Seminar Review : Investment Mastery by Terrence Tan

I attended this seminar last week. I didn't have high expectations as ChartNexus seminars failed to impress. I only hoped that the presenter won't mumble as much.
The seminar started a little late; my pet peeve. Cause I usually arrive early for events and a delay means I gotta hang around inhaling more second hand smoke. At 7:45pm, the gates, I mean doors were opened and we were greeted by Terence himself. A TALL lanky guy with a big smile.
I heaved a sigh of relief when he started talking. No mumbles. Charismatic speaker. Intiguing contents.

"How can we obtain an investment income of US$1000 Weekly income in 2012? "
My squinty eyes widened when he flashed this slide. Fast forward to the time of writing, I calculated that in order to achieve this, I need to have a US$20,000 capital. Let's not be greedy. US$250 per week is sufficient for me; so US$5000 capital.

90% of his grads started this investment strategy for real immediately after the program.

The targetted return is 2-5% every week. Which translates to at least 100% - 250% annual gain. Friggin impressive if you ask me.

Next thing I know, he was talking about property investment. The more asset you own, the richer you are. And receive monthly income via rental.
Stock can be an asset as well. We all know that Warren Buffet became one of the richest man in the world through accumulating shares in the market. But what most of us don't know is that he rents them out. And his stock rental income is more than the dividend he collects.
We can also adopt the same strategy and rent out our stocks.

What you need to know
1. Keep things simple
    Know which stocks to buy today. These 3 stocks will never go bankrupt or become penny stocks.
2. Buy these 3 stocks now with just US$500. This is the minimum. Any lesser, Terrence cannot help.
3. Generate Extra Income from these 3 stocks
4. Get paid every week from these 3 stocks
    Collect a rental of 2-5% every WEEK on the average.

What is the Secret
1. Buy Low n Sell High
2. Sell High n Buy back low
At this point, Terrence started laughing because the audience are rolling their eyes. Silly cruel joke.

Ok, so the REAL secret.
Buy stocks of GREAT companies and rent them out.

How to rent out stocks?
Sell the options of that stock.

What are Options?
Options are simply insurance policies that are sold in the stock market.
Options give you the Right to Buy or Sell Stocks at a Fixed price and a Fixed date.

Fact:
90% Options expire worthless.

Buyers of options lose 90% of the time. Never ever buy another option!
Which means options seller win 90% of the time.

It's hard enough to be right on the direction of the stock. With option, the level of difficulty goes up a thousand fold because the stock has to reach your target price within a certain time frame.
If you got the direction wrong, you lose.
If you get the direction right but the stock doesnt reach your target price, you lose.
If you got the direction right AND the stock reaches your target price but not fast enough, the options expire before target is met, you lose.

Stock price has only 3 directions. UP, Down and Nowhere.

As option seller, we win when stock goes against the bet (up/down) AND we win even when the stock goes nowhere!

So be an option seller!

Seminar: Creating Multiple Sources Of Income

How To Prepare For The Coming Economic Downturn With Multiple Sources Of Income

I attended the above titled seminar 2 Thursdays ago on 1st December 2011. The seminar starts at 7:45pm and I have been stuck in a horrific traffic jam for the past 1 1/2 hour, despite leaving work on the dot. I have never driven to Armada Hotel before, where the seminar is held, and I am attending it alone. Tough to get someone to accompany me as most just want to get home and get comfy after work. To attend a seminar on making multiple sources of income is too stressful. But I was determined to explore any opportunity that could give me a boost towards financial freedom.

At 7:30pm, I've arrived at the seminar venue. The turn-up was good. Mostly young adults, with a scatter of younger grads and older folks. 

The presentor is KC See, master coach and mentor of the 14 year running Money Mastery Program. I didn't know who he was. But one thing that immediately caught my interest was that he learned his stuff from Robert Kiyosaki, DIRECTLY, the man himself. KC See followed Kiyosaki around for 2 years before setting out on his own. Okay, KC had a great mentor, better perk up and listen to what he has to say. 

If you are interested in attending this seminar, register by Email to receive your free invitation. Send your name, mobile number and no. of seat to dctbff@gmail.com

Here are the topics he covered in the seminar. Some words are his, some are my own thoughts.

1. Revisiting your money concepts and beliefs-foundations of money making habits.

What is wealth?

Common answers include 'When I'm a millionaire', 'When I own big cars and big houses', 'When I earn atleast a 5-figure income monthly salary'

Robert Kiyosaki's defination of wealth:- 'The number of days you can survive forward, maintaining your current lifestyle, if you quit your job tomorrow'

You are truly wealth when your answer is FOREVER. Which means you do not need to work if you so wish and still be able to maintain your lifestyle indefinately because you have multiple sources of income that churns out money for you.

Our beliefs-foundation of money making is deeply inculcated in us since young. If your parents believe that Money is the Root is all Evil, their belief will rub off you. Other believes include, More money = more stress, less time.

2.       Why most people wants Multiple Sources of Income (MSI) and why most FAIL.

Why most people wants Multiple Sources of Income is rather apparent right?

We want more money! Okay there are other reasons too.

Recession risk that looms. Jobs may be cut. If we do not rely on just ONE source of income, our salary, but we have multiple sources of income, then losing just one income stream when we get retrenched will not have much devastating impact.

For me, I want to leave my 9-6 job and still have a substantial income to support my family. To achieve that, I must start building multiple sources of income now. By the time my other sources of income surpass my salary, I can call it quit! 

Now, the reality. Most FAIL. Why?

This is actually covered in the invitation sent out. So I'm just gonna do a cut-n-paste job here.

Fact 1

IN a recent survey of close to 896 people like yourself, we found that 91.36% of people agree that they should have MSI. However only 23.4 % actually get it done. Why? Intentions are always there but nothing really matters until you take action. Many just could not get started. 

Fact 2

A large number of people who embark on their MSI, went into income ideas that either does not suit them or does not produce the results they want. They make wrong choices. They have no guidelines or criteria to help them make the right decisions. They just listen to their friends and join them. But what suits their friends does not necessarily suits them.

Fact 3

Some has great ideas but has no template or the necessary resources or support to help them make it into a real-world income. They end up frustrated and disenchanted.

Fact 4

Some went to into what seems to be MSI and end up losing money and losing time.

3.       4 decisions people make in order to change their financial results.

1^st Decision

Must Create Multiple Source of income

Having ONE source of income, for most people, their salary, is extremely RISKY.

If your job can be replaced by a machine or someone else who is willing to take a lower salary, be very worried.

Even a high-flying career is threatened when the global economy declines. Something not within our control. The entire division may be shut down to cut cost. Bond traders specializing in dried up markets such as Greece and Italy find themselves out of job very fast.

Anyone with single income is at risk. So, we must create multiple source of income. It’s not a nice-to-have, but a MUST.

2^nd Decision

Decide to Make a Change. Reeducate yourself.

The only thing certain in life is CHANGE. Change BEFORE you need to. Embrace change with continuous learning.

3^rd Decision

Leverage

R.I.C.E -four (4) building blocks to income generation.

Leverage is a very powerful tool to boost our returns. RICE are the factors that we can leverage on

R- Resources. Time and/or Money.

I – Ideas

C – Contacts

E – Expertise

This answers to excuses that we come up with for not having a second income. No time! No money! Don’t know what to do! No contacts! Don’t know how to do!

We don’t have to do everything ourselves. LEVERAGE!

4^th Decision

Rediscover True Passion

“Find the job you love, and you will never work a day in your life”

‘Nuff said.

We need to have two types of income; PASSIVE & PASSION income. Passive income generates money for us so that we may pursue our passion income. Passion income is something we love doing so much that we’ll do it even if it pays us nothing. But more often than not, our passion income produces great results because of our drive and enthusiasm.

5.       What do we need?

1. Community

2. System

3. Mentor/coach

4. Continuous Learning

5. Mastermind Group

6. RICE

7. Regional Support

Take-home points

Most people want side-income. Or multiple source of income. But most of us do not have them. Why? Because we never took action to pursue them. Why? 2 top excuses, NO TIME and NO MONEY. They are really excuses, not valid reasons. 

Because, 

#1 Everyone has the same number of hours in a day. 

#2 The richest people in the world start with little money. It's often the lack of money that drives them, not the other way round.

There are many ways to build multiple source of income. We don't have to be rich, have a lot of time or have high education.

If you had read Robert Kiyosaki's books, you are probably convinced that working hard as an employee is not the way to go and you need to build your income from the Business and Investment Quadrants. I read Kiyosaki's books and I understand, but I DON'T KNOW how to execute the concepts. KC See's Money Mastery course is a practical hands-on program whereby we are coached on how to execute and build these multiple sources of income. I find this bit particularly useful because it's not just about changing your mindset, beliefs, goal setting, etc etc which all translate into INTENTION. Intention gets us nowhere unless action is taken. The coaching will whip us up and ensure that we convert our intention into action. Coaching is up to 2-year by the way. Sufficient to guide us to stand on our own.

If you are interested in attending this seminar, register by Email to receive your free invitation. Send your name, mobile number and no. of seat to dctbff@gmail.com

Next seminar is on 5^th January 2012 (Thursday), 7:45PM at Hilton Hotel, Petaling Jaya.

I’ll update on seminar schedule and other seminars that they have on this blog.

ChartNexus Technical Analysis Training Program Preview

Following the ChartNexus 3-hr Stock Screening Workshop I attended last week, I’ve returned for their 2-hr Program Preview last night. The trainer was the same one. I still didn’t catch his name, because he mumbles and blends his words. Frankly, if this is the trainer conducting the 4-day full seminar, I wouldn’t attend it even if I’m sold on Technical Analysis. How to tolerate 4 days of deciphering mumbles?  No offence to the trainer, I’m sure he’s highly skilled and qualified.

A short introduction on the history of ChartNexus, its products and he is ready to move on to the interesting bits.

3 Problems Traders Face

1.       What to Buy?

2.       When to Buy?

3.       When to Take Profit?

90% of Investors LOSE money in the stock market. Why?

1.       They are ignorant about ‘floor’ & ‘ceiling’

a.       Do not buy when price hits a resistance.

b.      Buy at support OR when it surpasses support

     2.       They buy because the stock is ‘cheap’.

                Cheap stocks can go cheaper.

3.       Missed opportunity. Don’t know how to cut loss

If I hung on to the losing stock above, I would have missed the opportunity to make a 100% gain on a winning stock in the same time frame. We should cut loss at 5%.

After showing us the charts that in retrospective, tells the obvious, he explained on how Technical Analysis can address the 3 problems traders face. What to buy, When to buy & When to Sell.

There are 3 Different Techniques for Different Market Conditions. Market has 3 directions; Up, Down & Sideways. By mastering Technical Analysis, traders can make profit in any market directions.

1.       Chart Pattern

a.       Ascending triangle

                                                               i.      Chart forming higher lows

                                                             ii.      Bullish signal, go long

b.      Descending triangle

                                                               i.      Chart forming lower highs

                                                             ii.      Bearish signal, go short

c.       Flag Formation

This kinda triangular flag it’s referring to, not the country flag sort

The flag formation is interesting because it comes with a profit target, which is the flag pole. We first draw the profit target = height of flag pole. Then we move it to the entry/buy point. Buy point is at the top of the flag pole. Exit point is therefore determined.

In the flag formation above, buy at 3.06 and sell at 3.22. 5.4% gain in just 3 days.

2.       Candlestick Pattern

a.       Doji

Bullish reversal pattern

Signals a reversal of trend. Tug of war in price

b.      Inverted Hammer

Bullish reversal pattern

Happens at low

c.       Bearish Engulfing

Signals end of uptrend

d.      Bullish engulfing

Signals end of downtrend

e.      Shooting star

      Long Upper Shadow

      Bearish

f.        Spinning Top

Short body, tails longer than body

Bearish

g.       Hammer

Bullish

Happens at low

h.         Hanging Man

 Hammer at resistance/top

 Bearish

3.       Indicators

20-Day MA, Bollinger band, MACD. The trainer didn’t explain much on indicators. In last week’s workshop, more emphasis was placed on indicators.

He then ended with Trading Plan,ESP, the key to profitable trading.

Entry

Stop loss

Profit target

*Source of all charts on this blog entry is from ChartNexus.

At the end of the seminar preview, I still wasn’t sold on the idea of trading using Technical Analysis. If reading chart patterns, candlesticks and indicators is all that is required for profitable trading, I might as well just buy a software that accurately spots all these and sets the E,S,P points for me. Why bother attending the 4-day program? ChartNexus actually sells an ESP software. But the point is, will I put my hard earned money on the table just because a software tell me to? I think not. Technical Analysis should never be used on its own but unfortunately, that is all ChartNexus program is about. Perhaps one day I may revisit ChartNexus program.

ChartNexus 3-hr Stock Screening Workshop

ChartNexus 3-hr Stock Screening Workshop

ChartNexus runs this free 3-hour Stock Screening Workshop every Wednesday at their training center at Menara UOA, Bangsar. Location is strategic, adjoined with Bangsar LRT station. Since I chose to drive there, a raining night yesterday, I had to fork out RM7 for the parking. Whoa not cheap at all. 

Prerequisite to attending this workshop. You gotta have ChartNexus software installed on your laptop. And ofcourse, bring your laptop to the workshop as it is a practical session. You can download chartNexus for free. 

The trainer began the session by briefly running through the basic operations of ChartNexus Software. Pretty easy to use. It’s a breeze to draw trend lines and highlight turning points. Without further ado, he launched into the analysis of KLCI. 

FBM-KLCI

Looking at the 20-day moving average, KLCI is trending up. Uptrend is accompanied by increasing volume, which strengthens the pattern.

Support at 1466. If can break out of 1491 with high volume, KLCI can reach 1513, resuming uptrend.

Macd getting shorter. Wait for curve up.

Macd warning: going against the rise of klci, bearish divergence

Airasia

Airasia, on 23^rd Sept 2011, trading out of Bollinger band, in a downtrend.

Hollow candle (oval highlight), buy signal. Filled candle(second oval highlight); sell.

Next, he introduced Xpert Trader, a paid module. With Xpert Trader, one can specify stock screening criteria. He demonstrated screening by Volume increase by 30% in the last trading day.

AMMB

At current, AMMB trading at lower Bollinger band. Good volume. Form bullish reversal pattern. Immediate resistance is 20-d MA. Risk-reward: buy at support 5.63, sell at resistance 5.83. It had formed a doji at support. Wait for green light from MACD. Green light means MACD bars turning from red to green. Somehow, MACD did not show up in the chart I captured. MACD bars for AMMB is red fyi.

Boustead. 

High volume. Doji is formed. Forming a Bollinger band squeeze. When stock moving on a sideways, Bollinger band is the best indicator.  Wait for breakout above 5.50.

Coastal

Bearish engulfing is observed. A filled candle engulfs previous day white candle (See oval highlight). It is also sitting on a resistance line of 1.99. Not a good time to buy. Immediate resistance is 20-Day average at 1.87. If it breaks below 20-d avg, it may retrace to 1.77

We also briefly went through a few other stocks in the same manner; using Bollinger band, resistance and support lines, 20-day MA, and break out points.

*Source of all charts in this entry is from ChartNexus software. 

 

Now, my view on the whole session. I am not big on Technical Analysis. I acknowledge its importance as it reflects investor’s psychology, the herding effect, but using it alone to pick stocks is unconvincing. The trainer makes stock selection too simplified. Buy here, sell there. Strangely, his muffled voice doesn’t sound like he means his buy n sell calls. 

However, learning a trick or two on Technical Analysis is beneficial. I’d still like to be able to detect a change of trend at KLCI; something more than just looking at 20-day MA and Bollinger bands. 

ChartNexus runs a full 4-day course on Technical Analysis charting from Friday-Tuesday. The cost is about RM5000. Honestly, if I have 5K to spend on seminar, I’d go for Milan Doshi’s property course. But that’s just me.

Master Your PROPERTY INVESTMENT Charity Seminar

Master Your PROPERTY INVESTMENT Charity Seminar in conjunction with iProperty Expo 5th-6th November 2011

I attended this seminar on 5th November at Sunway Convention Ctr. What attracted me was Milan Doshi being one of the 3 speakers. I skipped the final talk on overseas property investment.

These are the topics highlighted in the seminar brouchure. I'll do my best to recap what was conveyed by the speakers.

How to determine if there’s a property bubble.
It depends on whose perspective it's coming from.
Developers who are forever bullish will insist there is NO bubble or anything remotely close to that.
Prospective buyers who missed out the the property bull-run in the recent 2 years will bet their lives that the property bubble will soon pop.
Prospective sellers looking to cash out will naturally support no bubble argument.
You get the gist by now. But that isn't the answer you are looking for is it? The most satisfactory answer would be from Mr Doshi himself. 'No bubble, but due for a correction'

Is there such a thing as the “right” time to buy, sell, hold or refinance property?
It depends, again! Milan Doshi never has a yes/no or 1+1=2 replies.
Right time to buy on selective properties which mets his criterias.
Sell non-prime properties.
Hold properties in prime locations.
Refinance NOW, before the downturn when banks start tightening on credit.

Learn over 10 incredibly powerful property investment strategies that 100% applicable in Malaysia.
Really? There were 10 strategies? I'm not a good note taker. In fact, hardly any. I will cover all important info shared by Doshi and i'm sure that includes several of these strategies.

How to avoid costly mistake most property owners make.
This is more on mortage selection. Always negotiate with your banker and try with another bank if one rejects. Appeal with additional supporting documents such as fat bank account statements; never resubmit the same set of documents.

How to plan your mortgage financing.
Plan at least 6 months ahead. You may need to retain a certain amount of balance in the bank statement for 6 months as part of supporting document.

Just 2 steps approach to knock off 9 years of your loan tenure.
Pay 13 installments a year instead of 12.


How to participate in oversea property Investments at very low entry level.
Why buy oversea property? How it benefits Malaysia Property Investors?
Sorry, I skipped the 3rd segment. I got no answers to these.

How to choose the right Property Investment program for yourself.
Each of the speakers will 'sell themselves' at the end of their talks.
Milan Doshi's 2-day seminar costs about RM5K.
Michael's maiden mortage seminar goes for about RM3K.

Other Tips & Pointers by Milan Doshi:
- Singapore property market leads Klang valley
- Leaders of landed properties: Desa Park City & Setia Eco park
- Leaders of condominums : KL Sentral & KL Eco City
- Demand at KLCC/Mont Kiara areas is declining
- Kl Sentral is good as land is scarce & demand is aplenty.
- Cyberjaya is to be avoided by savvy investors. Plenty of land! Look left, right, front and back; empty land everywhere! Properties within walking distances from universities are OK but the moment you have to drive... beware. Puchong & SK offers better lifestyles; variety of food and entertainment.
- Assert caution on contractors turn developers. construction and development are 2 very different playing field in the same line. They may not be able to deliver a concept, are not reputable and like to cut cost.
- Keep an eye on the stock market. They are a precursor to the property cycle.
- Go for reputable developers with solid track record if you wish to sleep soundly for the next 3 years.
- Buy below market price
- Watch out for irrational exuberance. Results in over supply. Ie: KL Metropolitan naza
- Refinance. O/D or flexi loan. Have funds on standby. It's easier to refinance in good times.
- All purchases must have exciting future upside, such as infrastructure & malls
- Learn, Network & Earn before investing.

I save the best for last.
Where are we at the property cycle?
We already at the peak, if not very near, according to Milan Doshi.

I will be attending another seminar by Milan Doshi next month. A 3-hr talk which covers more than this charity seminar. I really would like to go for his 2-day seminar if not for the hefty price tag.

Would you like me to cover on the next seminar?
Has anyone attended his full 2-day seminar? Any feedback is most welcome.