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.