BIG MONEY was never made in the buying or selling, it’s in the WAITING!

Trend followers are not lucky; they are prepared for the unexpected. They take whatever the market offers, they don’t predict the future. They make money by being patient and able to live with and accept volatility, and avoiding untimely, unnecessary and excessive trading.

“I’ve found that the big money was never made in the buying or selling. It is in the WAITING.” – Jesse Livermore, a late 19th early 20th great trend trader.

First, you need to WAIT for the Equity Curve/TNT Index to reach your Strike Zone level to engage the best timing to enter when the Odds are on your side. After you’ve taken your signals and entered, trading becomes a WAITING game, you will WAIT until the Equity Curve/TNT Index rallies above your Profit Taking level to take profits.


Trend Trading is a WAITING GAME, the BIG MONEY is in it, but it takes you time and patience to play it successfully!

Why Success Breeds Failure in Trading.

Many wealthy clients that each one of encountered over the years that managed to blow up tens of millions of dollars trading FX. Most of these people were extremely successful entrepreneurs, often self made men who started with literally nothing, to accumulate vast fortunes in shipping, real estate, construction and other business endeavors. Clearly these were capable, talented men (and they were uniformly male) yet they managed to blow up their massive accounts with alarming speed.

WHY??

Our uniform answer was ego. Each one of these men battled very long odds and through sheer will power were able to succeed and bend the market to their will making fortunes in the process. Having won in such difficult conditions, they couldn't imagine the possibility of losing and therein lie their demise.

In real life you can often bully your way to the top. But in trading you cannot. The market is always bigger and always richer than any one individual. The London Whale was only the most recent of long string of traders to discover that naked truth. Above all else trading is about the suppression rather than expression of ego. Trading is always first and foremost about being humble.

However humility is not a common trait amongst most traders. Most of us are well educated, intelligent people who have enjoyed a fair measure of success in life (we wouldn’t be attracted to the markets if we weren’t intellectually curious). But it is precisely those qualities that make us very vulnerable to failure in the markets. Stubbornness in the face of adversity is frequently necessary to succeed professionally in real life, but it is a guaranteed recipe for loss when it comes to trading. That’s why some of the smartest people often make the lousiest traders. Let’s all try to remember that the next time we battle with the FX market.

Cheers.

You don’t need to know what will happen next to become the winner!

Some of my friends asked me about the fate of the Euro Zone Crisis, I told them why bother to guess whether the Crisis could be solved or getting worse!

To me as a Trend follower, I just follow the market price. As the price will move, it will tell the truth, it will tell everything. Every happening will be reflected in the price movements.

The beauty in Trend following system is I don’t need to predict, anticipate, hope, guess, forecast, speculate, presume, etc… I just need to follow the price movements, up-trend, down-trend or sideway trend. I make money when trends appear, and when they appear, they persist. And the best is the trend will sure to come, as sure as the sun will rise from the east tomorrow morning.

So what I need to do is just “plan my trade and trade my plan”. If I am trading with BIYD Strategy, when the market dips below my Strike Zone level, just pull my trigger then; and when it reaches my Profit Taking level, just take my profit with whatever comes along, don’t be greedy, be happy and grateful to the market!

Like those great sportsmen, after reaching their “Finishing Line”, take a rest, celebrate, preserve their energy and wait for the next round again!

I took my profit today!

I went into market using my BIYD strategy on April 18 when my equity curve reached the strike zone. Today, the equity curve reached my take profit point and I close all my positions. 28% profit. Not very much but am contented. At least, it is better than the bank saving interest rate.

What is my trading philosophy?

Capital Preservation

My investment plan is designed with one objective in mind – to maximize the portfolio performance while at the same time using the power of compounding to grow my wealth. My respect for compounding leads me to have a strong emphasis on managing downside risk.  This is very important because the damaging power of "reverse compounding" can be extremely destructive to a portfolio.  Most investors are familiar with the magic of compounding interest but they fail to realize that it works in reverse as well.

That is why I always look at the downside risk first before looking at the upside potential.  I never chase the market and I never break my risk management rules no matter how "good" a trade may look.  I play a defensive game and maintain a modest return target of 20-30%.

Long-Term Trend Following

I am a hardcore trend follower. I do not day-trade or scalp the market. As trend follower, I wait for the market to move first and then follow it.  I never predict market direction. Trend trading demands a high level of self-discipline and patience to follow precise rules based on price action alone. As long as price data is available, all else is inconsequential. Media, fundamentals, broker opinions, talking heads, and so on are simply not necessary to profit.

Ultimately, all I seek is one thing: To enjoy long-term consistent profit with total peace of mind.

Why I choose forex trading as a tool for my road to financial freedom?

The majority have the misconception that Forex Trading is an extremely high risk investment.  The truth is exactly the OPPOSITE!  In fact, Forex is one of the safest, most rewarding investments to ACCUMULATE WEALTH, if one know how to do it properly.

Here are just a few of the major advantages:

ADVANTAGE	FOREX	STOCKS
1) High Liquidity	USD4 trillion a day. 24-hour global market, with instant filling of market orders.	NYSE: USD1.65 trillion a month. Investors frequently "caught" due to market illiquidity, trading suspension, price gap, etc.
2) No Market Manipulation	The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.	Susceptible to large funds and syndicates cornering the market and manipulating prices.
3) Low Complexity	7 majors, and a dozen cross pairs.	NYSE: 4,000+ stocks NASDAQ: 3,000+ stocks
4) Short Selling Allowed	No restriction on short selling. Trading opportunities exist regardless of whether the market is moving up or down.	Short selling is either restricted or not allowed.
5) Use of Leverage Allowed	USD4 trillion a day.	Equities: 1:1 or 2:1 Futures: 10:1 – 20:1
6) Less Risky	Unlike stocks, major currencies will not go bankrupt or become worthless. Guaranteed Limited Risk: You can only lose up to what is in your trading account.	Companies including blue chips have been de-listed and gone bankrupt overnight. In the futures market, your position may be liquidated at a loss bigger than what you had in your account.