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Playing An Important Role In Forex Education
In the Spotlight | 02 January 2009
By: Clement Kan
Articles (1) Profile

Having achieved success and financial freedom at a young and tender age, Choo Koon Lip is the envy of many, including yours truly. Nonetheless, things have not always been hunky-dory as we found out during a recent interview with the 26-year-old, who graduated from the National University of Singapore with an Applied Mathematics degree (with a minor in Technopreneurship) in June 2006.

Trials & Tribulations
As a first year student, Choo started options trading in 2004 but lost about $30,000 within a short span of two months. A year later, he set up his own publishing firm, which produced ‘SNAG’, a men’s magazine. After just nine issues, the publication ceased circulation due to intense competition, chalking up debts of over $70,000.

In February 2007, Choo began working full-time as an advertising sales manager. Realising the very fact that there is an income ceiling as a salaried worker, he decided to call it quits after only two months on the job. He was drawing a salary of around $2,800 per month back then.

Undeterred and driven by his passion for forex trading, Choo went on to establish a forex trading school in May last year and has never looked back since. Dubbed Forex Asia Academy, the school aims to promote and improve forex education in the Asian region.

Conducting seminars and courses on forex trading in Singapore, Malaysia, and most recently Indonesia, Choo is well aware that some people have been questioning his experience, due to the most obvious reason. “Honestly speaking, I must admit that I am not experienced enough but I am very adaptive to the environment,” Choo told Shares Investment (Singapore).

Choo: Forex trading is not suitable for those with a gambling mentality
Choo: Forex trading is not suitable for those with a gambling mentality

Forex Trading Explained
For the uninitiated, forex (an abbreviation for foreign exchange) trading is essentially the buying of one currency and the selling of another simultaneously. As currency prices can only fluctuate relative to another currency, they are always traded in pairs.

The smallest price change that a given exchange rate can make is known as percentage in point, or pip. Since most major currency pairs are priced to four decimal places, except for those involving the Japanese yen, which are priced to two decimal places, the smallest change is that of the last decimal point. For most pairs, this is equivalent to one basis point.

Currency trading is conducted electronically over-the-counter, which means that all transactions are carried out via computer networks between traders around the globe, rather than on one centralised exchange. The forex market offers trading 24-hours a day, five and a half days a week.

Notably, the daily dollar volume of currencies traded in the currency market exceeded $3 trillion in 2007, making it the largest and most liquid market in the entire universe.

Unlike equity trading, forex trading offers up to 400 times leverage, meaning that $25 can effectively control a $10,000 position in the market. This is one of the main reasons why so many people are attracted to forex trading as compared to other financial instruments.

Edging Out Competition
What makes Choo’s forex trading programme unique as opposed to other local industry peers (approximately 18 of them) is his Strategy Creation Process. As the old saying goes, it’s better to teach a man how to fish than to give him a fish. The Strategy Creation Process focuses on helping a person to develop his/her own strategies that suit market conditions.

According to Choo, this process entails the comprehensive dissection of the currency market price movements through live market analysis and the systematic approach to reap profit from the forex market.

It allows forex traders to identify profitable trading opportunities during the vibrant trading hours through a very unique combination of analysis and methodology. It also helps to predict massive price movements during selected time frame and profit from them in a dynamic approach.

Equally important is his Price Pullback Strategy, a market-adaptive strategy that helps to predict dynamic price movements and trends within a short period of time to generate explosive profits. It is made up of a practical winning approach in employing the use of technical analysis, precision mathematics and price behaviour science to reap the maximum profits within a short period of time.

“To capture the entire trend – be it uptrend or downtrend – we must cater for this price pullback. If we simply just put a fixed amount of stop-loss, we might still get hit,” Choo commented.

Another cornerstone of Choo’s successful programme lies in the shared-email monitoring system, which enables him to view the daily trades of his graduates as well as send warning emails to those who have been breaking the rules of forex trading.

“No matter how busy I am, I will try to clear all my emails within 24 hours,” remarked Choo, who further mentioned that his graduates’ trade results (those who have achieved more than 100-pips per day) are being posted daily on the corporate website (refer to www.forexasiaacademy.com for details).

As pointed out by Choo, people often view forex trading as a very risky instrument. Through Forex Asia Academy, Choo hopes to educate the investing public and change their perception towards this potentially rewarding financial tool. “It is not the car, but the person driving it that makes a car risky,” highlighted Choo. “As such, forex trading is not suitable for those with a gambling mentality,” he added.

Meanwhile, Choo doesn’t believe in giving his students trade signals or tips. “Once we give tips, they [my students] will be overly dependent on them. If I am away for a long period of time, they will not know how to trade,” said Choo. “We do not want their money to go to waste. They should at least recover their course fees,” he quipped.


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The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

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