Archive

Alvin

Protect Yourself Against Irrecoverable Loss

November 9, 2009 by Alvin
Previously, I have written a post on how to minimize losses in trading through position sizing and stop loss limit. There is something that needs to be addressed further to ensure you can survive the unforgiving market. Stop loss limit is to prevent you from losing too much on a single trade and position sizing [...]
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Trading Report Card – Oct 09

November 6, 2009 by Alvin
The market has been consolidating for a long time. The last good trend was in Aug 09. Even the STI was able to break the 2700 barrier, it could not propel itself to greater heights. This just goes to show the weakness of the bull. It was a month where I was very stringent with [...]

in Categories: Featured, Investing

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United FTSE/Xinhua China A50 ETF – Getting access to A Shares

October 29, 2009 by Alvin
UOB Asset Management is launching an A-shares ETF on SGX Mainboard. Buying and owning A-shares is limited to Chinese Nationals and selected foreign institutions. With this ETF, it realises the wish of many people to own China’s A-shares. The current China ETFs listed in SGX are db x-trackers FTSE/Xinhua China 25 and Lyxor ETF China [...]

in Categories: Featured, Investing

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Categorize Your Stocks

October 25, 2009 by Alvin
Peter Lynch has a very effective way to categorize his stocks. As a successful fund manager holding shares of thousand over companies, it serves to follow his method. By categorizing the stocks, he can identify the companies that would potentially become big winners. 1) The Slow Growers These are usually the large companies that have [...]

in Categories: Featured, Investing

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Investing from the Money Lending Perspective

October 7, 2009 by Alvin
I would like to draw some commonalities between the considerations that one makes when he lends money and when he invests. As the former is something most people have encountered and are familiar, I hope you would be able to draw the relations and aid you in making better investing decisions. So what do you [...]

in Categories: Featured, Investing

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Trading Report Card – Sep 09

October 1, 2009 by Alvin
This is really a bad month for trading. The market was trendless and consolidating most of the time. The evidence can be seen in the holding period of the counters in the table. You can see I held many of them for almost an entire month, yet they ended in losses. The mistake I made [...]

in Categories: Active Trading

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Buying Commodities in Singapore

September 28, 2009 by Alvin
Remember commodities were rather hot during the bull run in 2007? Many banks and fund management companies began to introduce new commodities fund to feed the desperate demands in Singapore. Many people who bought commodities at that time would have suffered a great loss as the commodities dived with the stock prices during the crash. [...]

in Categories: Featured, Investing

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Improving your trading accuracy by following a bigger trend

September 22, 2009 by Alvin
As the saying goes, “trend is your friend”. It does not pay to go against the trend, especially the bigger ones. What do I mean by bigger trends? Bigger trends are trends that are only visible at longer time frame. For example, if you are trading using a day chart, a bigger trend can be [...]
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Triple EMA crossover trading system for FOREX

September 9, 2009 by Alvin
One of my friends has started trading FOREX with triple Exponential Moving Averages (EMA) crossovers. He came upon the method from Yeo Keong Hee’s book, Secrets of FOREX Millionaires. I have always been interested in trading systems and it is rare that books talk about them. Most books would only talk about indicators and trading [...]

in Categories: Active Trading

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Trading Report Card – Aug 09

September 4, 2009 by Alvin
End July and beginning of August has been a good run for stocks. It is also the biggest win I ever had. This was due to the fact that I went for the “jugular” as suggested by George Soros (see this post, it was mentioned by Stanley Druckenmiller, “Soros has taught me that when you [...]

in Categories: Active Trading

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Insurance should protect against your worst case scenarios

September 1, 2009 by Alvin
I believe everyone should buy insurance to cover his/her “worst case scenarios” and not just buy because it is likely to happen. In fact, your worst case scenarios are likely to be low probability events and hence, unlikely to occur. But because they are unlikely to occur, most people are unprepared for them (just when [...]

in Categories: Featured, Insurance

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3 questions to ask yourself before investing in stocks

August 25, 2009 by Alvin
Peter Lynch wants everyone to look inside themselves first before investing in any stocks. He came out with 3 important questions that will evaluate whether your situation is suitable for investing (from his book, “One Up On Wall Street“). I find it very apt to share with you, especially if you are intending to play [...]

in Categories: Featured, Investing

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Why investing in mutual funds or unit trusts may not be a good idea – part 2

August 19, 2009 by Alvin
Followers of bigfatpurse will know that I am not a definitely not a fan of mutual funds or unit trusts. I stated my reasons in this earlier post: Why investing in mutual funds or unit trusts may not be a good idea. It rekindled my thoughts about mutual funds when I was reading Peter Lynch’s [...]

in Categories: Investing

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Darren’s Trader Curve

August 12, 2009 by Alvin
Recently, I attended a T3B mentoring session where mentor Darren talked about his own understanding of trading profits in relation to how much you know about trading. He drew a graph to capture this relationship: Darren’s Trader Curve Profits do not grow with increase in trading knowledge Basically, he was saying that T3B graduates are [...]

in Categories: Active Trading

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T3B Forex Course Preview

August 6, 2009 by Alvin
I have long wanted to attend this preview as I am interested to trade FOREX as an alternative market to stocks. Prior to this preview, I have attended Kishore’s preview but did not like his hard selling style. He is indeed a great speaker and salesman. I have learned a thing or two about trading [...]

in Categories: Active Trading

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Trading Report Card – July 09

August 3, 2009 by Alvin
This is the month that I was trying out Dr Alexander’s Elder Ray indicator and Triple Trading Screen system. I made a mistake that any unseasoned trader would have made – getting excited and want to trade many counters to see if the system works. Initially, I was looking for a shorter term system with [...]

in Categories: Active Trading

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When stop loss order fails

July 31, 2009 by Alvin
The pain for traders is the loss beyond control or expectation. Successful traders have a habit of limiting the size of losses, such that even many losses are incurred, they will not affect their capital for future investment. A typical method to limit a loss is to set a stop loss order, where any price [...]
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When can you take a profit if you bought shares at the peak?

July 27, 2009 by Alvin
Stock market goes up and down unpredictably. I believe some investors have experienced buying at the wrong time – at the peak or near peak of the stock market, and to their horror witnessing the stock price plunge. Many of these investors will find it hard to swallow losses and will want to switch to [...]

in Categories: Featured, Investing

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