Dear all, I thought it might be more convenient to start a new post, troblesome to "scrull" around for some or maybe not at all
Thanks to the 43 or so SHCians who overwhemingly support the last Sat talk and meeting. It was a lively meeting and I am sure all have enjoyed it. We ran out of time and had to rush through at the end and ommitted the discussion on inevestor club. Also due to time, regretfully only half duly complete the feedback form.
It is encouranging to have positive feedback from Kenneth and LH Jie in their respective earlier postings; and also supportive comments from Terence and Tim. Thanks guys!
As suggested by Kenneth, a short summary for those who have not attended is duely.
The theme: Stock Market: Preparedness to meet Opportunity = Managed Luck and topics included
1. Positive Energy Attracts Opportunity
>> Happiness is the source of goodwill and positive energy. We are only as happy as those around us. By way of introduction, we tell one another how "good" we were feeling to the tune of James Brown’s song with same tiltle. High "5"s all around for re-inforcement. So now we can get lucky.
2. ST Index: 1998 to 2009 – Technical Analysis & Opportunities
>> We looked at the last boom and bust cycle and identified support lines and retracement patterns. From technical analysis, we have looked at possible retracement level around STI 2700-2750 points, following Fibonacchi’s retracement method and identifying strong resistenace turned support level. Next, we looked at possbile correction levels at 2420, 2244, 2112 & 1936 that we need to watch out for as prossible Fibonacchi’s turning points (buying 4D also suggested).
3. Investment Planning
>> We covered Basic Technical Analysis using Fibonacchi’s retracement; trend, resistance and support lines, top & bottom turning-point indicators, and divergence indicators to help us identify an opportunity when it arises and to prepare for entering or exiting a position (WHEN TO BUY). We then see how to enter a trade looking for candles confirmation and breaching of resistance lines; and how to exit with confirmation of breaching of support lines (HOW TO BUY). And of cource, a STOP loss plan (HOW TO CUT LOSS).
>> We tackled the question of "I only want to buy at $1 and then sell at $1.20 to make 20 cents, why should I be bothered with all these technical analysis?" with topic on Trading Psychology and see how FEAR, GREED, HOPE and EGO go trading shares. The picture becomes obvious that we need to cleard away all our emotion when investing or trading and follow the rules. If you don’t know the rules, go learn or rely on somebody in cahoot who knows the rule.
>> Next up, Fundamental Analsysis and Stock Pick which dealt with boring facts and figures about companies – price pattern and volatility, see the future and look at the past of the company, news and institution buyers. In USA, this is largely automated with a scoring system and available for subcription on the web. We are still backward, can this be a opportunity for SHC to develop and offer such services for Sgp and Asean market?Investor club members can share such info and save time (WHAT TO BUY).
>> Money & Risk Management – we talked about float and max 2% risk per trade (HOW MUCH TO INVEST). Allocation plan is such that the no. of successive losses is less than the 2% max risk. The idea is trade to survive (loose less money) rather than how much I want to make. Determine risk appetite, return, time frame, which instruments and apply risk managenet. We examine different investment scenerios as different types of risk management.
>> The emphasis on Online Trading and the basic skills needed to get started. I can start a class with POEMS and it is free to open a Phillip account (I will be happy to help) that comes with free access to the online POEMS. There is no rule to restrict you to only one trading account. You can have as many as you want and all free. Feedback needed if you want to attend. Commission is lower for online trading, so better learn.
4. Admin & Trading Rules
>> The do & don’ts in trading, the credit limit and what does it mean, the settlement date and forced selling, the wrong keying in of orders online and how to appeal, the opening of trading account and the service level of your remisier/ dealer. You can open as many Phillip accounts as you want and trade with the remisier who gives you the best service in making and protecting your money.
5. Investor Club – no time to discuss, postphone to next time. Feedback here is welcomed. For starter, I am suggesting we meet socially once a month and see how it goes.
Lastly, the feedback form is great for us to plan our talks better in future and to reach out to specific requests from the group. I have only received 19 on Sat and I would like to request those who have not done so to send an email to me email@example.com or sms
XXXXXXX your email address so that I can forward you the soft copy for you to fill in and return via email. Or just drop you email address here in the post if your are too busy.
Please feel free to comment, ask or suggest. However, do give me some days if any lengthy respond is expected. And just call me if it is about the stock market price movements, it is time to watch for buying opportunities as most blue chips have started to pullback already. Crucial news from USA this Friday includes CPI, capacity untilization, industrial production and consumer sentiments.
Will keep you post on the next talk… cheers, ben