Friday, 14 October 2011
SGX market update news
http://www.sgx.com/wps/wcm/connect/design_new/site/sa/news_flash?presentationtemplate=design_new/PT_Print_Friendly
Wednesday, 12 October 2011
Peter Lim - king of remisier secret to successful investing
Peter Lim king of remisier secret to successful investing
1) Prospect
2) Patience . 10 years
3) Longer term mindset.
WHAT is Peter Lim's secret to successful investing?
Prospect, he replied.
He looks at sectors.
'Like if I think solar is good, I go into solar; if I think palm oil is good, then palm oil.
'Share prices go up because the sector grows. So if I think this sector is going to be good in the next 10 years, then I'll just invest in it.'
Another key reason for his success, he said, is patience.
Mr Lim, who also acts as a consultant to companies and helps them find multi-million-dollar investors, does not subscribe to buying one day and selling the next to cash in.
His advice to young investors: 'You have to invest with a longer-term mindset. You buy a good stock, leave it there for 10 years. Come 10 years, this dollar can be many, many multiples.
'I think the trick is really to think long-term.
' You may not have a lot of money, but you have a lot oftime.'
'The minimum length of my investments are five to six years, if not 10 to 12 years.'
He cites the example of his condominium.
He owns an entire 11-storey block at prestigious Ardmore Park, near Orchard Road. He and his wife, with his 85-year-old mother, live in one apartment, while three other maisonettes and the penthouse sits empty.
'I bought it in 1994 for $13m and I just hold there and wait. With the current property market, it is worth more than $100m.'
Same with Wilmar, which he invested in in the early '90s. It was then a US$10m investment. Now, his stake is worth some US$700m.
Information extracted from http://finance.kampungtalk.net/2007/08/stock-market-turmoil-singapores-7th-richest-man
1) Prospect
2) Patience . 10 years
3) Longer term mindset.
WHAT is Peter Lim's secret to successful investing?
Prospect, he replied.
He looks at sectors.
'Like if I think solar is good, I go into solar; if I think palm oil is good, then palm oil.
'Share prices go up because the sector grows. So if I think this sector is going to be good in the next 10 years, then I'll just invest in it.'
Another key reason for his success, he said, is patience.
Mr Lim, who also acts as a consultant to companies and helps them find multi-million-dollar investors, does not subscribe to buying one day and selling the next to cash in.
His advice to young investors: 'You have to invest with a longer-term mindset. You buy a good stock, leave it there for 10 years. Come 10 years, this dollar can be many, many multiples.
'I think the trick is really to think long-term.
' You may not have a lot of money, but you have a lot oftime.'
'The minimum length of my investments are five to six years, if not 10 to 12 years.'
He cites the example of his condominium.
He owns an entire 11-storey block at prestigious Ardmore Park, near Orchard Road. He and his wife, with his 85-year-old mother, live in one apartment, while three other maisonettes and the penthouse sits empty.
'I bought it in 1994 for $13m and I just hold there and wait. With the current property market, it is worth more than $100m.'
Same with Wilmar, which he invested in in the early '90s. It was then a US$10m investment. Now, his stake is worth some US$700m.
Information extracted from http://finance.kampungtalk.net/2007/08/stock-market-turmoil-singapores-7th-richest-man
Investment styles I (Time)
http://finance.kampungtalk.net/2008/01/investment-styles-i-time
So what kind of investor are you? Are you a typical 25 year old with not much spare cash, some debts, willing to take lots of risk, and will put in money every month? Or are you a 50 year old, semi retired, got $500k in the bank, and looking for stable but not necessarily high returns.
Those are some of the questions you've gotta ask yourself before you start to invest. Questions pertaining to: Time horizon, Risk portfolio, Active/Passive investing, types of research, amount of capital, etc..
While I won't go into all those topics on personal finance (for now), lets just look at how all these factors do affect your investment styles.
Time
Time is a very important element of investments. It is time that actually gives us the exponential growth of the compounding effect. As you would have already read about the compounding effect in the first article, you can see how making profitable investments as early in life can result in a large fortune 30-40 years down the road.
When most people talk about time in investments, they usually look at the time horizon. This basically means, how long are you able to hold the investments for. This doesn't mean how long are you going to hold the investment for. It just means, given that all the conditions for that particular investment is correction, will you continue holding it for 1 year, 5 years, 10 years? An investor with a long time horizon might decide to get out of the investment after 1 month, because he decided that the conditions present when he first made the investments is now gone. An example could be investing in the middle east could have been a good investment for the long term, but suddenly when there is a war, then it would probably be prudent to get out of there.
Just looking at this, it can generally be said that younger people would have a longer time horizon than older folks. A person can't just base his time horizon on that though. Perhaps, you are 25 years of age, and you are looking to get married in 5 years time, have 2 kids, and planning to buy a condominium. Then in fact, for a large part of your capital, your time horizon is only about 5 years at most.
On another aspect, time is also a factor in deciding your investing style. That is, your trade time span. Here would be where you determine if you are a day trader (who is someone who buys and sells within the day), or a buy-and-hold investor (someone who buys and hold till he dies). Of course, you can be anywhere in between, from the scalpers to the swing traders, to the sector players, to the cycle traders. Lets look at some of them.
A day trader is basically a person who does not hold any position overnight. The idea of this is that you are not able to quantify the external risk caused by the overnight movements. So the day trader might buy a stock in the morning, and sell it buy lunchtime, or maybe before market closing.
A scalper, is a specialised typed of day trader. The idea behind that of a scalper is to catch small movements that happen regularly in the day, by taking huge positions. For example, a scalper might buy a stock at 50cents, and sell it at 50.5cents. Though, he would probably buy a huge amount to justify his time and effort in that trade.
A swing trader, is a person who believes prices have some form of momentum behind it. Thus, he might buy a stock, and hold it for a couple of days, to a week or 2 at most. He would exit the position when he feels that the momentum behind it has waned or reversed.
A cycle trader/sector player, believes that the market moves in cycles or waves. As such, he would try to position himself at the beginning of a cycle/sector and ride it all the way to the top. Most of the time, the holding period could be days, weeks, or sometimes months.
A value investor, could be a person that seeks for companies that seem to have its value mispriced to the market. As such, he tries to position himself into such stocks, and would sell of when the stock becomes fairly priced. These kind of plays, are usually weeks to months usually.
A buy-and-hold investor, someone like Warren Buffet, is someone who believes that only companies with future growth potential should be bought, and that companies currently in vogue should not be bought just because its the new hot stories. To someone like him, its basically companies that will survive the economy for many years to come. Such investors, generally buy good companies, and plan to hold it forever, while collecting any dividend payouts and capital growth.
While the descriptions above seem to be fairly rigid, traders and investors actually fall into many categories at the same time.
Above information extracted from
http://finance.kampungtalk.net/2008/01/investment-styles-i-time
Learn more about investment style II on Risk
http://finance.kampungtalk.net/2008/01/investment-styles-ii-risk
So what kind of investor are you? Are you a typical 25 year old with not much spare cash, some debts, willing to take lots of risk, and will put in money every month? Or are you a 50 year old, semi retired, got $500k in the bank, and looking for stable but not necessarily high returns.
Those are some of the questions you've gotta ask yourself before you start to invest. Questions pertaining to: Time horizon, Risk portfolio, Active/Passive investing, types of research, amount of capital, etc..
While I won't go into all those topics on personal finance (for now), lets just look at how all these factors do affect your investment styles.
Time
Time is a very important element of investments. It is time that actually gives us the exponential growth of the compounding effect. As you would have already read about the compounding effect in the first article, you can see how making profitable investments as early in life can result in a large fortune 30-40 years down the road.
When most people talk about time in investments, they usually look at the time horizon. This basically means, how long are you able to hold the investments for. This doesn't mean how long are you going to hold the investment for. It just means, given that all the conditions for that particular investment is correction, will you continue holding it for 1 year, 5 years, 10 years? An investor with a long time horizon might decide to get out of the investment after 1 month, because he decided that the conditions present when he first made the investments is now gone. An example could be investing in the middle east could have been a good investment for the long term, but suddenly when there is a war, then it would probably be prudent to get out of there.
Just looking at this, it can generally be said that younger people would have a longer time horizon than older folks. A person can't just base his time horizon on that though. Perhaps, you are 25 years of age, and you are looking to get married in 5 years time, have 2 kids, and planning to buy a condominium. Then in fact, for a large part of your capital, your time horizon is only about 5 years at most.
On another aspect, time is also a factor in deciding your investing style. That is, your trade time span. Here would be where you determine if you are a day trader (who is someone who buys and sells within the day), or a buy-and-hold investor (someone who buys and hold till he dies). Of course, you can be anywhere in between, from the scalpers to the swing traders, to the sector players, to the cycle traders. Lets look at some of them.
A day trader is basically a person who does not hold any position overnight. The idea of this is that you are not able to quantify the external risk caused by the overnight movements. So the day trader might buy a stock in the morning, and sell it buy lunchtime, or maybe before market closing.
A scalper, is a specialised typed of day trader. The idea behind that of a scalper is to catch small movements that happen regularly in the day, by taking huge positions. For example, a scalper might buy a stock at 50cents, and sell it at 50.5cents. Though, he would probably buy a huge amount to justify his time and effort in that trade.
A swing trader, is a person who believes prices have some form of momentum behind it. Thus, he might buy a stock, and hold it for a couple of days, to a week or 2 at most. He would exit the position when he feels that the momentum behind it has waned or reversed.
A cycle trader/sector player, believes that the market moves in cycles or waves. As such, he would try to position himself at the beginning of a cycle/sector and ride it all the way to the top. Most of the time, the holding period could be days, weeks, or sometimes months.
A value investor, could be a person that seeks for companies that seem to have its value mispriced to the market. As such, he tries to position himself into such stocks, and would sell of when the stock becomes fairly priced. These kind of plays, are usually weeks to months usually.
A buy-and-hold investor, someone like Warren Buffet, is someone who believes that only companies with future growth potential should be bought, and that companies currently in vogue should not be bought just because its the new hot stories. To someone like him, its basically companies that will survive the economy for many years to come. Such investors, generally buy good companies, and plan to hold it forever, while collecting any dividend payouts and capital growth.
While the descriptions above seem to be fairly rigid, traders and investors actually fall into many categories at the same time.
Above information extracted from
http://finance.kampungtalk.net/2008/01/investment-styles-i-time
Learn more about investment style II on Risk
http://finance.kampungtalk.net/2008/01/investment-styles-ii-risk
Making the actual trade
http://finance.kampungtalk.net/2008/01/making-actual-trade
Now that you have decided that you want to invest, and you have considered what is the investment style you would like to try, it is time to make the actual trade.
In Singapore, the stock market is open every weekday from 9am to 5pm, with lunch breaks at 12.30pm to 2.00pm. Before the market opens there is this session called pre-open from 8.30am to 8.59am. During this pre-open period, no trades are done, but people are allowed to submit their orders to queue, such that all these orders will then get done simultaneously at 8.59am before the market officially opens.
There is also pre-open session from 12.30pm to 1.59pm where people can queue in orders before they get executed at 1.59pm, where the afternoon session will commence. Finally, there is a pre-close session at 5.01pm to 5.05pm. These orders will then be matched at 5.06pm to close the day's trading activities. Depending on your brokerage firm, you would be able to queue for the next days session from 5.30pm or 6.00pm onwards.
Without going into too many advanced topics, how the pre-open, pre-close, the matching sessions and how to jump queue will be separated into another post. Watch out for it!
Executing a trade (a.k.a what do all those numbers on the screen mean?)
When you have decided which stock you would like to buy, the first thing you would do is to find the details of its current price.
In this example, the stock we are looking at is Singtel. Some numbers to note are, Last (3.86), BVol(289K), Buy(3.86), Sell(3.87), SVol(17K), Vol(28,715K)
Last basically means the last done price, or the most recent price that Singtel shares were transacted. Vol basically shows the total amount of stocks that has been executed today.
As you would notice, the volume numbers have a K behind it. The reason for this is that shares are traded in 'lot sizes'. In short, 'a lot' of Singtel shares is 1000 shares, thus, the smallest quantity of Singtel shares you can buy or sell at 1 time is 1 lot, or 1000 shares. That would mean 28,715K translates into 28,715 lots, or 28,715,000 shares, of Singtel has been transacted today,
Remember our fruits market example about queuing? In this case, there are 289 orders (or people) queueing to buy Singtel at 3.86, and 17 orders (or people) queueing to sell Singtel at 3.87. It is not displayed here, but in fact, there are people queueing to buy Singtel at 3.85, 3.84, 3.83, etc, and there are people queueing to sell Singtel at 3.88, 3.89, 3.90 and so on. This is called market depth.
Lets say now you have decided you want to buy Singtel. You have 2 options really.
1) You can choose to buy it immediately. What this means is that you go to the guy at the queue selling at 3.87, and offer to buy their shares from them. If you decide to buy 10,000 (or 10 lots) of it, the SVol(K) will decrease by 10. Resulting in a final number of 7. the Vol(K) column will correspondingly increase by 10, because that is the total volume of Singtel shares transacted for the day.
2) You think that you can get it at a better price. In this scenario, you will decide what is the price you are willing to pay for it, and stand in that queue for buyers. Assuming that 3.86 is a fair price you decide to pay, and you want to buy 10,000 (or 10 lots) of Singtel shares, what happens is tha the BVol(K) will increase by 10 to 299. As with all queues, you are now at the back of the queue. What this means is that there must be enough people who wants to sell Singtel shares at 3.86 until it reaches your queue position.
Now assuming you want to buy 20,000 (or 20 lots) of Singtel instead. You decide 3.87 is a fair price to pay, however, there are only 17 lots available for sale at 3.87. What happens?
The same mechanism comes into play. You walk up to the 17 sellers at 3.87, buy all the 17 lots. When that happens, you have 3 more lots you would like to buy. Now, you become the buyer at 3.87. Remember there are ready sellers at 3.88, 3.89, 3.90 and beyond? What happens now is, the number 3.86 would disappear from the Buy column, and it would be replaced with 3.87. The BVol(K), would now become 3, since that is the total number of lots willing to buy at 3.87. The Sell column would then be replaced with 3.88, and the SVol would be the number of sellers willing to sell at 3.88.
Really, its all just like a fruits market.
http://finance.kampungtalk.net/2008/01/making-actual-trade
Now that you have decided that you want to invest, and you have considered what is the investment style you would like to try, it is time to make the actual trade.
In Singapore, the stock market is open every weekday from 9am to 5pm, with lunch breaks at 12.30pm to 2.00pm. Before the market opens there is this session called pre-open from 8.30am to 8.59am. During this pre-open period, no trades are done, but people are allowed to submit their orders to queue, such that all these orders will then get done simultaneously at 8.59am before the market officially opens.
There is also pre-open session from 12.30pm to 1.59pm where people can queue in orders before they get executed at 1.59pm, where the afternoon session will commence. Finally, there is a pre-close session at 5.01pm to 5.05pm. These orders will then be matched at 5.06pm to close the day's trading activities. Depending on your brokerage firm, you would be able to queue for the next days session from 5.30pm or 6.00pm onwards.
Without going into too many advanced topics, how the pre-open, pre-close, the matching sessions and how to jump queue will be separated into another post. Watch out for it!
Executing a trade (a.k.a what do all those numbers on the screen mean?)
When you have decided which stock you would like to buy, the first thing you would do is to find the details of its current price.
In this example, the stock we are looking at is Singtel. Some numbers to note are, Last (3.86), BVol(289K), Buy(3.86), Sell(3.87), SVol(17K), Vol(28,715K)
Last basically means the last done price, or the most recent price that Singtel shares were transacted. Vol basically shows the total amount of stocks that has been executed today.
As you would notice, the volume numbers have a K behind it. The reason for this is that shares are traded in 'lot sizes'. In short, 'a lot' of Singtel shares is 1000 shares, thus, the smallest quantity of Singtel shares you can buy or sell at 1 time is 1 lot, or 1000 shares. That would mean 28,715K translates into 28,715 lots, or 28,715,000 shares, of Singtel has been transacted today,
Remember our fruits market example about queuing? In this case, there are 289 orders (or people) queueing to buy Singtel at 3.86, and 17 orders (or people) queueing to sell Singtel at 3.87. It is not displayed here, but in fact, there are people queueing to buy Singtel at 3.85, 3.84, 3.83, etc, and there are people queueing to sell Singtel at 3.88, 3.89, 3.90 and so on. This is called market depth.
Lets say now you have decided you want to buy Singtel. You have 2 options really.
1) You can choose to buy it immediately. What this means is that you go to the guy at the queue selling at 3.87, and offer to buy their shares from them. If you decide to buy 10,000 (or 10 lots) of it, the SVol(K) will decrease by 10. Resulting in a final number of 7. the Vol(K) column will correspondingly increase by 10, because that is the total volume of Singtel shares transacted for the day.
2) You think that you can get it at a better price. In this scenario, you will decide what is the price you are willing to pay for it, and stand in that queue for buyers. Assuming that 3.86 is a fair price you decide to pay, and you want to buy 10,000 (or 10 lots) of Singtel shares, what happens is tha the BVol(K) will increase by 10 to 299. As with all queues, you are now at the back of the queue. What this means is that there must be enough people who wants to sell Singtel shares at 3.86 until it reaches your queue position.
Now assuming you want to buy 20,000 (or 20 lots) of Singtel instead. You decide 3.87 is a fair price to pay, however, there are only 17 lots available for sale at 3.87. What happens?
The same mechanism comes into play. You walk up to the 17 sellers at 3.87, buy all the 17 lots. When that happens, you have 3 more lots you would like to buy. Now, you become the buyer at 3.87. Remember there are ready sellers at 3.88, 3.89, 3.90 and beyond? What happens now is, the number 3.86 would disappear from the Buy column, and it would be replaced with 3.87. The BVol(K), would now become 3, since that is the total number of lots willing to buy at 3.87. The Sell column would then be replaced with 3.88, and the SVol would be the number of sellers willing to sell at 3.88.
Really, its all just like a fruits market.
http://finance.kampungtalk.net/2008/01/making-actual-trade
What is stock?
http://finance.kampungtalk.net/2008/01/what-stock-market
Visit above link to learn more information.
What is the stock market? To some people, it is a gold mine. To others, it might be a strange place that does not belong in their 'world' and thus, something that should not be explored. And to the rest, its basically a legal casino.
Stocks, in a very general concept, represent ownership in a company. A stock market is not unlike a wet market where you bought your groceries from. The only difference, is that the people wear suits and they don't smell like fish.
Buying stocks in a stock market is very much like buying apples. Everyday, when the stock market opens, people who want to buy apples or sell apples will then gather in a large open field. Everybody's very civilised here, so they will queue up. At the front of the queue, it will be a big signboard saying how much this particular queue of people are willing to buy or sell apples at.
Lets say that today apples are currently worth 50cents. At the side where people want to buy apples, there are people lining up in the 49cents queue, the 48cents queue, the 47cents queue, and so on. On the side where people want to sell apples, there are people lining up at the 51cents queue, the 52cents queue and so on.
When a buyer who is queuing up decides he's really hungry and he wants an apple now, he will then go to the 51cents seller and buy the apples from him. Likewise, if a seller really wants to sell an apple, maybe because he ate apples for the past 20 years of his life, he goes to the buyers at 49cents, and sells to them his apples. When that happens, the price transacted at will be known as the last done price.
And that would only be for apples, which is liken to just a single company on the stock market. Thus, the stock market on the whole, is just like a really really huge wet market, with tons of different kinds of fruits, and thousands of buyers and sellers everyday.
Jump to the rest of the articles here:
Why invest
What is the stock market
How to invest and trade
Choosing a brokerage house
Investment styles I (Time)
Investment styles II (Risk)
Investment styles II (Research)
Making the actual trade
Recommended books
Similar posts
•What is bid, ask? And why can't I buy a stock for 0.5cent and sell it for 1cent immediately for profit?
•Making the actual trade
•Who decides the opening price of a stock? (How does pre-opening work?)
•What is the difference between IPO offer shares and placement shares?
•Why Invest?
•Investment styles I (Time)
•How to trade on the Singapore stock market?
http://finance.kampungtalk.net/2008/01/what-stock-market
Visit above link to learn more information.
What is the stock market? To some people, it is a gold mine. To others, it might be a strange place that does not belong in their 'world' and thus, something that should not be explored. And to the rest, its basically a legal casino.
Stocks, in a very general concept, represent ownership in a company. A stock market is not unlike a wet market where you bought your groceries from. The only difference, is that the people wear suits and they don't smell like fish.
Buying stocks in a stock market is very much like buying apples. Everyday, when the stock market opens, people who want to buy apples or sell apples will then gather in a large open field. Everybody's very civilised here, so they will queue up. At the front of the queue, it will be a big signboard saying how much this particular queue of people are willing to buy or sell apples at.
Lets say that today apples are currently worth 50cents. At the side where people want to buy apples, there are people lining up in the 49cents queue, the 48cents queue, the 47cents queue, and so on. On the side where people want to sell apples, there are people lining up at the 51cents queue, the 52cents queue and so on.
When a buyer who is queuing up decides he's really hungry and he wants an apple now, he will then go to the 51cents seller and buy the apples from him. Likewise, if a seller really wants to sell an apple, maybe because he ate apples for the past 20 years of his life, he goes to the buyers at 49cents, and sells to them his apples. When that happens, the price transacted at will be known as the last done price.
And that would only be for apples, which is liken to just a single company on the stock market. Thus, the stock market on the whole, is just like a really really huge wet market, with tons of different kinds of fruits, and thousands of buyers and sellers everyday.
Jump to the rest of the articles here:
Why invest
What is the stock market
How to invest and trade
Choosing a brokerage house
Investment styles I (Time)
Investment styles II (Risk)
Investment styles II (Research)
Making the actual trade
Recommended books
Similar posts
•What is bid, ask? And why can't I buy a stock for 0.5cent and sell it for 1cent immediately for profit?
•Making the actual trade
•Who decides the opening price of a stock? (How does pre-opening work?)
•What is the difference between IPO offer shares and placement shares?
•Why Invest?
•Investment styles I (Time)
•How to trade on the Singapore stock market?
http://finance.kampungtalk.net/2008/01/what-stock-market
Can I trade full time?
A good series and explanation about what you need to prepare for yourself to trade full time
Undercapitalized causes
Overtrading
Forcing trades. Lower your standard criteria to trade.
Excessive risk
Feeling behind. Pscychology.
Refuses to lose (snowball losses)
Averaging down trade to exit.
Attempt to nail turning points. Trying to catch top or bottom of market
Underestimating the difficulty of trading. Trading is against the brightest people.
Too much importance on one trade to bail you out of slump. Don't use one trade to make or break your trading
Blowing out. lose it all.
Get married to an opinion
- Major losses, feel the need to "make it up" of the losses.
- Loss of confidence. replace capital is easy, but not easy to replace confidence.
Protect your confidence, don't married to an opinion.
Capital tied up. missed opportunity.
Risk
Comfort with risk. Willing to take some risk, to lose money.
Able to accept winning / losing
Maintain a level head. Regardless of facing tremendous opportunity or facing adversary
Support network. Family member, or spouse supporting you to trade
Needs
Monthly cashflow. Know what is your one year expenditure.Amount set aside.
Desire for stability? Trading involve losing, you may have down days, down weeks, down months. Compound your emotion
Discipline
- willing to put in the work
- Stick to your plan
- Avoid danger/ excitement. Trading can be boring.
PLAN
- A trading strategy that's working
- Understand risk per trade and sizing
- An exit strategy for every trade
- Willing to adapt to change
- What will you trade?
- When will you trade?
- Know when you will NOT trade! outline the boundary not to trade.
Video
Part 1 http://www.i3investor.com/servlets/fdblog/21956.jsp
Part 2 http://www.i3investor.com/servlets/fdblog/22287.jsp
Part 3 http://www.i3investor.com/servlets/fdblog/22807.jsp
Part 4 http://www.i3investor.com/servlets/fdblog/23104.jsp
Undercapitalized causes
Overtrading
Forcing trades. Lower your standard criteria to trade.
Excessive risk
Feeling behind. Pscychology.
Refuses to lose (snowball losses)
Averaging down trade to exit.
Attempt to nail turning points. Trying to catch top or bottom of market
Underestimating the difficulty of trading. Trading is against the brightest people.
Too much importance on one trade to bail you out of slump. Don't use one trade to make or break your trading
Blowing out. lose it all.
Get married to an opinion
- Major losses, feel the need to "make it up" of the losses.
- Loss of confidence. replace capital is easy, but not easy to replace confidence.
Protect your confidence, don't married to an opinion.
Capital tied up. missed opportunity.
Risk
Comfort with risk. Willing to take some risk, to lose money.
Able to accept winning / losing
Maintain a level head. Regardless of facing tremendous opportunity or facing adversary
Support network. Family member, or spouse supporting you to trade
Needs
Monthly cashflow. Know what is your one year expenditure.Amount set aside.
Desire for stability? Trading involve losing, you may have down days, down weeks, down months. Compound your emotion
Discipline
- willing to put in the work
- Stick to your plan
- Avoid danger/ excitement. Trading can be boring.
PLAN
- A trading strategy that's working
- Understand risk per trade and sizing
- An exit strategy for every trade
- Willing to adapt to change
- What will you trade?
- When will you trade?
- Know when you will NOT trade! outline the boundary not to trade.
Video
Part 1 http://www.i3investor.com/servlets/fdblog/21956.jsp
Part 2 http://www.i3investor.com/servlets/fdblog/22287.jsp
Part 3 http://www.i3investor.com/servlets/fdblog/22807.jsp
Part 4 http://www.i3investor.com/servlets/fdblog/23104.jsp
Tuesday, 11 October 2011
Thursday, 6 October 2011
Seminar
Seminar payment for a few hundred is acceptable, but payment for a few thousand is not acceptable.
The seminar content is what more important that the cost.
If the seminar content is going to help you gain an insight and help you in your investment, then you can go ahead.
Attend forex seminar. What do you want to achieve?
some forex seminar offer autotrading. You are basically buying the software and paying monthly subscription fee
Some forex seminar offer textbook information. You can easily obtain such information in textbook.
Some forex seminar offer the trader's trading experience. information about trader's experience.
What do you really want to learn about forex trading?
Below SGX website for seminars
www.sgx.com/academy
Before you attend the seminar, ask yourself "what in it for me?"
The seminar content is what more important that the cost.
If the seminar content is going to help you gain an insight and help you in your investment, then you can go ahead.
Attend forex seminar. What do you want to achieve?
some forex seminar offer autotrading. You are basically buying the software and paying monthly subscription fee
Some forex seminar offer textbook information. You can easily obtain such information in textbook.
Some forex seminar offer the trader's trading experience. information about trader's experience.
What do you really want to learn about forex trading?
Below SGX website for seminars
www.sgx.com/academy
Before you attend the seminar, ask yourself "what in it for me?"
Wednesday, 5 October 2011
Fundamental or Technical analysis? No, Sentiment most important
Fundamental or Technical analysis? No, Sentiment most important
Good stock based on fundamental analysis means you might want to consider buying
Technical analysis indicate a good level to buy.
Fundamental Analysis and Technical Analysis are not going to make guarantee profit.
Market sentiment MUST be in placed.
Note recent market downward move is due to Europe zone debt crisis and US weak economy.
Good stocks or bad stocks move downward.
This is because bad stocks downward and drag good stocks down.
People panic and sell all stocks.
Good stocks will be sold as people portfolio with bad stocks will have to pay their losses. In order to pay their losses, people will need to sell away their good stocks to pay for their losses.
Right now, even though stocks which are fundamentally good is a stock to buy, you cannot buy it now. The reason is simple, the market sentiment is still very weak.
You never know whether the good stocks will be affected by their domino effects financial crisis.
Don't buy when the market sentiment is weak.
Buy good stock when market sentiment is strong.
Good stock based on fundamental analysis means you might want to consider buying
Technical analysis indicate a good level to buy.
Fundamental Analysis and Technical Analysis are not going to make guarantee profit.
Market sentiment MUST be in placed.
Note recent market downward move is due to Europe zone debt crisis and US weak economy.
Good stocks or bad stocks move downward.
This is because bad stocks downward and drag good stocks down.
People panic and sell all stocks.
Good stocks will be sold as people portfolio with bad stocks will have to pay their losses. In order to pay their losses, people will need to sell away their good stocks to pay for their losses.
Right now, even though stocks which are fundamentally good is a stock to buy, you cannot buy it now. The reason is simple, the market sentiment is still very weak.
You never know whether the good stocks will be affected by their domino effects financial crisis.
Don't buy when the market sentiment is weak.
Buy good stock when market sentiment is strong.
CPF investment account
If you would like to use your CPF ordinary account to invest in Stock, you will need to open a CPF investment account.
You can
You can
Supplementary Retirement Scheme (SRS)
Supplementary Retirement Scheme (SRS)
Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings.
The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief. Investment returns will also be tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.
SRS Contribution
You and your employer (see note 1 below) are allowed to make SRS contributions in the current year if you are:
Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings.
The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief. Investment returns will also be tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement.
SRS Contribution
You and your employer (see note 1 below) are allowed to make SRS contributions in the current year if you are:
- A Singaporean, Singapore permanent resident (SPR) or foreigner who earns any form of income (eg employment income including directors' fees, trade income, rental income);
- At least 21 years of age;
- Not an undischarged bankrupt; AND
- Not mentally disordered and incapable of managing yourself or your affairs.
How to open SRS account
You can open an SRS account at the participating branches of any of the three SRS operators:- DBS Group Holdings Ltd
- Overseas-Chinese Banking Corporation (OCBC) Ltd
- United Overseas Bank (UOB) Ltd
Tuesday, 4 October 2011
Government debt likely to collapse the global economy
http://www.youtube.com/watch?v=rG1DUn8mMwk&feature=related
What is government bond?
What is the cause of financial economic collapse?
Why stagflation is scary?
All the answers are in the video
What is government bond?
What is the cause of financial economic collapse?
Why stagflation is scary?
All the answers are in the video
Global Financial Crisis Explained
http://www.youtube.com/watch?v=Q-zp5Mb7FV0&feature=related
What is leverage?
What is CDO?
What cause the downfall and global financial crisis?
All are explained in the video
What is leverage?
What is CDO?
What cause the downfall and global financial crisis?
All are explained in the video
Things news investor must know and do.
What you need to equip yourself .
1) Knowledge of financial products. Stock, bond, money market, options, futures, forex, CFD, ETF, dual currency, etc.
2) Observe market movement for at least 3-5 years.
3) To identify profitable opportunity. Timing is very important. Have a trading plan.
4) Willingness to risk for return. Cashflow 101 game. Learn about your purpose of investment.
5) Ability to withstand market move against you. Your psychology fitness. Open a demo Forex Trading account. Spend at least 1 hour to trade. Pick up one trading strategies. Learn one Technical Analysis.
6) Constant reading of financial market to keep abreast of latest information and market movement.
7) Learning about fundamental analysis, technical analysis and market sentiment to make timely and right decision investment.
1) Knowledge of financial products. Stock, bond, money market, options, futures, forex, CFD, ETF, dual currency, etc.
2) Observe market movement for at least 3-5 years.
3) To identify profitable opportunity. Timing is very important. Have a trading plan.
4) Willingness to risk for return. Cashflow 101 game. Learn about your purpose of investment.
5) Ability to withstand market move against you. Your psychology fitness. Open a demo Forex Trading account. Spend at least 1 hour to trade. Pick up one trading strategies. Learn one Technical Analysis.
6) Constant reading of financial market to keep abreast of latest information and market movement.
7) Learning about fundamental analysis, technical analysis and market sentiment to make timely and right decision investment.
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