What seems to be cheap got cheaper...

Ok I have loaded up Raffles last friday based on a technique from Tycoon Report. Basically, it talk about using moving averages to determine your entry and that fundamentals solid company will tends to rebound quickly when they break the 200MA. Using this technique, a friend of mine manages to make quite some profits from some counters.

Without giving another thought, i make my entry into Raffles Education @ 1.91 as it break the 200MA line.

Last Friday Today

OK from the above chart, I concluded whatever I brought turns into claypot. LOL, jus another learning process.

The other similar chart will be Midas. Both company are fundamentally strong company that got some scandals lately that caused their prices to fall sharply. But I never expect them not to (hold/trade sideways) under 200 MA.

Well, from this, I learn

1) you never know if the bottom the real bottom.

2) that we should wait for confirmation in reversal trend then make the entry.

Market Correction Part 2

A Raining Saturaday, seeing the Dow Jones performance again. it went down by another 208.10... Whao, that will be quite an impact to the world indices again. I glad that I did not manage to get hold of the STI ETF 100 yesterday as I could get it at a cheaper price on Monday.

Everything in the stock market will be dirt cheap now. Singapore Economy Q2 is strong, i may see Jospeh cycle prediction coming true, where STI will mark its peak to 4300. If you have cash, i believe this is a good opportunity to make entry into the market already.

Market Correction

Ok, the market went down as expected due to Dow bad performance last night. Everything gaps down and some even delcine further. Today should be a great shooping day for all yet i am out of cash, thus I turn to my alternative option, to use my CPF.

the STI ETF looks to be a great buy today and I set to 34.5. Well, it didn't hit my buy price again. It only manage to hit 34.74 the lowest, 0.24 cents higher then my buy price... I change my buy price a few time till i finally settle at 35 which is also the 1st in queue at that price...There are no kind souls to sell me at that price... and at 4.55pm or so... some investor got impatient and brought 300 shares at 35.79 make it close nicely to formed I think the term is call hammer..

Well, waiting to get is alway sian... that's life, let hope monday I may have the chance to get it.

STI Status: Our STI is finding its support at 50DMA now, I expect a rebound from there.

Uncle down having bad temper!!!

Ok, things look pretty bad on the world economic leader, I think Uncle Dow will gave markets around the world a tight slap to lower all the heat that has been genearate over the past few months. I believe that will be a good time to pick out undervalued stocks which may need to held for quite a while for the market to recover.

Hehe seems like got opportunites for STI ETF 100 lor keke.

Emotions Part 2

Feeling depressed in trading lately, perhaps I held too much anxiety in reaping profits and overstressing myself to make those them. In the impatient state of mind, I have made serveral fallecies in trading, especially on contra trades...

I remembered Master Dec say that trading should be fun... I think I gave myself too much pressure and trading became unenjoyable....
I will not be trading in the near term, will be just watching the market and do more research on the stock market.

As for stocks I currently hold, I will be reverting to investor role and continue holding them till it hit my target price.

Current position:
Realised NET LOSS: Ard 2700

Will continue to blog on and test my methodolgy before I make my entry into the market for a round 2 fight!

Managing Market Emotions (-_-")

When everything in my watchlist is rising without retracement while my holdings are trading sideways. I feel miserable and sad doubting my stocks selections. This has made me have the urge of doing contra on the winners on serveral occasions and today, I did put buy order for meiban grp 3 times and withdrew them.... The devils and greed in me and the worrisome mentality that I will miss out a good buy made me submit to the devil. However, I managed to withdraw my trades 3 times... it was difficult....

Urgh weak mentality... Must to trade within my capital... Still trying hard to learn that...

Important Note: Opportunities are always abound, do not be silly to look for short gains by putting a hugh amt of capital on stakes!

Insider Trading! Pac Andes after thought.

Glancing through the charts today, I come across another counter with what I will presume as "Insider Trading". I have spotted this in China Essence before. Charts below.

I expects some sideways trading and the a sudden surge in Gallant like ChinaEssence before.

Pac Andes thoughts:

The charts looks pretty bad, with the issue of rights for investors to subscribe, and the scandal on Midas that affect most china counters, Pac Andes seems to have more downside ahead... well will be keeping this counter on hope analysis now....

Some Sharing!

Ok, I understand that making investment in stocks may scare most of you my peers away! I will highlight one low risk investment that will yield significant returns. I know many of you will think what i mention is too good to be true and feels unconvincing about it. Well be patience, read on, and decides later.

Introducing to you the Fanastic Investment Vehicle!
TATA!!! Exchange Traded Funds!
I will just give the rough details of the STI ETF 100. Basically, it make investment in the top 100 performing companies when it started out. Now, it has strink the size to 50 and going to cut down further to 30.

This instrument is like unit trusts where professionals do their research and build up the fund with equities, bonds, currencies . Same things goes here and the professionals comes together to evaluate companies that will have strong performance and build the Exchange Traded Fund up.

The ETF is review yearly ensuring strong perfomers in the market constitutes to the fund, making the fund more valuable. Thus, it can be said this fund will just head higher very year with the slightest chance of heading down.

Investing in the STI ETF, you will be entitled to dividends as well and so far, it has effectively give dividends twice a year since 2002. With this, it edge out unit trusts as it constantly rewards its investors and from what i see has a faster gain then most unit trusts.

The best part of the story is 100% of your CPF-OA can be use to invest in it whereas only 35% of your CPF can be invested in stocks. With the ETF, you can easily beat the 2% CPF interest that the government gives with the dividends you get from it and you still get to have capital gains from what you invested.

Do give ETF a thought! There are other ETFs offer by Lyxor on Singapore Stocks Exchange, you may do more research on them before investing.

Over-Xposed... Poor Management In my Fund.

C & G Hldgs @ 0.68
CapitalandDBeCW070924 @ 0.155
Hiap Seng @ 0.73
Lian Beng @ 0.48
Longcheer @ 0.84
OKP @ 0.97
Pac Andes @ 0.92

Looking at my portfolio today, I felt overexposed. With a small capital, I am now holding 6 stocks and 1 warrants... hmm that has practically stretched all my available cash and even eat into my CPF...

This is unhealthy. Diversifying myself into many counters with little lots make my profits grow in a slow pace... Hmm, I will need to re-organise myself after selling some counters.

Proceeding On:
Without ammo left, I can only practices technical analysis on my charts now...
Alternate Options: Negotiate with my Mum for funding, but looking at my poor skills I doubt i will make that move...

Lessons: Too much Diversification with a Small Capital make you see slower/small profits... It will be better for Small Capital Beginner like me to hold just 2-3 positions.

Great Stocks Sale!

Over the last two days, Negative News has drove SGX to make lots of offers to the general public. Majority of the public erm ok perhaps maybe only me is too scare to enter on the previous two trading occasions. Today is the last chance but I am on External Seminar!!! Argh!!!

Finally manage to access a computer at 4.00 p.m.! Serveral prospective counters I wanted had flew... In the end, I loaded up with OKP with simple analysis. I have a lot of interests in this company as it builds all the roads in singapore and now it is expanding it business into oil industry collaborating a project with Rotary. I see it as a good headstart for the company to enter the lucrative oil business.

Featuring Midas

Midas has been a shock for many today especially to my fellow friend, Neo, who is heavily vested on it! Its prices kept free falling from the open price 1.84 till 1.30(beyond 200MA) where the company request a trading halt at 10.30a.m for investigation.

Midas is a aluminium leader in China's market with serveral hugh contracts under its wing!!! With such a high book order value, I believe many value investors were trying to get at a discount as it was extremely undervalued (OCBC give a target of 2.19 earlier on this year) in today's meltdown. I would also have enter positions if my poems trading platform didn't hang. Luckily, I was not able to place order.

The Meltdown is puzzling and everyone is desperate for news. A piece of news then come out from an article in China Cai Jing (now removed from Cai Jing web, content can be found here) that the director, Chen Wei Ping (rumoured to have stakes in Raffles Education and Sitra Holdings) was involve in a big bribery and that Midas is an empty shell.

Whew!! Thank God that I did not manage to get into any positions.

Neo was panic and lost when i reveal the news to him. He was in immerse thoughts thinking about ways to protect his capital but never took actions. Seeing his tension, I tried to clam him down.

After investigation, the company denies the allegations amde to the director and resume trading at 3.45p.m after lifting the trading halt. Prices soared to ard 1.73 and retrance back finding support at 1.43. With serveral uncertainties and fast price actions during the last hour, I could imagine the tension Neo was facing and he did not made ay actions

Reaching home, he did more research and discovered the article I give him was removed! Hmm, seem that it could be an unethical report/allegations (content of the report can be found here) made on the director.
To further confirm, he manage to find,
1. Its board of director consists of Chan Soo Sen, one of the MPs. Our MPs could not be investing in a shell company.
2. Another important evidence that has also recently declared it dividend, something that a shell company will not be able to do!

With this, he managed to develop his plans to execute tomorrow. Hope that he can ride through the storm.

Another China Company Allegations: Delong
All these alleagations has made me worried as I have 4 China counter. Hope that they are fine...

Market Rebound?

Attended Master Dec talk on KLSE yesterday. As usual, with his technical tools he always spice the crowd up.

Ok, back to the business, Master Dec give a few insights to watch out for Uncle Dow support @ 13350, hit that level, cut losses! Personally, I hated the idea cost when I cut losses on China Essence last weakness 2 weeks ago, it hit new high.. making me heartache.

This time round, I adopted HA (Hope Analysis) on my counters and will ride through the storm for the correction holding them till I see daylight.

Last night, Dow Jones has fallen as expected but did not do badly. This has triggered STI to closed abt 20 points higher today with most industries has climbing back today. A sign of rebound is seen and my counters recovered!!! With serveral uncertainties, I will more cautious as a 2nd wave may be coming.

*Properties/Land Developer Industries pulling back
The increase in development charges has evidently made properties/developers counters topping the top losers chart. Capitaland did not fare badly today and manage to close at open price. Will revert back to old plans on report earnings play! Hope that a strong Q2 earnings will reduce the damages done.

One developer gem is spotted in the pull back, that is LC Dev. This counter has impress me by making a peak of 0.565, closing remarkably at 0.56, 0.06cents higher. Most probably is that its development projects are all overseas so it does not have any impact from the rise in development charges. If I have not remembered wrongly, Kim Eng Seng has given a coverage with a price target of around 0.76. May be a good chance to load up.

Other prospective counters that I will be looking are in the oil and marine sectors. Construction Giants also seems attractive on the discount it offering now. More contracts annoucing in Aug/Sept, high chances of rallies again. Sian so much opportunities so little money especially when I vested all my cash in the stocks already!!!

Lesson:

• Money management is crucial! Money is every traders/investors lifeline. It is important to have a fair amount of capital reserve with you as it will come in handy in such situation!
• At the point that the market corrects, think of what counters that you will buy!

Big Meltdown!

18 July 2007 (Market correction or incoming of the berserk bear??)

Impact Number 1 : MND (Ministry of National Development) has give the death sentence to majority of the land developers in singapore effectively by rising the development charges from 50% - 70%. These has finally amke me understand why the properties counters did not join in with the market recent rallies. Several warnings - (MM Lee mentioning about the property, burst failure of indicators) has been hinted to me but I did not hailed them planning for my cut loss on caps warrants. Now, it only left two months of time value... and I need to quickly decide on the actions to take....


Impact Number 2 : Selling Pressure was high this few days, there was a ususal tension in me and decided to withdraw my buy order on project fish. Got too chatty on the market direction. Glancing back to my trading platform at around the price was already beyond my buy price... In fact, at 3.30 p.m. there is a massive sellout across all counter in SGX.
This may be link with the collapse on the 1.3 billion hedge fund in US... Thereafter, the markets across the world is filled with bloodshed!

Hang Seng - 215.38

Nikkei 225-201.69

STI -67.08

Conclusion: Dow to fall tonight!

Heavy casualties to contra players!
There are alot of contra trades going on lately. Will advice to cut losses! For those who failed to cut due to system failure in trading platform better act quickly tomorrow!

Damages report: My portfolio is badly affected as well will be planning for my cut loss price tonight....

Action: Will revert to bear operation to tame the big gizzly bear!

===Project Fish===

Ok, there is one gem that had been residing in my watchlist for quite a while with one i fail to get it for quite a number of trading sessions. Let me unveil it to all!

====Project Fish====

Code Name: Pac Andes

Equipment: Fishing Rod????

I have been eyeing this counter since after I mention shorting to a fellow trader friend of mine. As the business fundamentals is still good, I have been looking for a good entry point after the downtrend stops. When the RSI hits 20% and start to retrace up, I starts queuing for it.

Never knew that fishing is so hard!!! A few occasions and practically week everyday last week, I been queuing for it, setting a 3 bids safety margin away from the open price but fails to get hold of it! Argh! This ikan bilis is really getting on my nerves! I will try my luck again tml!

&%$%&&*)**^$#) GOT IT ON MARKET MELT!!!!%$#&^&**(*#

(-_-")

Pennies's play

Pennies stock have been activly traded this few weeks topping the top 30 volume daily making lots of break out but too bad I wasn't in the boat. Counters such as Rowsley, Bakertech, Contel, Jade, Alantac has made many folds for the past 10 days doubling, tripling their normal prices. That has made a lot of people happy except me.

I could have be in equation boat but did not darn to enter, haiz lack the confidence... and it increase 7 cents since yesterday haha I should try eating "se dan" to gain confidence heard it will helps!

Well, have to scout for new gems liao. Currently, IPO is still in play, rotating around one another. Chances for multi bagger is still around! I will be digging out on some potential pennies that has not move much!

Below is the list of pennies that I feel will move.
Pennies Watchlist!

• Acma
• Oculus
• Eagle
• Oniontech
• Excelpoint

Do keep a lookout!

Reflections from 5 months of trading...

Looking back on my past trades. I have closed 33 trades , averaging to 5-6 trades per month (a sense of overtraded for a beginner with small capital). While some are good trades, many of them are bad ones.... Need to really look onto them to fine tune my techniques....

Let review some of them briefly:

(16/02/07) 1st virgin trade made: Cityspring
A company doing infrastructure for the city! A lot of excitment over the company as it has gain strong backing from Temasek Holdings - our country's second investment wing other than GIC. With the backing, it can tap to vast network/resources that Temasek has established.

With such exciting prospects, I made my entry on the fouth trading day @ 1.48 without any piror trading/investing knowleadge. Held for one and a half month and let it go of 1.52 before the counter turn ugly(count myself lucky). Around $24 of profit! Something much better then the bank interest!

2nd trade: Longcheer (Still dun have any knowleadge)
Just heard it a good company from my friend and made the entry @ 0.84 on 22 feb, 3 trading sessions before the China Sneeze that tanks the whole world on 27th feb.... Struck in it till now... Will be selling off this laggard soon!

3rd Trade: Noble Group (woke up from wrong side of the bed)
Buy on friend's recommedation again.
Ok some clog up in the trades - when buying, I submitted a sell order, shorting the counter. Panic on my mistake, I immediately buy back at a higher price doubling up quantity to save some transcation costs as i still want the counter... This results in a lame and unnecessary loss of nearly $84 bucks! (big joke!)

Major losses.
Begin to start contra trades after learning MacD indicator and a bit on reading Volume, where I gained small profits and got hugh losses.

Genting International (-463.97)
Saw abnormal high volume going on in the counter! (Must be insider news) Made a 10 lots entry on 9th April @ 0.95. The prices start to decline... sold at a lost @ 0.91 due to contra day expiry at 12th April... Thereafter, prices soared to a peak of 1.12 on 17th april after the annoucement of securing the casino license on 16th april - monday six days after I made my entry.

YangZhi Jiang (-889.42)
IPO play! Protential to become next Keppel Corp or Sembcorp Marine of China!
I manage to get 10 lots @ 1.34 near the low of the day on its debut day on SGX. The counter kept soaring and hit a high of 1.39. As it rises, I got greedy and withdraw my sell order, raising the selling price higher till I set 1.4 where it never hit... Fast rise, greater fall. It make a U-turn the next day.. and never came back the following few days of my contra period... settling for my losses at 1.26 right at the support level at that time. Now the price is 2.20... almost a 65% return from my buy price...

HSI warrants (-920.82)
Warrants are high leveraging tools for traders. It is a double-edge sword where one could reap big profits or big losses! As for this trade, I did not understand warrants at that point of time and just join my friend in his trades. Now that I know the basics of them, I strongly urge beginners to avoid warrants especially Hang Seng Index Warrants. They are not for the faint hearted! I respect the aunties and uncles of Hong Kong as they can stand such fast volatility in their market!!!

Yongnam (-334.41)
Contra 10 lots on the following day - 10th May after knowing that it manage to secure a million dollar project in dubai the night before from SGX annoucement. To my surprises, it just went down... Cut losses on the next day! Hmm, seems like I cut losses till used to it liao.

ChinaAngel (-1060 est)
Got too carried off in my recent IPO contra profits.... Went in to contra with my biggest Lots ever vested- 15 lots... Things look bad and cut my losses at a low price... marking my biggest losses ever...

Lessons

1. Contra trades is like betting that the stocks will go up within 4 days after you buy it.The chances are 50%-50%.... erm as for experts traders, I do not know their chances. Most people does contra trade out of greed and resulted in more losses than gain thus it is not wise to do contra trade.
2. Going on the long term on good stocks are much more rewarding then doing contra. Looking back ar a few counters that i have brought, they almost brings back nearly 100% return from the capital if i held till now...
3. Lastly, I am know not metality/emotionally strong and disciplined to follow basic rules resulting in big losses...

The Angel that gives A Devilish Blow!!!

~**Friday the thirteen - An Unpleasant day!!!

Today, a new company ChinaAngel made is debut on SGX. Having made 2 quick gains on IPO debutes, I just went on in and whack! It increase 2 cents within 2 mins of trading to 0.820! I then set to queue at 0.805 and waited, hoping the transactions get through. In a blink of seconds it gone through! And as usual I always felt negative things will happen after the transaction goes through! Lack of confidence! Something I should overcome from more good trading!

Things started to look bad... At 9.15a.m, 13mins later after I got my positions, it drop to 0.775... I hold on to it as i think the rallies will come in anytime. However, it never came... It falls deeper down to 0.765 at 9.50am. Then, I set a selling price looking to settled with some profits at 0.815 before going to a meetin and pin hope that it will goes through during the 10 am rally.

Coming back to Office At 12pm, I quickly check the price. The Angel thrust his sword into my heart as it proceed to made newer Lows! Checking back on the transaction history, the 10 am rallies only hit 0.78.... In a panic, I decided to cut losses and sold of my positions at 0.740 netting a 1040 losses!!! Argh, just when I recovered my losses yesterday and the glory ends here... bringing me back into the red zone!

Lesson Not learnt: I know this fatal mistake for quite a while, yet I am still committing it! That is Stupidity! Greed is the root to all the foolishness in me! Another redundant and expensive fees paid for not learning!

Moving On, after I cut losses, I proceed to what I originally plan and brought on C & G Holdings, the other part of my plan to buy Pan Andes is unable to execute as I had jus netted a big loss. This two counters have been give me buy signals. I chose C & G as it cheaper, hope that it don't disppoint me.

Below is C & G Holdings chart.

System Or Luck!

You will get to meet all sort of trader/investors when you start trading! Ok, below are two friends whom I knew that trades.

Lady Luck
A friend of mine Mr A, have made a hugh profits of out luck. Let me give you a general description of him, he is a person that does not do analysis to buy shares, always hantam any particular counter ask me for opinions. This happens often and is very frustrating! I have preach him to read up on books attend courses etc but he does not make the effort.

2 Weeks ago, he brought LC Dec and told me it a good counter to buy. I then question him what made him buy the share? Did he look up on the fundamentals, or basic on technical indictors to buy? And he gave me an answer mentioning it has good prospects as LV Dec is doing properties.... this kind of answer is well... like going to a food court with 3 fried kway tiao stall and one of them has the yummy food posters so it will be nice that kind of answer...

After hearing the answer, I just ignore him and dun even bother to look at the counter. Lately, LC Dec has been appearing in top vol for a few trading sessions and drew attention to me but is too late... it has risen 30 cents from the time I heard from him...

Doing a research on it, I found out this company has udnergo a demerger from Lum Chang Holdings and focusing onto its hotel business. It is asset rich with stakes in the three holiday inns hotels and some other hotels in china and london, it also has a land parcel in koh samui where they are planning to developed into a resort and some residential properties to sell. It a turnaround company!! Argh miss the boat!!! I doubt A know what the company protential the company has... Lady luck has just gave him a smile!

Unbeatable System!
Then there is B, who buys on financial institutions/brokerage firms coverage that yields high returns. He is disciplined to follow his system and now is enjoying the fruits of joy with more then 50% returns from the capital in half a year!

Me
Well as for me, I am still searching for a right system and gaining more experience to time my entry/exit to and from the market! On and off, I still tried my luck on contra trades out of greeed, but going to cut down as it only have 50% -50% chance and is mentality taxing . I hope to be more emtionally discipline to do my trades. I have been interacting with other investors/traders getting to know their past experience. These sharing are valuables as not people are willing to share out their trading methods.

Conclusion
It will be advisable for beginners to interact more with other investors/traders as you can learn much more from their experience! Here is this blog named GrowMoney where i frequents. A group of experience and amatuers traders/investors gather and interact daily. Its a good learning ground as the owner often shares his analysis/methology with us. Do take visit there.

Simply IPO!

I just love IPO!

IPO stand for Initial Public Offering where a company send invitation for to investors and allocated a small portions of shares for the general public to subscribe! Anyone with a trading account can applies via the ATM or Interent Banking to have a chance to get the placement.

Charges
There will be a $2 application charge for applying. You will also need to pay for the amount of shares you applied upfront. Your applications will go then through a balloting and you will get to know the results a day before the company starts trading on the market! In the event that your application is failed(which is a norm), the money that you pay upfront will be credited back to your bank account.

The general fact is, the chances for you to get your shares by applying through IPO is almost equal to you buying a toto quickpick to strike a 10 million jackpot! So please don't pin too much hopes on getting it through.

After IPO results is out, the next day will be the first official trading day for the company in the market. It usually draw a lot of market interest from the general public and some speculations from the big players as well. Thus, its a chance for people to made some quick gains through contra trades but know do make sure you know your limits and cut loss when you are wrong!

Today there are 2 IPOs first day trading. I only managed to brought in one, RH Energy as it is mentally stress to look after two trades. I brought near the low at 0.740 and reap in some peanuts profit by selling off too early @ 0.765 within 10 mins... Seeing the strong rally, I set to queue in at 0.755 but did not get it the whole morning and the counter fly into the sky hitting a peak of 0.89. If i have waited patiently, I would have made a jackpot out of it... Nevertheless, it made some impact for the recovery in my losses...

Lesson learnt: Need not rush to set a sell price, it may limit the protential profits. Always observe market sentiments! Of course dun to too greedy as well and set a unrealistic sell price which I learnt from YangZhiJiang !

Upcoming IPOs trading dates

China Angel Food Limited - 13/07/07
CMZ Holdings Ltd -16/07/07
China Sports INternational Limited - 19/07/07
Wanxiang International Limited -20/07/07

Earning Seasons! ...Without me...

Great surge on STI yesterday leaded mainly by the three banks bringing up the index to 64 points. buyers flock the market with optimism that the Q2 earnings will be strong!

This is extremely bad for me as I had liquidate myself into cash position making some losses from china essense when dow jones show weakness two weeks ago and most of the counters are too high for me to enter now...

Let me retrace my trades on essence I made my entry price @ 0.95... a day after the counter show a hugh increase in trading volume, after purchasing it, the trading volume as extremely low for the next 8 session... i dislike the looks of it as low volume mean low liquidity... at that point, dow jones show weakness... feeling the worse is going to come, I cut loss at 0.905.... Looking at the counter made me felt stupid as it made a peak at 1.13 yesterday...

The other counter that I turn into cash position during the dow jones weakness is inter-roller....Locking in at a peanut profit of $25... and now inter-roller is laughing at me...

From the above, I conclude that technical analysis is limited as it indicates the price movements in the short term future... For a longer term, I believe that fundamentals analysis on the company financial information is the key. Thus, I will begin my quest to learn fundamental analysis...

Crazy Bull Run!!!

There have been a series of rallies throughout the week. Most noticeably in the construction sector on the first two days of the week where counters like Yongnam, CSC, Sim Lian got a heavy demand as buyers plunge in to buy before the release annoucement of the IR contract!


The rallies then goes on across other counters like pennies , properties. Temptations to get into some positions clouded my mind as i wanted to be part of the rallies thus I loaded up on Lian Beng in hope that it will go to new heights... Sad to say, the rally ends there after I brought! Argh! Not discipline enough to control my emotions! Well, the chapter of IR contract has not ended, will be holding on to Lian Beng with optimism that it win some wonderful project!

Personally, I find that these rallies is absurding as US have been trading sidesways with no particular direction. Currently, Dow Jones Chart has already shown a double bottom formation and forming its third peak to do a triple top formation where some dangers may luking! Then again, I may be thinking too much as it may be just a consolidating pharse to reach for new heights.


Dow Jones Chart



Let's see how it moves next week!

In the Learning Curve

I have been trading for the past six months and got to learn a fair bit about from stock market but my learning process is just the beginning as there are still much to learn from. I am lucky to be guided by a friend of mine who recommend me good trading books and some basic skills to get myself started.

Personally I have also attend a course named "Cracking the Stock Market Code" to learn technical skills and some seminars to acquire some insights of the trend from professionals. For beginners, I will recommend you to go for the course as you can save alot of time self discovering all the technical indicators by yourself.

Currently, I am using technical analysis to enter and exit the market. I am moving on to study on fundamental analysis and hopefully it will help me this will equip me with a better edge against the market!

My current portfolio are
Longcheer @ 0.84
Hiap Seng Engineering @ 0.73
CapitalandDBeCW070924 @ 0.155
Lian Beng @ 0.48

From the above, you can know that my picks still need much tuning! Keke, I am relatively new and is still embarking on the route to survive in the market. Hopefully I can get over this pharse fast and begin to fetch my profits thereafter!

FYI: The three pharses in trading are
1. Learn to survive the market first
2. Make small profits
3. Make huge profits

Kicking Off

To kick off, you will need to open a trading account from a brokerage firm like Poems, iOcbc, DBS Vickers, UOB KayHian etc. They will help you to open a trading account under the brokeage firm and a CDP - Central Depository (PTE) Limited Account with SGX. The CDP account is use to store your fully paid up stocks.

I am currently using POEMS account. By trading, you can still earn reward point to redeem free seminars/trading services from POEMS. POEMS also open other accounts like CFD - Contract For Difference and Forex Trading Account as well.

How to get about trading? Each brokerage firm has its own trading platform where you could see live prices reflected from SGX price ticker. On the platform, there will be a buying price and a selling price with the respective queue volume beside them. A transaction will go through when two individuals agree on the price to buy/sell their stocks.

In times when buying/selling volume is high, you may not be able to buy/sell at the price you set and the price may flucate away from your price. Thus, you may have to monitor and reset to queue at another price.

In the event that your buying transaction go through, you are required to make the payment through ATM or log on to your ibanking account and make the payments through EPS (Electronic Payment Services) within T+3 Days where T is the day that the transaction went through. You may also choose to CONTRA it off within T+3.

When you failed to pay up, your brokage firm will call to inform you that they sell the stocks for you and will place the selling price 2 bids below that current price which will be disadvantagous to you!!!

You may also sell the stock at a high price when you think that it is overly price and buy it back at a lower price within the same day. This method is call SHORTING. It's pretty much advance and meant for the skilled traders not recommended for beginners. ***IT IS IMPT TO BUY BACK WITHIN THE SAME DAY*** If you did not, your broker will give you a call 4 days later to inform that SGX will buy back for you at 2 bids above then the Day High Price!!! Do take note as you will not know how the stock is performing 4 days later!!!

As for the charges, a buy/sell transaction is $25 excluding misc and gst fees online. By calling your brokeage to place your order, it will be $40 exlcuding misc and gst. For SHORTING and did not buy back within the same day, SGX will buy back 4 days later and the adminstrative charges is 70%...

I have tasted both the defeats of contra and shortng with my broker giving me phone calls. Thus, it is strongly not advisiable to do too much contra trades and shorting if you are not sure what you are doing! However if you are skilled enough, you can go ahead by all means.