Let me announce my official plans!!!
1) From Next week onwards, i will have a daily morning note.
2) i will post stock charts and readings
3) i will trade more



ALL CONTENTS RIGHTS ARE RESERVED BY ME and that i do not hold any responsibility for any loss making trades based on my advice. i also do not give buy or sell calls but only general advice and also general education.
My trade method may differ from anyone else so if you disagree with me, then hold it at your own discretion.

Sorry for the long break.

I apologise for the long inactivity.  Was very busy with school work and co curricular activities.  But I shall be back.

IPOS

Due to the recent hype i decided to post an article on IPO ( Initial Public Offering).

IPOs is a method whereby companies are listed publicly on the stock exchange through a underwriter in the primary market of financial markets.

In short, it is to allow the public to have the opportunity to invest in the company.

A company usually undergoes IPO when it needs to raise funds for expansion, or that the company has reached the maturing stage .

The above 2 lists shows recent IPOS and my top picks are Overseas Education for its excellent dividend payout , Courts as its is Singapore's Number 1 electronics retailer, Sheng Siong for its powerful revenue generating chain of supermarkets, Neo Group as Singapore's Number 1 catering brand and its UMI sushi chain, a old chang kee for being the king of curry puffs and finger food as well as Oxley Holdings for its recent many ambitious acquisitions and projects .

All my selection is based on my personal opinion only and recommended for longer term investment. any loss resulting from trades as a result will not be liable on me. To find out more why i select this stocks, do have a chat with me on Facebook or my HP: 81638473

Stocks with slightly higher risk, possibly higher returns

Last week, i talk about introducing stocks with slightly higher risk but they could eventually yield higher returns. Here it is, presenting to you the mid caps!

Stocks found in this table are of higher risk than those found on the Straits Times Index. With higher risk, comes possible higher returns.
Stocks here have potential to become future blue chips and they are considered established companies but still possess higher growth rates.
They have outperformed the STI in terms of growth though with stocks such as Ezion holdings,Blumont, Wing Tai and Raffles MG doing very well in recent times.
As a value investor who has medium risk tolerance and also slightly greedier for growth, this list of stocks is a must to consider.
Do however take note of stocks in this list which has already performed in the past few years and is currently does not hold such a positive outlook. Some of these stocks are COSCO, Yangzijiang which are actually chinese shipyards and they are under performing at the moment. however, if you were to divide your capital equally among these stocks, you would have achieved a portfolio that outperformed the market.

STI Outlook for week starting 14/7/2013

With the market buoyed by Bernanke's speech on keeping interest rates low and positive US data from inventories, umemployment rate, STI has been on a roll! It looks set to break its bearish trend as it surges above the 3240 resistance level. 

Like i said last week there could be two outcomes, now that STI has rebounded. It could trade sideways in a consolidation phase or it could surge upwards and form the start of a new cycle. STI is trading near to the 50D and 100D MA resistance so do look out for selling effect. 

one thing is for sure. STI has formed a higher high, the first in few weeks and that is good news. Buyers are in play again and shortists must watch out!

With interest rates set to be kept low, that is good news for REITS as well as Property stocks. 

Market outlook!

STI outlook!

Important news that may rock the markets this week after the non farm payroll. Both Mario Draghi and Ben Bernanke is scheduled to make announcements this week.
i would personally say STI is in a consolidation phase after the bearish run and what will happen after the announcements remain to be seen. I am more in favour of a neutral aspect.
Do take note of news affecting interest rates, as interest rates hike would affect the cost of capital of firms thus leading to greater interest expense.
Be cautious in your postions.

Straits TImes Index

THE Straits times Index (STI) is made of of 30 companies that are chosen to represent the economic performance of Singapore's economy. The 30 companies are also what we know as blue chips. They have lesser growth as they are mature companies but do pay out a steady stream of dividend income.
Below is a list of companies that make up the STI :

A good way to become a value investor is to use dollar cost averaging. this methods allows investors to allow investors to ignore fluctuations in share prices.

All you need to do is buy equal proportions of stocks that make up the index at a time, and hold it. Whatever dividends is paid to you will be reinvested and used to purchase even more shares of the constituents.

There had been proven studies that if u invested $1000 a month into the index, at the end of your working life, it is highly possible that you have become a millionaire. This method requires great financial discipline.

Someone might ask, some of the stocks like Jardine Matheson costs $40000+ a lot, how can i actually have the ability to purchase it? The answer is, you do not have to purchase every month. You can actually save up your money, and only purchase once every year or even two to 3 years. 

When the share price goes down, you do not sell it. A good value investor would basically ignore share price  fluctuations as they know that financial markets are cyclical in nature. 

By averaging out your money over the 30 stocks, you are diversifying your risk into many sectors.

I'm coverinng stocks with higher risk and return for people with larger appetite next week! =)

REITS_ Passive Income, Value Investors

Real estate investment trusts(REITS)
Find that you do not have the knack for stock trading?
Find that money in your bank account is generating too little interest income?
Feel like owning a property but do not have the money to buy one yet?

REITS are your answer. paying our a stable flow of income either twice or 4 times a year with a >5% return on investment, they are the best form of investment for investors who wanna participate in value investing?

i will enclose a table of the list of REITS in Singapore stock exchange and all u need to do is take some money and buy those that u like. Local favourites include Suntec, Capitamall and Fraser Centrepoint your dearest shopping malls. Over many many years, you will find that your money has grown. Remember to reinvest your Dividends and not spend it.

 Just look at the stock name. see the yields based on current share price. each stock is sold in bundles of 1000( 1 lot).
I have created this article in a very layman way.. so as to allow beginners to easily digest the material.

If you have any queries, please feel free to SMS me at 81638473.

Cosmosteel trade- PERFECT!

today i took a trade on cosmosteel! went in at 0.345 and took profit at 0.365 .
TA: It was exhibiting a doji at the bottom of a downtrend with Fibo support. market conditions was also perfect.
Was further sharpening my Technical Analysis skills, true enough and made some nice coffee money.

STI outlook

everyone has their own views and here's mine

possible bearish windows acting as resistance.
double upper shadows form in the past two days.
approaching resistance levels about 3187 points.
last week window dressing might be the case of the bullishness in the market.



Things to watch out for: whether STI can cross above 3200, huge resistance levels ahead.

Overall outlook: to me i still think that it is bearish! so do watch out for possible weakness in the market. STI may have just formed a lower high.

someone asked me recently, should i buy gold since it has fallen quite a bit? my reply was,
1) firstly, gold has been on a 10 year bullish run, therefore the recent bearish sentiment is not very significant as yet, as shown in the chart above.
2) secondly, gold prices might not recover anytime soon, posssibly in the next year or so, there is still a strong selling trend.
3) gold does not pay cash dividends, wad u get is resource appreciation if you choose to invest in it, so shouldnt u buy gold as low as possible when the market is bullish on it instead.
5) never try to buy against a market, buy when its on an uptrend.

today market dip partly due to raise in china interbank interest rates below 3100 but it did not close lower than the previous day's low.
furthermore there are 3 bullish window gaps to act as a support for sti, and then further fibonacci support at 3043. this is a crucial support for the sti, and we should look forward to see if it holds.
today's volume is also slightly higher than the average therefore, people looking to long stocks should highly reconsider, i strongly advocate that there will be more downside expected in between possible short rebounds. It is still a bearish trend overall.

value investors though can however start doing your homework and pick out stocks that have good fundamentals and expected to rise once market sentiment changes.
even if interest rates rises, real estate investment trusts(reits) are still a good form of investment for the everyday investor.

Yes the market has rebounded showing a white bullish candle.... but overall it is still on the downside. STI tested the 61.8% fibonacci resistance level last fri and failed to break it.
Market is still shaky therefore be careful if u are looking to long. my prediction is there might be more downside expected. ADX indicator still shows a strong bearish trend.
healthcare stocks are to be watched. in lieu of the haze,stocks such as medtecs and healthway. highly speculative in nature.



i also believe that US markets has reached its peaked and is in the first wave downwards. Be careful!