Malaysian Trader & Fund Manager Joe Cho now based in Melbourne

Contents:

1. Trader Profile - Joe Cho Golden Dragon Fund Manager
Portrait of a Second Generation Turtle

Story of a “Second Generation” Turtle Student
– Joe Cho

In the early 1970’s, having learnt about portfolio management while studying accountancy with two friends, we pooled our savings to invest in the stock market. The first stock that we purchased was an absolute disaster – it was suspended by the exchange the next day and we kissed good-bye to all the money invested!

My interest in the markets grew and in 1985 I became an advisor[1] with a major brokerage firm in Malaysia. I traded stocks using rumours, tips, and fundamentals with mixed results. In 1987, I learnt about technical analysis from a client who recommended the book “Technical Analysis of Stock Trends” by Edwards and Magee. The Malaysian market was in the midst of a raging bull market at that time but by July and August, the charts started showing all the warning signs of a market top. I sold and I sold and I sold! I was so bearish that I resigned from the firm to avoid having to shoulder bad debts in the event that the speculative market collapsed. The disastrous October 1987 Crash one month later strengthened my faith in technical analysis.

I immersed myself in books on trading and technical analysis, over the next few years[2]. One book stood out among them – “Market Wizards” by Jack Schwager. I was totally fascinated and inspired by the chapter on the legendary futures speculator, Richard Dennis and the story of the Turtles. In early 1990’s, when I learnt that Russell Sands, an original Turtle was coming to Melbourne to teach the Turtles concepts, I jumped at the opportunity. In spite of having read more than a hundred books on trading and technical analysis, I found that many of the concepts that I learnt from Russell were new to me. Although I was primarily a stock trader in contrast to the Turtles who were futures traders, I found that many of these ideas could be modified and be adapted to suit my personal style in trading the stock market - along with other ideas that I already had at that time.

It’s more than 10 years now since I first met Russell Sands and I have been to two other similar Turtle seminars by Russell as refresher courses. My friends tell me that I have to be crazy to attend the same Turtles seminar 3 times[3]. If I have a chance to live my life again, I would not have done it any other way.

Disclaimer: The above article is not an advice or recommendation to use the Turtles concepts or any other methods to engage in trading or investing in the stock market or futures market. Any opinions expressed or implied in the article are the personal opinions of Joe Cho. Joe Cho, his employers, agents and staff disclaim all liabilities for any losses that may be incurred by readers acting on information derived directly or indirectly from the above article. The stock market and the futures market should be viewed as speculative markets.

Profile – Joe Cho

Joe Cho first ventured into the stock market in the early 1970’s and has been an advisor in the stockbroking industry for more than 17 years. He has been using technical analysis since 1987.

Joe Cho is the Trading Advisor of the Golden Dragon Fund (ARSN 097 498 890), a hedge fund that employs technical analysis to trade the stock market. He is also on the panel of practitioners providing lectures on Technical Analysis, an elective subject leading to the Graduate Diploma of Applied Finance and Investment, offered by the Securities Institute of Australia (“SIA”). He has made presentations at branch meetings of the Australian Technical Analysts of Australia (“ATAA”) as well as other investment groups. Joe has conducted short courses in technical analysis for the institutions currently known as Swinburne University of Technology and Holmesglen Institute of Technology.

The Golden Dragon Fund is a retail hedge fund that uses technical analysis to trade stocks currently listed in the Australian Stock Exchange. Joe Cho is the Trading Advisor of the Fund.

Investors of the Fund pay the Trading Advisor a Performance Fee per unit, subject to a “High Water Mark”, where prior losses of each unit must be recovered before Performance Fee is payable on additional profits. The Fund is actively managed and uses a trend following approach with focus on stock picking and disciplined risk management. When regarded as appropriate, the Fund will engage in short selling. The minimum subscription is $15,000 and units are issued on the first business day of each quarter.

Joe demonstrates his conviction and commitment to the Fund by investing a significant amount of his own money[4] in the Fund. He has been the biggest investor of the Fund since its inception.

Joe Cho is currently looking for an Assistant Trader to be trained to assist him in the management of the Fund’s portfolio. If you are interested in the position or wish to receive a copy of the prospectus of the Fund, please contact Joe at (03) 9242 4130; mobile 0409 166 828 or by email dragon@tolhurst.com.au.

[1] More commonly known as “remiesier” in Malaysia and Singapore

[2] I migrated with my family to Australia in November 1987

[3] Melbourne seminar in early 1990’s, Sydney seminars in late 1999 and 2003

[4] Investments through his family company and self managed superfund

4. Upcoming Events

Spend an Evening with a Turtle Trader
* March 2 Singapore Call +65-6535-1949 for details
* March 9 Kuala Lumpur Call 0122367961 in KL
or +60122367961 for details

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Warning: Please note there is a risk of loss in Trading as well as the potential for profit. By reading this newsletter no recommendation is implied or inferred.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE MAY TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. DO NOT RISK ANY MONEY YOU CAN NOT AFFORD TO LOSE. This is for education purposes only.