Enriching Session With Robert Tay

I had an enriching session today after I attending a session-$10 organise by ShareInvestor together with my Mentor.



*****1st part - Introduction to CMC Markets ***

This session gave an insight of the CFD firm as above. Basically I know how does CFD works. It is a very useful tools to go short in the market as it is not subjected to expiry like warrants and gave traders more flexibilities(allows them to hold their short positions longer) through their share borrowings service.



New things I learnt are:

1) You may receive interest from shorting.

2) If you are a contra traders, the transactions fees are about 50% lower than the tradition broker and not subjected to GST charges.

3) If you go long, you are subjected to finance charges.



*****2ND Part - Sharing from Robert Tay UOB KayHian Representative****

After a quick dinner, we go on to Part 2, a sharing session from Robert Tay where he gave a recap on his previous sharing session in June and the, a glimpse of the economic/market outlook for the next six months, some general FA and TA.

Recap on sharing session in June and how the market move last six months

- Highlighted that after STI hit 3500 will have difficulties moving further up and july we saw a big price shock.

- the upward trend thereafter is supported by weak volume indicating there is lower participation and the trend is weak.

********Economic/Market Outlook***********

- Japan are already in a recession. Subprime mortgages repercussion are still not over, banks still have alot that they nv declare.

- The decoupling of Asian markets from the US from the news is not particularly true as US is the world biggest consumer and China Main export's client. With the weakening dollar, US will not be able to consume as much as before. This will snowballed and affect the economic growth of India and China.

-Inflation the next big problem. Inflation has risen pretty fast and to contained it, country should rise interest rate. The US is however doing the opposite way... thus it will drive inflation higher.

With the above pointers, the economic upfront is not in a present shape.

*********Basic TA relearn**********

Vol must support price action/trend.

**********Basic FA*********

Companies with high Leverage Ratio, High Price to book, and High price to NAV will be badly hit in a recession.

We went through some examples of chart to see the volume/price relationship and the of the top 30 stocks that have High Leverage ratio, High Price to Book ratio, High Price to NAV ratio respectively. This seminar knock some sense into me as the Art of FA is extremely important

Quote of the day

Inactivity is the best behaviour

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