AUTO

NOTICES
GENERAL
PROPERTY
APPOINTMENTS
GOVERNMENT
LEGAL/
AUCTION
Find
now!
Cars
Trucks
Bikes
Batteries
Mechanics
Financial
Tenders
General Notices
Services
Loans
Health
Renovations
Land
Shop Lots
Apartments
Room
Rental
Full/Part-time
Training
Graduate Scheme
Jobs
Tenders
Legal
Property
Vehicle
Legal
INSIDE :
SEARCH AND
BOOK
SUBSCRIBE NOW!
http://subscription.nstp.com.my
1300 22 6787
+ +
digital edition

S
TOCK market is risky, stay
away from it, is the advice we
normally hear. And a recent
survey conrms that Malaysian
investor population is aging (40-60
years old); and the younger ones are
getting fewer and further away due
to lack of knowledge and market
uncertainties.
Beyond Insights Chief Trainer and Coach
Kathlyn Toh, based in Petaling Jaya, said one
of the main reason for the fear is that the
baby boomers and GenX generations have
gone through several nancial crisis, and
many people have lost a lot of money in the
stock market during those times, and even in
good times.
Toh said: The majority of people who
lose money suered because they did not
do their risk management properly (if at all);
and these are the people who passed down
their bad experience and nightmares to the
younger generation,
The younger generation may not realise
the impact of not investing yet, since their
parents are the ones who have gone through
bad times, and the ones who fund their
expensive education and realise the impact
of ination more than the younger ones.
She added the truth is there are many
people who made huge returns during the
crisis, just that they get less attention from
the media.
In this Q&A, Toh shares some of her
trading success secrets in the US stock
market.
Q
There seems to be a lot of fear trading
in foreign stock exchange due to weak
global economy? Is that true?
Thats just perception. In fact the global
stock exchanges provide us with so many
more ways to manage risks using instru-
ments like CFD, Options and Futures, which
gives us the ability to make money in both
uptrend, downtrend, and sideway markets.
So we can make money even in bad economy.
There are ways to manage risk e.g.
Options provides many ways to limit the
risk. Without Options you can use a stop
loss to limit the risk. This is one of the most
regulated stock exchanges in the world and
the most transparent. With the advent of
technology, everyone can just trade and
monitor their stocks from home with just a
computer, or even an tablet or smartphone.
Its very convenient.
Q
How do you reduce the risk of losing
money in the stock market?
Fear always comes from what is un-
known. When we have the proper knowledge
about trading and the right mindset about
risk management, the fear will go away. Our
This skill not only gives me nancial freedom, but
time freedom and location freedom as well. I am no
longer bound to long hours job. I can trade anytime I
feel like it, and I can do it from anywhere in the world
as long as I have internet connection. Now I have time
to spend with people I care about and also things that
matter to me.
KATHLYN TOH
(Director and Chief Trainer of Beyond
Insights)
SATURDAY, MAY 24 2014
INTERVIEW THE EXPERTS
All questions and enquiries can be
emailed to: gchuah@gmail.com or call
1300 226 787
By Gerald Chuah
main job as investor or trader is to deal
with uncertainty by lowering our risks to
the minimum.
For example, one of my Golden Rule
is that I only risk 2% of my capital in any
single trade. Meaning to say, if something
goes totally wrong with the trade, I will
only lose 2% of my capital. When I know
that market volatility is high, I will also
hedge my positions, i.e. placing trades
that can help me recover losses if the
market goes the other way. With all the
risk management in place, I can sleep
soundly at night because I know how
much I can possibly lose in the worst case
scenario.
Q
What trading strategy do you use
to succeed in stock trading?
I use a four-step formula, called
STPM.
1
SELECT - Screen top fundamen-
tally strong growth stock.
2
TIMING - For Trading, I time my
entry based on my pre-dened
market patterns. For Investment I have
a way to evaluate the valuation of the
company based on its earnings capabil-
ity and growth rate to determine the
right price to buy.
3
PROTECT I have a strict money
management strategy. I only risk 2%
in a trade and I have a mechanism to make
money even when I am half right, and I use
CFD and Options to hedge in high volatility
environment.
4
MULTIPLY I use CFD and Options
to multiply my income as CFD only
requires 5-10% of the stock price and Op-
tions requires 2-10% of the stock price to
trade, therefore it gives me the ability to
multiply my income by about 10x faster.
Q
How do you pick your favourite bas-
ket of stocks?
I have nine major criteria to select
stocks with some sub-criteria. This includes
both objective and subjective criteria. The
most important is to make sure the com-
pany is actually making money, has good
track record in good and bad times, and
have good earnings growth for the future.
I personally like high growth stocks but
you need to understand a stock cannot be
a high growth stock forever, so the key is to
understand their life cycle. I have a course
called Power Investing which teaches
people all these criteria and how to screen
them with a powerful screening tool and
analyse the shortlisted ones.
Q
What trading instruments and plat-
form do you use, and why?
CFD, Options on Stocks, and Stock
related indices. Stocks have fundamentals
to support and provide a higher probability
of winning when combined with technical
analysis and money management.
CFD provides a way to invest with less
money, and Options is the most versatile
instruments that gives me the ability to
make money in more than one direction
concurrently, and allow me a limited risk
strategy to trade and hedge (protect) my
portfolio.
By using instruments like Contract
For Dierence (CFD) and Options to trade
with lower capital, provides us the ability to
make money in uptrend or downtrend mar-
ket with a better way to hedge (protect)
our money. By following these steps, you
can achieve consistent results in trading
and even trade for a living.
*Kathlyn Toh will be speaking at the
National Achievers Congress 2014 at
10.15am this Sunday (May 25) at MIECC,
MINES Resort City, Selangor. During her
presentation, she will reveal her 4-Step
Formula for Success in the Stock Market.
For details visit www.beyondinsights.
net or www.facebook.com/beyondin-
sights, for latest updates on upcoming
courses and seminars.
TRADING
SUCCESS SECRETS