Secrets of Millionaire Investors

272 Pages·2009·47.29 MB·English

by  Adam Khoo

Sequel to the National Best-Seller
‘Secrets of Self-Made Millionaires’
Secrets of
Millionaire
Investors
How You Can Build a Million-Dollar Net Worth
by Investing in the Stock Markets
Adam Khoo & Conrad Alvin Lim
Published by Adam Khoo Learning
Technologies Group Pte Ltd
10 Hoe Chiang Road
#01-01 Keppel Towers
Singapore 089315
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without the prior permission of Adam Khoo Learning Technologies
Group Pte Ltd.
This book is sold subject to the condition that it shall not, by way of trade or otherwise,
be lent, re-sold, hired out or otherwise circulated without the publisher’s prior consent in
any form of binding or cover other than that in which it is published and without a similar
condition including this condition being imposed on the subsequent purchaser.
Copyright©2007 by Adam Khoo Learning Technologies Group Pte Ltd
First print, May 2007
Second print, June 2007
ISBN 978-981-05-8195-4
Cover by Jason Chua
Edited by Vince Khoo
Design & Layout by Tan Mui Siang & Susan Lua
Illustrations by Aik Cher
Project Coordinator: Ng Si Lin
Printed in Singapore
by Seng Lee Press Pte Ltd
DISCLAIMER
This book contains the ideas and opinions of the authors. It is not a recommendation to purchase
or sell any of the securities, businesses or investments discussed herein. The author and publisher
are not stockbrokers, broker dealers, or registered investment advisors. We do not recommend
any particular stocks, investments or securities of any kind. If particular stocks and investments
are mentioned, they are mentioned only for illustrative and educational purposes. Options involve
risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive
a copy of Characteristics and Risks of Standardized Options. Copies of this document may be
obtained from your broker, from any exchange on which options are traded or by contacting
The Options Clearing Corporation, One North Wacker Dr., Suite 500 Chicago, IL 60606
(1-800-678-4667).
Although we have made the best efforts to provide the most accurate and up to date information,
no warranty or guarantee is given regarding the accuracy, reliability, veracity, or completeness of the
information provided herein. The authors and publisher disclaim any responsibility for any liability,
loss or risk, which may arise as a consequence, directly or indirectly, from the use and application
of any of the ideas, strategies or techniques in this book.
The information contained in this publication is strictly for educational purposes. The author and
publisher do not guarantee any results or investment returns based on the information contained
herein. We suggest that you consult with an independent licensed fi nancial advisor or stockbroker
prior to embarking on any investment plan.
iii
Also By Adam Khoo
I Am Gifted, So Are You!
Master Your Mind, Design Your Destiny
Secrets of Self-Made Millionaires
Clueless in Starting a Business
How to Multiply Your Child’s Intelligence
Dedication from the Authors
Adam Khoo
Dedicated to my Daughters Kelly and Samantha Khoo
Conrad Alvin Lim
For Dad, Wish you could see this
Special Thanks to
Moneycentral.com E-trade.com
Optionsxpress.com Morningstar.com
Interactivebrokers.com Google.com
Stockcharts.com Yahoo.com
Shareinvestor.com Corporateinformation.com
Acknowledgements By Adam Khoo
To my parents Vince, Betty and Joanne who have given me unconditional love and support
throughout the years. To my wife. Sally who has been my pillar of inspiration and strength.
To my two daughters Kelly and Samantha who make me smile everyday. To my partner,
Patrick Cheo, who has been sharing my vision and continually pushing me to the next
level. To my partner Stuart for being the ultimate tag team partner for joining me on this
amazing mission of empowering lives. To Gary Lee for years of friendship and support. To
my trainers Ramesh Muthusamy, Amin Morni, Melvin Chew, Danny Tong, Leroy Ratnam,
Freddy Gomez, Candice Koh, Woei Tang, Yuan Yee and Jeff who keep bringing our programs
to a higher level through their passion and dedication.
To the entire staff of Adam Khoo Learning Technologies Group, Adcom and Event Gurus
who have tirelessly spent all their weekends and late nights working to build the companies
at an incredible rate.
This book is also dedicated to the hundreds of coaches & Whoosh members who have
volunteered their time to continuously come back and coach for the Superkids™, ‘I Am
Gifted So Are You!™’, ‘Patterns of Excellence™’ and ‘Wealth Academy™’ programs.
To all my principals, teachers & lecturers from Ping Yi secondary school, Victoria Junior
College and The National University of Singapore who have played a tremendous part in
shaping the person I am today. Especially to Prof. Wee Chow Hou, Mrs. Lee Phui Mun, Mrs.
Ng Gek Tiang, Dr. Kulwant Singh & Dr. May Lwin. To my mentors and trainers who have
helped me discover the true power within myself. To my fi rst mentor, Ernest Wong who
taught me how powerful I really was. To my success and wealth mentors like Dr. Tad James, Dr.
Richard Bandler, John LaValle, Tony Buzan, Brad Sugars, Robert G. Allen, George Fontanills
and Anthony Robbins all of whom have taught me the invaluable strategies of wealth and
success.
iv
Acknowledgements By Conrad Alvin Lim
The list of people who have led me to this point is surprisingly short. The faith, trust and
encouragement however, is anything but short. These few individuals are the reason any
successful person strives to better themselves. They set the bar, raised it every so often, pushed
when beliefs were failing, admonished my faults and kept me humble. My expectations were
never good enough and they drove me harder. They were always there to support, motivate
and encourage. Yet, they did not control, blame or failed in their faith in me. For this, I am
eternally grateful.
This book celebrates my comeback and it is fi tting that I immortalize the names of those who
were responsible for my “return”; Zann for seeing and helping me realize that dreams are
possible; Travis for keeping the faith and trust; Kaz for the push, drive and support I needed;
Andrew, Angela and Terence for a painless transition; my students who have stayed the cause
- Poon, James, Raj, William, Eng Joo, Kareen, Kay Hee, Yam Pheng, Tony, Lay Lee, Tham,
Wences and Steven.
For seeing the possibilities, the opportunity and the promise of what I do, I owe everything to
Patrick Cheo. I have always respected and admired people with vision and often modeled such
outstanding individuals. Working with Patrick has brought that respect to another realm.
My co-writer, Adam Khoo, needs no more accolades. This young man has taught this old man
how to re-live my life and be young again. He made me realize how much I wasted and how
it could have been so much better. His generosity and sincerity brought back a belief I had
lost; that no one could be that genuine and be trusted. His faith and trust has given me this
new lease of life which I can never repay. My only regret about Adam is, “Why couldn’t he
have been born before me?”
Amidst all these thanks and gratitude, the one person I could never have done without and
will never want to be without, is my wife Lucy. To say that she kept the faith and trusted in my
abilities, does not do justice to the effort, tears, agony, stress, strength, will and determination
of this woman.
When everything fell apart, she fought to keep it together. She defended when others
attacked. When things were bleak, she made it bright. She made life clear when it went blur.
She brought home the bread when I went broke. She is strength when I am weak. She is my
laughter when I should cry. She is my angel when I’m in hell. She is mother when I can’t be
father. Lucy is my wife even when I couldn’t be her husband. I love you.
“At times our own light goes out and is rekindled by a spark from another person. Each of us
has cause to think with deep gratitude of those who have lighted the fl ame within us.”
- Albert Schweitzer
v
About Adam Khoo
Adam Khoo is an entrepreneur, a best-
selling author and a peak performance
trainer. A self-made millionaire by the age
of 26, he owns and runs three businesses
with a combined annual turnover of
$20m. He is the Chief Executive Offi cer
of Adam Khoo Learning Technologies
Group Pte Ltd, one of Asia’s Largest
Public Training Companies and Education Group. He is also the
Managing Director of Adcom Pte Ltd, an advertising agency and
the co-founder of Event Gurus Pte Ltd, an event management
company.
Adam is also the best-selling author of fi ve other books including
‘I Am Gifted, So Are You!’, ‘How to Multiply Your Child’s Intelligence’,
‘Clueless in Starting a Business’ and ‘Master Your Mind, Design Your
Destiny’ which was the second highest selling book in Singapore
in 2004 and has been on the Straits Times Life! best-sellers list for
thirty-six weeks. His fi fth book is ‘Secrets of Self-Made Millionaires’
that was ranked #1 on the Straits Times Life Best-Sellers List.
Adam holds an honors degree in business administration from
the National University of Singapore. As an undergraduate, he
was ranked among the top one percent of academic achievers and
became a pioneer in the Talent Development Program, which is the
university’s gifted program.
Over the last 15 years, he has trained over 355,000 students,
teachers, professionals, executives and business owners to tap their
personal power and achieve excellence in their various fi elds of
endeavor.
His success and achievements are regularly featured in regional
media like the Straits Times, the Business Times, the New Paper,
Lianhe Zaobao, Channel News Asia, Channel U, Channel 8,
Newsradio 938, The Hindu, The Malaysian Sun, The Star and many
more. ‘The Executive Magazine’ recently ranked Adam among the
25 richest Singaporeans under the age of 40.
vi
About Conrad Alvin Lim
Conrad, 42, is one of Singapore’s
few successful Full Time Professional
On-Line Traders. He is very sought
after for his intimate knowledge of
Technical Analysis, Japanese Candlestick
application, Sector Rotation and his
unique Short Term Pattern Trading and
Day Trading techniques. Two years ago,
while tutoring students in his 3-room home, he created The Pattern
Trader Tutorial and Forum and averaged US$5’000 in monthly
profi ts.
Conrad has since taken residency as an instructor at Adam
Khoo Learning Technologies Group and as the Group’s Investment
Strategist. He conducts his own Pattern Trader Tutorial there and
along with Adam Khoo, trains at the center’s Wealth Academy™
workshops. Conrad created and runs the Wealth Investor Club, the
Wealth Academy™ Investor tutorials and conducts advanced tutorials
in private sessions for students willing to pay the premium.
Today, Conrad is growing his portfolio at an average 19.9% a
month. In January 2007, his one month profi t exceeded US$16,000
with an average of US$1,200 per 12 minute Scalp. He has trained
more than 70 students to date and has had no less than 4 who have
become full time traders. Conrad’s trademark 5DPEG (5 Day Pre-
Earnings Game) is a favourite amongst novices wanting to learn to
trade and has a 92% success probability. Amongst others, he is also
known for his low risk techniques which include the Minimal Risk
Entries, PHI-Bonacci Expansion, The Variable Standard 6 and Sector
Investing.
vii
Table of Contents
Acknowledgements iv
About Adam Khoo vi
About Adam Khoo & Conrad Alvin Lim vi
Chapter 1: Making Money From the Markets 3
Chapter 2: The Power of Investing in Building Your Wealth 19
Chapter 3: The Idiot-Proof Way of Making Money 42
Chapter 4: Value Investing: Warren Buffet’s Secret Recipe for Wealth 77
Chapter 5: Momentum Investing: Catching Stocks Before they Fly! 125
Chapter 6: The Amazing World of Options 165
Chapter 7: Using Call Options to Reduce Risk & Boost Returns 187
Chapter 8: How to Make Money in Any Direction 219
Chapter 9: Your Next Step to Financial Freedom 253
References 263

Making Money
from the Markets
2 SECRETS OF MILLIONAIRE INVESTORS