#InsightsInterview with Joey Choy, Top Tier Remisier, Educator and Chief Trainer
This series is to showcase financial experts, influencers and bloggers on a personal and insightful manner, to get glimpse of their investment journeys and their insights on the market in the near future. Every one of them have different styles of investing, expertise in different types of securities and also have their own story to tell.
Previously we have launched 4 episodes of premium insights by influential bloggers.
- Ep 1: Terence, founder of TUBInvesting
- Ep 2: James Yeo, founder of SmallCapAsia
- Ep 3: Li Guang Sheng, founder of WealthCoachAcademy
- Ep 4: Rayner Teo, founder of TradingWithRayner.com
Recently, we sat down with Joey Choy on a weekend to understand more about his investing strategies, his biggest trade winner and loser, and what motivated him to get started in the first place.
Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore.
Joey provided insightful tips to managing your trades and bring us into his trading journey:
How did you get started in trading and share with us more about how you got to where you are today?
I started trading around 2007 and within a year, I lost about $20k which was quite a huge chunk of my savings. And then I landed an internship in Goldman Sachs Equity sales team which was really an eye opener for me. I saw myself real life how world class proprietary traders executed and how millions of dollars exchanged hands daily.
After my stint in Goldman, I became really committed to learning whatever I needed to learn in the stock market. I thought that I have found my passion and it was something I really wanted to do when I graduated. I began reading up more, went for courses, practice and tweak my strategy and improve my performance along the way throughout my undergrad years.
I graduated in mid 2009 and became a dealer in a local stock brokerage firm. And in 2012, I joined Phillip Securities as a Remisier, armed with my trading blueprint which I believed would helped many people gain more clarity in the stock market while also being able to trade on my own. It was like a dream come true where I could do a job that I love and also trade on my own. Within a year, I was becoming one of the top brokers in Phillip Securities as my client base grew from referrals when clients made money.
But some of you might have heard of my story of how my joy was short-lived. In a nutshell, somewhere around the end of 2013, a client of mine had over leveraged and his losses came out to be around $740k. Yes you read correctly, $740k!!! And it was 2 months before my child was to be born and I was completely crushed and did not know what to do. I was like a zombie for 5 months praying that a miracle would happen but the client became bankrupt and the losses became my debt.
Grimly, a few months after my son was born, I picked myself up and worked as hard as I could, having late nights everyday thinking about how to add value to clients and improve my trading performance. Long story short, I am glad to be able to come out of it and pay back this debt in 2 and a half year all through my trading income and broking business.
Fast forward to today, it’s an honor and privilege to be able to inspire others with my story and also help people who are struggling to find any success in the stock market.
What is your main trading strategy?
I have only 2 trading strategies. The first one is the simple yet powerful trend trading strategy which I began tweaking and improving on since I started in 2007. This would be my first strategy and it has served me well all these years, and also my clients and my students. It’s essentially about how one can affirm the trend of any counter and seek to take trades along with the trend so that the odds of winning are higher.
I also have another trading strategy which I have developed a few years back and I call it the Explosive trading strategy. This strategy is only revealed to my inner circle students and I would say it allows one to ride explosive moves with potential double digit returns. This strategy has rarely been talked about; much less any system created to track it and is one of the highlights of my highest level program, Precision Trading Intensive.
What are your best investment and worst investment since you started investing?
My best investment would be on this counter called Hi-P where we achieved a gain on more than 210% in 2017. It was first spotted when it was around 0.60 and have traded to a high of more than 2.00 before the reversal happened in 2018. I have also shared this stock then on my blog where we received thousands of views a day.
My worst investment would be on this counter called Guocoland which I bought when I first started in the stock market in 2007. I read a little on this stock, went through some research reports which called for a “BUY”, and bought this stock at more than $4.80. Sadly, it became less than $2.0 in a year due to the global financial crisis and I was just hanging on blindly. Finally, I bit the bullet and cut it in 2008 losing close to $20k wiping out a huge chunk of my savings and capital.
How long has it been since you started become a stock educator?
After finally managing to clear off my debt in early 2016 and when I could start breathing a little, I started teaching some of my friends and close clients on my trading strategy. And after seeing their results, I was like hey, this stuff actually works, it can actually help people grow their wealth in the stock market.
And that’s when I created a program from the ground up called Precision Trading Intensive which is a 2 and a half day live event which aims to impart all my knowledge and real life skills in a 6-Step blueprint. So it has been about 2 years plus running this program which I only run twice a year because it is not my main core business. This PTI program is sold out each time to 50 students only to maintain the exclusivity. Just happy to be able to share my knowledge to people who are keen to learn and succeed together with my inner circle.
How do you think incoming trade war, will affect our SG market severely?
The concerns over the trade war issues between US and China has already dragged on for more than 3 months so I would not think it would be solved that easily unless Donald Trump decide to change stance. China is pretty much just retaliating to protect its interest for now and billions of dollars of tariffs have been imposed on each other goods.
Because of this trade war, we have already seen weakness in the Singapore stock market since April where the STI broke below the 3350 support. And just today we have traded below the 3200 key support level where more short term weakness can continue. Depending on how it plays out, and if the ongoing talks are successful, hopefully we will be able to see some stability arising from this issue which has been a negative on the stock market.
What asset classes do you trade or invest? (CFDs, REITS, High dividend stocks etc)
I believe in having a diversified portfolio so I have a portfolio in REITs whereby I hold for the longer term for passive dividend income. I focus more on industrial REITs where the yields are higher and they are more defensive compared to other REITs. These are stocks where I review once every few months as they not for trading and mainly for dividend income.
For short term trading, we use the cash account and also CFD. CFD allows one to short and long and also leverage. It is a more efficient use of capital which allows one with a trade conviction to take on a position for a short period of time without forking out the whole lump of cash upfront.
Able to reveal which stocks or currency pairs that are currently on your watchlist?
As the market is weaker currently, we have on our watch list more stocks for potential short positions rather than long positions. There are some stocks which are in a downtrend and our downside targets can continue like CityDev, Golden Agri, MM2 Asia.
For long positions, we are looking for more stability in the market before any entry on some bullish reversal price actions.
You look at virtually almost all the stocks in SG, and talk to investors and insiders on their opinion of the stocks, if 70% everyone is bearish about a stock, what do you do?
I try not to care too much about one’s opinion when trading the market. Because the fact is even if 90% think that the market or a stock is going in 1 direction, they can all be wrong. When I first started, I used to just follow blindly what analysts and experts have written and say and just hold on blindly, but the thing is we wouldn’t know if there is a change in opinion or if they have exited.
The market does not care what anybody thinks or feels, it just goes where it wants to. So even if everybody is bearish and I have my strategy or system saying that this stock is bullish, I would follow my plan and execute when the trade presents itself.
Did any particular trade change your whole trading style in terms of risk?
Yes a trade when I first started where I lost more than $20k has changed my attitude on managing risk. As what I impart to my students, you can have the best strategy or system but if you do not know how to manage your risk you will likely still not do well in the stock market.
For now, we never lose more than what we are supposed to lose for any specific trade. So no matter what, my capital will not be wiped out like it happened 10 years ago just by 1 stock.
In your time at Goldman Sachs Singapore back in 2007, what are the key takeaways you learnt from elite proprietary traders to ensure they stay on top of their game?
I learnt that discipline is key when trading and trading does not have to be too complicated where one look at charts with dozen of lines.
In my stint in Goldman, I saw that most of their charts are kept simple with less than 3 lines and 2 indicators and somehow simple just works. More important would be the plan that goes with these lines and how one has the emotional strength to follow the plan as the trade plays out.
What are the trading rules you live by?
“Trading profitably is just like being a casino where we try to tilt the odds in our favour by winning more when we are right and losing less when we are wrong” – Joey Choy
Is there any advice you would tell new traders?
If you are new to the stock market, I would recommend really reading up more first and practicing on paper trades before putting real money on the table. Or to shorten your learning curve, you can also find a good mentor to learn from before you even start. Most people including myself when I first started think that it is really easy to make money trading stocks, just open a trading account and buy a stock but there is really so much behind a trade to master.
If you are not sure what you are doing and do not have a proven formula or strategy in place, your odds of winning in the market can be very low.
You can also find a good broker to provide some training so you know how to get started on the right footing. The main thing is do not be like me when I first started and just hold on blindly to a stock and hoping for a recovery daily, which obviously never came. Thanks to InvestingNote for this interview.
Joey Choy currently has more then 3,000 followers and provide many accurate stock estimates. Follow him to get the latest updates and insights on the Singapore stock market. He is also an exclusive provider of premium analysis on Monthly Forecast in our Investors’ Marketplace.
For more juicy analysis and personal stories by financial influencers, check out our previous episodes on #InsightsInterview here: