Jesse Livermore - World’s Greatest Stock Trading Book

Jesse Livermore Worls’s Greatest Stock TraderI just finished reading the stock trading book - Jesse Livermore World’s Greatest Stock Trader by Richard Smitten. It was a very profounding book on the real life story of the Reminiscences of a Stock Operator Legend.

Livermore has been broke 3 times during his life time and lost all his money in the trading. And yet he come back strong by making millionaire in the stock market. One of his secret that he believed strongly in his own trading system. That’s the reason why he was so successful in stock trading. The only time he fall when he did not follow his own rules and start listening to others.

I learn a lot from this book and it is a great lesson in investing and trading. Jesse said in this book that the stock market has changed and will change in time but the human character in trading will never changed. There are greed and fear elements in trading and if we can control these character in ourself we will able to beat the stock market in the long run.

The trading rule mentioned in this book that Jesse Livermore adopted is simple but hard to follow. Some of the rules are :

  1. Don’t lose your trading capital.
  2. Always established a stop. 
  3. Don’t lose more than 10% of the trade if it goes against you. Take the small losses if you must.
  4. Let the wining position ride in the same trend

Jesse has actually written his own stock trading book called “How to Trade Stocks” which will be my next stock trading book to read when I have the free time.

I would strongly recommend this great book to anyone who is in stock trading.

As I have chosen this path to make money in my journey to millionaire success and I believe in increasing my stock trading knowledge if I want win big in the stock market.

To your millionaire success.
Michael Liew

Popularity: 3% [?]

Opening Futures Account With Okachi Malaysia

This week I have successfully open up my futures trading account with Okachi Malaysia. Okachi Malaysia is a Futures Broking House that allow traders to trade commodity future for oversea market.

As far as I know there are the only active Future Broking House in Malaysia with licences to trade in Chicago Board of Trade (CBOT), Chicago Mercatile Exchange (CME, NYMEX, NYCOT, London Options & Futures Exchange (FOX), London Metals Exchange (LME) and Tokyo Commodity Exchange (TOCOM). They are also the broking house for  Malaysia KLCI Index Futures and Malaysia Crude Palm Oil Futures.

After hearing the presentation from the company representative Mr Jeffry I decided to activate my account to trade Tokyo Rubber Futures. According to Jefry Tokyo Futures is an active market that does not require high margin to trade. The initial margin for Tokyo Rubber Futures is about RM2,400 per contract.

I have deposited into the trading account of RM50K. Hopefully with trading plan and strategies in mind I will gain at least 30% profit by end of this year. Of course this will take into risk of losing as well.

I will open up other trading accounts with other broking house once I understand the trading plan and the risk involved of the particular derivatives. This will be my plan for this year.

If you want to know about Okachi Malaysia you can visit www.okachi.com.my

To your millionaire success.
Michael Liew

Popularity: 2% [?]

Looking for opportunity to make money

For the last few weeks I was looking for an alternative way to make money or have multiple income. I was doing ok as an entrepreneur running my own installation business for light and sound. I have been doing this for the past few years now and I can say that I enjoy it so much. It have bring my financial freedom closer to my goal compare to when working for others.

With recent case happen to my eye problem I am now even more determine to have more passive income than depend solely on active income. In my current business if I stop working my income will stop as my business depend heavily on my active working. I find that this is not so suitable for me.

There are many ads in the newspaper on the making money seminar in Malaysia. I went to explore some of them as these are free seminar which is a prelude to a paid seminar. 

Malaysia Forex Seminar

“Live Challenge : See How Much the Prefessional Trader Can Make in 90 mins”

“How to be street smart rather than be book smart”

Those are some of the promises that we can make money from Forex. I am not familar with these market so I will stay away.

Sales & Marketing Seminar

“Boost your profitability & sales volume without sweating”

“Identify how to overcome sales rejection while mastering proven tactics to turn prospect into customer, customer into client - even if you have no skill/experince.”

A marketing seminar that teaching others to overcome fear in selling. I think I will pass this ads.

Make money from stock options seminar

There are quite a few of these seminar teaching others to make money from trading US stock through options. Options trading is a cheaper way to enter US market to make money fast and if the stock move to your anticipation you will make money and if the stock move against your buy call or put then you will all or most of your margin.

I went for one of these seminar but I think I am not ready to trade US market. The problem is that I have to trade at night (in Malaysia) when US market open. It took some of my family time away and I guess it is not suitable for me.

I will probably start my stock trading for Malaysia and Singapore market.

Internet Marketing Make Money seminar

Internet Marketing seminar is quite active here in Malaysia shore. Mostly is from Ewen Chia seminar and Fabian seminar.

I have attended one of these seminar last year from UYMG Stephen Pierce.

In conclusion I have decided apart from being entrepreneur and working for my own business, I am going to try another making money opportunity in Malaysia stock trading and internet marketing.

If I don’t try I will never know if I will succeed. What do you think?

To your millionaire success.
Michael Liew

Popularity: 2% [?]

Flat Like A Pancake

“How is my eye, doctor?” I asked patiently.

“Flat like a pancake” that was Dr Angela Loo (Consultant Ophthalmologist – Retina Eye Specialist) reply as she was examing my retina detachment problem using the eye instrument.

“It looks all right and there is no further retinal detachment, good news” she said.

I was quite happy to hear the good news after nearly a month after my retinal detachment eye surgery done on my right eye. I was afraid that the surgery was not successful as some other patient have to do it again the second time.

My vision is still blur temporarily and hopefully it will recover someday. But I know my vision will take many months to improve after surgery. But I am happy for now.

It is time to get on with my millionaire journey and hopeful to enjoy meaning life as much as I can. Anything can happen along the road.  I am doing some adjustment to my plan for accelerated and better achievement.

To your millionaire success.
Michael Liew

Popularity: 3% [?]

7 Ways To Personal Debt Management

Debts will always be there. We can not avoid it and it will never disappear for as long as it remains unpaid. There are good debt and bad debt as long as we know how to control it. Therefore, the path towards a debt-free life would be to manage our debts wisely.

Below are seven highly effective ways of debt management:

Control the use of credit cards
Just control the usage of your credit card. Treat them like cash. Use it if you have the cash ready but if you don’t have the cash now to purchase something, don’t even think about taking the credit card out of your wallet!

I have 6 credit cards and I just keep in the drawer and only keep two credit cards – visa and master card in my wallet. Every month I will exchange with those in my drawer.

Keep track of your money flow
If you can’t track it, you can’t manage it. Develop a personal habit of recording all your expenses for the month.  Some of your friends might laugh at you but just ignore them or do it quietly.

You keep all receipts and update in your computer or expense account book everyday. It is easy to do everyday then once a week as we might forget.

Add up your expenses and assess if you have over spend, by comparing it to your income. Analyze those items that are taking the most money out of your pocket and see if you can do anything about them. You’d be surprised how much you’re spending on those cigarettes, movies and “branded coffee”. The main thing is to never spend more than you make.

Only buy the essentials
The rule to manage your debt is to spend below your net income. Budget only to buy the monthly essential like food, clothing, home, life and health insurance and the likes are “need-to-haves”.

Do you need to spend more than a pack of cigarettes a day? Do you need to drink starbuck coffee all the time? You decide.

Go through your spending record and identify items that can be cut. Sacrifice.

Have monthly budget
One if the most effective ways of managing our debts ways of managing our debts wisely is through proper budgeting. A budget gives a “preview” of our financial position so that we can roughly estimate whether we would have a surplus or deficit. If our budget already shows a deficit, drastic action has to be taken – you could either increase your income or cut the “nice-to-haves”.

Look for cheaper alternatives
Revisit your monthly budget and see if you can use any other cheaper alternatives for the necessary items. For example, toothpaste – can we switch to brands which give better value for money?

Check its net weight and decide on purchasing the brand that gives you the same value for a lower price. Sometimes, cheaper may not always be better. What we should be looking out for is value-for-money.

Look for discount coupon and make use of that. Look for Mega Sale from any shopping mall as it is cheaper to do major shopping during this time.

Have another side income
If you don’t have enough to spend at the end of the month then consider work as part time to supplement your income.

That is the only way to have extra money for saving or for monthly expenses in order to avoid much debt. Consider part time home based business, internet marketing, multi level marketing (MLM) or a second job at night.

This will make you stay focus as you are serious in managing your debts.

Last but not least – treat yourself a nice reward
Managing our debt and getting out if it is hard but it doesn’t have to be painful. If you have done some of the above suggestion then perhaps you should reward yourself a well-deserved gift or treating yourself to a good hearty meal. By rewarding ourselves, we’d feel motivated to stay on track.

Don’t go and spend big money again as this will create new debt. Any saving from the budgeting will be good enough treat your self.

Hopefully this article will show you the effective ways of managing your debts wisely. We have to bear in mind that if we do not manage our debts wisely, they will manage us in return and it can be painful.

The road to managing your debt wisely would be a smoother one if we try not to think of all these as a scarified, but as delayed gratification.

To Your Millionaire Success
Michael Liew

Popularity: 2% [?]

Millionaire through wining lottery

I read with interest from the news about a couple in Atlanta have won US$275mil mega million jackpot – the largest prize ever won by a single player in Georgia Lottery history.

When asked what he plans to do as a brand new multimillionaire, the US lottery winner Robert Harris answered simply “Live happy.”

Lottery Winner

Before this he used to work overtime just to make ends meet for 20 years. He and his wife, Tonya lived in a trailer while dreaming of building a big house in the country where their two children and six grandchildren could visit.

Now his dream comes true.

But Tonya said the money doesn’t mean they will stop being the simple folks they’ve always been – to stay simple.

One of the lessons I learned from this couple is they live simple in this case in a trailer  and they make sure that they can go through each day of their life by working hard. In between their life they have a big dream that is one day they could build a big house of their own.

Their dream is a valid dream that is to build a proper house so that their children and grandchildren could visit them and stay with them.

Then they took action. They bought two US$1 lottery ticket and with a hope and luck that they could win something. If they did not win anything they is nothing to lose because they life still go on. They work hard and stay focus with their dream.

This is an inspiration in another way for me.

To Your Millionaire Success.
Michael Liew

Popularity: 2% [?]

Retinal Detachment Eye Surgery Done On My Right Eye

Last week unfortunately I went for my right eye retinal detachment surgery. New retinal detachment was detected after initially thought that I can avoid surgery after laser treatment to weld the earlier retina tear.

The surgery was done by Dr Angela Loo (Consultant Ophthalmologist – Retina Eye Specialist) at University Malaya Specialist Centre (UMSC) in Petaling Jaya.

The surgery wasn’t painful but I felt very painful when the needle pokes to my eye. I was only given local anesthesia and eye drop to numb the eye which is normal but nevertheless the surgery lasted only one hour.

After the surgery I was told to rest at home for 2 weeks with my face down at all time. That’s mean I have to lie and sit in a special position to keep the bubble up against the affected area.

During the surgery the surgeon injected a bubble of expandable gas into the eye. Over the next several days, the gas bubble expands, sealing the retinal tear by pushing against it to the back of the eyeball. Every 2 hours I have to apply antibacterial eyedrop called Spersadexoline to help the healing process.

No work, no computer and no party for the next 2 weeks and possibly less activities until it is fully heal.

So guys if you are nearsightedness for a long time it is advisable to check your eye regularly. The only symptom is often the sudden appearance of a large number of spots floating loosely in the eye. Early detection can avoid surgery.

For the benefit for those who do not understand what retinal detachment is I have done some research and attached some interesting article related to my case.

What Is Retinal Detachment
Retinal Detachment is a separation of the retina (the inner nervous tunic of the eye) from the choroid in the back of the eye. The retina is the light-sensitive tissue that lies smoothly against the inside back wall of your eye and sends messages to your brain through your optic nerve. Underneath the retina is the choroid — a thin layer of blood vessels that supplies oxygen and nutrients to the retina. Retinal detachment occurs when the retina separates from the choroid.

Usually this happen when there is a small tear or hole in the retina that allows the vitreous humor (fluid) to leak between the choroid and the retina.

retinal_detachment.jpgMost retinal detachments are caused by the presence of one or more small tears or holes in the retina. Normal aging can sometimes cause the retina to thin and deteriorate, but more often shrinkage of the vitreous body, the clear gel-like substance which fills the center of the eye, is responsible for deterioration and retinal tears.

The vitreous is firmly attached to the retina in several places around the back wall of the eye. As the vitreous shrinks, it may pull a piece of the retina away with it, leaving a tear or hole in the retina.
Though some shrinkage of the vitreous body occurs naturally with aging and usually causes no damage to the retina, abnormal growth of the eye (sometimes a result of nearsightedness), inflammation or injury, may also cause the vitreous to shrink. In most cases, a significant change in the structure of the vitreous body occurs before the development of a retinal detachment.

Once a retinal tear is present, watery fluid from the vitreous space may pass through the hole and flow between the retina and the back wall of the eye. This separates the retina from the back of the eye and causes it to “detach.” The part of the retina that is detached will not work properly and there will be a blindspot in vision.

Causes and Risk Factors of Retinal Detachment
It is more likely to develop in people who are nearsighted, or whose relatives had retinal detachments. A hard, solid blow to the eye may also cause the retina to detach. Severe trauma to the eye, such as a contusion or a penetrating wound, may be the cause, but in the great majority of cases, retinal detachment is the result of internal changes in the vitreous chamber associated with aging, or less frequently, with inflammation of the interior of the eye.

It should be noted that there are some retinal detachments that are caused by other diseases, such as tumors, severe inflammations or complications of diabetes. These so-called secondary detachments do not have holes or tears in the retina, and treatment of the disease which caused the retinal detachment is the only treatment which may allow the retina to return to its normal position. 

Screening and diagnosis
An ophthalmologist can look carefully at your eye with special instruments to determine what’s causing your visual symptoms. It’s possible to tell if you have a retinal hole, tear or detachment by looking at your retina with an ophthalmoscope — an instrument with a bright light and powerful lens that allows your doctor to view the inside of your eyes in great detail and in three dimensions.

If blood in your vitreous cavity prevents a clear view of the retina, your ophthalmologist might also use sound waves (ultrasonography) to assess your retina. Ultrasonography is a painless test that sends sound waves through your eye to bounce off the retina. The returning sound waves create an image on a monitor that allows your doctor to determine the condition of the retina and other structures inside your eye. This test usually provides the information your doctor needs to determine whether your retina is detached.

Symptoms of Retinal Detachment
In most cases, retinal detachment develops slowly. The first symptom is often the sudden appearance of a large number of spots floating loosely in the eye.   These spots, specks, hairs and strings are actually small clumps of gel, fibers and cells floating in the vitreous. And what you’re seeing are the shadows that this material casts on the retina. The person may not seek help, because the number of spots tends to decrease during the days and weeks before detachment. The person may also notice a curious sensation of flashing of sparkling lights when you eye closed or when in you’re in a darkend room.

Because the retina does not contain sensory nerves that relay sensations of pain, the condition is painless.

Detachment usually begins at the thin peripheral edge of the retina and extends gradually beneath the thicker, more central areas. The person perceives a shadow that begins laterally and grows in size, slowly encroaching on central vision. As long as the center of the retina is unaffected, the vision when the person is looking straight ahead, is normal; but when the center becomes affected, the eyesight is distorted, wavy and indistinct. If the process of detachment is not halted, total blindness of the eye ultimately results. The condition does not spontaneously resolve itself.

Treatment of Retinal Detachment
All cases of retinal detachment should be referred to an ophthalmologist as soon as possible.

If Retinal Detachment Has Not Occurred
If the retina is torn and retinal detachment has not yet occurred, a detachment may be prevented by prompt treatment. Treatment is aimed at closing retinal tears (so as to facilitate reattachment of the retina). Once the retina becomes detached, it must be repaired surgically.

If it can be caught when there is only a hole and no fluid has separated the retina from the back of the eye then laser treatment (photocoagulation) or cryotherapy may be used to seal around the hole to stop the fluid going through. Healing typically takes about two weeks. Your vision may be blurred briefly following either of these procedures:

Laser surgery (photocoagulation). During photocoagulation your surgeon directs a laser beam through a special contact lens or through a special ophthalmoscope to make burns around the retinal tear. The burns cause scarring, which usually “welds” the retina to the underlying tissue. This procedure requires no surgical incision, and it causes less irritation to your eye than does cryopexy.

Freezing (cryopexy). With cryopexy your surgeon uses intense cold to freeze the retina around the retinal tear. After a local anesthetic numbs your eye, a freezing probe is applied to the outer surface of the eye directly over the retinal defect. This freezes the area around the hole, and the resulting delicate scar helps secure the retina to the eye wall. Cryopexy is used in instances where the tears are more difficult to reach with a laser, generally along the retinal periphery. Your eye may be red and swollen for some time after cryopexy.

If Retinal Detachment Has Occurred – The Surgery
Doctors commonly use one of these surgical procedures to repair a retinal detachment. Some of these procedures are done in conjunction with photocoagulation or cryopexy. The purpose of these treatments is to close any retinal holes or tears and to reduce the tug on the retina from a shrinking vitreous. The type, size and location of any retinal detachment will determine which procedure your eye surgeon recommends. In general, these surgeries can successfully treat more than 90 percent of cases of retinal detachment, although a second treatment is sometimes necessary.

Pneumatic Retinopexy.   This surgical technique is generally used for a relatively uncomplicated detachment when the tear is located in the upper half of the retina. It’s usually done on an outpatient basis under local anesthesia.

The retina is reattached by injection of a bubble of expandable gas into the vitreous cavity. Over the next several days, the gas bubble expands, sealing the retinal tear by pushing against it and the detached area that surrounds the tear. With no new fluid passing through the retinal tear, fluid that had previously collected under the retina is absorbed, and the retina is able to reattach itself to the back wall of your eye.

Once the retina is reattached, the retinal tear can be sealed by laser photocoagulation or cryotherapy.

You may have to hold your head in a cocked position for a few days after surgery, to make sure the gas bubble seals the retinal tear. And it may take several weeks for the bubble to disappear completely. Until the gas is gone from your eye, avoid lying or sleeping on your back. This keeps the bubble away from your lens and reduces the risk of cataract formation or a sudden pressure increase in your eye.

During this time, you can’t travel by airplane or be at a high altitude because a sudden drop in atmospheric or cabin pressure would cause the gas bubble to expand rapidly, resulting in a dangerously high pressure in your eye.

Scleral buckling. This is the most common surgery for repairing retinal detachment. It’s usually done in an operating room under local or general anesthesia. If you have an uncomplicated retinal detachment, this surgery may be done on an outpatient basis.

First your surgeon treats the retinal tears or holes with cryopexy. Then he or she attaches a tiny silicone band (buckle) to the white of your eye (sclera) over the affected area. The silicone material is in the form of either a soft sponge or a solid piece. The buckle closes the tear and helps reduce the traction on the retina, which prevents further vitreous pulling and separation. When you have several tears or holes or an extensive detachment, your surgeon may create an encircling scleral buckle around the entire circumference of your eye.

The scleral buckling material is stitched to the outer surface of the sclera. Before tying the sutures that hold the buckle in place, the surgeon may make a small cut in the sclera and drain any fluid that has collected under the detached retina. The buckle usually remains in place for the rest of your life. Some surgeons may choose a temporary buckle for simple retinal detachments, using a small rubber balloon that’s inflated and later removed.

A reattached retina doesn’t guarantee normal vision. How well you see after surgery depends in part on whether the central part of the retina (macula) was affected by the detachment before surgery, and if it was, for how long a period. Your sight isn’t likely to return to normal if the macula was detached.

Vitrectomy Operation.   This the surgery type that I went through. A vitrectomy operation involves making 3 very tiny holes in the eye through which instruments can be put to help remove the jelly inside the eye.

Your surgeon accomplishes this with a variety of delicate instruments passed into the eyeball through small openings in the sclera. These instruments include a light probe that illuminates the inside of your eye, a cutter to remove vitreous or scar tissue, and an infusion tube that replaces the volume of removed tissue with a balanced salt solution to maintain the normal pressure and shape of the eye.

After completing the vitrectomy, your surgeon may perform a scleral buckling procedure or pneumatic retinopexy procedure by filling the inside of your eye with air, expandable gas or silicone oil to help seal the retina against the wall of your eye.

Vitrectomy surgery typically lasts more than an hour but may take several hours in more complex cases. The complex cases are often done under general anesthesia, but shorter procedures are usually performed under local anesthesia.

After surgery, you may experience some discomfort and a scratchy sensation in your eye. Severe pain is unlikely. You can expect your eye to be red, swollen, watery and slightly sore for up to a month following any surgery for retinal detachment. Wearing an eye patch may provide some relief. Your doctor may also prescribe antibacterial or dilating eyedrops to help the healing process. You’ll have to avoid strenuous activities during this time. It takes about 10 weeks for your eye to heal fully. Then your doctor will examine your eyes to assess your vision and, if you wear eyeglasses, determine whether you need a new prescription.

Your vision may take many months to improve after surgery to repair a complicated retinal detachment. Some people don’t recover any lost vision.

I have to make adjustment to my lifestyles in my journey to millionaire success.  Hope to make progress soon.

To Your Millionaires Success
Michael Liew

Popularity: 10% [?]

6 Ways to Manage Your Savings and Money Management

In my journey to millionaire success one of the key to achieve millionaire is to save money. However, it’s often easier said than done. This is where the money management comes into play. It depends a lot on being disciplined with our saving habit. There are 6 ways manage your money.

Setting your savings goal
You should always “begin with the end in mind” as Dr Stephen R. Covey puts it in his book, The Seven Habits of Highly Effective People.

To be effective in our savings, we should set a goal and strive towards achieving it. In my millionaire journey I have set many different long-term goals and many short-term goals to save money.

Ideally, you should have a plan or an account for each money goal and commit yourself totally till you achieve them. To do that, make sure your goals are S.M.A.R.T. – it should be Specific, Measurable, Attainable, Realistic and Time-bound.

Pay yourself first
One of the most effective money management skills to saving money is to pay yourself first. Most people have the habit of spending first and saving what’s left only to discover that there’s always nothing left.
 
We should put a side at least 10 percent of our income each month into a saving account that you will never touch.

For the self-employed, you should then strive to save at least one-third of what you earn.

Every month, make a commitment to pay yourself a fixed amount of money before anyone else. Increase the amount with every pay rise and also pay yourself a bonus at the end of year end. All these money should not be used to support your current lifestyle but be locked in for future use.

Automatic savings program
One way to force ourselves to save more money is to set up an automatic savings program. This is one of the best money management methods.  It removes our weaknesses and stay disciplined with our savings as money is taken from our account before it reaches our hands.

There are a couple of ways to set this up and the best one would be via automatic deduction on your pay day.  Go to your bank and assign a standing instruction to deduct a fixed amount (about 10% of your salary) every month into another saving account.

If you still have doubts about yourself of not with drawing the savings, then set up a joint account with your spouse or another family member whose consent must be obtained before withdrawals can be made. This would ensure that the amount saved would remain saved till your goals are achieved.

Budgeting
Budgeting is a must for everyone to implement. Without a properly drawn-out budget, our saving program will most likely go haywire. A budget gives us a preview of our cash flows over a period of time and we will know precisely where our money is flowing.

Follow your realistic budget diligently and you will have extra money at the end of the month. Save the money into your long term savings account. Make your savings goals your priority.

Buy Blue-chip share
Once your saving have achieve a certain amount then consider buying some blue chip stock for long term investment. The return from the stock is much higher than the bank interest from the saving account.

If you are not sure which stocks to buy or never buy any share before then consider investing in unit trust fund. It will provide a good return in the long run. Consider also buying the unit trust every month as a way to cushion the up and down of the stock market.

Avoid Credit Card Expenses if you can
Having credit card is important in our budgeting and planning to save money but the overuse will certainly destroy our saving plan.

If possible only use your credit card within your monthly budget plan. If your budget allows you to spend $300 for fuel expenses then use credit card within that limit and pay the credit card at the end of the month with the $300 that you have budgeted. Can you be discipline enough to do that?

Staying disciplined with our savings may seem a Herculean task to many but with a burning desire and a meaningful goal, it will be relatively easy.

We have to understand that time is one of our greatest assets and we can just allow the power of compound interest to work for us, we will surely be able to achieve our desired goals to be a millionaire.

To Your Millionaire Success.
Michael Liew

Popularity: 2% [?]