For beginners to sgx investment, for a start or
first stage of learning, research the following;
-What are the various sectors or industry?
-What are the listed stocks in each sectors?
-From the listed stocks, identify the bluechips that are in each sectors?
-Identify and split the other listed stocks that have daily liquidity and without liquidity into 2 groups
-now you have these 2 groups of stocks, identify which board are they listed on, mainboard or catalist,
-then read about their fundemental, their owner, their track record, their nationality, where most of their business are located
-use yahoo or google or sgx announcement read their historical news and how it influence the price.
by then you should be familiarised with a handful of companies and also the interface of sgx.com.
at this stage, off the hand you must be able to identify and name some of the listed company when discussing with your friend, you should be able to travel around singapore and see some of these listed companies business everywhere like for example, you should be able to identify comfortdelgo taxi, sbs buses, smrt mrt, dbs atm, uob bank, plaza sing shopping center in reits, your telco bill etc
once you have these informations, you will proceed to the
2nd stage of learning, that will be to go into the market and start to test water but before you go into the market. knows what is the
1) operating hours of various global markets especially singapore market.
2) the different order types that you can use to send in orders
3) understand what does bid/ask price means, what do open, day high, day low, and close price means
4) understand about market depth and how it influence the bid/ask spread you see.
5) learn about times&sales, trade summary
6) learn basic charting to time entry and exit.
7) learn how to navigate your broker platform interface
8) understand what is t+5, how to make payment, how to read your cdp statement etc
9) choose a company from your own virgin research and
buy small small to have a feel of owning a listed company and monitor it,
losing money or making a profit from it is not the primary motive at this stage now.
10) by now you should be very motivated to wake up early to see the market, read about other companies news and start reading the business time and money section
3rd stage of learning will be more abit advanced which will require alot of intensive reading. you need to learn how other global or local news will affect a stock market etc singapore market, and each of their sector and industry. know who is the big brothers, how these big brother fiscal or monetary policy will affect the global fund movement across all different asset classes, and how these asset classes will in turn affect each global market and how asset classes movement will in turn affect each market sectors/industry and its companies etc
4rd stage of learning will be to understand and appreciate the conspiracy theory and the dark side of the market but this is not applicable to everyone
it is an ongoing and lifelong process lah.
i always tell my virgin newbies clients, you spend 6 years in primary school to prepare for your secondary school education, after which you spend 4 years in your secondary school to prepare for 3 years poly or 2 years in jc to prepare for 3 years of university (total of more of than 10 years of learning) before you really step out to the working world to earn your first month salary.
so dont expect to just pick up a couple of book, invest for a few weeks and then start to believe you can become the next warren buffett or george soros and start making a living out of it.
enjoy your journey
