Posts in the [Wealth Academy] series:
- WEALTH ACADEMY - Highly Recommended
- Wealth Academy Trader & Conrad Alvin Lim
- Best Way To Start Learning About Investing/Trading for Beginners
- Conrad’s 5 Day Pre-Earning Game - 5DPEG
I’ve just finished my 3rd tutorial with Conrad 1 hour ago, and I still feel so excited with what I’ve learnt today (especially sector rotation and minimal risk entries). Next week, it will be about anticipating earnings, 5DPEG, day trading, and scalping. I must say I just can’t wait for it. By the way, if you haven’t known there is a strategy for novices to trade profitably consistently, it’s time to know about it.
This is a question that is commonly asked through emails and private messages that I get as frequently as twice to three times a week. So to put aside the task of having to answer this repeatedly, please read on …
Conrad’s 5 Day Pre-Earning Game
Very simply, its a simplification of an age old earnings strategy that I have taken, modified and taught, which is more than just a $50 winning strategy. The one thing that my students have come to realise is how consistent this is if you stick to the guidelines. And that is the key to its popularity … CONSISTENCY.
To trade earnings, one always trades the security right up till the day BEOFRE the announcement of the earnings report. This way, profits are taken off the table before the unpredictable gap that sends the stock either way upon announcement. There is no way to know where the stock will go after its announcement as there are way too many variables involved. Traders that attempt to second guess the gap are gambling on their wager going the right direction. The gains for being correct are usually not as great as the risk they undertake if the gap is against them. This is because of a phenomenon known as the “Volatility Crush”. Still, there will be those who gamble iin the market.
In the 5DPEG, students learn to qualify a stock with 10 simple steps involving a bit of fundamental research and technical analysis. These ten steps introduces the student to the discipline of researching before trading. It breeds a good trading habit that most people ignore … due diligence.
After qualifying the stock, students then plan their trade … another disciplne which is often lost in the heat of the trading battle. The plan is simple: identify your time target, profit target, stop loss and return on investment. If they are using Options, they will learn the dangers of using the wrong option and risk minimization by understanding Options Greeks.
Once the student has a plan, the next discipline kicks in … knowing when and how to make an entry with minimal risk. How many times have you put on a trade, only to see it losing money before the close of the session?
My students use the leverage of market sentiment, events, sector sentiment and general political awareness to avoid making a risky entry. They then apply one of two Minimal Risk Entries that they learnt and wait for their entry patiently. Most of the time, this entry has proven profitable as students are known to profit take on their profit targets the next day.
Those who don’t reach their profit targets then stick to the trading plan till one of three things happens: 1. Profit target is achieved … 2. Time target has arrived … 3. Cut loss at a predetermined level of tolerance.
Actually, there is a 4th … students also learn to identify Japanese Candlestick formations to defend their positions.
These habits are so automated with the 5DPEG that students unwittingly learn the best habits a good trader must have … the ability to overcome fear and the will to resist greed. This way, the student become emotionless and will trade with confidence. They also learn a more valuable lesson …
By cutting your losses early and letting your profits run, the 5DPEG will give you a success return on no less than 80%. So out of 10 trades they will have 8 profitable trades. But if for some unforseen reason, the tables turn and the ratio kicks back a 30% success rate, by cutting their losses at $30, 7 losing trades will mean a loss of $210. Their 3 winning trades will turn around a minimum profit of $150, should they stick to the trading plan. Thus the loss for sticking to the rules in an unlikely 3:7 ratio, is only $60 in 10 trades.
But because they learned to let their profits run and to use stop losses to protect their profits, they are likely to recoup this $60 loss, by letting these 3 winners run for another $20 each to break even or even make some. So what’s the worse that can happen? They don’t lose much.
In my 2 plus years of sharing this simple strategy, I haven’t met anyone who has had a worse return than 60% of winning trades.
Finally, but certainly not the last beautiful thing about the 5DPEG, is that the student will gain experience and confidence without having to stomach major losses to kill their spirit and account. This experience allows the student to stretch the parameters of the 5DPEG and explore more strategies that will improve their trading styles.
Through the 5DPEG, they will have learned to read and understand reports, analysts’ opinions, market sentiments, company balance sheets, everything you need to know about EPS, PE ratios, insider trades, relative strength etc etc etc …. and armed with this knowledge, they will come back with more sophisticated questions that can only help them grow into more savvy investor/traders.
So, its quite evident that I have discovered a simple but truly effective way for novices to trade and learn about trading without the major risks while picking up good trading habits along the way. And that is not all that the 5DPEG has to offer …
Some of my older students are now multiplying their positions to make exponential profits. You go do the math.
Be it a simple (and affordable) $50 strategy with a great learning curve, or a great profitable strategy with minimal risk, the 5DPEG has opened the world of trading to many of my students and the principles of what I teach and what they learn have all come from this humble little game.
Many want to learn it. Many others wished they knew about it sooner. And then there are the few who want to own it. But there is only one true 5DPEG and everyone knows where to find it.
I remain, its humble creator,
Conrad.
* Please feel free to contact me if you have any question the program I mentioned above (Wealth Academy Trader). If you contact me, I’m sure that I can get you a much better price (if not the best price in town). The best part is you don’t have to make a decision right now or even before you contact me. Just contact me, I’ll bring you to a FREE preview and you can make up your mind from there. I believe in sharing, and good stuff will sell itself. Therefore, you can be sure that I won’t sell the program to you by any mean when you talk to me, and I’ll share with you my experience about the program only when you ask me to. It’s my promise to you!
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Wednesday, May 23, 2007





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