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Alternative Strategy For Wealth Creation
In the Spotlight | 15 May 2008
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By: Clement Kan
Articles (1) Profile

To be able to live, work and play freely. Tell me, who in the right frame of mind wouldn’t love to achieve such an ideal. But is it really possible in real life? Definitely, according to Dr. Clemen Chiang, Asia’s renowned money and stock options investment coach.

Founder and chief executive officer of the Freely Business School, Dr. Chiang, at the tender age of 34, truly embodies the mark of a young yet successful entrepreneur. Notably, he is also one of the independent directors of Catalist-listed Travelite Holdings.

Ironically, Dr. Chiang came from an engineering background, having graduated from the Nanyang Technological University with a degree in civil engineering. Opting not to become a professional engineer, he subsequently began his journey as an employee working for different companies.

As a working individual, Dr.Chiang was, more often than not, the one that generated the best result amongst his peers, so much so that his self-confidence was boosted high enough for him to decide to strike out on his own.

In 2001, Dr. Chiang established his first ‘baby’, Colemen International Pte Ltd, to satisfy the needs of the local telecommunications industry, which was in the early stages of opening up back then. Appointed as one of the many preferred partners of Mainboard-listed StarHub, the company went on to win numerous industry accolades within a short span of one year.

All good things come to an end. Soon after, Dr. Chiang received his first rude shock. “When you make it big, your suppliers will start squeezing you,” he told Shares Investment (Singapore) during an exclusive interview. This made him understand the true facets of running a business.

Having experienced life as an employee and business owner, Dr. Chiang realised that he was always dependent on the people above him (suppliers and bosses), beside him (colleagues and competitors) as well as below him (employees).

Frustrated of depending on this restrictive circle all the time, he embarked on a search for a business model, which does not have to rely on anyone other than himself. That was when he fell in love with investing, options trading in particular, whereby one can make the decisions without any harassment from others.

For the uninitiated, an option can be classified into two categories, namely call option and put option. A call option is a contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specific price on or before a certain date. On the other hand, a put option is a contract that gives the buyer the right, but not the obligation, to sell an underlying asset at a specific price on or before a certain date.

After carrying out extensive study and research, Dr. Chiang found out that options trading is the most versatile and possesses the most potential amongst all the other financial instruments, including stocks, foreign exchange and futures trading. He also discovered that when compared to stocks, more money could be made from options trading, while being subjected to similar risk levels. More importantly, profit could be reaped even in a bearish market.

As such, he devoted a significant amount of time and effort in developing the Freely Method, which is designed to deliver maximum profit in the shortest time possible. “I’m proud to say that we have perfected this art. This is clearly evident from the thousands of testimonies that we have received throughout these years,” Dr. Chiang remarked.

Since the birth of the Freely Business School in 2003, numerous people from all walks of life have benefited from the Freely Method. To-date, Dr. Chiang has successfully imparted the mastery of applying winning options strategies and methodologies to over 20,000 individuals across the region.

According to Dr. Chiang, anyone who has the ambition or aspiration to become a selfdirected investor would be his target audience. He went on to share that those who attend his seminars would gain first-hand account of what it means to be a self-directed investor, i.e. one who makes his or her own decisions.

“The first skill set that they would learn is the ability to analyse. For every challenge, we always have to go to the root of the problem and think about how we should overcome it,” he mentioned. “Also, we teach them how to critically sieve out quality information, analyse those information and make a decision so as to profit from the market,” added Dr. Chiang.

Interestingly, Dr. Chiang also revealed that his seminars, being a public program, do occasionally attract speculators who fancy taking short cuts and yearn for a crystal ball. “If these people want to change the rules of investing, they will be punished by the market,” he enunciated.

“The perfect role model would be Warren Buffett. Adhering to the rules throughout his years of investing, he has recently become the richest man on earth,” Dr. Chiang pointed out.

Just like all the other financial instruments, there are risks associated with options trading. The all-important question is how to manage these risks. Dr. Chiang believes that investors must exercise discipline in order to manage risks. As a yardstick, he highlighted that investors must not invest more than what they could afford. In his own words, “those who go into margin trading or short selling will get into trouble one day”.

When questioned about the direction of the equity market going forward, Dr. Chiang said it is challenging times for the current stock market. He strongly believes that the US is already in a recession and that the US government does not want to announce it publicly in fear of the repercussions that might come about.

In addition, Dr. Chiang boldly predicted that the US Federal Reserve would slash its key interest rate to 1% in September 2008, which would in turn force the market to rebound. “By then, it will be the question of whether the US public is optimistic about their new president. If the market does not recover by October this year, we are in for a prolonged recession,” commented Dr. Chiang.

“By March 2009, the market must rebound, judging from the history of US recessions. If that doesn’t happen, we would have effectively entered into a depression,” he exclaimed.

StarHub  1.290 -- --   
Business: [FY18 Turnover] Mobile (34.9%), sale of equipment (22.4%), enterprise fixed (21.6%), pay TV (13.2%), broadband (7.9%).

Insight: May-19, 1Q19 total revenue rose 6% to $596.8m attr... Read More

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