Interview with Sunny Wong, Originator of Neutral Trading

Monday, 12 March 2012 13:23

Sunny Wong, Money Show PresenterSunny Wong is a Vancouver-based trader who developed his own trading strategy after falling upon hard financial times. He is now working as a full-time trader, and earning tidy profits on a regular basis. Sunny will be presenting his trading strategy and trading live at the World Money Show Vancouver at the end of March, as he has done in years past. Read on to learn about Sunny's unique and fascinating trading strategy.

How long have you been working as a full-time trader?

I started to daytrade just as the tech bubble was bursting. It was the worst time for any newbie to enter the markets.It was approximately 12 years ago. But my trading just became profitable in the last 4 years after I created Neutral Trading.

What did you do before you started trading?

With only a high school education I could only get into blue collar work "¦renovations and construction.

How did you become interested in the markets?

I retired from construction and experienced how easy it was to make money from the markets before the tech bubble burst. Then realized how much easier it was to lose money in the markets, and I had to find a strategy that would work. I lost more money on any strategy that I tried. Finally just as I was to give up. I accidently discovered and created Neutral Tading.

How did you develop this strategy?

By accident; after, trying other conventional strategies, I still lost money. I was fed up with losing money. I wanted to lose whatever I had left and would never trade again, like an alcoholic that would want to take the one last binge and drink himself to death. But then, I discovered and created Neutral Trading.

What is Neutral Trading? My strategy is basically a non-technical, non-news, non-fundamental system. I just trade one stock, instead of diversifying as conventional wisdom says. I hold long positions and short positions on the same stock, and then I sell on both sides of the fence. I take my profits early and then I hold my losses, and I work them in a system that I devised which is the s0s system. In this way, I average my buys lower and my sells higher, so that makes my break-even point a lot better than having to go all the way to the price where I entered. I combine trading equities with options and the spot USD, so I have one set of money that makes 3 sets of profits.

This makes my strategy totally different, than most conventional traders who tries to be a specialist and trade only one market like the Forex or futures market.

How long did it take for you to become profitable?

Once I figured it out, I started to make money immediately and took my account from 30K to 300K within 30 months.

How many hours do you trade each day?

I am a full-time trader, trading 6 hours per day, 5 days per week.

During what market session?

I use active, aggressive trading during the American market session and passive trading in the Forex and futures markets. Being active means I take profits (or the markets come to me and give me a profit). Aggressive means I create a profit (or I do not wait for the markets to give me a profit, I create or force the market to give me a profit). The aggressive trading is my defensive move.

What type of investment capital would work best for your trading strategy?

Depending on cost of stock or vehicle you are investing in. I trade only one stock which is Kinross Gold on the Tsx. To trade Kinross you should have a $25k minimum.

What type of platform do you use for Neutral Trading?

I have created a special excel spread sheet, which is capable of abstract accounting. I am not using any pro platforms as of now. I am working towards being more active in the futures and Forex lines, as well as working on automated robot trading. At which time I will be looking for pro platforms.

Do you offer any teaching or coaching to share your methodology (aside from MoneyShow appearances)?

Yes, I teach a class. Yes I coach and mentor individually as well. Advanced students learn my Neutral Trading by practicing on my real live money account.

What advice do you have for new traders?

Do not go directional – remain neutral. It is all about how much holding you have in the long side and how much holdings are in the short side, which is all about balance. Do not use technical indicators. The herd uses technical indicators which rely on data from the traders that trade the front line (like Neutral traders) and the technical traders gets the data which is now old data. Neutral traders create the data that the indicator uses, therefore neutral traders are one step ahead of the technical traders. Do not listen to the news, it is usually too late and by the time the trader hears it, it is old news. Trade what you see in your account, not what you think will happen. When we think, we become normal, and just like the normal, 8 out of 10 will lose money.

Want to learn more? Find out more about Sunny Wong here.

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