Trading Report Card – Jun 09

Trading Summary I entered this month following a strong uptrend from the previous month. You can see most of the profits were made in first week. The trend did not last long and the market began to consolidate for the rest of the month. The mistake that I made this time is that I did not fully utilize the chance presented in this uptrend. If George Soros is my mentor, he would have advised me … [Read more...]

Overwhelmed at ATIC – so many things to trade!

I was at the ATIC (Asia Trader & Investor Convention) today. There were about 33 exhibitors promoting their various products and systems. Then I realised, there are so many products available for the investor! You have never invested or traded, I guess you would be overwhelmed at the fair. Although I am an advocate of futures trading, I shall give a brief summary of what products you can … [Read more...]

Higher margin requirements – is the bitter pill good for you?

Throughout my broking career, I often have clients lamenting that the increase in margins have made it very difficult for them to trade. The local broking firms, under the regulations of MAS, require clients to put up the required margins before they can initiate a position. When I joined the futures broking industry in year 2000, the margins required for 1 lot of SiMSCI is abt 5% or S$2000, but … [Read more...]

Financial Institutions are Your Friends – Some ramblings about Structured Warrants

We stumbled upon this advertisement in Singapore from a financial institution and thought what great marketing material it was. What they wrote seem to imply that their hedging strategies are perfect ( second paragraph) and any gain to the warrant holders are taken from the losses of the warrant issuers' counter party whom they entered into positions with to hedge their warrant positions. Its … [Read more...]

Technical Analysis- A somewhat scientific look

I like reading the Review segment of the Straits Times because there are occasionally interesting analysis, and Andy Ho sometimes has interesting articles. This guy writes extensively on a variety of topics ranging from health to science to philosophy to political systems to economics ... all of which interest me (save maybe for health). Saturday's article in ST is the inspiration for this latest … [Read more...]

Stocks vs Futures

Although trading stock index futures are considered higher risk and more sophisticated than trading individual shares, and will require more time & effort to master, there are many advantages to trading futures compared to shares. No need to cherry pick - How many times have you bought Share A, but Share B went up or the share price fell even when the STI or Dow Jones rallied. With stock … [Read more...]

When the STI Index rallied more than 80 points two days ago…

....nobody asked me if this was the turn.....the most common response was the market appeared irrational !!! Nobody asked me if they should jump into the market when the STI Index rose more than 80 points 2 days ago. Today's muted response to the Dow's 200 point overnight gain seems to suggest that the Singapore market was discounting the "Obama package" rally just as investors had a short … [Read more...]

Adam Hamilton: Cyclical Bear Market Rally Ahead

I tune in to Adam Hamilton once in a while just because his analysis is in-depth and provides the form of data modeling that i can never do. This week he analyzes the stock market volatility that we have been experiencing for 4 months and how it measures up. This picture gives you a good idea just in case you were too busy during this 4 months to realise the carnage that has swept the … [Read more...]

Falling wedge formation

By: La Papillion Doing this for a friend who asked me what is the meaning of falling wedge formation. It's true...there is a falling wedge formation, awaiting confirmation. If it breaks green line (esp with heavy volume), then bullish confirmation is confirmed. This means there is more upside. I think this is quite likely. It's possible to reach up to 3010. If it breaks red line, then … [Read more...]

Active Trading

Brendan has been actively posting several articles on trading and I will be compiling them together in one article for better readability. In addition, I will add in the specific commodity labels. By: Brendan Lee Sugar price is going lower Euro Dollar Could Reach 1.40 Once The ECB Starts Cutting Interest Rates Oil / Gold spread trade turns profitable … [Read more...]

Singtel chart

By: La Papillion NO dream, I'm not going to back to the dark side! :) I've quite a free day today, so was talking to stub about some of the companies that is interesting. Singtel crop up in our conversation and I thought it's interesting too. At least it passed my screening, though need to look more into it and compare with the other 2 main competitors before deciding anything. Read … [Read more...]

I lie to statistics!

By: La Papillion Didn't know that my post on 'Statistics lie!' generated quite a healthy discussion on what is fair and what is not. My aim of the post is to highlight the fact that statistics are used to show and highlight what the person intends to say - or to add weight to what had already been said. As such, there really is no fair way to represent statistic without the risk of … [Read more...]

Short-selling Part 4

By: DanielXX Derivatives, and warrants in particular, have become very popular instruments on the SGX over the past few years, and the SGX must be given credit for its successful promotion of this instrument the second time round (the first attempt in the 90s fizzled out). As more and more issuers enter as market-makers, there is now a critical mass and warrants form a substantial part of … [Read more...]

Short-selling Part 3

By: DanielXX The second main instrument used for short-selling individual stocks is the CFD, short for Contract For Difference. The name is not very illuminating, but suffice to say that it acts like a form of stock futures where the gain or loss is the difference between the opening price and closing price of the underlying stock multiplied by number of shares specified. Like futures, it is a … [Read more...]

Enjoying windfalls from punting

By: PanzerGrenadier The picture you see above is the site of the future Integrated Resort (also known as: the Casino@Sentosa) near the northern shores of Sentosa formerly known as Pulau Blakan Mati. The thin line between investing and speculating in stocks and shares The stock market is a place where money can be made and lost and both at the same time as every transaction is a match at the … [Read more...]

Short-selling Part 2

By: DanielXX Continue from Short-selling Part 1 We start with the SBL account, an abbreviation for Shares Borrowing and Lending. This is the traditional method for short-selling, whereby one borrows from a pool of ready-for-lending securities in order to sell short. This enables the trader to hold longer than if he were doing "naked" short-selling, where he basically just sells the stock … [Read more...]

Short-selling Part 1

By: DanielXX Long-time readers of my blog would know that I have so far been quite resistant to trying to profit from short-selling. But not for moral reasons, for really there is nothing immoral about taking the view that markets will go down and hence backing up that view by selling first before buying up (covering) later. What is immoral is the additional measures the unscrupulous … [Read more...]

Short-selling Part 1

By: DanielXX Long-time readers of my blog would know that I have so far been quite resistant to trying to profit from short-selling. But not for moral reasons, for really there is nothing immoral about taking the view that markets will go down and hence backing up that view by selling first before buying up (covering) later. What is immoral is the additional measures the unscrupulous … [Read more...]