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
D
O you know that the US Market
provides the most number of
successful global companies that
have proven track record of consistent
prots in good and bad times? Some
of these strong brand names and big
franchises like McDonald, KFC, Starbucks,
Pizza Hut, etc. produce fast food we are
still consuming today.
Kathlyn Toh, the director and chief
trainer of Beyond Insights, based in
Petaling Jaya, has been earning her
wealth from investing and trading in the
US and global equity markets for many
years. She has also coached and trained
more than 1000 investors and traders in
the past few years.
Toh said while some people complain
about the uncertain and volatile economic
conditions, she has been making 300%
returns from the stock market in the past
four years.
According to Toh, here are some of the
advantages and benets of trading in
the US Stock Market:
US companies have great potential
to grow globally, compared to local
companies.
US is the biggest nancial market and it
has the most available online research
information available for individual
investor/trader.
US is the worlds largest consumer
market. Even if you trade the Malaysian
local markets, its still important to
understand the US Stock Market as
it drives the global stock market with
80%+ correlation.
There is a saying when US sneezes,
the whole world catches a cold. Since
Jan 2013, the US S&P500 (index for
Top 500 US companies) has tracked a
40% return to date, compared to 15%
for UK (FTSE100) and 10% for the
Malaysia (KLSE).
Toh started her stock trading journey
in the KLSE stock market way back in 1993
and US Stock Market in 1997. She then
pursued Options trading in Jan 2005. Since
then, she has traded actively in US Stocks,
Options, CFD, Forex, and some Commodity
Futures.
She said: I consider myself fortunate
to have experienced the full cycle of the
Bull Run, the market crash, after crash
recovery, the sideway markets and the
high volatility markets like the recent
ones which gave me great experience in
SATURDAY, MAY 10 2014
adjusting my strategy depending on the
market conditions.
Toh is also very passionate about
coaching people on trading psychology
based on her personal journey of
managing her own trading, through
her company Beyond Insights based in
Petaling Jaya.
In this Q&A, Toh explains why
it is safe to trade in the US Stock
Market despite the general fears and
uncertainties of the global marketplace,
economic downtrend, and how to prot
from it.
Q
What is the general outlook of
the US Stock Market in the rst
quarter of 2014?
The market was volatile in Q1
2014 due to major prot taking for
the Technology stocks that represent a
signicant part of the US market. This
is expected since the technology stocks,
healthcare and some other strong
growth stocks have rallied since July last
year, and some has even gained more
than 50% in less than a year, so such a
market correction is healthy.
There are signs of rotation to more
conservative stocks like Utility and
Consumer Staples.
The good news is that the US
government is monitoring the economic
indicators closely, and this support from
the government provides condence for
investors.
INTERVIEW THE EXPERTS
All questions and enquiries can be
emailed to: gchuah@gmail.com or call
1300 226 787
By Gerald Chuah
Q
How to trade the US Stocks, for
those may not fully understand
some of these companies?
The fact is that many of these
companies have a pervasive presence
in our daily lives, e.g. Apple, Google,
Facebook, Proctor and Gamble, Johnson
& Johnson, McDonalds, Mastercard,
just to name a few. As we use them
in our daily lives, it is relatively easy to
understand the business model of these
companies, compared to some of the
local ones.
Q
Is it diicult to trade in the Global
Stock Exchange as they are located
far away?
Thats just perception. In fact, the
global stock exchanges provide us with
so many more ways to manage risk
using instruments 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 way to limit the
risk. Without Options you can use a stop
loss to limit the risk.
In fact, US has 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, a tablet, or
smartphone. Its very convenient.
Q
How to overcome our fears and
trade successfully in the US Stock
Market?
Consistent Success in trading is 90%
psychology and money management,
and just 10% mechanics especially when
you have got the initial learning curve
out of the way.
Our main job as an investor or trader
is to deal with uncertainty by lowering
our risk to the minimum. For example,
one of my Golden Rule is that I only
risk 2% of my capital in any single trade,
which means 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.
Fear always comes from what is
unknown. When we have the proper
knowledge about trading and the right
mind set about risk management, the
fear will go away
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.
*Beyond Insights oers regular
class on Investing and Trading with
CFD (Contract for Dierence) as well
as Options. For details, visit: www.
beyondinsights.net, or their Facebook
page at fb.com/beyondinsights.
The United States has 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 a tablet, or smartphone.
Its very convenient.
KATHLYN TOH
(DIRECTOR AND CHIEF TRAINER OF BEYOND INSIGHTS)
BENEFITS OF TRADING THE
US STOCK
MARKET