Evening event organised by FXTrading@SG on 3 May 2013.

1. How Indicators Depict the
Trading Psychology!
- Subjective vs Objective indicators
- Appropriate usage of indicators for
risk management and calculate
risk/reward ratio
By Neo Mui Kian

2. DISCLAIMER
We are not giving and do not give investment or trading
guidance/advice in respect of or in relation to any information
provided by us ( "the Information") to any individual or person
arising from his/her/it in receiving this Report. The Information
provided is of a purely educational nature only , and we do not take
any responsibility nor accept liability for the accuracy or reliability of
such information and any individual or person should not rely on
the Information or any part thereof as constituting investment
advice or information to be relied on in making any investment or
trading decisions, or otherwise. Any individual/person is solely
responsible for the consequences of his/her own investment/trading
decisions and we do not accept any responsibility or liability in
respect thereof. Any investor should consider seeking proper,
professional investment advice or guidance before making his/her
investment or trading decisions

4. • A process that can
be automated;
• A process which
can be
systematically
formulate into
steps such as place
an order issue
invoice book cash
into account.
• A process that cannot
be automated;
• A process which
cannot be
systematically
formulated into step
such as human
behavior/norm such
fear/anger/happy.
Formal vs Informal System

5. However a good trading system
may be able to incorporate
some psychological price target
which majority of the market
traders are watching

6. Greatest challenge
Lagging
Confusing
Unable to catch trending
Unable to confirm entry and exit
Subjective
Incongruence

8. It is not about what type of
trader you are. It is about
who you are

9. by Neo Mui Kian
Who & Why
WhatHow
What if

10. Types of Psychological Studies
(Who you are)
• Eastern ：
YiJing （易经），5 Elements （五行）
• Western：
MTBI, Ennegram, DISC, Wealth Dynamic

11. Objective vs Subjective
indicators

12. Objective vs Subjective
indicators

13. "Indicators are tools that traders use to develop strategies; they do
not create trading signal on their own. Any ambigutiy can lead to
trouble." ( Jean Folger).
The relationship between Indicators and Strategies. Strategies are using
indicators objectively to determine entry, exit, trade and risk management
rules. Therefore trader need to first know their own trading style and risk
tolerance, before they deploy indicators to develop a strategy.
Objective vs Subjective
indicators

14. Objectively yet Incongruence

15. •JIN RM vs Stochastic
•JIN RM vs RSI
•JIN RM vs CCI
•JIN RM vs MACD
Objectively and Congruence

16. JIN RM vs Stochastic

17. JIN RM vs RSI

18. JIN RM vs CCI

19. JIN RM vs MACD

20. JIN RM vs Standard
Indicators

21. Objectively and Congruence

22. Objectively and Congruence

23. JIN RM Box

24. Risk Management
Simple Risk Level Flow

25. Simple Risk Level Flow

26. Risk Management
Complex Risk Level Flow

27. Complex Risk Level Flow

28. Risk vs Reward

29. Risk vs Reward

30. Our system is definitely design in such a way to give
early signal before events happened. Such signal are :
1. JIN Indicator with various Risk Level to identify
target price
2. Beware and Potential (P) Buy arrows
3. Risk Meter cross up or cross down the price
JIN Indicator is ahead of Beware/(P) Buy arrow, and
Beware/(P) Buy arrow is ahead of Risk Meter crossing
arrow.
Advanced Alert Signal

31. Objectively and Congruence
To sum up, as a trader you need to
identify your uniqueness, your
temperament, risk tolerance and
personality in order to using different
indicators to develop strategies and
research how they perform according
to your personal needs.

32. In trading if you don't know who you
are and you are doing who you are
not then you will not get what you
want.
However if you want to do who you
are not and still able to get what you
want you need to have a systemic
approach.

33. Trading is a very personal
business, as you don't need
market to agree with you,
you still can trade against
the market however
market will teach you a
lesson simple as that!