Beginner's clarification

[Perisher]

i suggest you use $50 to treat 10 different forumers here to lunch, they might just be able to give you more investment guidance than your broker!

I think treating private_invest_sg alone will give you more guidance than your broker already.

 

[peterchan75]

One thing I don't get is there are Stocks/ETFs/Securities Options/Futures/Futures Options/Bonds/Forex/Mutuals Funds etc.. What are they?

For beginner, it's best to avoid anything that involves in margin.
https://www.interactivebrokers.com/en/index.php?f=marginnew&p=overview

Some of those instruments that you have mentioned involve margin(aka leverage). Any sudden change in the asset, if gain.. very happy, but if loss, you loss what's in your account and they come after your asset. Just google swiss franc appreciation.

 

[Asphodeli]

Wow, thanks for letting me know of Interactive Brokers. The thread is good to know, The website platform looks great.

I wonder why trading platform for Singapore like POEM website looks extremely prone to attacks, the visual of the website certainly does not look that appealing.

Anyway back to the topic, I have visited the Interactive Brokers website found it to be quite detailed as they do describe the cost of it for the commission, every 100 shares - $1 etc..

One thing I don't get is there are Stocks/ETFs/Securities Options/Futures/Futures Options/Bonds/Forex/Mutuals Funds etc.. What are they?

Don't worry, that's the norm for POEMS. You might want to try out with other brokerages like CIMB first before trying foreign brokers like Interactive Brokers. For someone with low starting capital, a good compromise between what local and foreign brokerages offer (and their associated fees) is to use Standard Chartered.

I read that you are 21? Good, I started at 21 too. I'd tell you my story but that's a bit OT, and you can visit my blog for that.

For beginners I recommend you start out with equities such as stocks and ETFs as they are simpler to understand. Also do check out SGX academy for free courses on how to open an account, how the stock market works and etc.

Brokerages sometimes offer free platform seminars too, so try to make time for that as well. Avoid those seminars that are not from a recognized financial institution, as they are a grey market.

Sent from Asus K00Y using GAGT

 

[SuShixT]

Thanks for the help guys, I will do some read ups on swiss franc appreciation, margin/levarage, SGX academy, and on Asphodeli's blog!

Asphodeli, is your blog .. jyklmoneyblog.blogspot.sg .. ?

 

[Asphodeli]

Thanks for the help guys, I will do some read ups on swiss franc appreciation, margin/levarage, SGX academy, and on Asphodeli's blog!

Asphodeli, is your blog .. jyklmoneyblog.blogspot.sg .. ?

Nope! I don't use blogspot, hehe.

Sent from Sony D5833 using GAGT

 

[felixleong]

if u are new to investing, best to start from blue chips
as these are large companies with a long track record already

don't listen to hot tips
always do your own independent research and fact findings

what u read on this forum may be bias, so don't take all word for 100%
ownself double check is the best, google is your friend

 

[SuShixT]

Nope! I don't use blogspot, hehe.

Sent from Sony D5833 using GAGT

You ask to visit your blog and you didn't gave me your blog

if u are new to investing, best to start from blue chips
as these are large companies with a long track record already

don't listen to hot tips
always do your own independent research and fact findings

what u read on this forum may be bias, so don't take all word for 100%
ownself double check is the best, google is your friend

Yes, I always do intensive research before starting something. Thanks for the blue chips tips, I do agree on that part.

 

[Perisher]

You ask to visit your blog and you didn't gave me your blog

Self promoting website is kinda not allowed in this forum. They will tio infraction point or get banned.

Anyway, it's not hard to find a lepak investor blog.

 

[felixleong]

anyway for most new investors
I would strongly encourage to start small with the blue chip investment plan

$100 a month up, very affordable

Investment | Blue Chip Investment Plan | OCBC Bank

before u swim in the sea, maybe start by getting your feet wet

after 1 year of owning some sti etf, then maybe more comfortable liao then start to research more and purchase individual stocks

cheers

 

[SuShixT]

Self promoting website is kinda not allowed in this forum. They will tio infraction point or get banned.

Anyway, it's not hard to find a lepak investor blog.

Ah I see, okok ! Thanks

anyway for most new investors
I would strongly encourage to start small with the blue chip investment plan

$100 a month up, very affordable

Investment | Blue Chip Investment Plan | OCBC Bank

before u swim in the sea, maybe start by getting your feet wet

after 1 year of owning some sti etf, then maybe more comfortable liao then start to research more and purchase individual stocks

cheers

Wait, so every month I will have to pay $100 for the OCBC BCIP and on top of that I will have to pay $5 or 0.3% or whichever higher whenever I buy the shares and S$80.25 per counter + 0.853325%?

So correct me If I'm wrong, wouldn't is be very expensive and on top of that you would have to 'use your outside' money to also buy the lot of shares?

 

[limster]

Ah I see, okok ! Thanks

So correct me If I'm wrong, wouldn't is be very expensive and on top of that you would have to 'use your outside' money to also buy the lot of shares?

Expensive compared to what? ILP?

 

[spiritGate]

Thanks for the help guys, I will do some read ups on swiss franc appreciation, margin/levarage, SGX academy, and on Asphodeli's blog!

Asphodeli, is your blog .. jyklmoneyblog.blogspot.sg .. ?

That is my blog.

 

[felixleong]

Ah I see, okok ! Thanks



Wait, so every month I will have to pay $100 for the OCBC BCIP and on top of that I will have to pay $5 or 0.3% or whichever higher whenever I buy the shares and S$80.25 per counter + 0.853325%?

So correct me If I'm wrong, wouldn't is be very expensive and on top of that you would have to 'use your outside' money to also buy the lot of shares?

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

for investing, best is to always speak to the professionals instead of relying on forum...
opening account is all free, the bank staffs will guide u de... dun worry so much

 

[linxiaobei]

Ah I see, okok ! Thanks



Wait, so every month I will have to pay $100 for the OCBC BCIP and on top of that I will have to pay $5 or 0.3% or whichever higher whenever I buy the shares and S$80.25 per counter + 0.853325%?

So correct me If I'm wrong, wouldn't is be very expensive and on top of that you would have to 'use your outside' money to also buy the lot of shares?

Huh? How did you derive "$80.25 per counter + 0.853325%"? That is for buying in if you do short selling.

Buying counter is as per normal with commission of $5/0.3%, whichever is higher.

I don't get what do you mean on the second paragraph though.

Please read through it carefully again.

Sent from The Sun using GAGT

 

[SuShixT]

Expensive compared to what? ILP?

ILP = ?? (What's that?)

Oh.. after doing more thorough research I found out that POEMS and OCBC BCIP have more counter to invest on as compared to POSB which has only 2, right? ? And of course the difference in the fees etc..

Found out that more or less OCBC is more suitable for new starters like me. And POEMS is better for those who are investing more than few hundreds as the fee is relatively higher which is 0.2% or $10 which ever is higher.

That is my blog.

Ah, paiseh!
Didn't know, was looking for his blog but cannot find.
Anyway, your blog looks pretty useful!
Thanks, I guess..

Huh? How did you derive "$80.25 per counter + 0.853325%"? That is for buying in if you do short selling.

Buying counter is as per normal with commission of $5/0.3%, whichever is higher.

I don't get what do you mean on the second paragraph though.

Please read through it carefully again.

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

for investing, best is to always speak to the professionals instead of relying on forum...
opening account is all free, the bank staffs will guide u de... dun worry so much

Ya think I kinda of got confused with the meaning of 'Buy-in fee processing fee in relation to a short-sell'. I will talk to the professional before opening an account.



Anyway important question guys, If I get the OCBC BCIP plan. And over there, there are limited amount of counter to invest and as they are all 'blue chip' and on top of that it seems that everyone is buying Keppel Corp. So is it a no brainer that I should also buy keppel corp?

What's everyone guys view on this, because from my point of view, the rule is when I invest I would have to first 'believe and trust' on what they are doing?

Like what are the rules you have for investing in blue chip? Since they are called blue chip, why isn't everyone investing in each and everyone of them?

 

[sandwicher]

ILP = ?? (What's that?)

Oh.. after doing more thorough research I found out that POEMS and OCBC BCIP have more counter to invest on as compared to POSB which has only 2, right? ? And of course the difference in the fees etc..

Found out that more or less OCBC is more suitable for new starters like me. And POEMS is better for those who are investing more than few hundreds as the fee is relatively higher which is 0.2% or $10 which ever is higher.




Ah, paiseh!
Didn't know, was looking for his blog but cannot find.
Anyway, your blog looks pretty useful!
Thanks, I guess..




Ya think I kinda of got confused with the meaning of 'Buy-in fee processing fee in relation to a short-sell'. I will talk to the professional before opening an account.



Anyway important question guys, If I get the OCBC BCIP plan. And over there, there are limited amount of counter to invest and as they are all 'blue chip' and on top of that it seems that everyone is buying Keppel Corp. So is it a no brainer that I should also buy keppel corp?

What's everyone guys view on this, because from my point of view, the rule is when I invest I would have to first 'believe and trust' on what they are doing?

Like what are the rules you have for investing in blue chip? Since they are called blue chip, why isn't everyone investing in each and everyone of them?

Given the new 100 shares per lot rule now, OCBC is no longer the best option for newbies. Standard chartered bank is the best, 0.2% commission fee with no minimum charges.

OCBC BCIP has 1% charges? And their promotion for selling charges could end years later. SCB has no 'catch' , really. 0.2% means 0.2%.

By the way, stay far far away from ILP (aka endowment plans aka 'investments with insurances'). Stay away from them like how you would stay away from penny stocks. Both are plagues to stay away from. Ever. Always.

 

[linxiaobei]

ILP = ?? (What's that?)

Oh.. after doing more thorough research I found out that POEMS and OCBC BCIP have more counter to invest on as compared to POSB which has only 2, right? ? And of course the difference in the fees etc..

Found out that more or less OCBC is more suitable for new starters like me. And POEMS is better for those who are investing more than few hundreds as the fee is relatively higher which is 0.2% or $10 which ever is higher.




Ah, paiseh!
Didn't know, was looking for his blog but cannot find.
Anyway, your blog looks pretty useful!
Thanks, I guess..




Ya think I kinda of got confused with the meaning of 'Buy-in fee processing fee in relation to a short-sell'. I will talk to the professional before opening an account.



Anyway important question guys, If I get the OCBC BCIP plan. And over there, there are limited amount of counter to invest and as they are all 'blue chip' and on top of that it seems that everyone is buying Keppel Corp. So is it a no brainer that I should also buy keppel corp?

What's everyone guys view on this, because from my point of view, the rule is when I invest I would have to first 'believe and trust' on what they are doing?

Like what are the rules you have for investing in blue chip? Since they are called blue chip, why isn't everyone investing in each and everyone of them?

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

 

[Asphodeli]

Anyway important question guys, If I get the OCBC BCIP plan. And over there, there are limited amount of counter to invest and as they are all 'blue chip' and on top of that it seems that everyone is buying Keppel Corp. So is it a no brainer that I should also buy keppel corp?

Oh, great. Not another one. What did Felix just tell you in a few posts earlier?

Even amongst blue chips, there will be some that are more blue than blue - look at Jardine Mathersons - it's roughly $63 USD per share. That's right, a puny $100 SGD bill can only buy 1 share a month.

Conversely, there are blue chips that can go under trial by fire - what about the recent oil price crash? Would that affect Keppel? What about Noble Group and Iceberg Research? These are things that you have to be aware of when you invest, even in a blue chip.

 

[SuShixT]

Oh, great. Not another one. What did Felix just tell you in a few posts earlier?

Even amongst blue chips, there will be some that are more blue than blue - look at Jardine Mathersons - it's roughly $63 USD per share. That's right, a puny $100 SGD bill can only buy 1 share a month.

Conversely, there are blue chips that can go under trial by fire - what about the recent oil price crash? Would that affect Keppel? What about Noble Group and Iceberg Research? These are things that you have to be aware of when you invest, even in a blue chip.

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!

 

[Asphodeli]

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!

No worries. Most likely they have Keppel Corp from way back years ago (you'll be surprised at the median age of the people who attend investment seminars by SGX and/or the brokerage houses - there's more white hair than black!), and during the recent oil price crash too.