The 5 Day Pre Earnings Game

What is the 5DPEG?

This is a question that is commonly asked through emails and private messages that I get as frequently as twice to three times a week. So to put aside the task of having to answer this repeatedly, please read on …

CONRAD’S 5 DAY PRE-EARNINGS GAME

Very simply, its a simplification of an age old earnings strategy that I have taken, modified and taught, which is more than just a $50 winning strategy. The one thing that my students have come to realise is how consistent this is if you stick to the guidelines. And that is the key to its popularity … CONSISTENCY.

To trade earnings, one always trades the security right up till the day BEOFRE the announcement of the earnings report. This way, profits are taken off the table before the unpredictable gap that sends the stock either way upon announcement. There is no way to know where the stock will go after its announcement as there are way too many variables involved. Traders that attempt to second guess the gap are gambling on their wager going the right direction. The gains for being correct are usually not as great as the risk they undertake if the gap is against them. This is because of a phenomenon known as the “Volatility Crush”. Still, there will be those who gamble iin the market.

In the 5DPEG, students learn to qualify a stock with 10 simple steps involving a bit of fundamental research and technical analysis. These ten steps introduces the student to the discipline of researching before trading. It breeds a good trading habit that most people ignore … due diligence.

After qualifying the stock, students then plan their trade … another disciplne which is often lost in the heat of the trading battle. The plan is simple: identify your time target, profit target, stop loss and return on investment. If they are using Options, they will learn the dangers of using the wrong option and risk minimization by understanding Options Greeks.

Once the student has a plan, the next discipline kicks in … knowing when and how to make an entry with minimal risk. How many times have you put on a trade, only to see it losing money before the close of the session?

My students use the leverage of market sentiment, events, sector sentiment and general political awareness to avoid making a risky entry. They then apply one of two Minimal Risk Entries that they learnt and wait for their entry patiently. Most of the time, this entry has proven profitable as students are known to profit take on their profit targets the next day.

Those who don’t reach their profit targets then stick to the trading plan till one of three things happens: 1. Profit target is achieved … 2. Time target has arrived … 3. Cut loss at a predetermined level of tolerance.

Actually, there is a 4th … students also learn to identify Japanese Candlestick formations to defend their positions.

These habits are so automated with the 5DPEG that students unwittingly learn the best habits a good trader must have … the ability to overcome fear and the will to resist greed. This way, the student become emotionless and will trade with confidence. They also learn a more valuable lesson …

By cutting your losses early and letting your profits run, the 5DPEG will give you a success return on no less than 80%. So out of 10 trades they will have 8 profitable trades. But if for some unforseen reason, the tables turn and the ratio kicks back a 30% success rate, by cutting their losses at $30, 7 losing trades will mean a loss of $210. Their 3 winning trades will turn around a minimum profit of $150, should they stick to the trading plan. Thus the loss for sticking to the rules in an unlikely 3:7 ratio, is only $60 in 10 trades.

But because they learned to let their profits run and to use stop losses to protect their profits, they are likely to recoup this $60 loss, by letting these 3 winners run for another $20 each to break even or even make some. So what’s the worse that can happen? They don’t lose much.

In my 2 plus years of sharing this simple strategy, I haven’t met anyone who has had a worse return than 60% of winning trades.

Finally, but certainly not the last beautiful thing about the 5DPEG, is that the student will gain experience and confidence without having to stomach major losses to kill their spirit and account. This experience allows the student to stretch the parameters of the 5DPEG and explore more strategies that will improve their trading styles.

Through the 5DPEG, they will have learned to read and understand reports, analysts’ opinions, market sentiments, company balance sheets, everything you need to know about EPS, PE ratios, insider trades, relative strength etc etc etc …. and armed with this knowledge, they will come back with more sophisticated questions that can only help them grow into more savvy investor/traders.

So, its quite evident that I have discovered a simple but truly effective way for novices to trade and learn about trading without the major risks while picking up good trading habits along the way. And that is not all that the 5DPEG has to offer …

Some of my older students are now multiplying their positions to make exponential profits. You go do the math.

Be it a simple (and affordable) $50 strategy with a great learning curve, or a great profitable strategy with minimal risk, the 5DPEG has opened the world of trading to many of my students and the principles of what I teach and what they learn have all come from this humble little game.

Many want to learn it. Many others wished they knew about it sooner. And then there are the few who want to own it. But there is only one true 5DPEG and everyone knows where to find it.

I remain, its humble creator,

Conrad.

Here are some of the student who have benefits from 5DPEG ...

Hi Conrad,

Thanks for the knowledge that you have bestow on me….
I’ve made quit a handsome quantity of money (even tho’ it paper / virtual
trading but I treat it as if it real money)
on the following stock. CROX
(designer, manufacturer and marketer of footwear for men, women and children
under the crocs brand) and NGA ((North American Galvanizing) .

Never
thought making money soooo easy.

Cheers
(name removed for privacy)

Hi! Conrad
I can not believe my eye on the result of 5 DPEG trade.
Just
follow the step one by one.
The result was incredible with $5000 virtual
capital the gain in 3 days is more 20%

Can we learn how to place advance
order to automat the profit take on our next meeting on July 20 !!!

Thanks Great coach

Cheers

(name removed for privacy)

This is an article by conrad's student Kenny Tran ...

Last week, after finishing the 5-day tutorial with Conrad, I started to play the
5DPEG game (designed for novice traders). It’s really simple to earn money with
5DPEG game. Although it isn’t a big sum of money, you can make it consistently
throughout the month. Let’s say you make average US$50 a day by playing the
5DPEG game (part-time). You can earn an extra US$1,000 per month (or S$1,600)
beside your salary. Not bad right?

This is my humble paper profit with
5DPEG game after 4 days.



Though it’s only paper profit, I’m really proud of it for
start because I know I didn’t gamble with the stock but I got it with the
knowledge learnt from Conrad and my effort.

Conrad is my mentor and a professional trader. I learn alot of trading skill and psychology from him. The 5DPEG is one of the manay strategy that he has created. There are still alot of testimony from alot of student that have benefit from the 5DPEG strategy. If you are interested in learning the 5DPEG strategy, just make a comments here or drop me an email akalawoo@gmail.com. Please state your name, country, contact no and email.