Q&A on Traded Endowment Policies (TEPs)

  Have you heard of Traded Endowment Policies (TEPs)? You should read on with eagerness if you have not. I have posted several questions to Mr Dennis Ng, who owns TEP Pte Ltd that handles this investment product. This Q&A would be able to help you understand TEPs better and hope that they may fit your financial needs or investment portfolio perfectly. 1) Are TEPs whole life … [Read more...]

Trading Report Card – May 09

Summary of trades: This month put me back into profits and I am thankful for what the market was willing to give me. Similar to last month, I was focusing my trades on Chinese companies listed in Hong Kong but I have learnt my lesson that profit protection is beneficial in a volatile market and this set me to push up my stop loss limit higher as the price goes up. You can see that the profits … [Read more...]

Support and Resistance

Most traders use support and resistance levels to determine buy and sell signals, but have traders question the significance of these levels? Technical analysts believe strongly that traders and investors have price memories affecting them when they make trades. For example, they will remember the highest price of the stock they traded have reached. The memory will be stronger if there are … [Read more...]

Trading Profits in relations to Time and Accuracy

The size of profits of a trading system, is related to time and accuracy. They are inter-related and it is not possible to get the best out of all 3 factors in any trading system. Before I elaborate further, I shall define what these 3 factors mean. Size of profits - I am referring to the average amount of profits the system will earn per trade. Time - The average length of time you held … [Read more...]

Minimize loss = Position Sizing and Stop Loss Limit

William O’Neil said that, “The whole secret to winning the stock market is to lose the least amount possible when you’re not right.” A successful trading system hence must be able to reduce losses in order to preserve the capital as much as possible. Losing 10% of your capital will need 11.1% to bring you back to your original capital. The problem about trading is that you can never be 100% … [Read more...]

Buy and hold is not as easy as you think

I am not against buy and hold strategy. Instead, I believe it can really bring you great wealth - note that the world’s richest investor is a buy and hold strategist. Many investors are familiar with this strategy and often practise it, but not many are successful. Here are some of the reasons that may have caused their failure: 1) Fail to plan for future money needs Many people are myopic … [Read more...]