Lake Louise in the Canadian Rocky Mountains  *  Photography by Dennis Phan




请阅读潘家墉作品 * Xin mời đọc một số tác phẩm cuả Dennis Phan.



During the weekend right after I finished my 2-day stock seminar with Investools, I was in front of my computer familiarized myself with its software. I was busy searching for stocks and analyzing them. To my surprise, I saw a lot of reds in my existing portfolio with mostly blue chip and well known dot com stocks. With the pre-built search system, I found some stocks passing phase 1 and 2 of Investools software. I decided to make a sweeping change of my portfolio.


On the following Monday, I woke up early and was in front of my computer before 6:30 A.M. to begin my new trading method I had learned from the seminar. I first did a “clean house” of the stocks I thought were “good” stocks in my portfolio. I used to be a mainly “buy and hold” type of investor. It worked well in the 90’s but after the market crashed in 2000, I realized I needed to change my style. I used to be reluctant when selling my stocks because I didn’t know what to buy next. I had learned from the seminar to get in and out of the market to maximize my profit. I did exactly what I had learned. However, things were not going so well for me as I expected. Back then, all I knew was the green & red arrows. I relied heavily on the system in my stock trading. I had some good trades and bad trades using the system. In some cases, I entered the trade right after all three green arrows appeared and experienced a severe setback several days later. I then realized that I maybe missing some pieces of the puzzle. Maybe Mr. Bruce Dinger was right when he told me I made a terrible mistake by not signing up for further education. In March of 2005, I signed up for the advanced programs with Investools and my studying process of option trading began.


When I received the studying materials from Investools, I had a very weird feeling. I felt I was looking at a treasure box with legal money printing manuals and instructional DVDs inside. I used my coaching sessions evenly for stock, basic and advanced option courses. Mr. Scott Thompson was my coach for all three subjects. I was comfortable with his coaching style and I chose to stick with him throughout the sessions. I took advantage of my full time trading status to pick my sessions on weekday during market hours to avoid busy schedule and to discuss live examples from the market as well. We had ½ hour coaching session weekly so I had one week to do my homework and to prepare for whatever questions I might have for the coach. My coach encouraged me to use the hot line service to cover any topic we did not have enough time to discuss during the session. From the hot line service, I learned how to use the Interactive Chart which was a great tool to pin point the stock price fluctuation on daily, weekly, monthly and yearly basis. I was thrilled with what I achieved from reading the chart. I learned how to draw the trend lines and channels from the chart as well. The Interactive Chart was also a great tool for Candlestick Chart reading which will be discussed later in this series. The Interactive Chart later changed its name to Prophet Chart when Investools upgraded its website last year.


From my coaching sessions, I was able to learn in details the subjects covered in live seminars. Being a math major student in college, I was particularly interested in advanced option series. Among the strategies of basic and advanced option, I like covered call, diagonal bull call spread and selling naked put the most, all bullish strategies. When I first started, I was not very comfortable playing bearish strategies due to human nature tends to get away from down trending stocks. However, I later changed my perspective. I will talk more about that in my next article.


The spread trade series caught my attention when I first learned it. I liked the strategies because they are designed for consistent return. It is not too risky with limited gain and loss. My first lesson of the spread trade series began with bull put credit spread. The math was not that bad but the concept was a bit confused at first. I skimmed through the other spread trades and realized they were just the variations of each other. I knew if I spent my time studying the first spread trade carefully, the others should be followed through easily. With that idea in mind, I spent a lot of time studying the bull put credit spread. I read the lesson three times and working diligently on the numbers of the examples. I summarized the main points of the strategy to help me organize my thoughts. I was ready for my first coaching session of the spread trade series. The session went through smoothly. As expected, I had no problem understanding the other spread trade strategies such as bear call credit spread; bull call debit spread and bear put debit spread. We also discussed diagonal bull call spread, LEAPS, straddles, strangles and index option trading. I did not like butterfly spread so I asked my coach to skip it. Instead, we used the session to talk more about the details of covered call; diagonal bull call spread and selling naked put which are all covered call related strategies, in my opinion. I had fun learning those concepts. Now the terms “buy to open”, “sell to close”, “sell to open” and “buy to close” won’t confuse me any more.




Dennis Phan   家墉

Khai Minh, UCLA & Investools Alumni

Los Angeles, California, U.S.A., 30 April 2007





***  投稿電子郵件請寄 ***

Bài vở & hình ảnh xin gởi về Ban Phụ Trách KHAIMINH.ORG










Copyright © 2005 - 2007 KHAIMINH.ORG  |  Website Disclaimer