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Monthly Update – May

Monthly Update – May

Monthly Update – May

 
 
Hi Community,
 
Hope you guys had an awesome long weekend. Just came back from serving the nation and ready to rock the stock market as always.
 
 
 
My Views:
 

STI

In my previous monthly update, all of you knew that I was inclined to short and have done so accordingly. Those who have attended my last seminar in April would have known about my intention to short as well.
 
Congratulations to those who have followed, and have earned some extra moolah. 

The outlook has changed. Take note of the following. 

 
 
 
What is going to happen next?
 
1. STI will test 2782 region and correct to 2537, resuming downtrend.
This will indicate that the recent breakout is false and buyers are flushed out.

OR

2. STI will either consolidate at / above 2782, or strong bullish momentum.
This will indicate it is a trend reversal, forming a higher high and higher low.

Those holding to short positons will enjoy the ride while it lasts, whereas buyers will need to look out for a strong bullish candle.

 

Dow Jones

A picture speaks a thousand words. Sideways.
 
Resistance is at 18,097 area
Support is at 17,546 zone, followed by 15,658 
 
What is going to happen next?
 
1. DJ will correct to 15,900 region.
 
2. DJ will consolidate at 18,097 zone and attempt a breakout.
I am inclined to short Dow Jones + some US stocks. 
 

Stock Portfolio

Seminars:

 
For those of you who are keen to know how I evaluate the global markets, determine the market movement and all other good stuff that you have seen me doing, I have opened 2 additional timings for the community to register.
 
 
Date: 14th May 2016 (Saturday)
Time: 2.45pm – 6pm
Venue: Phillip Securities Pte Ltd
20 North Bridge Road #06-00, Raffles City
 
OR 
 
Date: 20th May 2016 (Friday)
Time: 7pm – 10pm
Venue: Phillip Securities Pte Ltd
20 North Bridge Road #06-00, Raffles City
 

For those who are interested, click on the image below to register.

 

Disclaimer

The information contained in this publication / this website is provided to you for general information only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

Past performances is not necessarily an indication of future performance and performance attribution has not been verified by an independent party.

You may wish to obtain advice from a financial adviser before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest. 

Any views, opinions, references or other statements or facts provided in this blog/website are personal views and shall disclaim any liability for damages resulting from errors and omissions contained.

Monthly Update – April

Monthly Update – April

Monthly Update - April

 
Hi Community,
 
It has been such a long while since the last Market Update. I am currently figuring out how to link up the Monthly Updates to a live Webinar, and to make it interactive for you guys.
 
Together with the live Webinar, I will be putting a column where all of you can pose your questions you may have or challenges you are encountering when trading or investing.
 
Stay tuned for more details.
 
Please note the following for the Market Update:
 
- I am unable to indicate the resistance and support levels on the charts to the precise index point. Either the software is preventing me from doing so, or I have fat fingers. I think it's the latter.
 
What I have done, is to include the data index for the resistance and support for the relevant markets. Yes I know I am awesome.
 
My Views:
 

STI

For those who have been dropping me whatsapp / attended my previous seminar / chatted up with me in any other ways, you would like known that I was expected the current rebound, after the deep correction from December.

 
The market has rebounded strongly. So what next?
 
STI is seemingly going sideways - from a downtrend, with no confirmation yet and has reached a critical juncture with resistance at 2897.
 
The following could happen:
 
1.  Fail to breakout upwards past resistance and we will undergo another period of correction.
 
2. A consolidation / pullback before a breakout. It is important to note that STI has been up for over a month. 
 
In both scenarios, I am inclined towards a short. I am looking forward for a period of correction OR a false breakout. 

DJ

Top of the Sideway Band.

 
The following could happen:
 
1. Correction occurs, to 15,501 level
 
2. A period of consolidation, breakout upwards from a sideway market. 
NASDAQ

NASDAQ was trading in a sideway market and is now downtrending. It broke 4486 to 4216 before rebounding back to current levels.
 
It has a lower low and lower high.
 
I am inclined for a short. 
S&P

 
Sideways. S&P is near resistance at 2077.37.
 
The following could happen: - Similar to Dow Jones

1. Correction occurs, to 1808 level

2. A period of consolidation, breakout upwards from a sideway market. Thereafter, we will look forward to verify the authenticity of the breakout. 

 
 
In summary,
 
STI, Dow Jones, NASDAQ and S&P had strongly rebounded for over a month. This week will be a critical juncture for traders to take note of and I am looking for shorting opportunities.
 
As always, if you need any help, feel free to contact me.
 
 
 

 

Disclaimer

The information contained in this publication / this website is provided to you for general information only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

Past performances is not necessarily an indication of future performance and performance attribution has not been verified by an independent party.

You may wish to obtain advice from a financial adviser before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest. 

Any views, opinions, references or other statements or facts provided in this blog/website are personal views and shall disclaim any liability for damages resulting from errors and omissions contained.

POEMs Price Alert Feature / Stock Alert App

POEMs Price Alert Feature / Stock Alert App

Hi Folks,

POEMs has implemented a new Price Alert feature that is an amazing power tool to our daily trading activities. This creates high efficiency and frees up a lot of time.

Alerts on-the-go : Receive real-time notifications anywhere you are on the latest price changes for your favourite SGX stocks.

*All depictions of trades by image are for illustrative purposes only and not a recommendation to buy or sell any particular financial instrument.

How to benefit from it:

  • For value investors who are waiting for companies to fall to a specified price before placing the trade. Price Alert feature can be used to indicate the buy price investors are look at.
  • Traders can place Price Alerts on their filtered stocks, and place entries accordingly when prices are triggered.
  • Additional layer of security for traders. Instead of relying solely on stop limit orders, add in a price alert above the stop limit. Why?

When a specified counter gaps down / skips your stop limit price, your order will not be executed.

Use the Price Alert feature to ensure your stop limit orders are transacted successfully.

In essence, Traders & Investors alike no longer have to stare at the screen daily (unless of course, you’re monitoring market conditions/ momentum etc for shorter time-frame traders), and have more time in the process! Voila!

 L
Download POEMS SG

A

Click on Alerts

B

Select the ‘+’ sign

C

Search for the company you’re interested in

D

Enter the parameters according.

I utilize the ‘Low Target’ most frequently 

E

Done!

 F

Download Stock Alert App

G

Click on ‘+’ button

H

Search for the company you’re interested in

I

Click on ‘+’ button

J

Go back to the Main Menu

K

Enter the parameters according and click Submit!

How to Place a Stop-Loss

How to Place a Stop-Loss

What is a Stop Limit order?

A Stop Limit order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the Trigger Price. Once the trigger price is reached, a Stop Limit order becomes a limit order that will be executed at a specified price (or better).

 

Is Stop Limit order type available on POEMS?

Stop-Limit orders are currently supported for orders on the Singapore & US exchanges only.

 

How does a Stop Limit order work?

Depending on what position that you are holding (long or short), there are two types of Stop Limit order:

  • Sell Stop Limit

This is the Stop Limit order when you have a long position on a security. In this case, the trigger price is placed below current market price of the security.

SellStopLimit
  • Buy Stop Limit

This is the Stop Limit order when you have a short position on a security. In this case, the trigger price is placed above current market price of the security.

BuyStopLimit

 

What are the advantages and disadvantages of a Stop Limit order?

The benefit of a Stop Limit order is that it allows the investor to enter a new position or exit an outstanding position when the price surpasses a particular price level. It also allows one to take profit or minimise losses on an existing long or short position.

The disadvantage is that there will be no guarantee that the order will be filled in the event the price gaps through the limit price. In such an event, the order will not be filled.

Example 1: Assume that stock SGX is trading at $6.81 and an investor wants to BUY once it begins to show an upward momentum. The investor places a Stop Limit order to BUY with trigger price at $6.83 and limit price at $6.84. If the price of SGX reaches the trigger price of $6.83, the order is activated and turns into a limit order. As long as the order can be filled under $6.84 (the limit price), then the trade will be done/part done. If the stock gaps above $6.84, the order may not be filled.

Example 2: An investor bought 10,000 shares of SGX stock at $6.80 and wants to limit his loss to $500. He could place a sell Stop Limit order with a Trigger Price of $6.76 and a limit Price of $6.75. If the price of SGX falls to $6.76, a limit order to SELL 10,000 shares at $6.75 will be submitted and executed when the market price hits the limit price.

 

Is there anything I should consider before using a Stop Limit order?

Before using a Stop Limit order, investors should consider the following:
As with all limit orders, a Stop Limit order may not be executed if the stock’s price moves away from the specified limit price, which may occur in a fast-moving market.Short-term market fluctuations in a stock’s price can activate a Stop Limit order, so trigger price and limit price should be selected carefully.

 

What is a Limit-if-Touched (LIT) order?

A Limit-if-Touched is an order to buy (or sell) a contract at a specified price or better, below (or above) the market. This order is held in the system until the trigger price is touched. An LIT order is similar to a Stop Limit order, except that an LIT sell order is placed above the current market price, and a Stop Limit sell order is placed below.

Using a Limit-if-Touched order helps to ensure that, if the order does execute, the order will not execute at a price less favourable than the limit price.

 

Is Limit-if-Touched order type available on POEMS?

Limit-if-Touched orders are currently supported for orders on the Singapore market only.

 

How does Limit-if-Touched order work?

Example 1: ABC shares are currently trading at $2.60.  An investor wants to open a long position to buy 10 lots of ABC shares only when the price of ABC shares falls back to $2.50.  However, he also wants to buy at a better price than $2.50, for instance $2.40.  In this case, the investor can enter a LIT buy order with an order trigger price of $2.50 and a limit price of $2.40.  During the day, if the price of ABC shares starts falling from $2.60 and reaches $2.50, the LIT buy order is converted into a limit buy order for 10 lots of ABC shares at $2.40.  The buy limit order will only be executed at $2.40 or better price.  If the market price never goes down to $2.40 or better, the order will not be executed.

Example 2: An investor enters a Limit-if-Touched sell order at $3.50 for 10 lots of ABC shares.  The price of ABC shares starts rising from an opening price of $3.30 and reaches $3.50 intraday.  Upon the price of ABC shares reaching $3.50, the Limit-if-touched order is triggered, and is converted into a limit sell order for 10 lots of ABC shares.

 

What are the advantages of using Limit-if-Touched orders?

Limit-if-Touched order benefits investors by providing the flexibility to buy and sell at specific price levels without investors having to constantly monitor market movements. It is particularly of use in fast-moving markets, when investors may not be able to react in time to take advantage of buying or selling opportunities.

 

What is the difference between Stop Limit order and Limit-if-Touched order?

The difference between a Stop Limit order and a Limit-if-Touched order is that a Stop Limit order is typically used as a loss-limiting mechanism in respect of open positions, while a Limit-if-Touched order is used to create new positions in anticipation of a particular reversing trend.  In a falling market, an investor may want to enter the market at a favourable price should the market rebound.  Similarly, in a rising market, an investor may want to enter into a short position should the price begin to fall.

 

What should I take note of before using a Stop Limit order or a Limit-if-Touched order?

For all SGX Advanced Orders, clients are to ensure that their trading accounts have sufficient buy or sell trading limits to allow orders to be submitted when Stop Limit order’s triggering conditions are met, else order triggered may be rejected due to insufficient trading limit.

Please take note that the Trigger Price cannot exceed 20 bids from the Last Done Price and the limit price cannot exceed 20 bids from the Trigger Price

There is no guarantee that the Stop Limit order/Limit-if-Touched order will be filled in the event the price gaps through the limit price

Please note that advanced order can only be triggered during market open phase. Overnight advanced order may get rejected by exchange after the market is open if the limit price is outside of the allowed price range when the advanced order is triggered.

 

Extracted from: https://p2web.poems.com.sg/faq-lists/?id=4757&utm_source=211015edm&utm_medium=email&utm_campaign=poems2newfeatures

Monthly Update – September

Monthly Update – September

Hi all,

17th & 18th Seminars are fully booked.

I will arrange for 2 seminars in October.

 

My Views

STI Outlook

2015Sep-STI-800x600

 

Resistance 2: 2,999

Resistance 1: 2,932

Support 1: 2,799

From my previous interview with 938FM,

I mentioned that I looked forward to a small rebound or a period of consolidation.

A rebound occurred between 24th – 28th August, accordingly to my Market Outlook for that week.

 

STI is currently trading sideways, undergoing a period of consolidation.

Going forward,

  • It will be great if STI continues a period of consolidation between Resistance 1 and Support 1. It is usually followed by a great movement in either direction (long or short). Traders Be Prepared.

For investors, the lackluster ping-pong situation in STI is a good period for picking up more undervalued defensive stocks.

 

For existing clients,

I am preparing an automated screener for REITs / Trusts.

Intermediate – Expert seminar for Creating Passive Income is progressing well.

Stay tuned.

 

 

 

938 Live Interview on 21st August 2015

938 Live Interview on 21st August 2015

My apologies for the late upload.

In this interview,

I covered the following,

  • Market Outlook from 17th – 21st August 2015
  • Outlook for this week 24th – 28th August 2015
  • Sectors to look out for.

A couple of minutes before the interview occurred, I wanted to share on radio on specific points on improving an Investors / Trader’s psychology and key traits in approaching the market.

Unfortunately, I was informed to do “Stock/Sector Pick of the Day”, which I suppose the masses love to hear. This is a stark difference from following a Investing / Trading methodology and being consistent.

 

 

BONUS:

This is what I wanted to share:

The most important trait to me is Discipline.

In the market, there are only 2 methods to profit. 1. Capital Gains. 2. Dividends.

Before you invest, you have to be clear on which method you are pursuing.

For example, I

You buy Company A at $1 for Capital Gain.

If it falls below $1, the market goes against your system. Instead of stopping your losses, Investors tend to justify “Company A also gives dividends, I can keep this.” – which is the psychology of the majority.

More often than not, Company A continues to bleed, and most investors add on to a list of Junk A-Z in their CDP statement.

What can we learn from this?

  • Stick to your objective: Capital Gain or Dividends?
  • Stop-Loss, if the market goes against your objective.
  • If the above scenario occurs, you no longer have the power of choice. You are not an investor by choice, but because you’re forced into that particular situation. You became an involuntary investor.

I will be covering STI Outlook shortly. Stay Tuned.

STI Broke Consolidation

STI Broke Consolidation

Hi Folks,

2015Aug-STI-800x600

 

For those who have attended my seminar on 13th August, you can probably remember the following from our Live Analysis – where you guys can ask any counters or market sentiments.

I mentioned the following.

  • I was looking to long the index based on a strong bullish candle based on support on trend line. However, it didn’t occur.
  • Waiting for a period of consolidation as it is usually followed by a explosive movement in either direction, which will determine my trade.

Cheers to all who have attended and shorted the index.

The next seminar will be on 17th September at 7pm.

You can register at www.4keystrategiesforstockmarketsuccess.eventbrite.sg