My Story

Hi, I am Daniel Loh!

I have been a full time trader for the last 15 years. And by the way, if you are thinking I am making a lot of money in stocks, think again! I am not going to convince you or sell you the dream of making money in stocks.

In fact, I am going to do the opposite! 

I want to tell you my mistakes that cause me to go broke many times in my investment career so that perhaps you don’t make the same mistakes again!


How Did I Get Started?


I began to watch stock prices since 13.

You might be puzzled and wondered why on earth is a 13 year old staring at stock prices! 

Not that I like stocks, but because I was forced to.

You see, I have a dad who likes to buy stocks everyday. However as he is working, he do not have time to watch the prices. So everyday, before he leaves for work, he would instruct me, his good son, to watch the stock for him and to call him if it reached his price target. 

I am just like a stock alert for my dad!  




Everyday I will stare at the stock price through a black box called a TV. That was how I get started, watching the TELETEXT on TV flashing the prices every  few seconds.

And I did this job for 15 years. That was how I get started in stocks.





How I burst my first account buying penny stocks?

When I was 23, I managed to save up a bit of money to start my first trade. My dad all along had a deep love for penny stocks.

He would tell me “Son, don’t go for stocks that are expensive. Go for less than $0.20 ones. They are faster and cheaper and you make more when they run.” I trusted him and only focused on stocks less than $0.20.


My 1st trade was a stock that cost me $0.05. I waited for 2 weeks before the stock grew to $0.10. 100% return in just 2 weeks! I was delighted. I thought this was as easy as Warren Buffett!  

Following my first win, I dumped all my money to buy my second, third, fourth, fifth stock… All make money! I was on a roll.


That was my strategy. I would buy with all my money on one single stock and wait.


I was greedy!



The "1 Cent" Stock


One fine day while looking through the stocks, I noticed one that cost one cent only. I was thinking, if I had bought this stock with all my money and this stock goes up one cent, I would have doubled.

“Come on, it won’t possibly dropped below one cent, right”

I don’t have risk! Sure win! I thought.

It was 2004. The stock is L&M. One cent was the price.
By 2005, the company was suspended and gone. I burst my first account.

Lessons learnt: Don’t even think of buying a penny stock. They are cheap for a reason. And don’t ever bet all the money on one stock because stocks are generally high risk product.




“I want to be Warren Buffet!”

After my painful loss, I began to educate myself about investment. I started to read investment books. Warren Buffet, the greatest investor in the world became my inspiration because he was found in all library book shelves and almost in all stock seminars I have been to.

Training gurus and media would say, “Warren Buffet says that when people become fearful, we must be greedy….” “Warren Buffet says compounding is the greatest…” blah blah blah… I was brain washed.

“I want to be Warren Buffet!” I told my dad one day. I said “If Warren Buffet can make one billion, why can’t I make one million?”

Against my dad’s wishes, I became a full time investor in 2005, quitting my 3 months job. Making one million became my GOAL!

And I switched from playing Singapore stocks to playing US stocks. 
Reason is Warren Buffet is in US market.

The myth about Warren Buffet – or so I found out

I began to realize that life as a full time investor is tough. From 2005 to 2007, it was considered a very bullish US market. But I did not make a consistent salary from stocks. I called it a salary because I need it for my daily expense.

I realized that I can’t be as patient as Warren Buffet to wait for 5-10 years, because I need money for my monthly expenses. In Singapore, I guess being thrifty and single, I can live by having around a S$800 salary with no liability.

BUT... there are many months I don’t even make S$800! I realized that stock market was never designed to make a consistent income every month, even though I applied whatever value investing strategies that Warren Buffet books said.

I realized that stocks can be bullish for 2 months, then drop in the 3rd month. It can go up 3 months, and fourth month we lose back everything.

Lessons learnt: The Warren Buffet strategy is not applicable to a full time investor like me who needs a consistent income and salary every month. His long term investment strategy works for those with has cash that can be left untouched for a few years. 

A lot of retailers simply do not have the luxury of setting up funds like Warren Buffet and getting investors to invest in it. 



"How I burst my account again with the subprime crisis?"


As stock market reach a peak in 2007, I invested quite heavily in a US stock called Citigroup.

In US, it is very easy to get a marginable account, meaning extra money that the broker lends to investors to buy stocks. I began to play with margin.

Citigroup is the World’s BIGGEST Bank. I am still buying when it reached a height of US$60. Analysts said it can go up to US$100!
Alas, it fell. 

Within one year, it dropped to less than US$1.
As I leveraged up with margin, I got margin call and was forced to close all my positions.

I burst my account again.





Lessons learnt: Don’t listen to analyst ratings. Don’t think that a good bank won’t go penniless. Even a strong banking stock has a chance of going to $1 if not managed properly. 

As an investor, we often overlooked the overall market conditions. 

It is good to know learn about bull and bear market cycles. There are some signals appearing that shows a bear market forming even in 2007.

The Awakening Moment

I was devastated. All my years of efforts being a full time trader went down the drain. 
For months, I was depressed and stayed at home. I got no money to even get out of 
the house. I was broke.

One day, while I was flipping through the bookshelf, I spotted an old story book. 
The title “The Hare and the Tortoise”.

Suddenly a light bulb went off in my head.

I was thinking, if I were to continue to be a full time trader, I need to just be slow, steady and consistent like the tortoise.

Forget about the one million Warren Buffet dream. I should focus on making a consistent income instead every month.

From that day onwards, I began to look for ways to consistently make $1000 per month in the investment market. The important word is CONSISTENT. 




How do I make a consistent 5 figure income every month in the investment market?

By chance, I discovered this method. It has helped me to make a living as a full time investor for the last few years. With this strategy, I do not need to worry about market crashes anymore. 

The strategy that I employed has got to do with commodities indices, not stocks. Indices are basically safer than stocks as it do not undergo sudden swing in price.

If you like to find out more about our strategy, do click on "Read More" below:

Disclaimer: The information provided in this article is for educational purposes only and should not be interpreted as providing investment advice in any way.