I pay $99 a month to learn trading and take exams =) John Lee is a crazy mentor/coach.
-------------------------------------------------------------------------------------------------------------------------
Name: Jay Nguyen
CGW ID: Jaynu's Trading
E-mail: jaynustrading@gmail.com
E-mail: jaynustrading@gmail.com
The purpose of this exam is to test the following areas: psychology/emotions, technical knowledge, risk/money management. This exam is also designed to help you understand yourself, the world around you, and your thoughts on certain topics. Be honest and complete as possible in your answers. Please use a different font color for your answers. You have until 5:00PM EST, April 15th, 2011, to complete this. Although this is optional, it is highly encouraged. Please e-mail your completed exam to: John@Stocktwits.com. Thank you.
1) Why did you join the CGW program?
A: I was losing a lot of money and knew that you were a profitable trader. At first, I really just thought that your stock picks would be way better than me just throwing money away in the market. After a couple of months, I was really inspired to just learn how to trade and make a living for myself. In the Chat Room, I was able to make friends with other aspiring and successful traders. Hearing their stories made me want to make a better change for myself. Now, I'm a part of the room because it gives me a support crew that helps me get better each day until I'm ready to go trade on my own.
A: I was losing a lot of money and knew that you were a profitable trader. At first, I really just thought that your stock picks would be way better than me just throwing money away in the market. After a couple of months, I was really inspired to just learn how to trade and make a living for myself. In the Chat Room, I was able to make friends with other aspiring and successful traders. Hearing their stories made me want to make a better change for myself. Now, I'm a part of the room because it gives me a support crew that helps me get better each day until I'm ready to go trade on my own.
2) What do you expect from the CGW program?
A: I expect a supporting cast that cares about my progress. I expect a coach-like figure to give me advice when I especially need it and to help me read the markets as we progress through the different seasons.
A: I expect a supporting cast that cares about my progress. I expect a coach-like figure to give me advice when I especially need it and to help me read the markets as we progress through the different seasons.
3) Please explain why I keep my strategies simple and minimalistic.
A: Make it easy to explain and understand, and to prevent us from over thinking the trade.
A: Make it easy to explain and understand, and to prevent us from over thinking the trade.
4) Please choose and explain a military strategy that relates to trading.
A:
A:
5) How is Poker similar with and different from trading.
A: Poker and trading are similar in the fact that you're working on your game to exploit a slight edge over the competition. Every decision you make has a probability of working and in both crafts you are practicing discipline and other psychological traits to make the best decisions. While they are similar, they differ in the fact that in trading, you do NOT have to participate if you do not want to and will not be penalize for it.... while in poker, you have to pay an 'ante.'
A: Poker and trading are similar in the fact that you're working on your game to exploit a slight edge over the competition. Every decision you make has a probability of working and in both crafts you are practicing discipline and other psychological traits to make the best decisions. While they are similar, they differ in the fact that in trading, you do NOT have to participate if you do not want to and will not be penalize for it.... while in poker, you have to pay an 'ante.'
6) How many trading books do you read per week?
(a) 1-2 << I'm always reading. I won't get through a book right away but I always have my books with me.
(b) 3-4
(c) None. I am too lazy.
(d) None. I already know everything.
(a) 1-2 << I'm always reading. I won't get through a book right away but I always have my books with me.
(b) 3-4
(c) None. I am too lazy.
(d) None. I already know everything.
7) How many years have you traded?
A: January 11th, 2010, a little over a year.
A: January 11th, 2010, a little over a year.
How many years have you traded the CORRECT way?A: Maybe a few weeks, tops.
9) Have you ever made the personal choice to refuse to trade a particular day?
(a) Yes
(b) No << but I've limited my trades down to as low as 3 in order to find only the BEST setups.
(a) Yes
(b) No << but I've limited my trades down to as low as 3 in order to find only the BEST setups.
10) What is your definition of a “low-probability environment”?
A: It's when momentum and volume is lacking in the market. In addition, the market is sending mixed signals so it's almost impossible to catch a trend. Individual stocks make it more difficult as very few good risk/reward opportunities appear.
A: It's when momentum and volume is lacking in the market. In addition, the market is sending mixed signals so it's almost impossible to catch a trend. Individual stocks make it more difficult as very few good risk/reward opportunities appear.
11) In your opinion, please list the top three “highest-probable” long setups.
A: 1. When a stock consolidates in a tight flag near an important level. 2. a gap outside of a multi month pattern. 3. kicker candles << these aren't in any particular order
A: 1. When a stock consolidates in a tight flag near an important level. 2. a gap outside of a multi month pattern. 3. kicker candles << these aren't in any particular order
12) Are you against short-selling if there was a human death toll involved (ex: Japanese earthquake/tsunami/nuclear disaster)?
(a) Yes
(b) No << while I empathize with the situation, I am a trader. I can only use information to help give me an edge.
(a) Yes
(b) No << while I empathize with the situation, I am a trader. I can only use information to help give me an edge.
13) On a scale of 1-10 (1 – lowest, 10 – highest), how would you prioritize the use of fundamental analysis?
A: 7. While I spend very little time on research, a company's outlook is important... just not to the way I trade. When it comes to swinging however I do make sure I know about the company, its sector, and their relationship with the market.
A: 7. While I spend very little time on research, a company's outlook is important... just not to the way I trade. When it comes to swinging however I do make sure I know about the company, its sector, and their relationship with the market.
14) Are you easily influenced by intra-day price swings?
(a) Yes
(b) No << my risk management strategy works best when I can get into a cleanly trending stock.
(a) Yes
(b) No << my risk management strategy works best when I can get into a cleanly trending stock.
15) What is the largest obstacle you are encountering in your trading?
A: Knowing exactly when to stop trading or just having the discipline to not trade at all if no good opportunities present itself.
A: Knowing exactly when to stop trading or just having the discipline to not trade at all if no good opportunities present itself.
16) On a scale of 1-10 (1 – lowest, 10 – highest), please rate your proficiency in technical analysis.
A: 7 << still learning, although I can have a decent conversation and talk 'setups' with someone.
A: 7 << still learning, although I can have a decent conversation and talk 'setups' with someone.
17) What is the most important aspect of trading?
A: Risk Management << it is the only thing you can control.
A: Risk Management << it is the only thing you can control.
18) Are you utilizing the free phone consultations?
(a) Yes <<
(b) No
(a) Yes <<
(b) No
19) Which Big 5 Personality Trait(s) apply to you (Hint: google it if you don’t know what this is)?
A:
A:
20) What is your favorite trading book and why?
A: One Good Trade by Bella << it's humorous, opens you up to the possibilities of your financial life if you can master trading, and also gives you an insight of the kind of rigorous routine you'll have to engage in if you want to succeed. It's inspiring and helpful to any trader.
A: One Good Trade by Bella << it's humorous, opens you up to the possibilities of your financial life if you can master trading, and also gives you an insight of the kind of rigorous routine you'll have to engage in if you want to succeed. It's inspiring and helpful to any trader.
21) Out of the 16 different personality types, which best describes you?
A:
A:
22) What did I do on December 24, 2008?
(a) Go to a gala
(b) Took my mom to lunch
(c) Went shopping <<
(d) Bailed out a friend from jail
(e) Cooked a 5-course meal
(a) Go to a gala
(b) Took my mom to lunch
(c) Went shopping <<
(d) Bailed out a friend from jail
(e) Cooked a 5-course meal
23) Why is it wrong to add to losing positions?
A: Because you're adding to a stock that isn't acting favorably, point blank. In addition, always trade with hard stops!
A: Because you're adding to a stock that isn't acting favorably, point blank. In addition, always trade with hard stops!
24) What did you learn from your last losing trade?
A: You don't have to wait for your hard stop to get hit. If new information can you get you out of a losing trade more safely, then take the opportunity to minimize loss.
A: You don't have to wait for your hard stop to get hit. If new information can you get you out of a losing trade more safely, then take the opportunity to minimize loss.
25) Do you attend the Sunday charting sessions?
(a) Yes
(b) No << I used to but now I have work on Sundays.
(a) Yes
(b) No << I used to but now I have work on Sundays.
26) How confident are you in your trading plan?
(a) Extremely confident
(b) Somewhat confident << I feel good about the way I trade, just need to tweak my weaknesses a little.
(c) Needs some work
(d) I don’t even have a plan
(a) Extremely confident
(b) Somewhat confident << I feel good about the way I trade, just need to tweak my weaknesses a little.
(c) Needs some work
(d) I don’t even have a plan
27) Please explain the process of setting a buy stop.
A: If you know you're going to get into a stock at a certain price, use a buy stop so you absolutely won't miss it. Don't put yourself in the position where your hesitation can cost you a good trade. Take the emotion out of the trade!
A: If you know you're going to get into a stock at a certain price, use a buy stop so you absolutely won't miss it. Don't put yourself in the position where your hesitation can cost you a good trade. Take the emotion out of the trade!
28) What does your end-of-day market review consist of?
A: Review the broad market, then my own personal trader (journal entry), create a blog post with all my detailed trades on the charts, and wrap up of how I can improve from what's in front of me.
A: Review the broad market, then my own personal trader (journal entry), create a blog post with all my detailed trades on the charts, and wrap up of how I can improve from what's in front of me.
29) In your own words, please describe “intuitive trading”.
A: "Intuitive trading" is being able to use your knowledge and gut emotion to make good decisions.
A: "Intuitive trading" is being able to use your knowledge and gut emotion to make good decisions.
30) Please translate “San Ku”.
A:
A:
31) Tell me your best stock market joke.
A:
A:
32) Why do you believe that most traders fail?
A: Easy. They don't give themselves the time to get through the learning curve. Most people get in just to make money and they don't care about the process of getting better. All good things in life takes time.
A: Easy. They don't give themselves the time to get through the learning curve. Most people get in just to make money and they don't care about the process of getting better. All good things in life takes time.
33) What do you think is a realistic expectation for annual returns (%)?
A: 50% in a rolling 12 month period within your first 3 years of trading.
A: 50% in a rolling 12 month period within your first 3 years of trading.
34) How did you come up with percentage above?
A: I asked myself what I think I can do per day if I can minimize my mistakes. After doing the math, I believe that I can do 4-5% a month. Of course, I'm working towards the ability to post back to back triple digit returns. It's a marketable bragging right that will attract opportunities.
A: I asked myself what I think I can do per day if I can minimize my mistakes. After doing the math, I believe that I can do 4-5% a month. Of course, I'm working towards the ability to post back to back triple digit returns. It's a marketable bragging right that will attract opportunities.
35) Do you follow me into trades?
(a) Yes << if I see the exact same idea although I will manage risk my way. No need to know what you're doing.
(b) No
(a) Yes << if I see the exact same idea although I will manage risk my way. No need to know what you're doing.
(b) No
36) What makes you think that you can succeed in trading?
A: I have the ability to sustain positive energy going forth regardless of what happens during the day. I work hard. I don't cry and I'll keep figuring new stuff out as we go along.
A: I have the ability to sustain positive energy going forth regardless of what happens during the day. I work hard. I don't cry and I'll keep figuring new stuff out as we go along.
37) What are the best and worst aspects of the broker you use?
A: Best? I get to trade with cheap commissions. Worst? SLIPPAGE SLIPPAGE SLIPPAGE!
A: Best? I get to trade with cheap commissions. Worst? SLIPPAGE SLIPPAGE SLIPPAGE!
38) How often do you work out?
(a) Every day
(b) At least 5-6 times per week
(c) At least 3-4 times per week
(d) At least 2 times per week
(e) Once a week << I'm getting fat. I'm changing so don't yell at me.
(f) Never. I am a shitbag.
(g) Never. I am not a shitbag.
(a) Every day
(b) At least 5-6 times per week
(c) At least 3-4 times per week
(d) At least 2 times per week
(e) Once a week << I'm getting fat. I'm changing so don't yell at me.
(f) Never. I am a shitbag.
(g) Never. I am not a shitbag.
39) Where does your confidence come from?
A: I know who I am and what I'm capable of. I also believe that no one will ever support you like you can to yourself. Be confident, especially when no one else believes.
A: I know who I am and what I'm capable of. I also believe that no one will ever support you like you can to yourself. Be confident, especially when no one else believes.
40) Are you trading with money you can afford to lose?
A: I'm trading my firm's capital, but yes, I'm trading capital that is expendable. I'm very respectful of the money I'm given.
A: I'm trading my firm's capital, but yes, I'm trading capital that is expendable. I'm very respectful of the money I'm given.
41) What is your opinion of analysts and analyst reports, ratings, and opinions?
A: What? I've never read one.
A: What? I've never read one.
42) Please define “blowing up one’s trading account” in detail.
A: It's when you forget what your job as a trader is: to manage risk. If you end up losing money by trading in a low probability environment.
A: It's when you forget what your job as a trader is: to manage risk. If you end up losing money by trading in a low probability environment.
43) Would you rather take 3 trades with a 50% chance of winning on each trade, or would you rather take 1 trade with a 90% chance of winning?
A: The latter. Mathematically, you are more profitable.
A: The latter. Mathematically, you are more profitable.
44) How many hours of TV do you watch per week?
A: 1-2? Barely any.
A: 1-2? Barely any.
45) Please describe your best trade this year. The best trade doesn’t necessarily have to be the highest %/$ gain on a trade.
A: My best and favorite trade was one in RIMM. News in RIMM hit during the intraday where it exploded multiple points to the upside. The next day the market gapped down and as a result, RIMM came back to those prices. Having remembered that as a level, I watched RIMM accumulate at the lows. I also took small amounts of shares over and over and built my largest position in a stock. The stock ended up rallying several points and I made over $1k in the trade, an amount unimaginable to me at that moment. To me, it was the 'perfect' trade because I was able to put 4-5 different pieces of information together to make a worthwhile decision.
A: My best and favorite trade was one in RIMM. News in RIMM hit during the intraday where it exploded multiple points to the upside. The next day the market gapped down and as a result, RIMM came back to those prices. Having remembered that as a level, I watched RIMM accumulate at the lows. I also took small amounts of shares over and over and built my largest position in a stock. The stock ended up rallying several points and I made over $1k in the trade, an amount unimaginable to me at that moment. To me, it was the 'perfect' trade because I was able to put 4-5 different pieces of information together to make a worthwhile decision.
46) Please describe your worst trade this year. The worst trade doesn’t necessarily have to be the highest %/$ loss on a trade.
A:
A:
47) On a scale of 1-10 (1 – lowest, 10 – highest), how much influence do economic reports have on your trading?
A: 8. If a stock is setting up, I'm going to play it regardless of the economic report. However, if nothing really stands out, I like to know the sentiment of the market after reports come out. That way I know if the market will give me that extra push.
A: 8. If a stock is setting up, I'm going to play it regardless of the economic report. However, if nothing really stands out, I like to know the sentiment of the market after reports come out. That way I know if the market will give me that extra push.
48) Do you keep a real-time P&L on your screen during market-hours?
(a) Yes << I found out that it doesn't affect my trading. I keep it up.
(b) No
(a) Yes << I found out that it doesn't affect my trading. I keep it up.
(b) No
49) What are your thoughts about the Securities and Exchange Commission (SEC)?
A: Hmmm... none
A: Hmmm... none
50) How confident are you that you were meant to be a trader?
A: Pretty confident. I've always love Economics, Finance, and the Stock Market. I was meant to do something in the industry and I couldn't imagine applying my personality and skills to something else other than trading.
A: Pretty confident. I've always love Economics, Finance, and the Stock Market. I was meant to do something in the industry and I couldn't imagine applying my personality and skills to something else other than trading.
51) What are your thoughts about the 2008-2009 Financial Crisis?
A: It was probably foreshadowed. From the little that I know about that time period, I'd imagine that a lot of these execs knew exactly what was going on.
A: It was probably foreshadowed. From the little that I know about that time period, I'd imagine that a lot of these execs knew exactly what was going on.
52) Please describe the sentiment cycle that occurs during parabolic booms and busts.
A: First, a piece of news comes out. Everyone is racing to get into the stock and pays whatever people are offering no matter how high. Eventually prices are higher than what the entity is worth and a bunch of people run out the door. Then you have the stubborn people who will eventually also have to run out the door. Lastly you have the hopefuls who finally realized that their stock is going to shit. Now they're just bailing! In the midst of this whole process, you have a huge volume of shorters coming into the market to bet that the stock is overpriced.
A: First, a piece of news comes out. Everyone is racing to get into the stock and pays whatever people are offering no matter how high. Eventually prices are higher than what the entity is worth and a bunch of people run out the door. Then you have the stubborn people who will eventually also have to run out the door. Lastly you have the hopefuls who finally realized that their stock is going to shit. Now they're just bailing! In the midst of this whole process, you have a huge volume of shorters coming into the market to bet that the stock is overpriced.
53) What would you like more from Charts Gone Wild?
A: The Chat Room has become the main focus of the room. I wish John would blog more like he used to or get on Live Stream more.
A: The Chat Room has become the main focus of the room. I wish John would blog more like he used to or get on Live Stream more.
54) Have you seen an adequate amount of improvement since you joined?
(a) Yes << a huge amount. I'm profitable for the year and don't necessarily need someone to hold my hand anymore. Hope that continues.
(b) No
(a) Yes << a huge amount. I'm profitable for the year and don't necessarily need someone to hold my hand anymore. Hope that continues.
(b) No
55) Please list any three reasons why it is detrimental to blindly follow a trader.
A: 1. Not everyone trades the same way or on the same timeframe. 2. You can make it a habit so that you never want to learn how to trade for yourself. 3. Getting into a trade without a plan can have you lose much more money than the trade initially asked for.
A: 1. Not everyone trades the same way or on the same timeframe. 2. You can make it a habit so that you never want to learn how to trade for yourself. 3. Getting into a trade without a plan can have you lose much more money than the trade initially asked for.
56) If John Lee had to take a vacation within the 48 continental US states, where should he go, and for how long?
A: Miami, 2 days... then he would feel bad and come back to us.
A: Miami, 2 days... then he would feel bad and come back to us.
57) Do you prefer manual stop losses or hard stop losses? If it ‘depends’, please state why it depends.
A: Hard stops. I can always get back in. I ALWAYS trade with hard stops, no exceptions.
A: Hard stops. I can always get back in. I ALWAYS trade with hard stops, no exceptions.
58) Are there any educational blog posts you would for me to write (Before you answer this, make sure I didn’t already write about it in my 3-years of 1,000 blog posts)?
A: You've answered everything I've thought about.... maybe trade reviews of the In-Play stocks that particular day. That never gets old.
A: You've answered everything I've thought about.... maybe trade reviews of the In-Play stocks that particular day. That never gets old.
59) What are your trading goals for this year?
A: This year, I only want to just push myself to achieve a higher win rate and efficiency rate. I want to be able to look back at my trades every day and say , "all of these trades fit my criteria of a good trade." I also have some P&L goals but until 2012, I'll keep them to myself. I would like to push $250k in 2012, which I feel I am perfectly capable of achieving (assuming I keep progressing).
A: This year, I only want to just push myself to achieve a higher win rate and efficiency rate. I want to be able to look back at my trades every day and say , "all of these trades fit my criteria of a good trade." I also have some P&L goals but until 2012, I'll keep them to myself. I would like to push $250k in 2012, which I feel I am perfectly capable of achieving (assuming I keep progressing).
60) What are your health goals for this year?
A: Lose 20-25 pounds before the end of July (3 months)
A: Lose 20-25 pounds before the end of July (3 months)
Do you like this article? Share It!
0 comments to "My Entrace Exam to John Lee University aka ChartsGoneWild Dormitory"
Post a Comment