Learning to trade/invest

[gairyu]

Hi all,

I have just started to learn about investing and I am curious about how did all the shi fus and old timers here learnt their investments knowledge or skills? I'm still young and I'm setting aside a small fund about 1k to invest in future.

For now, my source of knowledge is just books, reading up on basics from Authors like Adam Khoo, peter lynch.

 

[wahkao3]

go to a good seminar?

 

[Shiny Things]

I have just started to learn about investing and I am curious about how did all the shi fus and old timers here learnt their investments knowledge or skills? I'm still young and I'm setting aside a small fund about 1k to invest in future.

For now, my source of knowledge is just books, reading up on basics from Authors like Adam Khoo, peter lynch.

There's no substitute for hands-on experience. Get your $1k together, buy a sensible blue-chip stock or ETF (no shitty penny stocks, I'm begging you), and watch it go up and down for a bit. Take the occasional loss and get over it. Get your hands dirty.

There are some good books out there, though. I'm personally a fan of A Random Walk Down Wall Street, by Burton Malkiel.

 

[Perisher]

Take Shiny Thing's advice, just don't put 1k down on 1 blue chip and bemoan it's lost. Even with just 1k, using scb, I can diverisfy into 2-3 blue chips.
Banks are out of your league with each costing more than 1k.

You can look at

Raffles Medical Group
M1
ST Engineering
CMT
Singtel
Comfortdelgro
Parkway Life Reit
Sheng Siong
Keppel DC Reit
Silverlake Axis
Boustead
Ara Asset
Suntec
Wing Tai
Singpost
SATS

You should mix them up and buy in units of 100 shares to get some diversification.
DO note that most of these are really too highly priced at the moment. Singpost, ComfortDelgro, Singtel, CMT, Sheng Siong are all at a high high point, wait for a pullback.
The simpler solution is to buy ES3 or G3B during any pullback. Odds are higher that you will make some gains.

 

[antonpoh]

There's no substitute for hands-on experience. Get your $1k together, buy a sensible blue-chip stock or ETF (no shitty penny stocks, I'm begging you), and watch it go up and down for a bit. Take the occasional loss and get over it. Get your hands dirty.

There are some good books out there, though. I'm personally a fan of A Random Walk Down Wall Street, by Burton Malkiel.

Let me share the ebook..
A random walk down wallstreet

 

[CookieMonsta88]

Hi all,

I have just started to learn about investing and I am curious about how did all the shi fus and old timers here learnt their investments knowledge or skills? I'm still young and I'm setting aside a small fund about 1k to invest in future.

For now, my source of knowledge is just books, reading up on basics from Authors like Adam Khoo, peter lynch.

george soros's books and warren buffet's books are good, and contrarian by nature and study mostly macroeconomic factors, so if u are a contrarian naturally, u want to follow them, if u are sharp, u will figure out george soros's method and warren buffet's method are 2 sides of the same coin, their method is different, but the core philosophy is the same, which revolves around the difference in price and value, if its overvalued u short it, if its undervalued u buy it.

if u are a trend following u might want to follow richard dennis's turtle trading.

for other styles jesse livermore and wd gann and richard wyckoff are good too, except most people are unable to decode their methods, it took me 1 year plus to study how these 3 guys trade.

theres 2 ways to pick up trading, 1 to learn from reading books by successful traders or having a mentor teach u, another is to learn a couple of basic methods but understand the core of market mechanics and what make the markets move, then develop ur own inhouse strategies and tactics to create asymmetric risk reward ratios and scenarios, essentially to free style it.

 

[marsbarsz]

go to a good seminar?

But aren't good seminars hard to find? I've heard from some of friends that the seminars (that costs 1k+) are not that useful at all.

So the question is self-read or seminars?

 

[wahkao3]

But aren't good seminars hard to find? I've heard from some of friends that the seminars (that costs 1k+) are not that useful at all.

So the question is self-read or seminars?

your fren probably went to a lousy seminar
that's why must pick a good seminar

 

[Bedokian]

http://forums.hardwarezone.com.sg/92737102-post44.html

 

[marsbarsz]

your fren probably went to a lousy seminar
that's why must pick a good seminar

For instance?

 

[Jeremy1]

But aren't good seminars hard to find? I've heard from some of friends that the seminars (that costs 1k+) are not that useful at all.

So the question is self-read or seminars?

They are good one but I think before you buy into stock, you need to understand the stock market well........................

It's not so much about theory but pactically.............................

If you wanted to bag more profit, invest in foreign market like China, US but at a much higher risk.

Singapore market is too small and not active enough........................

 

[wahkao3]

For instance?

try milo dino's
or u can try wahkao3's

 

[private_invest_sg]

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!

http://forums.hardwarezone.com.sg/92691957-post20.html

 

[Shiny Things]

But aren't good seminars hard to find? I've heard from some of friends that the seminars (that costs 1k+) are not that useful at all.

So the question is self-read or seminars?

Wahkao does not give good advice. Ignore what he's saying about seminars.

Paying $1k for a seminar is usually a waste of a thousand dollars, compared to just sitting down with a good book and then opening up a brokerage account and doing it yourself.

 

[alexchia01]

But aren't good seminars hard to find? I've heard from some of friends that the seminars (that costs 1k+) are not that useful at all.

So the question is self-read or seminars?

There is a lot to be learned in trading and investing.

There are good and bad seminars like there are also good and bad books.

It's not to go seminars better or reading books better. You most likely need both.

The problem to a newbie is that he does not know which are good and are bad seminars/books.

My suggestion is to find out what the difference between trading and investing first, then decision where you want to start.

This is because trading and investing advices can contradicts each other and newbies who don't knows what they want tends to get confuse, which lead them to make deadly mistakes.

Trading's objective is to create income. Traders buy with the intention to sell for a profit, so that they can make a living for themselves.

Investing's objective is to build wealth. Investors buy with the intention to accumulate their assets, so that they can have a fortune later in life and pass on to their children.

 

[peterchan75]

You can consider the following ..... For Dummies books in order to get up to speed.
1. Stock Investing .....
2. Fundamental Analysis ....
3. Technical Analysis ...
4. Swing Trading ....
5. Value Investing ....
6. Dividend Stocks ....

Then do deep dive....
1. Technical Analysis of the Financial Market - John Murphy
2. Technical Analysis of Stock Trend - McGee & Edwards
3. The Intelligent Investor - Ben Graham

Since you ask "trade", the hardest part... training your mind. I quote Richard Schabacker.... "They are not highly technical. They are not difficult to explain or to justify. But somehow or other, they are exceedingly difficult to ingrain in the subconscious nature of the average investor."
I personally don't any excellence book on trading psychology but you might want to look at books by Alexander Elder or Mark Douglas.
Google is your friend.

 

[wahkao3]

Wahkao does not give good advice. Ignore what he's saying about seminars.

Paying $1k for a seminar is usually a waste of a thousand dollars, compared to just sitting down with a good book and then opening up a brokerage account and doing it yourself.

yes true, books are also good source of info

honestly, i myself hate reading. I take 1 month to finish a book.
I prefer A good teacher to summarize it in 5 hrs.

 

[wahkao3]

This is because trading and investing advices can contradicts each other and newbies who don't knows what they want tends to get confuse, which lead them to make deadly mistakes.

and sometimes they compliment each other!
for example, i know this guy use TA+FA. Both say buy, then he buy.
If 1 never say buy, he never buy

 

[limster]

i know this guy use TA+FA. Both say buy, then he buy. If 1 never say buy, he never buy

Wow who is this guy?

 

[gairyu]

Wahkao does not give good advice. Ignore what he's saying about seminars.

Paying $1k for a seminar is usually a waste of a thousand dollars, compared to just sitting down with a good book and then opening up a brokerage account and doing it yourself.

Well, I attended adam khoo's wealth academy and I was really impressed with his salesmanship .

I was quite tempted to sign up but his fees of $4K... I thought I could maybe buy some blue chips and get practical experience.

Any advice on when to enter and exit the market? I know it will depend on individual's risk tolerance level also.