Chit-chat with Henry Yip on Trading Indexes, 19 Aug 2010

As part of our series of discussions and chitchats on investments, we will be having a chitchat session with Henry Yip on Thurs 19 Aug 2010, from 1600 – 1800 hrs.  This event will be held at the cafe inside MPH Robinson Road.

Henry Yip is trading actively in Indexes only.  As such, he will recommend highly ETFs for those who are investing for the medium term.  Do note if you plan to come for this session.  Strictly for SHC members only.

Registration:

  1. Terence Seah
  2. Henry Yip
  3. Dolly Lim
  4. Charles Chua
  5. Hou Chong
  6. Caroline Gee
  7. Peter Lim
  8. Lydia Chin
  9. Nina Choo
  10. Lilian Teo
  11. Lawrence Lee
  12. Sam Goh
  13. Weng Hon
  14. Frisna Tan
  15. Ronald Lee
  16. Bobby Bok
  17. Dave Tan
  18. Peng Peng
  19. Thomas Loh
  20. Strictly for SHC members only.

Author: Terence Seah

Founder

49 thoughts on “Chit-chat with Henry Yip on Trading Indexes, 19 Aug 2010”

  4. For those looking at possible investment options, stay tune, we have other SHCians who are willing to share with fellow members on different products, platforms or personal styles. Some of you have requested to have different chats on one day, but I think it is better to stay focused.

    You are most welcome to speak. If you are trading, online or offline, US, Asian or Singapore, gold, currencies, commodities, do write to me. No matter whether you play play, try try, intermediate or advanced. Some of us would appreciate you helping us to open another eye.

    For me, I am still looking to make $1,000 a month from trading activities when I retire or after I collect my CPF Life.

    Thank you Henry for agreeing to share. I have noticed ETFs are pretty recent items so I shall aturn up too.

    Terence Seah

  8. Dear all, Many2 thks for the response. Hi Carly, they say those silverhairs once they turn 50 onwards, their charts will look like a falling market hehehe ( going downhill pysically & mentally). We in SHC will show tht, tht shud not be the case, and tht our charts are the rising ones kekeke. As an asset class, the silverhairs are the most valuable & desirable class hehe.

    I will be chitchatting about the most revolutionary product ever for retail investors/ traders like us, whch is CFDs. CFDs open a whole new universe of financial products, be it shares, sector ETFs, country indices, interest rates, foreign excchange, commodities etc etc. Thanks Terence for always thinking of the welfare of the club & SHCians. cheers.

  10. Hi Henry

    Very kind and gracious of you to share what you know.

    Yes, its all in the mind and heart. Used to be branded as downhill once you turn 50.

    However, in SHC, we reverse the gear and we go uphill after 45.

    GAMBATE!!!

    Cheers
    Carly

  11. Hi Carly, Gambate !! indeed, this is in answer to yr comment ”although I have no idea what this is about” so the whole crux of it all is about quote” in SHC, we reverse the gear and we go uphill after 45.” kekeke

  13. Hi Henry,

    I’m very tempted to steal 2 hours from office, and walk over to attend your talk. If we can make some money from index trading, why not? So far, I haven’t had much luck with stocks or unit trusts, but having said that, I’ve a low risk appetite. Will try my best to come over to learn more about trading indexes. How do they differ from stocks or unit trusts?

    Yea, I fully agree with Carly that we can go uphill after 45. Its all in the mind.

    3 cheers for SHC. hip, hip, horay x3.

    My best regards to all,
    Lydia.

  14. Hi Lydia, stocks form the basis of all this funds e.g. unit trust. 1st gen ( generation) are Unit trusts, they are a composition of selected stocks in specific industries/ sectors, countries, region etc etc. They are managed by fund managers who will charge U a mgmt fees.( least popular now) 2nd Gen are ETFs ( Exchange Traded Funds), they are the same as Unit trust in their targeted composition), listed in the stock market where U can trade them like any other shares. The difference is there’s no mgmt fees to pay( only brokerage to remisier). The 3rd Gen are ETFs traded via CFDs. This is traded thru a CFD broker e.g. CMC, CitiIndex, IGmarkets, SaxoMarkets etc. These are the most cost efficient way to trade now.

    There are many obvious advantages to trading ETFs Via CFDs, for whch I’ll cover on the 19th. Tks for asking. Cheers!

  15. Hi Henry, pls excuse me for asking very basic questions. Is there a website whereby I can learn more about these stuffs, before I come for your talk? It would be good for me to know some basics, otherwise I will be drown in the jargon, for instance i don’t know what is a CFD, and where can they be found? And for a greenhorn, what is the first baby step to take, ie. how to start trading, and which index to look at?

    Thanks for your patience. Cheers!

  16. Hi Lydia,

    Nowadays information are at a click of your mouse. You do not need to go to a library – just google it. For instance go to google dot com and type in “CFD trading” and there will be at least a few hundred thousands if not millions of websites on that topic.

  18. Hi Lydia, StevenN’s right, also v must hv a certain degree of independence in order to be successfull, if U still cant find the answer, do let me know.
    Hi Daisy mei2, no worries, v r just going to hv an informal friendly chitchat & sharing. Read Secrets of Millionaire Investors – Adam Khoo & Conrad Alvin Lim, many of the things I chitchat abt is covered in this book. cheers!

  21. Hi Lillian & Lawrence ( L&L hehe) welcome.
    Hi Kenneth, no worries, always another time. For those who r following wht Kenneth is doing on the China shares, there’s another alternative way to get exposure. This is via ETFs via CFDs, U can buy Code 2823 & Code 2838, Code 2823 is the 50 largest China stock listed in HongKong. And Code 2838 is the 25 largest China stock listed in HK.

    There are two ways to buy them. 1) Thru a stock broker 2) Buy thru On-line CFDs brokers( like me). The obvious advantage of buying thru CFDs broker is U dont pay brokerage. The last time my Bro-i-Law & I bought at the same time, same qty & the same price spread, he paid quite abit of brokerage thru his stock broker, while I need not pay any brokerages. ( will elborate furhter on the 19th) Have a good weekend cheers!

  23. Wei2 Dolly n AhHuat, most welcome. Dolly, I believe by now U hv developed a good sexy abs ( 6 packs of stomach muscles)u know yr AhHuat, in kelong ah, make all of us laugh until peng, untill our stomach muscles cramp( no exaggerate) Ah Huat has my vote for party livewire 2010 hehe

  24. Wah, shy lei. U flattering me or you playing it safe, Henry? Me jie jie, u ti ti. Alamak! Now everyone knows.

    Thanks for the tip on the books to read but listening to you is FOC. Besides, listening already will ask covered subjects a few times. If must complete reading a book, will take moons to finish cause sure to fall asleep after reading a few lines. Sorry, dao luan only. Effort, effort, effort…….

  25. Hi SHCians

    It is heartening to note that some os us are keen to share different modes of betting in the financial markets, thus providing another avenue of making money, hopefully.

    With due respect, because many of us aim to make money quickly, my take is in comparison to trading in Options, CFDs, ETFs, Indexes, etc. punting in forex or ordeinary stocks is still the better route on account of, for reasons on stocks are:-
    1. Simplicity – buy or sell Company A shares
    2. Availability – stock prices with variations are quoted
    throughout trading hours
    3. Fast results – possibility of profits within the hour
    4. Probability – repetition of buy/sell in more than
    one stock

    Our punts for the past week:-
    Aug 10 – did nothing
    11 – bought 5lots Capital Land 3.96 &
    30lots Golden Agri 57cts
    12 – contra Capital Land @ 3.94, nett loss $240
    13 – same day trade on DBS 14.06/22 nett profit $60+
    14 – contra 30lots G Agri 58cts, nett profit $180
    same day trade 10 lots Genting 1.38/40
    nett profit $105
    bought 10 lots Noble 1.55

    For tomorrow we shall aim to sell contra Noble @ 1.58.
    We are monitoring Wilmar and will buy $6.05 or below.
    Kepple Corp is worthwhile picking up 8.70

    Regards

    Abel Tan

  26. Hi Abel, many tks for yr update. I am happy to take the opportunity to show U & fellow SHCians that Index trading are just as easy to trade & hv it’s advantages. Let’s take yr quote” ordeinary stocks is still the better route on account of, for reasons on stocks are:-”

    1) ”Simplicity – buy or sell Company A shares”
    Index trading e.g. buying the Dow Jones index is also just as simple to buy or sell.

    2) ”2. Availability – stock prices with variations are quoted throughout trading hours”
    Stocks e.g. S’pore stocks are quoted with limited hours, while the Dow Jones or Nikkei 225 index are quoted for almost 23 hours.

    3) ”3. Fast results – possibility of profits within the hour”
    index trading on e,g, the Dow Jones index too can be traded with fast results too, in fact the daily ranges for index trading are bigger whch may represent greater opportunities. Stocks enjoy relatively smaller daily ranges.

    4) ” 4. Probability – repetition of buy/sell in more than
    one stock”

    For index trading is the same, the different indexes you can trade are mind boggling, country indexes from new zealand ( 1st to open for trading) to New york, & in between U can trade Korean, Indian, australian & a whole host of european indexes & more. Also if U r interest in sector rotation, you can also trade the different sector indexes.

    There are other advantages index trading have over stock trading like hedging e.g. As recently as in April, when some of my kakis instead of selling their ”beloved” S’pore stocks whch are paying them good dividends, they sell into the SIMSCI ( Morgan Stanley S’pore index) to hedge, some sold 100% worth of their portfolio. And they bought back their index short positions progressively and now the STI is back near it’s year highs again. Their stock porfolio has gained back the valuations near the highs & they made quite abit of money from the index hedging.

    There are more advantages to trading indexes for e.g. like Diversification , and more, whch I’ll cover on the 19th, hope U can join us Abel, Good luck all & hv a good week ahead. cheers.

  27. hi Terence and Henry,
    Please count me in on 19Aug.
    back fm holiday in Chengdu, Juizhaigou, returned almost delayed by the mud landslide
    Have to tune my mind back to trading/ investments

  28. Hi SHCians

    Thank you Henry for your fair comments. Regret that as I have had applied this Saturday a Day-off to attend a ex-Malaysia Cup(soccer) kaki’s celebration party from the civil service, I am unable to be present at your Talk.

    With due respect Henry, my take is Index-trading is “diversified” meaning the trades composed of several countries’ stock indexes which for a beginner can be quite a plate-full, whereas stocks trading is “localised” whether its Wall Street, London, Zurich, Frankfurt, Tokyo, Hongkong, Mumbai or the emerging Dubai & Jakarta Stock-exchanges. The punter must be “versatile” in gathering general market info.

    Admittedly, an oldie like me would find it punitively taxing and inherently weak-willed to discover new territory plus the attitude of “don’t know, better don’t touch”.

    Today, the STI was quite volatile and recovered remarkably after 3pm. We contra 10lots Noble 1.58 against Friday’s purchase 1.55 and nett about $190profit. We dare not chase Genting. We bought 5 lots Sing Tel @ 2.95. We were just a bid lower on Wilmar which fell to $6.03 but rebounded to 6.10 at the close.

    We pray the Dow will move up later this evening so that tomorrow morning’s opening will be bullish, thus allowing us to contra S Tel 3.00.

    Regards

    Abel Tan

  29. Hi Abel, tks for yr update, I fully respect where U r coming from. Maybe one day under a palm tree in an indonesian island we can hv a gd discussion. hehe

    SunZi says ” Always position yrself in the most favourable terrain when in the battlefield”
    Retail investors like us r a long suffering lot, when trading stocks v hv to contend with a whole host of obstacles. 1) Like possible bankrupcy of the coy’s stocks we bot 2) delistings ( usually at unfair prices 3) Dilutions ( right issues to dilute yr shares ) 4) when in the market place, v r contending with other big players & funds, etc etc & more.

    As v trade ( any product ), & review our trades, v discard wht tht does not work & improve on wht works. For products are the same, v shud avoid products tht put us at a disadvantage & trade those tht give us the most advantages.
    Because the utimate objective of all our activities is financial freedom. hehe Good night frds. cheers!

  30. Hi Henry

    would like to “check check” if i can finish my YOG volunteer job by 4PM, i just show up can? (i.e. if not there by 4.30PM then can’t learn anything fr you lah….)

  32. Hi Terence & Henry,
    Please register my name for the chit chat session. Hi Abel,thank you for your updating of your stocks buy/sell list. With regards to your “take is Index-trading is “diversified” meaning the trades composed of several countries’ stock indexes which for a beginner can be quite a plate-full”,from observation ,it look like the most influentual index we need to look at is the US dow jone/S&P/Nasdaq index. Most of the countries will follow the US stock index movement and hence I think we do not need to really study every component stocks in the respective indexes. Alternatively we can trade using technical analysis of the chart movement and indicators. Let’s see and hear how our guru Henry trade his indexes,cheers..

  33. Hello Everyone, G’morning. Hi Weng Hon, welc back, tks goodness U r not stuck, the floods looks bad.
    Hi Frisna, Ronald & Bobby most welc.
    Yes Bobby, U r right, USA being the largest econ in the world, is still the most influntial, the US indexes are the most liquid, most traded & also the world’s largest. Most of the world’s stock markets take their cue fm the USA.
    But increasingly the Shanghai stock exchage is also getting influential especially during asian trading hours.

    So it is logical to get well verse with the movements of these indexes to hv an idea where our beloved stocks will do. So basically a bird’s eye view of the landscape before we zoom in on our favourite bungalow. hehe.

    BTW bro Bobby, dont call guru lah, I’m just doing my part in the SHC spirit of sharing, since I agree to do it, I shud do it well..hehe ok good day matey!!

  37. Hi All, G’evening. Welcome Dave, Peng Peng & Mr Handsome Thomas, hehe
    Hi Lydia, Sorry I miss this part quote ”And for a greenhorn, what is the first baby step to take, ie. how to start trading, and which index to look at? ”

    Yes, I’ll give suggestion on how to start and where to start. See all of you tomorrow, cheers

  38. Hi-Henry
    Something urgent turned up today causing me to miss your
    talk today.
    I hope to hear from you in the next meeting.
    once again thanks
    Peter Lim

  40. Hi Henry,

    Sorry i am not able to make it to your talk today. Got held up in some stressful situations in office.

    See u Saturday in Sentosa.

    Cheers, Lydia.

  41. Hi HenryY,

    Thank you for sharing with us the topic of Exchange Traded Funds ETFs and CFDs. You have moderated the session well, and I have to complement you for being an inspiring moderator.

    Following the discussion session, I guess some of us will open a trading account and begin a new journey in trading market indexes. I do like your ending note “Don’t be too bearish”.

    In the spirit of SilverHairs, thank you for being a great sharer.

    Terence Seah

  43. Hi Henry,

    Thanks very much for spending your precious time with us and sharing your knowledge. Very much appreciated. And yes, like Dolly, still a bit blur blur but less clueless. And will probably be bugging you for more info.

    Take care

    Cheers
    Carly

  44. Hi Henry,

    Thank you for the time and your great sharing on Indexes trading. Very motivated to look into it more in depth. Hope to have more of such session to learn from you more.

    THks n regards,
    Take care,
    Lilian

  45. Dear Terence,Dolly,Caroline & Lilian, many2 tks for yr kind words. I want to thks all again for taking time out to listen. I’m excited for all of U as U embark on yr new journey of financial enhancement & discovery.

    I urge U to quicky open yr acct with just $2k, then U can excess the coy’s educational resources, courses & seminars.
    Take yr time, U can start trading 6 mths fm now, or even target to start 2 years from now, but no doubt yr financial education journey have begun, when done properly, rich rewards awaits U.

    Approach yr trading as business-like as possible, after all it’s a viable alternative business & income stream.
    U may designate an area in yr home ( study room) where U may put up a banner to say ” Be void of emotions when entering this area”. After making some successfull trades, U may then go to the kitchen area & jumb for joy & punch the air. But remain stern & business like when ever U enter yr trading zone. hehe

    Wish one & all a very successfull jouney ahead. cheers!!

  46. Oh yes, some last words, for those who hav started yr accts & yr courses, V can meet again 2 mths fm now at ”The Bra” hahaha & do a progress session. Hv a good weekend & I also Wish Tian SOO & all the beach gang a great fun time ahead, I express regret again tht I cant join U all due to family commitment. Cheers to all !!

  47. Again some last words, V sorry but i must mention tht, the deposit U place with the coy is yr money, after 3 mths, when U really want to take back those money, the coy will pay U back in full.. hehe

  48. Hi Henry

    I missed your talk but just wonder if you can summarise what you’ve presented for those of us who couldn’t be there.

    Also, if it’s not advertising, could you give the brokers available for trading account.

    Thanks and looking forward to your next presntation.

  49. Hi SHCians

    “FEAR is the enemy of stock punters” as headlined yesterday in The St Times money-page B19, a comment made by Wall Street expert Larry Pesavento.

    An Absolute Truth, particularly to those like me and my joint-account partner, as both of us had been burnt previously in speculating Malaysian Clob shares.

    Thus, we do not now snear upon a less than $50 profit as the “spoon of milk is already at our lips, instead of forgoeing it and hope for a few cups later on which can turn out into spilt milk”, confirming the adage “a bird in hand is worth two in a bush”. In other words “do not be greedy”

    Mr Pesavento mentioned about “Patterns” which developed in many speculative stocks. For some of us local punters, our most followed “pattern” is VOLUME of the stock. The higher the volume(excluding married-deals) the more volatile the stock tend to become.

    My explanation is, if Genting fall below 1.45 and struggle later to surfaced above 1.50(High 1.60), it means big holders had unloaded their Genting shares last Friday 13/8 when the stock volume was more than 680million. Those who chased Genting and did not take quick profits will be “vomiting out” this week and depress the share price.

    Summary of our puntings for the past week –
    On Monday 16/8 we contra last Friday 13/8 purchase of 10 lots Noble at 1.58 against 1.55, and netted less than $195.
    The following three days were blanks as throughout each day our buying queue price was a bid or two lower than the lowest price.
    Yesterday Friday 16/8, we did Genting 10lots 1.48/150 and netted less than $95.
    We are long 30lots Golden Agri 55.5 and is forced to carry forward to next week as we were behind the sell “q” to contra at 56cts (gross $150, nett less than $35)
    The Dow is off more than 50points. STI will probably eased off in Monday’s morning trade. We are monitoring Genting 1.45, Informatics 15cts, Noble 1.58, Sing Tel 2.91

    Regards

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