens next.
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Computers can fail, if an item is missing from its checklist. Humans, however, tend to improvise
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when things don’t go according to plan. As challenging as it sounds, plans and rules need to be
strictly followed.

Paying attention to details matter and, believe me, adherence to rules and plans can help you
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avoid losing streaks. Be a disciplined trader.


2018

Remember: while greed and euphoria can be allies in trading, capital preservation is still the
king. We use hard-earned money to trade, so we need to be disciplined in managing both our
wins and losses.

ZFT ETERNUS © 2018 57


First things first, mentors won’t make a difference if you’re heart isn’t in the right place. You can
read all the books on trading and listen to different mentors, but if the passion isn’t there—you’ll
likely fail.

Like most, I started trading on my own: my terms, my money, and my strategy. I learned the hard
way what the consequences of not having a concrete system. Losses seemed inevitable for me be-
fore. They came down like a stampede, but—as I soon learned—this happens to many traders.
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Mentors helped me in both professional and personal development. Professionally, mentors help
mentees develop the requisite knowledge, skills, and attitudes. I find it best to ask as many ques-
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tions as I can when talking to my mentors. I also advise going for extra home works and not letting
pride stop you from sharing your port performance to get the right guidance.

Defining the dilemma is actually quite a challenge when you’re starting, especially proper data col-
©

lection. Not to mention, brainstorming solutions for trades. In many ways, a mentor’s knowledge
and experience can solve both challenges. When a mentor shares new information and tools, we
2018

test them. Then the aha-moment comes. This is usually followed by a new idea.

Be keen in choosing the right mentor. Find one that fits your profile. Follow in his footsteps. Study
how he works and his daily habits. Find the things that define him as a mentor and take the things
you can and apply them.

One of Simo Hayha‘s missions is to be a philanthropist.

As a father, he wants to give his all-out attention to his family.


With his time and freedom earned from trading, he likes having lots of
fun, playing games and giving back. He wants to live a worry-free
life with a fully diversified career in trading and business.

You can follow his journey at scopeandtrigger.wordpress.com.

ZFT ETERNUS © 2018 58


Sun Tzu
ZFT

On one side, the chart in itself is an art—it has a story to tell. On another, it is a science since we
need a systematic body of knowledge to understand it. Both sides help us make informed deci-
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sions for our trading plans.

However, take caution not to overthink. When it comes to charts, most of the time, what you see
is what you get. As the saying goes, too much analysis leads to paralysis. This is where the ‘twist’
of the art and science comes in. It simply refers to the intangibles—for example, your emotions.
©
2018

Like any other investment, trading is not exempt from risks. As a matter of fact, risk manage-
ment should always be reflected in your journal. Overlooking this simple task often results in
failure as a trader.

At first, I mistakenly thought trading was only for number crunchers and math experts. Then a
mentor of mine retorted, “if that’s the case, then all mathematicians would have been the best
traders in the world.”

If you have the same impression as I did, take the case of having a smartphone for the first time.
Sure, it initially seems alien and incomprehensible. But the more you use it, the more operating
it becomes second nature. The same can be said about trading.

Trading is definitely a zero-sum game. You win at the expense of others and vice versa. Every
traders dream is to have that consistent winning portfolio. This takes time, but the journey is
well worth it.

ZFT ETERNUS © 2018 59


Technical analysis can easily be learned from books and online resources. In contrast, the more
difficult task is finding and building a system that works for you. This is essential, as what works
for one trader may not work for another.

Each trader has his own distinct personality, and so do you. Your system needs to complement
your own personality. This takes lots of time and effort, but it is a genuine “AHA” moment once
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you find it.


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Charting is a must because you need to know the story of a stock. Reading and understanding
history helps you forecast possibilities—accounting for different scenarios that should be inte-
©

grated into your trading plan.


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Don’t settle for single candle analysis! This is the same as looking at just one side of a coin or lis-
tening to only one side of an argument. Considering the bigger picture is gold.

In trading, process is everything. It reflects who you are as a trader.


It encompasses technical analysis, risk management, psychological trading and execution, and
many more. Scanning, stock picking, plan development and execution, managing the trade until
exit, and identifying realizations are all part of the process.

Purge. Don’t give in to revenge trading or else you’ll be a victim of your own impulsive decisions.
Respect the process. Trust the process. Remember, a loss is only a small part of the bigger pic-
ture. Find a way to improve and move forward.

ZFT ETERNUS © 2018 60


You can create your own rules or modify ones from other traders, based on the results of your
assessment and back testing. Once you’ve made them, follow them to the letter.

At times, some traders are tempted to veer away from their rules and plans—especially once a
stock they purchased overshoots. Yes, you may gain, but what if you lose? Always keep in mind
that the market is there forever, but the same can’t be said for our hard-earned money.

Sabi nga nung sikat na linya di’ba and I’ll modify it—
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Do not take shortcuts. Remember, success doesn’t happen overnight. Your time will come. Do
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not rush. For now, learn from missed trades and document them for reference for future scenar-
ios. Execution is key.

In trading, you need multiple strategies. Having multiple strategies is a great advantage, as every
©

play in the market is unique. Each play has its own set of parameters, which may not be applica-
ble to other plays.
2018

For example, a set-up for bounce can never be used for a TF trade. The idea of multiple strate-
gies is similar to having multiple weapons in a battlefield. The more weapons you have, the more
you’ll be able to take advantage of what the battlefield gives you. So know what and when to use
each weapon.

Most traders tend to focus too much on technical analysis, that they forget to manage their own
emotions—when, in fact, this is just as important as protecting their capital. Trust me, this’ll
keep you balanced and objective.

It has been said that trading is 10% technical analysis and 90% you, the trader. Being emotional-
ly attached affects your decisions, executions, and—in the end—your overall performance.
Trade only when you are at a free state of mind.

ZFT ETERNUS © 2018 61


So, how do you manage emotions? Remember that in planning, all scenarios must be accounted
for so that you will be ready for all possible market scenarios.

If technical bias is invalidated, cut without mercy. There is no sense in hoping. Again, follow your
rules. Your well-thought out plan would be in vain, if you can’t execute. Always keep in mind that
there is such a word as buyback.
ZFT

Everybody needs a mentor. Having one saves you time from endless trial and error and, at the
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same time, speeds up your learning process.

A mentor’s knowledge is priceless. The problem is, a lot of people get discouraged when they see
the fees for training programs or seminars. My advice is to always focus on the return of invest-
ment. Think long-term instead of short-term.
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2018

If you think the benefits outweigh the risks, then why not? Tuition fees are part of learning.
There’s no such thing as a free lunch. That’s not the thought process that leads to success. We
need to be willing to invest in our learning if we want to see results.

Sun Tzu was a frustrated artist.

Once he becomes a full-time trader, he intends to reconnect with his creative side.
At the same time, he plans to travel the world with his loved ones and live a comfortable life.
These are the things that motivate him as a trader.

ZFT ETERNUS © 2018 62


Sun Wukong
ZFT

Trading is just like setting up a business. You incur expenses to support day-to-
day operations. Some people see outflows as sunken cost—something unrecov-
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erable and non-beneficial to the proprietorship.

Same as any business, losses are part of trading. Therefore, the job of the busi-
nessman is to minimize losses, aim for profitability in the long run, and outper-
form their competitors. The same can be said for a trader.
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2018

In setting up a business, we strategically plan for operations (like feasibility


studies) to increase chances of being profitable. I apply the same principle in
trading: I do not enter trades without strategies for entry points, cut-loss
points, risk reward ratio, and contingencies in case the stock moves in a differ-
ent direction.

That’s why we need to setup rules and—eventually—turn them into habits. The
results will follow after that.

Don’t rely too much on the technical in finding what is true and what will hap-
pen. At the end of the day, I believe price is king. No matter what happens, stick
to the process and react accordingly.

ZFT ETERNUS © 2018 63


When starting out, you should first focus on basic concepts—use of indicators
and essence of technical analysis. Set parameters and accumulate volume for
statistics. Evaluate each setup through back testing, and then simulate interfer-
ences into actual trading through a virtual trading platform. Document all
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trades, whether successful or not.


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©
2018

For me, one of the most important skills in trading is maintaining objectivity
amidst both winning and losing. As traders, we should always remind our-
selves: we are only as good as our last trade.

ZFT ETERNUS © 2018 64


I live by a simple rule: the rule of 33 percent. It suggests that you divide your time in three focus
areas to learn things faster and more efficiently. I apply the same principle to trading.
33 percent of my time I spend with a mentor, someone who has proven knowledge and experi-
ence in trading. Mentors are disciplinarians that create necessary boundaries that we cannot set
for ourselves. They gauge our proficiency and guide our progress.

Another 33 percent of my time I spend with peers or fellow traders. In contrast to mentors, peers
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do not guide you in your journey—moreover, they share the journey with you. Given the chance,
you share different lessons and experiences that enrich both your learning processes.
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The last 33 percent of my time I spend with newbie traders. For me, the fruits of being mentored
should be passed on to others. This is an act that has cognitive effects on your own learning.
©
2018

Before discovering trading, Sun Wukong’s dream


was to be a professional football player.

With photography and film making as his hobbies, his vision is to


capture and experience each of the wonders of the world.

ZFT ETERNUS © 2018 65


Valentino
ZFT

Trading may look easy, as seeing snapshots of “50 percent gain in just one morning” can instantly
entice even the most skeptical people. It is even more alluring to tired professionals, who are
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weary from long hours, stressful bosses, and strenuous day-to-day commutes. Add all these
things together, and you’ll understand why trading can seem like an easy way to earn money.
But believe me, it’s not that easy (think learning the Cyrillic alphabet and you’ll get exactly what
I mean).

If you are serious about making this a full-time profession, please carefully consider the following:
©
2018

1. Is it something you will enjoy? As a full-time job, trading will require practice, focus,
passion, and dedication—the same things it will take to succeed in any career path.

I used to wonder why it took many, many years to become a Buddhist monk. I realized,
the trials and studies serve as checks to their dedication. They separate the chaff from the
wheat, as only the serious ones withstand the test of time. A similar type of dedication is
required in trading.

2. Are you willing to put in the work required? Trading entails many, many years of learn-
ing, backtesting, modifying, and reapplying strategies. It will require a lot of reading,
watching videos, and many hours of live practice. More importantly, it will require stead-
fast perseverance that does not shake amid setbacks.

Without perseverance, you will be slaughtered—that’s a certainty.

3. Do you have a support system? Friends, family, mentors, and peers all have a part to
play in trading. It will test a lot of your relationships, as it is a high-pressure job. You will
be subjected to a rollercoater of emotions, from fear to greed and even hopelessness.

And if you put into consideration that the money you lose may have been borrowed or
could have been used for something for your family, then the pressure becomes even
greater.

ZFT ETERNUS © 2018 66


These are just some of the things you need to consider if you want to choose trading as a ca-
reer path. But, in no way, are they the only considerations. There will be many sacrifices and
challenges. Becoming consistently profitable doesn’t happen in a matter of months. It takes
years.

If you read through all these considerations, congratulations. You are one step closer to be-
coming a trader. My goal for the previous paragraphs was to make you think and question
yourself.
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And that, ladies and gentlemen, is your why. Happy trading.


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I’m a firm believer in the fundamental side of trading—which can be attributed to my educa-
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tion, training, and experience. So, believe me when I tell you: technicals are the foundation of
consistent profit in trading. I cannot think about buying or selling without first considering
the charts.

Why are technicals so important? In a nutshell, it is the ultimate representation of the collec-
tive desires and emotions of all market participants, as expressed by demand (buys) and
supply (sells).

To be an effective trader, you’ll need to be able to: (1) understand intentions through
charts— what stock, what price, how many, to buy or sell, and others; and (2) predict,
through probabilities, where the market will take those intentions.

If you aren’t well-versed in technicals yet, now is as good a time as any to start with charts.
There is no shortage of resources both online and offline. Trust me, technicals will go a long
way in helping you in this journey.

ZFT ETERNUS © 2018 67


People tend to focus on results, forgetting that it is the process that actually leads to the re-
sults. Same with any sport, people need to start with the process and results will follow natu-
rally. Same applies in trading.

There are a lot of rules in trading and you can easily get lost in them. Best to remember that
some rules are not inherently intutitive (e.g. hold vs. cut, buy more vs. cut back, and others).
So, always keep the right side of the brain active.
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©
2018

If you want something done right, you trust the experts. Nowhere is this more true than it is
in trading. While some may say that trading can be self taught, you can learn much faster and
more effectively with the help of a mentor—who guides you and keeps you in check.

Valentino envisions himself in the next years as a travelling nomad.


For him, trading is a way for him to reach his dream of
building a global business empire.

ZFT ETERNUS © 2018 68


ZFT

The content featured in The Growth of a Seed: 14 Perspectives from


Newbie Traders are strictly testimonials. The information may or
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may not be applicable to its readers. The views and opinions


expressed are based from different personal experiences
and perspectives.
©

In no way will the contributors be liable for any special, direct,


2018

indirect consequences or any damages, as a result of following


any of the advice and tips featured.

If you will try to follow any of the advice and tips,


please do so with caution.

Contributors of this book have a clear understanding of market pos-


sibilities in relation to their financial and emotional well being.

ZFT ETERNUS © 2018 69


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We hope to inspire you in this book.


©

May the trend be ever in your favor.


2018

ZFT XIV
ZFT ETERNUS © 2018 70

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