Hao Jin is one of the fast rising certified contributor at Seeking Alpha.  His articles cover variety of topics with thorough analysis ranging from ETFs to dividend focused opportunities.  He did not, however, always have the knowledge needed to accomplish what he does at Seeking Alpha today.  His career background comes from an IT side with background in management and policy.

He credits much of his initial growth to the CMA and CFA certifications he went after.  With his knowledge, he even started his own financial advise service called PointFinancialAdvisor providing investing advice catered to each individual’s needs.  Because of his interesting development, I wanted to know whether acquiring CFA is worth it or not.

“Hao, how did an IT professional with background in management and policy get into investing?  Why CMA and CFA?”

The first company I worked for after I graduated is a public company listed in NASDAQ.  Part of my job was to analyze stock market, because the company had to raise capital from time to time.  I was invoiced in various financial projects, including acquisition, joint venture, partnership, and private placements analysis.    My interest in investing was developed since.

From years of experience, I realized my knowledge in investing was limited.  CFA is a big help because it gives you broad knowledge in investing world.  I also want to understand accounting data from SEC filings before I invest in any company, hence why I got my CMA.

“As you know, there are various ways an individual can tackle Wall Street and the market.  People succeed with different styles of investing as well as education.  How do CFA and CMA help you in this aspect? And knowing what you know now, would you recommend it to others?”

CFA helps me to the next level.  Now I can see a big picture in markets.   I will definitely recommend it to people who are serious about investing.

“As I can see from your articles, you put a lot of emphasis on analysis.  Based on your recent studies, what would be the opportunities for 2010? Do we still stay long?”

There are still plenty of opportunities in developing markets.  In US, blue chip stocks are still undervalued.  If you have a long investing horizon, there is nothing wrong to stay long.  Otherwise where can you park your cash, given near 0% interest rate?

“What can we expect from your services at Point Financial Advisor?”

PointFinancialAdvisor.com provides basic investing advice based on each individual’s situation.  Each investor’s risk tolerance, investment goal and horizon are different.  Some stocks/ETFs might be suitable for some people, but might not be good for others.

Thanks Hao.  For those of you interested in tapping into the investment world even without an investment background, CFA could be a good starting point.

Pinyo and Moolanomy's "REAL Wealth Building Framework"

There’s no doubt his hard work has returned the favor.  He now makes alternative income from his website and has built many relationships throughout the process.  His tenure in the blogosphere even got him the right job he was looking for.  But what’s important is the knowledge he amassed throughout the process that made him smarter about money.  Today he shares some of his thoughts on how to successfully start learning about personal finance.

“You had three primary objectives in mind when you started Moolanomy – learn personal finance, become a better writer, and build an alternative income. We know you’ve accomplished all three. However, what else did you gain throughout the process that were perhaps unexpected but incremental to your original goals?”

Thank you. You’re giving me more credit than I’d ever give myself. While I think I did accomplish all three objectives, there is always room for improvement. But to answer your question, I had a long-term goal of leaving my job to manage a web business full time and move down to Virginia. It so happened that a few months ago, a company that own several web sites came across Moolanomy and decided to hire me to join their management team. Coincidentally, they are located in Fairfax, Virginia – about 30 minutes away from where I actually wanted to move to. So incrementally, I was able to accomplish two goals that I had estimated would take 5-10 years to attain.

“While you write about personal finance matters primarily, you are also an investor.  What type of investments do you make? Also, what lessons can you share from the past year of “volatile” market?”

I do have some money invested in IRAs — I had some invested in 401k as well, but had since rolled that over into an IRA. When I first started, I tried many different things — e.g., trading individual stocks, technical analysis, stock screening, dividend investing, etc. — but I keep things very simple now. Basically, I invest in Vanguard Target Retirement Fund and supplement that with a small percentage in world equity fund to bring US versus International to about 50-50.

As far as lesson from volatile market, it’s very simple. Create a plan and stick to it. My plan revolves around asset allocation that fits my investment style and needs, periodic rebalancing about once a quarter, and regular contributions to keep my investments growing in the right direction.

“When it comes to money management, there are numerous ways one can improve his/her personal finance. Now, what would be your top 3 key ingredients to successful money management?”

There are definitely many ways to improve your finances, and the good thing is you can start any where — there is no set formula and no definitive right or wrong way to do it. As for my top 3 ingredients:

1. Start as soon as you can

2. Learn as much as you can

3. And “plus it” — that is, even if you think you’re already doing well, try to do even better.

“Personal finance resources are abundant and can sometimes be overwhelming for those who are just starting to explore the topic. What advice would you give to those individuals who are just getting started?  Where do they start?”

Just reflect on your own finances and search the Internet. If you have a student loan, then search “how to pay off student loan” or “student loan debt” and read as much as you can about it. Follow the links provided by articles that you’ve found. If you come across a web site that you really like, then bookmark it so that you can read other articles to get more idea.

When you follow this basic formula, you’ll naturally read more and more about different things and get more and more ideas.  As you read, be sure to take note, do your own due diligence (i.e., facts check), and then apply the idea to improve your own finances.

“Lastly, what other personal finance bloggers do you follow and recommend?”

I used to follow many many blogs, but I don’t do as much of that any more. Now, I just search for the topic that I am interested in at the time and read several blogs and sites to gain a better understanding about that topic.

However, if you don’t know where to begin, Wise Bread Top 100 List (http://www.wisebread.com/top-100-most-popular-personal-finance-blogs/), PFBlogs.org, and PFBuzz.com are all good places to start.

Thank you for this interview and the opportunity to share my story with your readers.

Whatever you work on, always approach with the mentality to “Plus it”.  It’s such a simple concept, yet a such tough challenge to actually stick with it.  Ultimately, this is how the successful individuals separate themselves from the rest.  Pinyo’s success reflects this mentality.  Thanks for the interview Pinyo.

As a very active writer in the financial world, he delivers his thoughts and views to us through Seeking Alpha contribution and his website, TheBurningPlatform.

“My goal is to provide my readers with a wide eyed view of the world. I will concentrate on social and economic issues that I feel are important to the country. My commentary will be blunt and pointed. The country needs people to see things as they are, not as they wish them to be.”

In our recent interview, he shared his thoughts on Peak Oil, which is a popular topic even now after the fall of oil prices in the past year.

“Jim, can you tell us how your career transformed from the early days to now?”

My background was originally accounting. I graduated from Drexel University with a degree in Accounting and did the two years in an accounting firm while getting my CPA. I worked as a controller and eventually ended up with IKEA in 1989 as Manager of Reporting. I went to Villanova University at night to get my MBA and by 1993 was the Treasurer for IKEA North America. This is where my interest in economic markets and retail markets really took off. I wrote many reports regarding the economy and competitive landscape for IKEA. From 1999 through 2004 I was responsible for strategic planning and placement of new stores in the US and Canada. Today, I’m responsible for strategic planning at an Ivy League University. My writing is a side interest that keeps me busy on weekends and nights.

“What were some of the valuable lessons learned throughout your growth?”

I’ve learned that there is no substitute for hard work, research, and a realistic view of the world. The biggest mistakes I’ve seen made were when people ignored the facts, used pie in the sky assumptions, and wasted millions of their corporation’s dollars on projects that were destined to fail. Huge egos and agendas that don’t match the facts are a devastating combination. I learned finances from the ground up. I understand balance sheets, income statements, and cash flow statements. This knowledge is essential when judging the stability of corporations. A skeptical nature also comes in handy.

“In the recent years, universities saw an increased number of applicants as unemployment rose.  Has this impacted your planning in any way as a senior strategic director of a major university?”

What we’ve found is that in many ways a major university is countercyclical. This past year we received the largest number of applications in our history. Many people are attempting to ride out two years in an MBA program rather than enter the job market. We had the largest MBA class in history. This has helped offset serious reductions in our Executive Education program, as corporations have dramatically cut back on training budgets. Our alumni giving has also seen a large decline. We have proactively reduced costs and scaled back capital projects in order to weather these difficult times.

“You’ve recently published an article summarizing the opportunities in oil.   Now in your mind, when do you see as the right timing to start investing in commodities again? Would other factors like the dollar movements start to play a role here?”

I think there is more danger in the oil story than opportunity. I believe we reached peak oil production in 2005. The current worldwide recession has masked this fact as demand has declined. Recently, demand has begun to pick up. The world will be shocked in the next two years when production begins to lag behind demand. The initial result will be higher prices, topping $100 a barrel again. When shortages begin to materialize, panic and turmoil are likely to be the result. Our society cannot function without cheap oil. The US suburban sprawl way of life will be shattered by oil shortages. Food prices will also soar.

From an investment perspective, the prices of all commodities will be much higher in the next few years. The dollar will continue to fall as US budget deficits run out of control. The next 10 years will be seriously challenging and fraught with danger.

When it comes to oil, Jim is not the only one sharing the same concern.  If you’re looking for the next investment opportunities, do some homework and learn about what the experts are seeing.  Thanks Jim for sharing your story.

Wise Bread currently boasts nearly 30,000 RSS subscribers and 20,000+ visitors a day (source: site meter), spreading the writers’ wisdom to many.  With such success, one would imagine money management must be stress-free  for the guys running the show.  Well it wasn’t always easy for Will Chen, one of the Wise Bread founders who started his career as a lawyer with minimal knowledge on money management.  Despite his 6 figure salary, he lived paycheck to paycheck.

Read on for more from the recent interview with Will Chen.

“Will, can you describe your evolution as a successful attorney to the founder of a top personal finance blog?  And why Wise Bread?”

As an attorney, I was making a six figure salary but was living paycheck to paycheck because I was clueless about financial management.  When I confessed this to my two good friends Greg Go and Lynn Truong, they told me I wasn’t alone.  They also felt overwhelmed by the financial burdens of being a new 20-something professional.  We tried looking for help online, but most online resources were too dry or intimidating.

We wanted to build a personal finance website that speaks to our generation.  At first, we did this just as a side hobby.  But in less than a month our blog hit the front pages of Digg, Reddit, and BoingBoing. We immediately received hundreds of emails from people telling us how much they enjoyed our fresh approach to personal finance. We knew we had a hit!

“What was your experience like starting up Wise Bread with your co-founders?”

It has been an exhilarating experience.  We compliment each other perfectly.  Before co-founding the company, Greg worked as a tech guru for Rhythm & Hues, an Academy award-winning media company.  He had a ton of experience building complex networks and programs that affect million dollar projects.

Lynn used to work at Grey Worldwide and CBS/King World creating and implementing national ad campaigns.  Her client-side experience gives her unique insights on how to provide maximum value to advertisers.

Greg’s tech know-how, Lynn’s sales experience, and my legal/marketing background allowed us to scale our business quickly.

“What do you enjoy most about managing Wise Bread?

To see our writers get awesome opportunities as a result of writing for Wise Bread.  In 2009 we published a bestselling budgeting and money management book which featured several of our best writers.  Two of our other writers have their own nationally-syndicated columns.  When I see their names on LA Times or Chicago Tribune I still get goosebumps.

Any aspects  you can live without?”

I feel guilty whenever I waste money.  As the co-founder of a personal finance website, I feel like I should know better than to blow my money on useless gadgets (but I still do, once in a while).

“When it comes to the topic of personal finance, you weren’t born an expert.  As your profile says best, ‘How can I effectively counsel a client about how to deal with debt collectors when, in my personal life, I had no idea how to protect my own FICO score?’  It has now been a few years since the launch of Wise Bread.  What were some of the most valuable lessons learned that all of us should strive to absorb?”

The biggest lesson I learned is that you can’t get out of debt alone.  You need a support group.  We are easily influenced by our peers.  If your friends are eating out all the time and driving new cars, you are likely to do the same.  Tune out your wasteful friends and tune out the media.  Start hanging out with savvy, frugal-minded folks who take personal finance seriously.  Wise Bread forum is a great place to start.

“Do you have any personal mantras that help you stay motivated and inspired?”

“We’ve done the impossible and that makes us mighty.”  — Mal Reynolds, Firefly.

Thanks for sharing your mantra and your history.  Best of luck with continuing success at Wise Bread.

Well, Ernie Varitimos is no exception.  In fact, Ernie is so fanatical about Apple and its products that he devotes much of his effort reading and writing about Apple.

Ernie, a technical consultant and a fan of Apple for over 30 years, now manages a financial blog dedicated to Apple.  Through his blog Apple Investor and Seeking Alpha contribution, Ernie delivers his views and thoughts on anything Apple along with technical analysis for Apple investors.

In our interview, I got to learn about the drivers behind his passion for Apple and why he sees Apple as a viable investment platform for the next 30 years.

“So Ernie, what led you to specialize in Apple (AAPL) and follow its movements so passionately?”

Apple resonates with me; I’ve been an Apple fan for over 30 years, having owned nearly 80 Macs in my lifetime. I bought my first Mac the day after it was introduced to the world with the famous 1984 Orwellian Super Bowl ad. I already knew that Apple had great products, but from that point on I knew Apple would be the disruptive leader in personal computing.

Today we have eight Macs in our house. There’s one in almost every room. Oh, and we all have iPhones. What attracts me to Apple and its products is its pursuit of excellence; Apple makes insanely great products, both aesthetically and functionally. Apple products are works of art that perform and make people more productive. The Apple philosophy resonates with me as well. It’s a company that knows and caters to its customers. Apple knows who we are and what we need, usually before we know we need it.

“Can you share more about your career? What’s your educational background?”

Over the past 30 years, I’ve worked primarily as a consultant and technologist in a wide range of industries such as finance, insurance, healthcare, publishing, manufacturing, defense, energy and sales. I’ve been a consultant for at least 25 of those years providing strategic guidance for companies ranging in size from startups to fortune 5’s.

Over the past 15 years I’ve consulted for and built systems for many of the recognizable names in finance like Fidelity, Merrill Lynch, Credit Suisse, Goldman Sachs, TD Water House, GE Capital, etc. Also, for a time I was a chief architect of the northeastern United States for Sun Microsystems. I led a large team of architects and projects, most of which were in NYC, where all the big financial houses were located. This is where I developed my fascination for finance and stocks.

“So how did you get into the field of consulting in the first place?”

It’s funny you should ask because the Macintosh had a great deal to do with it. My first job out of school was with Raytheon, working on defense projects like guidance systems for missiles. After a few years I got bored with that job, but not with technology. I didn’t know what I wanted to do. So I decided to consult and try a number of different things to expand my horizons. So I picked up some books on being an independent consultant and started shopping for contracts. That’s just about the time the Macintosh was introduced.

When I got hold of the Mac, I found for the first time I could create proposals with graphics all on the same system. Sounds pedestrian now, but it was a competitive edge back then. A few years later, desktop publishing was born, and I recognized the huge opportunities for consulting in the field of electronic publishing. So I started consulting with large printers, input/output service bureaus, advertising agencies and communications departments of larger companies. That’s when I recognized that certain companies were well positioned in print and media, and so I started to buy stocks in Apple, Adobe, Compugraphic and others.

As the Internet evolved, so did online trading. I was captivated with that, and saw how important technology was becoming to finance companies. Therefore, I searched them out for consulting gigs. I started with Standard & Poors, then Scudder Stevens and Clark, then Fidelity. Over time, I developed a reputation, and was asked to be chief architect for Sun Microsystems professional services in the northeast. There I had the opportunity to lead a large team of architects working primarily in NYC with some of the biggest finance companies in the world, building trading systems and portfolio management apps. I worked directly with fund managers, analysts and traders. I learned their craft through the course of my project work, and have been developing my knowledge of financial systems, stock analysis, and trading ever since.

“Do you trade stocks other than AAPL? If so, what other companies do you look at? Lastly, what type of trading strategies do you employ?”

Apple (AAPL) gets most of my attention, naturally. But I am constantly scanning for good companies with stocks that have favorable setups. I also trade ETFs and Options that follow the major indexes. I pay particular attention to companies that are part of, or influencers of the Apple ecosphere. They include: Research in Motion (RIMM), Intel (INTC), Google (GOOG), and Adobe (ADBE). I besides that, I keep a close eye on sectors that are lighting up, and so I’ll look at the leaders of that sector, scoping out objective setups.

You can best characterize me as a Swing Trader, although I’ll occasionally Day Trade and scalp. My underlying trading philosophy is very conservative. I like to repeat the mantra, “Capital Preservation First, Maximum Profits Second.” And so most of the time I maintain a large cash position, unless the risk:reward is so skewed in my favor that it makes sense to put that dry powder to work.

The strategy I use is Technical Analysis. I rarely resort to fundamental analysis unless scanning for stocks within a particularly hot market or sector. In these cases, I’ll employ a quantitative analysis to pare down the panoply of stocks and perform fundamentals analysis to pick the leaders, the cream of the crop. I then follow up with Technical Analysis to determine which stocks are setting up into a tradable pattern.

“As you know, Apple has made significant strides in innovation this past decade, and it is benefiting from it. However, Apple is not the only company with creativity and capability. Who do you see as the rightful contenders of Apple in the coming decade, and how are you strategizing appropriately?”

It’s true that Apple competes on several fronts with other great companies. However, Apple is really alone in one crucial and important aspect, and that’s a devoted, fanatical following. I can’t think of a single company that Apple competes with that has a customer base so dedicated. How often do you hear of a Mac user switching to Windows? Never. On the other hand, switchers, or first time buyers of Macs, make up 50% of the customers at Apple stores.

I guess one could make the argument that RIM is a primary competitor to Apple with smart phones, and RIM has a very dedicated following. Isn’t that why people refer to it as the Crackberry? But RIM is mostly a one trick pony. RIM does smart phones and sells them mainly into the enterprise. Apple is so much more. Apple is, or is becoming, a consumer products company with a much wider range of products, and therefore has more stability and growth potential.

When it comes to computers, there are lots of companies out there that go head to head with Apple. But most of them, Like HP, Dell, Lenovo, and others, are becoming nothing more than pushers of commodity hardware. Sure, they try to differentiate themselves from one another, usually by copying Apple designs. However, they rarely compete head-to-head with Apple in specific niches. For example, Apple owns the high-end laptop market with a 90% market share, it owns the MP3 players market with a 75% market share, and it owns the desktop computer market over $1200 with an 80% market share. And of course, Apple owns the high-end smart phone market in terms of revenue, after only 2 years in the business. Also, let’s not forget that its margins are the envy of the industry, allowing them to accumulate nearly $35 billion in cash.

The only competitor to Apple over the next decade is Apple. Should it lose sight of the consumer, lose the ability to innovate, or focus too much on expanding market share rather than simply producing great products, there’s a chance that Apple will be its own undoing. From my vantage point, Apple has not yet come close to reaching its potential. So long as Apple stays true to its values and keep its focus on the customer, not the corporate buyer, it’ll be a great company to trade and invest in for the next 30 years.

“I definitely see your passion for Apple, and we can see it reflected on your blog Apple Investor as well. Speaking of which, what are your goals for the blog, and what can we look forward to going forward?”

Apple Investor is transitioning to a membership site focused on the needs of investors that trade/invest in Apple (AAPL). It’s a focused niche, but it has all the elements to support a successful venture. There are huge numbers of investors that are passionate about Apple stock, and they’re as passionate about the stock as others are passionate about Apple products. They all require information and knowledge that are specific to the industry and markets that affect their favorite stock, and I intend to deliver that to them.

The site will offer commentary through the blog, daily market alerts, online tools and resources, and educational videos on technical analysis.

Over the past two years, I have worked very hard in my spare time to develop a brand: The Apple Investor. That has been realized through social media, such as blogs, iTunes and Twitter, in which I have nearly 50,000 followers. My next big social media push will be video with YouTube and UStream. Over the past few months I’ve been working with several joint venture partners towards a late January launch.

Thanks Ernie for sharing your passion.  For those of you who are or are considering investing in Apple, make a visit to Ernie’s site.  It’s worth a visit.

Mark’s interview questions came to life from many of his followers via the request feature.  The readers had a variety of worthy questions, and Mark responded with value adding stories.  Read on to get the wisdom of this informed trader with more than 30 years of experience.

“Mark, can you walk us through your career roadmap? I’d love to know more about your experience as a Ph.D., your involvement at the CBOE pits, and your career as a writer/blogger/educator.”

That question encompasses a bunch of topics and most of my lifetime.  After Brooklyn College, I went to Northwestern University in the fall of 1963, and fell in love with the Chicago area.  I spent 4 1/2 years at Northwestern, and when I was not in the lab conducting my research, I could be found playing bridge in local clubs.  I attended larger, out of town tournaments, when time permitted.

After graduation, I was hired by Monsanto as a senior research chemist in 1968, at what to me was a great salary of almost $17,000 per year.  I moved to a suburb of St. Louis and was soon transferred to Akron, Ohio.  That’s where I met Sandy, one of my bridge friends who was a branch manager for Bache (now part of Prudential), a national brokerage firm.  In 1976, he bought a CBOE membership and was commuting home on weekends (and found time to chat we me about his CBOE experiences) to be with his family.

I had already been trading options (since 1975) and was very interested in what he was doing.  To make a long story short, a relative of his wanted to buy a CBOE seat, but wanted someone else to do the on-floor trading.  That’s when Sandy recommended me.  I met with the seat owner, we connected, and he hired me.  Thus, there’s not that much to report about my experiences as a chemist.  It was a short career

I received some training by First Options, a clearing firm, including the fact that options have theoretical values.  I learned how to use the computers of that time and learned how to value options – something that many of the market makers at the time eschewed.

Stories about the pits are not easy to describe.  It was constant personal battles in our pit.  Other pits acted as a group; ours provided very competitive markets for the public customers.  We did anything to undercut each other, to the benefit of our customers.  That’s not the path to big profits for market makers, and one of the main reasons I reject all those who blame market makers for any and all problems they have when trading options.

“Well, you have had quite a change migrating from Ph.D. in Chemistry to market maker.  What was the motivation behind it?”

This is not going to sound ‘right,’ but I never loved chemistry.  I was good at it, and just continued taking classes.  I had no real career guidance and had no idea that this was not a good profession for me.  I had always loved the idea of playing games, and trading is a very big game with very big prizes.  I never gave any consideration to becoming a trader, until offered the opportunity to trade for a living.  I made a quick decision to try it.

As an avid game player, I found trading to be thrilling and a real-world, full-time game. The ability to work for myself, the chance to earn some good money, and I suppose the ability to leave the laboratory and work in an exciting environment was too much to resist.

“Can you tell us more about your trading experiences? In particular, what were some of the obstacles faced throughout your career? Any hard lessons learned?”

I faced one huge obstacle: Mark Wolfinger.  I was given excellent advice and guidance.  I was told how important it was to minimize risk and protect one’s assets.  I heard it, but so what?  I was gaining confidence quickly and understood how to make money. However, that big obstacle, whose badge was ‘WOL,’ got in the way.  I took risks, collected the rewards, and took more risks.

Eventually I lost the risk wager and took a big hit when the market surged in Apr 1978.  I was just short too many call options, naked.  I had not covered my shorts when I could have paid 1/8 or 1/16 (we traded in fractions at that time).  Why waste money buying back worthless garbage?  Today, I know better, and do what I can to pass along that lesson.  Some listen; some don’t.  It’s one of life’s lessons that cannot be taught by listening to others.  Too many traders need to get hammered for themselves before they get it.

“Discipline” is the name of the game.

“So how did you become the expert in options? What does it take to get there?”

I try to keep things as simple as possible; I do not try to earn the maximum edge on every trade.  I do not go to the expense of trading flat (neutral) every Greek.  I do not try to trade for a few pennies per trade. That’s for big time professionals with huge computer power and large trading staffs.  I concentrate on strategies that are easy to understand and for which the risk can be managed.

My expertise is in education.  I’m well-suited to be an educator for the world of rookies and beginners.  Sure, I can provide guidance for the more experienced traders, but my ‘expertise’ is in making the world of options understandable to the person who wants to learn how to use options.

I’m not a believer in recommending specific strategies as the solution.  I’m nothing like those online hypesters who claim ‘make 10% every month.’  Instead I’m a believer in teaching people to make their own decisions.  I explain what I do for my trading and the rationale behind my choices, but always make it clear that these choices may be unsuitable for the client or reader.  Thinking for yourself is where my emphasis lies.  To me, that’s the best way to be fair to the readers and give them the best chance to succeed.

To ‘get there’ is similar to many things in life.  Practice and more practice.  That does not mean only paper trading.  It means trading and learning.  There’s a popular theory among psychologists that it requires 10,000 hours of practice before you can call yourself an expert.  That’s a long time and requires dedication.  I have no idea if it applies to options trading, but no one can become an expert overnight.

“Right.  That’s for sure.  Now, what is your current trading style?”

I sell premium, but never naked.  The only exception, and I seldom do this, is to sell a naked put if and only if I want to buy shares at a discount to today’s price. I also sell credit spreads, often as iron condors.

Furthermore, I protect the downside because I think this economy is a disaster and I do not understand why the DOW is 10,000 and not 5,000.  I am not a good prognosticator, so cannot afford to trade from the short side.  However, I can own positions that earn a profit on a black swan opening.

Lastly, don’t be greedy.  Don’t wait for expiration.  Don’t collect the last few nickels on a trade.  Adjust positions when needed (or before it’s needed) to preserve assets.

These are the hallmarks of a very conservative trader.  I was much more aggressive in recent years, and I would never encourage anyone to own a portfolio that is similar to mine.  But I encourage accepting my belief that successful risk management is the key factor that determines a trader’s long-term success.

“Lastly, what is your perspective on trading for a living?”

It’s difficult.  It takes discipline, and it requires one not to depend on profits immediately for living expenses.  While it’s true that some strategies may provide earnings immediately, you cannot assume immediate success.

A professional trader cannot ‘need’ to make money this month to pay the bills.  Therefore, if you have the comfort of a cash reserve, if you have the patience to learn, if your family is supportive, if you learn before trading, and if you gain some experience first, then you have a chance to become a successful, full-time trader.

Now keep in mind that not everyone can succeed at this profession just as not everyone can be a professional athlete.  There are psychological considerations and personality traits that play a big role.  If you have no discipline, you have no chance (unless you want to gamble, and I don’t recommend that.)

Mark, thanks for the pleasant conversation.  Many readers are learning from your wisdom, and we hope you continue to educate the curious.

He kindly agreed for an interview recently and has shared his knowledge on the CANSLIM system along with the valuable lessons learned through his nine years of experience.

“So Peter, you had a career in IT/engineering working for Microsoft, and you’re now trading full-time after retirement.  What else can we know about your background?”

At Microsoft, I worked on identifying new technologies for Windows experience, which now comes in handy for finding tech stocks. I also like to backtest and think about ways to analyze stock data. One idea I’m kicking around is an intelligent backtester, so instead of guessing which indicators to use, the backtester will make its recommendations.

I got into investing after retiring from Microsoft in 2001 and seeing my financial advisor lose 53% of my portfolio during the internet crash.  He sold nothing during this time. After much research, William O’Neils’s CANSLIM  made the most sense to me.  He’s a computer guy and pioneered the use of computers to analyze stocks. In fact, his research group has backtested charts dating back to the 1890’s, using US and foreign market data.  I also liked how stock selection is based on both fundamental and technical analysis, profits never fall below 7%, and CANSLIM’s very accurate market timing system.

“You’ve been investing for quite some time. Over your investment career, you’ve seen both the bullish and the bearish times.  Can you share with us some of your most successful and unsuccessful trades you’ve had in the past?”

Most successful is BIDU, a 97% profit in 9/07. I bought it on a cup with handle breakout and sold it at the top as it triggered one of my sell rules. Worst buy is SKF, a 33% loss, in 7/08. I locked in a 21% gain, got greedy and tried to go for more.

“What has been the most important learning from these experiences?”

Hard work and discipline. I like the John Wooden quote, “The harder you work, the luckier you get”. For trading, the more time is spent building a repertoire of proven stock setups, the better your chances of finding your next winner. Discipline is important to keep emotions out of trading. As much as possible, I follow a set of rules and have a plan before the market open. This was the difference between BIDU and SKF.

BIDU was a textbook CANSLIM trade. Buy on a cup with handle breakout, sell on my rule to hold for 8 weeks if it gained 20% in less than 3.  On the other hand, SKF was a textbook emotional trade. I was being featured in the Investor’s Business Daily newspaper and was trying to get my returns up for the article. Already up 21% on a very volatile ETF that was going parabolic, I ignored the rules and let my greedy emotion keep me in.  Sure enough, SKF gapped down more than 20% at the open, and continued to tank from there.

“Can you tell us more on your trading strategy?  I’d love to know more about CANSLIM.”

I like to think of my strategy as “stock whispering” and it involves getting a reading of the market trend and action of leading stocks.  Market trend is important, as most  stocks will follow this. This market status is updated daily in The Big Picture Section on investors.com or http://twitter.com/ibdinvestor. When the market is moving in the right direction, focus on the leaders. These are stocks with accelerated earning and sales, and confirming price and volume action. Getting down to the nuts and bolts of my strategy, I created over 300 rules to navigate my moves.  Each one can be traced back to studying CANSLIM seminars, books, and William O’Neil interviews.

“As you know, there are various methods to trading, and many succeed in various ways.  Do you believe in investment methods other than CANSLIM?”

Yes, in fact, CANSLIM was derived from the work of other great investors: Jesse Livermore, Gerald Loeb, Nicolas Darvas, Stan Weinstein. I have also spent time with Gil Morales and Chris Kacher, William O’Neil superstars, and I am a subscriber to their newsletter on gilmoreport.com.  Furthermore, Fred Adrich, a childhood friend of William O’Neil, has a very good newsletter at stratinv.com.  These three guys have lifetime returns well over 1000%, and studying their newsletters will shave off years of self study.

Thanks for sharing your expertise on the CANSLIM system Peter.  There are many systems that investors employ for investing.  What’s important is choosing the right strategy that works for you, because what works for one may not work for the other.  On that note, CANSLIM is certainly an established system worth peaking at.

Now several years into his blogging journey, he has joined the leagues of StockTwits Premium service.  In addition, he is a Seeking Alpha Certified contributor with over a thousand published articles.  Regardless of the platform, it is certain that his insights have helped hundreds of investors in the financial community throughout the years.

Today, he shares his background on how he got to where he is today as well as some of the other prominent players he respects in the investment community.

“Todd, you are now providing insights to thousands of followers as a StockTwits Premium member.  How did you get here?  Can you give us more on your background?”

I have been investing and running businesses for decades. My first business was a swimming pool installation company in Syracuse NY that paid for my college education. I am not sure someone can be a good investor unless they have actually run a business.  There are things you learn in the process that no school will ever teach you.

I have been managing family money for a while now, and three years ago I was in a position to start writing and investing full time.  So I just started writing since and the blog seemed to finds its way.  I try to be careful not to try to write for an audience, page views or anything like that. Just writing my thoughts about the subject of investing that I enjoy the most has taken me from a small blogger platform to where I am now. No reason to mess with it now I guess.

“What was your field of study in school?”

I studied Economics and Management Science

“What about investing that interests you the most?”

Finding an investment few other are interested in.  It is like solving a big puzzle.

“I often see praises from others about your solid stock picks.  I don’t doubt that these picks derive from good research and effort.  Now, what are some of the resources you find invaluable to your analysis and ideas?”

Valueline, SEC, Corporate websites, and reading just about anything.

Some of my best ideas have come from just looking around me.  For example, I am an E-trade customer and noticed the improvements they were making in their services.  This caused me to look into the stock. Similarly, Natick Mall in MA is a GGP property, and I watched that mall grow. So I have been watching the stock for a while, and I bought the stocks this March.

“You are very involved in the StockTwits community.  Now, who are some of the fellow StockTwits community members you follow and respect?”

@aiki14, @wsmco, @upsidetrader, @zippertheory, @dasan, @fundmyfund, @gregormacdonald @howardlindzon just to name a few. They are a combination of fundamental, traders, and macro investors. I like to know what the varied groups are thinking. For those who are interested in more names, just check out those people I follow on Twitter.

“Can you tell us more about ValuePlays.net?  Why did you start it?  What can we expect as a premium subscriber?”

I stared the blog three years ago as a simple way to write down my daily investing thoughts. From there it took on a life of its own. In September, we switched to the paid .net model. At ValuePlays.net, subscribers get access to buys/sells as they are made, the analysis of current trades, and other potential picks we may be following. Eventually, we release the picks to the general public, but in almost all cases after significant gains have already been made.

“Lastly, what are the key aspects of investing that make you a better investor?”

I eliminate as much “noise” and “expert opinion” as possible. However, if I do happen to watch financial TV, it is Bloomberg. In value investing, I have found a style of investing that fits my temperament perfectly. I have tried others in the past and my results were modest. I suggest other investors only use a style that fits who they are. People who are chartists or day traders simply cannot be value investors; it is a totally different mindset. The converse of course is also true.

Thanks for sharing your insights and your history Todd.  From swimming pool installation to full-time investing, absorb his know-how on how he got there and gain his edge by leveraging ValuePlays.net.

Now lucky for us, we get to explore his thoughts and perspectives on the market not only through his appearances on BNN, CNBC, Bloomberg, WSJ, USA Today, Barron’s, Reuters, CNN, MarketWatch, BusinessWeek Online, and The Street.com, but also through his blog, Financial Armageddon, which he manages daily.  In our recent interview, Michael shared the personal aspects of his life instead of focusing on Wall Street related questions.  Learn about how he leveraged his programming skill to get into Wall Street more than 20 years ago.

“How did you get into the world of investing?  What did you study in school?  What led you to this career of yours as a writer, blogger, and a trader?”

It was actually pretty accidental.  In fact, I had a degree in English from Columbia University.  So it wasn’t that well planned coming out of college to walk into Wall Street.  However, investing was always an appeal of mine.  The whole notion of the market being a puzzle got my attention — I wanted to figure out the puzzle and put the pieces together.  It was certainly an intellectual challenge, and that drew me into it.

When I came out of the school thirty years ago, Wall Street had different requirements for entry. So it was more luck than skill back then to get into Wall Street with an English degree.  I actually started working in a bank first doing some programming.  So it was initially programming that opened up the doors to more opportunities.  This led me to the start of my trading career, first in foreign exchange.

“Programming.  That’s interesting!  Do you still program as a hobby?”

Not really.  I was interested in it because it was logical, but I no longer have the capability that many programmers have today. Quite frankly, I wasn’t interested in it enough to pursue further.

Wall Street is far more intriguing – it entices me to figure out where the world is headed every day.  The challenges and the mysteries of the financial markets have attracted me for the past 25 years and will continue to do so.

“So given your degree in English, it makes sense that you’re now managing a blog and writing books.  You have been able to leverage your passions together to make your career successful. “

I never knew the connection would be there between writing and markets, at least initially.  For a long time, I didn’t do much with my writing background, but it did help me communicate.  However, it may also have helped me better organize my thoughts, ideas, and approach to looking at the world.

“You have a wide array of experiences working for different firms within Wall Street.  What were some of the experiences you enjoyed and recommend? What were some of the experiences you don’t recommend?   What were some of the most valuable experiences that helped you with your development?”

One thing I’ve learned is that humans aren’t built to be good traders.  We make mistakes, we make irrational decisions, and we naturally lack discipline.  I don’t want to discourage anyone, but I think experience plays a big role in one’s success as an investor.  According to one book I read recently, called Outliers, by Malcolm Gladwell, there seems to be a commonality amongt very successful individuals.  According to Gladwell, it takes an individual 10,000 hours of effort in order to master something.  When I look back at my career, I know I’ve invested over 10,000 hours of time studying the art of investing.

Now, what I’ve learned from this experience is that you can’t just count on one thing.  I used to think I could depend solely on technical analysis to trade successfully.  However, I’ve learned that it requires a wider perspective.  You have to be cognizant of the macro picture, the fundamentals of the companies and industries involved, and the interrelationships of the world economy.  Furthermore, technical indicators should help your guidance on entry and exit points.  Lastly, you can’t always take a logical approach to Wall Street because the market is illogical at times.

“That’s a great advice.  Thanks Michael.  Now, on a separate topic, why did you start your blog, Financial Armageddon?”

Well, as you know, I’ve written several books in the past that detail my ideas about what’s ahead for the market.  However, I’ve realized that I can’t put all of my thoughts into a book because the dynamics are always changing.  So blogging was a good opportunity to expand on some of the concepts I discuss in my books.  Also, it gives me a chance to get the word out that there are things to be concerned about in the current environment.

Furthermore, blogging requires me to write about the market and my thoughts every day.  This forces me to stay on top of what’s going on around me.  I keep an eye on the derivatives market, the credit markets, politics and regulations, the economy, and the network of relationships among the global markets.   I believe many people overlook at least some of these factors every day.  So I want to increase the awareness level through my writing.

“So with everything you’re doing currently, what does your typical day look like?”

Well, I’m a trader on Wall Street during the day, but I keep that low key. Blogging and writing are completely separate from my trading career, so it’s almost like having a double life.

“Michael, it is clear what your stance on economic outlook is.  Now, do you have any suggestions or advice to the younger generation who may be pursuing a career in Wall Street or money management in general?”

The past few decades have been the exception when it comes to the size of the financial sector relative to the rest of the economy.  I don’t think this will be the case going forward.  I think the industry will shrink, and it will be harder to find the types of opportunities that were available before.

I don’t want to discourage anyone, but I think it will require more effort, passion, and determination to pursue opportunities in Wall Street in future than in the past.  However, if you approach the market with the right attitude, the opportunities can be found.

“So what drives you the most about your career?  What can the aspiring investors keep in mind to stay enthusiastic?”

I think Wall Street is a great place to be challenged.  Because of the dynamics, you’re constantly trying to figure things out.  There are factors that are in flux every day, and thinking about the market is exciting and stimulating.  Yes, the money has been good and it’s important, but I would probably have found my way to Wall Street regardless of how much it paid.  To me, it’s about the intellectual stimulation.  So if you’re looking for a challenging environment, this industry won’t disappoint you.

He earned his high IQ through great returns, discipline to his strategy, and solid research (you can reach his recent one here). In our interview, he shares with us some of his personal interests, background, and the family advantages he leverages on Wall Street.

“Mike, can you tell us more about BlueCut Capital and how it got started?”

BlueCut Capital began when my brothers and I started www.bluecutmarkets.com and its predecessor. We each function in different capacities within the financial industry (asset management, trading, and private equity), and the website has been a forum to exchange ideas and share relevant research and commentary. Originally, the site was for just the three of us, but now has developed a strong following. BlueCut Capital formed as a vehicle to invest according to the ideas and research that were developed thru this collaboration.

“What is your personal background? We’d love to hear more about your educational background, your past experiences, and anything else that will help us get to know you better.”

I am currently an institutional investment consultant, focusing on private equity. Our firm works with Endowments, Foundations, Not-for-Profit Organizations, and Public Funds. Previously, I worked in investment banking. My oldest brother works in the long only asset management space. My younger trades currency and commodities. They are a great informal resource for me in the idea generation and research side of running the portfolio. However, as the portfolio manager, I make the ultimate investment and trading decisions for the kaChing.com portfolio. Having inputs from different viewpoints allows BlueCut’s investment style to be unique.

“BlueCut Capital is currently in a unique position at kaChing. You currently possess a high kaChing IQ, qualifying you as a Genius investor. However, your 1 yr performance has been lagging behind some of the other Genius investors. Can you tell us more about some of the drivers behind this? What this tells me personally is that you are sticking to your core strategies with confidence despite the short-term performance. Furthermore, you possess a higher kaChing IQ because of your high quality research and a good historical performance. I’d love to hear your thoughts on this.”

First of all, my primary concern is generating positive returns moving forward. I run the portfolio according to what I see developing in the future, not what has happened in the past. The strategy does not aim to mirror one particular index; the returns could look outstanding or terrible when compared to a specific benchmark at a particular period in time.

For example, as of today the portfolio is up over 40% year to date, 70% off the March low and 185% since inception. However, over the last 12 months we’re lagging the S&P 500. I’m well aware of the performance derby that goes on in the institutional asset management space and the flow of capital into those with the best trailing performance. I’m not interested in participating in that game by taking positions in order to keep pace with index performance. There are plenty of mutual funds that charge a lot of money to do that while providing mediocre relative returns.

Research is an important part of the portfolio management process, so I’m glad that it has been received favorably.

kaChing gives investors the ability to vote whether or not they like the philosophy with their checkbooks. So far, we have not been embraced on the site with respect to customer assets following the portfolio. Hopefully, this will change as investors become more comfortable with our strategy. Again, the goal is not to replicate an index, but to develop investment and trading ideas that contribute to significant outperformance over a market cycle. The performance since inception speaks to BlueCut’s ability to do this so far, but is no indication of future results.

“As you know, kaChing is transforming the way investments are made, providing additional channels to consumers and money managers. How will kaChing change the dynamics going forward? “

I think kaChing will prove to be a revolutionary platform for money managers to demonstrate their skill. It gives anyone the ability to see exactly what I am investing in, and why I’m making those decisions. kaChing allows the average person to monitor the holdings of a select group of investing “geniuses” with strong track records prior to investing with them, and decide whether or not they like the manager’s style. Since the idea is still new, I think it will take some time for people to adopt the concept of investing with “geniuses”. However, over the long term, I believe investors will move a portion of their investment assets away from traditional actively managed mutual funds to qualified kaChing managers.

“Lastly, what do you enjoy doing outside of Wall Street?”

My brothers and I are all very avid tennis players. Each of us played in college and we continue to play now. It helps relieve some of the stress of being on Wall Street.

It’s always great to meet a fellow tennis player. Thanks Mike for your story.