StayWealthy.com

Super Heroes and Super Villains

heroToday marks the last day at my day job…

It took me a few months to consider whether to quit my job. I started to consider it seriously when my PPC campaign made about 900% ROI on top of my capital of $100 in December, that was when I converted my salary from Malaysian Ringgit to US Dollar and I realized that my gross pay in USD is around $700 a month… This is my salary after working more than two years at one of the big 4 accounting firms in the world… Imagine that. Don’t get me wrong, $700 in Malaysia is a very decent income… but I never expected that my pay only amounted to $700 after conversion. That’s even less than the minimum wage of $5.15 an hour in the States (Mine is around $4.38 an hour, less if I add in extra hours I put into the work). If people are viewing my life as a movie, they’d probably think it’s a no-brainer that I should quit if I’m making $900 by spending less than 5 hours a week on it. However, being a very cautious person, my mind was playing ping pong with my thoughts:

“Yes, you can do it!”
“It’s only one campaign, get more campaigns that give you the same results before you quit”
“I’m sure you can make more money than your present salary if you do it full-time”
“Stabilize your online income first, I ain’t sure yet”

After about 3 months of indecisiveness, I finally got fed up of thinking the “What ifs” and told myself “You know what, I’m still young… if this is what I wanna do, this is what I gotta do! Even if I fail, at least I tried! If I succeed, even better!” So off I went typing a simple resignation letter to my bosses. After that, I bought a macbook as my only business asset (I had been using my firm’s notebook after my old notebook was stolen). There was also enough funds to cover me for several months if something goes wrong (I had set up a quit-my-job fund earlier anyway).

So what does this whole post have to do with super heroes and super villains anyway?

When I was working at my day job, I felt like I had a double life. By day, I’m this average employee. By night, I trade options and do internet marketing… talk about investments, talk about money, talk about finances, talk about business with my online friends. When I am at work, I rarely talk about investments, money or businesses with my colleagues even though all of us have a degree (or higher) relating to business and finance. I have tried, but most of them are either not interested or thinks of it as risky even when it’s not. I still remember trying to explain Google Adsense to someone, and she rejected the whole idea immediately because she had learnt a tip of an iceberg about click frauds (which has more to do with Google Adwords than Google Adsense). In fact, I felt a lot more like myself when I talk about finances and financial independence skills. No, I’m not trying to say that I’m more superior than any of my colleagues. I’m trying to point out that there’s a difference of mindset and goals we all have. Luckily for me and others who seek an alternative to jobs for an income, we have the internet to bring us closer. It’s good to know that we aren’t alone.

So I always joke with my friends that when we have a full-time job and our part-time businesses, we are super heroes. In most of the famous super hero movies (e.g. Superman, Spiderman, Batman), they ALWAYS lead a double life. You can’t tell anyone that you have super abilities otherwise you are a target for guinea pig experiments. Therefore, you lead a life as an average person by day, and only a hero at times when you are needed. But when it comes to super villains, they don’t need a double life. So when your part-time business becomes full-time… Congratulations, you are now an official super villain.

*Cartoon from cartoonstock.com

March 2007 Option Trades

up All winners this month except for mistakenly putting a limit order instead of a stop loss on my OEX puts. I ended up buying half of my original purchase after the accident because the OEX trade was not part of the star trading system, I was not very confident about it. I used the support and resistance from the point and figure chart with 30 and 50MA indicators to decide whether to get in this trade. Thanks to Lastchance who enlightened me about support and resistance using point and figure charts. He’s been trying to get me to learn it for months and I only picked it up after he’s successfully done a few trades.

The good thing about all these trades was that I made the sell decision based on the support and resistance and so far they are doing okay. It feels good to be certain about when to exit.

Balance after exit trades made in November: $4,519.78 (+18.94%). Click “read more” to see my trades.


Account Trade History
EXEC TIME SPREAD SIDE QTY SYMBOL SPC EXP STRIKE TYPE PRICE NET PRICE
3/7/07 23:47:44 SINGLE BUY +4 CNQ 100 APR 07 50 CALL 2.70 2.70
3/9/07 23:50:07 SINGLE SELL -2 CNQ 100 APR 07 50 CALL 3.40 3.40
3/10/07 02:27:04 SINGLE SELL -1 CNQ 100 APR 07 50 CALL 3.90 3.90
3/12/07 23:20:10 SINGLE SELL -1 CNQ 100 APR 07 50 CALL 3.30 3.30
RETURN: +29.63%
3/22/07 21:36:23 SINGLE BUY +2 OEX 100 APR 07 650 PUT 5.30 5.30
3/23/07 01:01:33 SINGLE SELL -2 OEX 100 APR 07 650 PUT 4.90 4.90
RETURN: -7.55%
3/23/07 01:05:30 SINGLE BUY +1 OEX 100 APR 07 650 PUT 5.10 5.10
3/28/07 21:40:02 SINGLE SELL -1 OEX 100 APR 07 650 PUT 7.50 7.50
RETURN: +39.51%
3/23/07 22:24:34 SINGLE BUY +4 UHS 100 APR 07 60 PUT 2.25 2.25
3/27/07 23:42:47 SINGLE SELL -3 UHS 100 APR 07 60 PUT 2.90 2.90
3/28/07 02:14:56 SINGLE SELL -1 UHS 100 APR 07 60 PUT 3.00 3.00
RETURN: +30%

Total profits for the month: +91.59%
Average profit for the month: +22.90%

February 2007 Option Trades

downI started the new “trading strategy” this month. It’s options-intelligence.com and frankly speaking, I don’t even see it as a “strategy”. There’s very heavy reliance on the picks and the service is so vague and the service provider so fickle-minded. One e-mail says to buy if it goes through XXX price, and next e-mail says to sell it immediately because of market conditions (even though the stock/index met his price conditions). This is what happened with CROX and I was fumed. It was also my fault for not starting small with these picks resulting in a big loss.

Options-intelligence has two services, Dave’s play and Core strategy. My friends and I bought the Core Strategy system which is a membership that lasts a lifetime. The core strategy consists of 13 counters (stocks and indices) that is to be traded during the options expiry week (3rd week of each month). Included with the package is access to the options-intelligence blog which posts the blog owner’s trades from time to time (blog owner and OI owner is different, surprisingly). Although I’m dissatisfied with the core strategy, a few of my friends told me that the picks on the OI blog is really good so the purchase was well worth it after all.

Picks from Option-Intelligence core strategy this month are: DIA, QQQQ and CROX.

Only two star trading system pick this month (AGE and CHRW) because I went for a vacation during the Chinese New Year holidays.

Balance after exit trades made in November: $3,800.04 (-20.24%) *OUCH*. Click “read more” to see my trades.


Account Trade History
EXEC TIME SPREAD SIDE QTY SYMBOL SPC EXP STRIKE TYPE PRICE NET PRICE
2/1/07 23:21:10 SINGLE BUY +3 AGE 100 MAR 07 65 CALL 3.30 3.30
2/14/07 00:31:57 SINGLE SELL -3 AGE 100 MAR 07 65 CALL 2.15 2.15
RETURN: -34.85%
2/12/07 22:30:52 SINGLE BUY +1 DIA 100 FEB 07 126 CALL .60 .60
2/13/07 00:45:26 SINGLE SELL -1 DIA 100 FEB 07 126 CALL .50 .50
RETURN: -16.67%
2/12/07 22:35:19 SINGLE BUY +2 QQQQ 100 FEB 07 44 CALL .34 .34
2/14/07 23:02:41 SINGLE SELL -2 QQQQ 100 FEB 07 44 CALL .45 .45
RETURN: +32.35%
2/12/07 23:32:11 SINGLE BUY +3 CHRW 100 MAR 07 55 PUT 4.20 4.20
2/15/07 00:31:01 SINGLE SELL -3 CHRW 100 MAR 07 55 PUT 2.95 2.95
RETURN: -29.76%
2/13/07 22:36:25 SINGLE BUY +3 CROX 100 FEB 07 55 CALL 1.30 1.30
2/13/07 23:44:49 SINGLE SELL -3 CROX 100 FEB 07 55 CALL .55 .55
RETURN: -57.69%

Total Loss for the month: -106.62%
Average Loss for the month: -21.32%

January 2007 Option Trades

up GLW could have been a winner if I did not leave the last contract to gamble on the earnings news. I ended up with a small loss of 1.56%.

Balance after exit trades made in November: $4,764.62 (+10.55%). Click “read more” to see my trades.


Account Trade History
EXEC TIME SPREAD SIDE QTY SYMBOL SPC EXP STRIKE TYPE PRICE NET PRICE
1/11/07 23:18:02 SINGLE BUY +2 SGR 100 APR 07 30 CALL 4.60 4.60
1/18/07 22:33:09 SINGLE SELL -2 SGR 100 APR 07 30 CALL 4.00 4.00
RETURN: -13.04%
1/18/07 23:26:02 SINGLE BUY +3 GLW 100 FEB 07 22.5 PUT 3.20 3.20
1/24/07 01:21:57 SINGLE SELL -2 GLW 100 FEB 07 22.5 PUT 3.60 3.60
1/24/07 22:32:45 SINGLE SELL -1 GLW 100 FEB 07 22.5 PUT 2.25 2.25
RETURN: -1.56%
1/27/07 00:38:39 SINGLE BUY +3 ANN 100 FEB 07 30 CALL 4.20 4.20
2/6/07 00:29:06 SINGLE SELL -3 ANN 100 FEB 07 30 CALL 4.70 4.70
RETURN: +11.90%
1/23/07 23:50:21 SINGLE BUY +5 ODP 100 FEB 07 40 PUT 1.90 1.90
1/27/07 02:12:21 SINGLE SELL -3 ODP 100 FEB 07 40 PUT 2.90 2.90
1/30/07 00:10:36 SINGLE SELL -1 ODP 100 FEB 07 40 PUT 2.80 2.80
1/30/07 00:10:36 SINGLE SELL -1 ODP 100 FEB 07 40 PUT 2.80 2.80
RETURN: +50.53%

Total Profits for the month: +47.83%
Average Profit for the month: +11.96%

Looking Back at 2006…

Happy New Year! Let’s make 2007 a good year!

Looking back at 2006, it was a very fruitful year. I had met new friends with the same mindset, friends who are working towards financial independence. Many of whom I’ve met through this blog.

I’m particularly happy about meeting new friends who are in the affiliate marketing arena. I met Sandis who is an affiliate manager at MoreNiche, we exchange ideas, website experiments and experiences with each other. Chris, who taught me about search engine optimization (SEO). I learnt so much more in-depth SEO from Chris than those stupid, hyped-up internet marketing e-books sold on the internet. Also, Tom who is a retiree making a decent income from Pay-per-click advertising. Robert Kiyosaki says “One of the reasons the rich get richer is because they spend time with other rich people.”, I find that very true.

If you have visited my site before June, you may have noticed that I had a “checklist” on the left side of my option trades blog. I pulled it down because it was squeezing my main content section. In the checklist, I had a things to do item “Go for a trip”, I yearned to travel a lot and I did so much traveling in 2006 and it wasn’t just *a* trip: Bangkok, Kuantan, Pangkor, Lumut, Port Dickson. It was great! Another one of my goal is to “Increase cash balance by 20% each month starting from April”, that was pretty much in line with my $10k goal. However, I did make an average 20% profit each month for my trades.

I look forward to 2007, and I wish you all the best this year.

My checklist below:

Things to do:
1. Go for a trip
2. Open an online trading account – Click to see milestone
3. Finish my website project – experiment with product datafeeds – Click to see milestone
4. Customize datafeed website with own templates
5. Clean up old SAF website’ spam, bot users, inactive users, etc
6. Migrate SAF database to new drupal

Goals:
1. Net profit of $1000 from options trading by December 2006 – Click to see milestone
2. $500 monthly from each website project by October 2007
3. Pay off study loan by 2014
4. To increase cash balance by 20% monthly in stock options starting from April
5. Write content for staywealthy.com at least once a week

Dreams:
1. Travel the world
2. Ride every roller coaster in the world

Things I want:
1. iPod
2. iBook/ Powerbook
3. Moped
4. Get a motorcycle license
5. Visit the States
6. Pilot license

2006 Option Trades Report Card!

I have summed up my trading performance for the year of 2006. Analyzed the amount of calls versus puts I traded and also the wins and losses on both. It’s nice to be able to look back. My initial goal was to make $1000 at the end of the year, I reached that goal sooner than I thought (March). I must have underestimated trading options, then I raised the bar to make $10k by the end of the year. Unfortunately, I couldn’t achieve that goal. However, I did manage to double my capital so I’m very pleased with year 2006. I look forward to another profitable trade in 2007 and will be trying a new system which I’ll also be blogging here.

Okay, presenting 2006 trade analysis. Drum roll please……

Starting Capital = $2,100.28


  Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
Total %/Mth

-34.05

+33.46

+221.89

-127.58

+120.92

+34.05

+47.41

+38.77

-27.38

-56.44

+167.91%

-45.33%

+373.63%
Avg %/Mth

-17.03

+5.58%

+55.47%

-18.23%

+30.23%

+11.35%

+11.85%

+6.46%

-13.69%

-14.11%

+33.58%

-15.11%

+31.14%
Cash Bal.

$2,035.39

$2086.09

$3,191.28

$2,206.34

$3,525.38

$3,920.19

$4,453.25

$4,676.92

$4,209.49

$3,464.17

$4,913.52

$4,309.94

+105.21%!!
Wins

1/2

2/6

3/4

3/7

3/4

2/3

3/4

4/6

1/2

1/4

3/5

0/3

26/49=53%
Call wins/ No. of Calls

1/2

2/3

3/3

2/6

2/3

2/3

2/2

3/4

0/0

1/2

1/1

0/2

19/31=61%
Put wins/ No. of Puts

0/0

0/3

0/1

1/1

1/1

0/0

1/2

1/2

1/2

0/2

2/4

0/1

7/19=37%

Total profit for the year = 373.63%
Average profit for the year = 31.14%
Increase in cash balance for the year = 105.21%!!!

December Option Trades 2006

down IVGN was mistakenly sold off. After ASF was stopped out, I was surprised to see that I lost so much on that trade alone. All losers this month. LOL! Oh well, hope for another profitable year in 2007 🙂

Balance after exit trades made in November: $4,309.94 (-12.28%%). Click “read more” to see my trades.


Account Trade History
EXEC TIME SPREAD SIDE QTY SYMBOL SPC EXP STRIKE TYPE PRICE NET PRICE
12/15/06 01:04:48 SINGLE BUY +3 IVGN 100 JAN 07 60 PUT 3.70 3.70
12/15/06 01:07:20 SINGLE SELL -2 IVGN 100 JAN 07 60 PUT 3.60 3.60
12/15/06 01:07:20 SINGLE SELL -1 IVGN 100 JAN 07 60 PUT 3.60 3.60
RETURN: -2.7%
12/16/06 04:29:39 SINGLE BUY +4 ASF 100 JAN 07 40 CALL 3.30 3.30
12/19/06 02:00:19 SINGLE SELL -4 ASF 100 JAN 07 40 CALL 2.05 2.05
RETURN: -37.87%
12/20/06 23:50:40 SINGLE BUY +2 JBX 100 JAN 07 60 CALL 2.10 2.10
12/21/06 01:45:31 SINGLE BUY +3 JBX 100 JAN 07 60 CALL 2.10 2.10
1/5/07 04:20:33 SINGLE SELL -5 JBX 100 JAN 07 60 CALL 2.00 2.00
RETURN: -4.76%

Total Loss for the month: -45.33%
Average Loss for the month: -15.11%

Yahoo $1.99 Domain Deal!

Hey all!

Get CHEAP domain names at Yahoo! for $1.99 before 31 March 2007! It’s only valid for new customers and for the first year ($9.95 for subsequent years). Grab it for the first year then transfer it to your own registrar!

Here’s the link:

http://smallbusiness.yahoo.com/domains/?p=BESTDEAL

and here’s the small print:

Offer open only to new Yahoo! Domains customers purchasing a new web domain through Yahoo! Small Business. Offer expires 3/31/2007. Discount applies only to the first year of service. Limit one offer per customer on a single account for customer’s own purchase only. Offer may not be combined with other offers or discounts, transferred, exchanged, or redeemed for cash. Other terms and conditions apply; see the Yahoo! Small Business Terms of Service when you sign up.

Free $600 worth of PPC funds!

Gear up for free advertising this christmas season, the major Pay per click network are offering free credits!

Microsoft Adcenter:
http://www.startadcenter.com/200unoffdm/
$200 free for US Residents: promo code DM-2-1106. Promo expires January 15, 2007.

Google Adwords:
http://services.google.com/marketing/links/au-oa-sitetargeting/
Christmas $50 advertising coupon. Not sure whether this still works. Try this if it doesn’t https://adwords.google.com/select/main?cmd=Login&sourceid=Yh91503

LookSmart Adcenter:
https://adcenter.looksmart.com/security/login?
Promo code SESCHQ4 for $300 credit. Offer expires 25 Dec 2006.

Ask Sponsored Listing:
http://sponsoredlistings.ask.com/
Promo code SESCHI06. $50

Merry Christmas Everyone!

Interesting thing that happened during JBX trade

I was cleaning my hard drive and noticed a text file which I created in November when I was trading JBX. I kept this conversation between me and the TOS customer support representative. It was a very interesting trading day because what happened was this: I had a $1.20 trailing on JBX and I know the trailing stop of $1.20 was still very far away, but my JBX option was sold as soon as the market opened. Feeling somewhat irritated, I contacted my broker through live support with an intention to rant because I didn’t think I could get back my stock option… but it turned out I could. =)

So the moral of the story is: When you think it’s not possible, RANT!

The following is my conversation with TOS support:
——————–

kms: answer for request: I had my option on a trailing stop loss, and it was sold as soon as the market opened 🙁

<< session started with support >>

kms: let me look

you: it was $1.20 trailing, I can’t believe that it’s sold when the market and the stock’s up!

kms: I am checking

kms: please give your phone #

kms: I will call the exchnge

you: XXXXXX

kms: ok we will correct this as we agree

kms: it should not have been sold

you: thanks

kms: the PSE exchange is busting it

kms: they are making bogus opening quotes or too wide tripping these orders

kms: I will take out the sale

you: does this happen often?

kms: this happened twice in this pit JBX

kms: its the only time I’ve ever saw it happen

you: how’d you know it happened twice?

kms: I had to call yesterday

kms: foranother customer

kms: please try a regular STOP if you can

kms: sorry for the trouble

you: okay, I got it… thanks very much for your help

kms: hello

kms: good thanks