Beginner's clarification

[felixleong]

I see.. Just giving an example because from what I have seen majority of the people's portfolio have Keppel Corp in it, as I'm new to this so I thought maybe there is some 'rules'/'trend' or whatever. It's some doubt that I have in my mind, but well.. now I'm fully aware on the steps and precaution on what to do before investing in a blue chip.

Thanks for your help!

I see that you are really very new

maybe u should spend more time learning first... dun rush in to pick any stocks yet

maybe go bank, open trading account first... its free of charge anyway.. ocbc,dbs,uob... pick any u like

once u have the trading account opened, ask your broker to sign u up to free course/seminar... they will teach u all the basics that u need

how to use their online platform
fundamental analysis
technical analysis
and so on

 

[SuShixT]

I see that you are really very new

maybe u should spend more time learning first... dun rush in to pick any stocks yet

maybe go bank, open trading account first... its free of charge anyway.. ocbc,dbs,uob... pick any u like

once u have the trading account opened, ask your broker to sign u up to free course/seminar... they will teach u all the basics that u need

how to use their online platform
fundamental analysis
technical analysis
and so on

Ok, noted. Thanks!

 

[neolaw]

its just $5 or 0.3% or whichever higher

don't be confused with buy-in

since u are so new.. best is head down to any local bank like dbs or ocbc and get their staff to tell u more about blue chip investment plan

The problem with that is the bank staffs become big eye baby girl when they are asked about posb invest saver or ocbc bcip. They don't know if these products exist.

 

[Bedokian]

TS, suggest that you do some read up first. Start local by reading up "Handbook for Stock Investors" by Goh Kheng Chuan (the first few chapters where he talks about CDP, brokerages, etc.). Then, open up a brokerage account (provided you have the pre-requisites as stipulated in the CAR, else go online and "study" at the SGX website).

Next, determine if you want to make a quick buck (i.e. Trader), buy with a long term view (i.e. Investor) or both, because from here on different skill sets and books are required. If you want to be an Investor, things such as Fundamental Analysis, Dividend Investing, Index Investing, etc. will come into play, and also the choice of books that you read ("The Intelligent Investor" by Benjamin Graham, etc.). For Trader, you will have to know more of Technical Analysis, and of course candlesticks, patterns and lines. If you want to be both, read all, but usually people will start off as one type first.

Lastly, even if you go along the path of an Investor, there are many variations on how to execute the strategy. We have Shiny Thing's ETF investment, DW's blue chip and dividend approach, etc. There are tons of books on investment (e.g. "The Permanent Portfolio" by Craig Rowland, "Get Rich with Dividends" by Marc Lichtenfeld, etc.). Same goes for Trader ("I use candlesticks and MA 50/200 only", "I use Fibonacci with so-on and so-forth", etc.). You have to know and settle on your preferred style.

And one more thing, no need to know everything in one shot (options, futures, futures with options, CFDs, warrants, etc.), just stick to plain vanilla shares/stocks first.

It is natural to be excited and at the same time intimidated by the market. You will feel ecstatic at making the first buck, and jittery when you lose your first buck. Emotional control is one thing you must learn to conquer, be it a Investor or Trader. In the market, $$$ is treated as a tool, not to be viewed as opportunity cost to get that new laptop or a nice meal at a restaurant.

Thanks for reading my WOT.

 

[felixleong]

The problem with that is the bank staffs become big eye baby girl when they are asked about posb invest saver or ocbc bcip. They don't know if these products exist.

wah they so jialat one de ah... tot the bank would send their RM for training on the new products... haizzz

if both DBS and OCBC the staffs are so lousy, then maybe should try to look for a good stock broker instead ba....

nowadays seems like good things hard to find

 

[kletian]

Hi TS, from what I understand you are 21 years old and considering investing with around $1,000.

I will advise you to invest the $1,000 in yourself instead of in the markets. Assuming even if you make 20% p.a., that will only make you maybe another $1,000 by the time you graduate from university (guessing you are still studying). Even so, the strategy you used may not apply in the future. Or you may end up playing penny stocks or leveraging and losing most of it.
Unless you are working already, you have no extra source of income and there's really no point in spending 4 years to make $1,000 which is really less than a month's savings once you start working. Time is money, but money is also time and the $1,000 opportunity cost to you is pretty big since it's a big amount to the now you compared to the 26 year old you. You may do investing now, but you are really limited by the amount of money you have (and play money is not the same as the real thing).

There are things you can learn about investing in the markets but I suggest you consider the following investments of $1,000 instead:

1) Invest in your studies
- Books related to uni curriculum
- self enrichment / critical thinking
- meals/other rewards for motivating yourself
- other uses related to school

2) Pick up a new skill
a) learn programming (python/c++ etc) Many of my friends in trading and funds are required to know/be experts.
Can also join IT if you need work.
Spend the money to buy related books / sign up for courses / find someone teach you / self learn from the net

b) Learn game designing - unreal engine 4 and unity is free. Self learn from the net. You can make your own web/mobile/VR/PC games and have a shot a monetising them or sell parts of your product or lease out your skills parttime. It's also a useful skillset to get into some of the tech firms. $1,000 can be used to buy assets needed for game design plus other uses and rewards for yourself for hitting milestones

C) learn baking / cooking etc.
Pay for courses, no job can go sell cakes or pastries or something. At the very least you save on eating out since you can now cook decently.

D) other skills - think about it but you don't necessary have to like it to make money from it

Returns on the $1,000 is probably 100 fold compared to investing in the stock markets now.

(If you are working now or still want to pick up stocks/trading etc I can follow up)

 

[SuShixT]

Thanks bedokian for the kind advice and guide, I'm pretty sure I'm more of a investor type instead of trader. I believe trader is more about timing and turning shares into quick buck, quick buck may be nice but unfortunately I'm more of a person who wants to invest in companies which can benefit.

And thank you kletian for your advice. No worries, at the age of 21 not many have the intention of generating income, but I already do have a side business which generates passive income for me, not much but it is still something. And after-all business is my passion and not my interest.

 

[Tornesoul]

I got a question to all, hope you don't mind ts.

If say you bought 1000 shares of a stock at $0.8 dollars sometime ago, and the stock has had capital gains and the market price is now $1.2.

You decided to purchase 1000 more shares at the current price of $1.2, for a total of 2000 shares.

How would you personally view this?

a) 2000 shares at an average cost price of $1.0 per share or
b) 2 separate transactions of 1000 shares at $0.8 and another 1000 at $1.2?

I know they are just different ways to view the same thing. Does it matter?

 

[SuShixT]

I got a question, hope you don't mind ts.

If say you bought 1000 shares of a stock at $0.8 dollars sometime ago, and the stock has had capital gains and the market price is now $1.2.

You decided to purchase 1000 more shares at the current price of $1.2, for a total of 2000 shares.

How would you personally view this?

a) 2000 shares at an average cost price of $1.0 per share or
b) 2 separate transactions of 1000 shares at $0.8 and another 1000 at $1.2?

I know they are just different ways to view the same thing. Does it matter?

Wow, normally I kind of hate questions like these. Because I'm those kind of person who normally observe people and think why are they doing this, like from a psychological point of view. It's difficult for me to answer your question since It might not really be pertain to what I really view it as.

But I guess If I would have to pick an answer it would be 'b) 2 separate transactions of 1000 shares at $0.8 and another 1000 at $1.2?'

Edit: Actually It really depends on what I'm going to do with the stock, If I would be selling It, than I would be calculating the profit like how much I bought the stock @ 1000 shares at 0.8 and the other at 1.2.

If I were to view it as what I currently have, like how much worth.. somesort, I would have the answer of A).

 

[shared]

Thanks bedokian for the kind advice and guide, I'm pretty sure I'm more of a investor type instead of trader. I believe trader is more about timing and turning shares into quick buck, quick buck may be nice but unfortunately I'm more of a person who wants to invest in companies which can benefit.

And thank you kletian for your advice. No worries, at the age of 21 not many have the intention of generating income, but I already do have a side business which generates passive income for me, not much but it is still something. And after-all business is my passion and not my interest.

nice, would you mind sharing what kind of business is that?

 

[SuShixT]

nice, would you mind sharing what kind of business is that?

Nothing big, just web development stuff .

 

[Shiny Things]

a) 2000 shares at an average cost price of $1.0 per share or
b) 2 separate transactions of 1000 shares at $0.8 and another 1000 at $1.2?

The only time b) matters is if you're liable for capital gains tax when you sell the shares (which you're not, because you live in a tax haven). Otherwise, a).

 

[felixleong]

Nothing big, just web development stuff .

Make website for small businesses and claim
PIC to profit? Lol
So many ppl doing sia

 

[felixleong]

I got a question to all, hope you don't mind ts.

If say you bought 1000 shares of a stock at $0.8 dollars sometime ago, and the stock has had capital gains and the market price is now $1.2.

You decided to purchase 1000 more shares at the current price of $1.2, for a total of 2000 shares.

How would you personally view this?

a) 2000 shares at an average cost price of $1.0 per share or
b) 2 separate transactions of 1000 shares at $0.8 and another 1000 at $1.2?

I know they are just different ways to view the same thing. Does it matter?

Mathematically its both the same... At least in singapore context

However human psychology plays a big part in how we invest... Just like how we feel happy when taking a profit and resistant locking in a loss, this results in many people hugging on to their losers

 

[SuShixT]

Make website for small businesses and claim
PIC to profit? Lol
So many ppl doing sia

Huh, no la. Mine is legit business, my company never claim PIC one.

 

[felixleong]

Huh, no la. Mine is legit business, my company never claim PIC one.

i mean do website for small companies

those small companies can claim PIC ma

free one


web design is very good business over the last few years due to PIC, but once PIC ends it will die

 

[SuShixT]

i mean do website for small companies

those small companies can claim PIC ma

free one


web design is very good business over the last few years due to PIC, but once PIC ends it will die

Oh ok only la, the web development scene in Singapore very competitive. A lot of company doing web developing so finding customer not easy

 

[felixleong]

Oh ok only la, the web development scene in Singapore very competitive. A lot of company doing web developing so finding customer not easy

ya very competitive

i used to do it too, but stopped

I have friends who are still doing it, now is the last wave to ride liao

I advise u to grab whatever u can, then move on to something else ba

 

[SuShixT]

ya very competitive

i used to do it too, but stopped

I have friends who are still doing it, now is the last wave to ride liao

I advise u to grab whatever u can, then move on to something else ba

Yea, It's good business but the market too saturated already.

Anyway, guys .. about dividends, how do you get dividends? By buying shares and holding to it for a long period of time does it automatically 'sign' you up for dividends?

And after I have done some research on how much you would get for the dividends, it appears that there is a few calculations to derive it, can anyone explain ?

Thank you!

 

[OCBC Bank]

No. You shouldn't just buy into a stock just because you think everyone is buying it. There's a similar saying where if even the man on the street also have a stock pick to recommend, be mindful of the market. Be fearful when the market is greedy and be greedy when the market is fearful.

There's a few factors to consider but not limited to:
Understanding how the company makes its money from.
Can it sustain its incoming cashflow or maybe even increase its incoming cashflow.
Why is the share price plunging, will it recover in the future.

Everyone does their stock picking according to their individual theories. Not everyone will buy blue chips might be due to the higher share price per lot, due their own individual theory (Low risk, high returns? ), slightly higher premium etc. There is no one absolute method in trying to make some cash in the stock market.


OT: So If we short using OCBC's BCIP, does it include the penalty from SGX?

Sent from The Sun using GAGT

Hi linxiaobei,

There will not be a short sell situation for BCIP as we will perform a check before trade execution date to ensure that your Sale Instruction does not result in a short-sale. If your Sale Instruction results in a short sale, it will be rejected and we will notify you via SMS.