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Showing posts from 2009

Lear Corp - a stock you should avoid

Wanted to know who's the most "talented" management? The answer is Lear Corp... a stock "LEA" listed in NYSE. Not long ago, someone bought a share of LEA on JUN with cost of USD0.50, if he check the stock now... it trade at USD60 per share now!! ( history share price ) The truth is, today's LEA is not the same as LEA bought on JUN. The management was actually wiped out holders of previous class common stock and created a new share! The share bought before the co. restructure became null. Yes, LEA is newly restructured but under the same old management team... ( To read more on the story of how "creative" the management to reorganize ...)

Different between gambling and investing

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As an experience investor, if you can predict the future, it's like having a crystal ball who know how a stock going to perform tomorrow. Hence, it's very important to select a good company with predictable earning, say in next 3 to 5 years, else, it would be no different like gambling in casino. We may need to have a proper plan before making any investment decision. Once the plan is drafted, we would have a very clear target on what's we going to achieve in next 3 or 5 years. At least a solid company that can generate profit, not a small profit, but big one, at least 100 million! A stable profit margin with good dividend yield would be an added advantage. Investment decision is actually not about doing something that is right, but not to do something that is wrong! As incorrect decision will cost you thousand of dollar. Beside the predictable future earning, we need to consider the entry price as well. If there is no more room for the stock price to surge, we have no re

Trader's Technical Analysis

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Below are the summaries of a course that I attended in one of the workshop. What are the 5 common mistake done by trader? 1. Buy Cheap A trader need to know what's the current trend for a stock, be it up tread, down trend or side way. A trader will do better if trade in the same direction as intermediate and longer terms trends. Do not simply buy cheap, as tomorrow can become cheaper. One of the example is Flag Formation break up, then it good tendency the stock will go up. 2. Holding onto hope This is another mistake done by trader, even he already plan when to cut loss, but when the stock price move down, he just can not follow the plan and hope one day it will rebound again. No body know when it will rebound and in this case, a trader will lost the opportunity to find another potential stock and lock the capital in one stock. 3. Ignoring about Risk Management If a trader trade without a strategy, then he will not able to control the risk and emotion. When the sell signal appe

Why you want to buy a stock now?

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When you heard about Dow fell 203 point, would you rush in to buy? If most people think the answer is yes, then you will noticed the Dow index close higher on October, especially the first two days. However, this is not the case, it's probably good time for those trader to log in some profit right now and wait for one to two weeks for more clearer direction. For those who want to buy a stock for investment now, may be you need to ask a question why you want to buy a particular stock. A proper plan need to develop, don't wait until its price goes up or down to think about it. Many investor not sure why they bough a stock, so when the price down suddenly, they are not sure what to do next. Every investor and every stock present different indicator or reason, one need to carefully consider before open the position. Just ask yourself if now the stock fairly value? What's the price would you want to sell and the reason is due to stop loss or the company report lower quarte

How to be a trader who can maximize profit in Stock Market

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Now we know that for Dow Jones index, at least there's another months for market to sustain with current trend, when more countries claimed that recession is over. Hence the world stock markets will not having the reverse impact for now, unless there's unexpected bad news happen. Today we going to see how trader maximize profit in stock market. To answer the question, first we need to know how to calculate the chances or percentage of winning. From random survey result, most traders are making 55 winning trade out of 100 trade involved. The most common mistake for a trader is putting too much fund in one single trade. Due to the big amount involved, we tend to have the pressure and caused miss appropriate decision making. Many new traders enter the position and hope to gain big amount in one day. However the experience traders know that in a short term trading, the more frequent buy and sell with large amount tend to eat all the principal amount with a few time of big tradin

How to protect your fund when market down?

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Usually when stock rally, those who bought at low or almost bottom low would feel very happy as they realized now the asset become more in terms of value. But the only worry is how to protect those fund from being hint by sudden market down turn? There are many strategy can be used, one of them is switch the fund to some other asset type which could provide some protection against market down turn. For instant, say initially one have investment portfolio of 100K and he started to buy at some where near the market bottom. (Though we may not know exactly the market bottom, but with certain tools or chart, we can catch some good fish in the calm water near the bottom) Since we have caught the fish near the bottom, usually market will start to move up in next few months. We will notice our portfolio value increase with paper gain, say 130K or 150K.... Since now market already up for 2 or 3 months, we may want to think of the way to protect our fund from sudden market swift down. In the sa

How to earn money when Dow made new record?

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Many readers would like to ask, is now a start of bull market or a bear market rally? They want to know, what to do now. To answer the question, first we need to find out what's our opinion with current market stage, be it bear or bull? From the news paper, many expert pointed out that the current market up trend is a bear market rally and advised investor be more careful. If we think this is a bear market rally or a false bull, the we will sell and stay away form the market. The question, is now consider bull market or not? To a serious investor, the answer to this question worth million dollar. To enter the market at a small bull and sell when bull turn mature, it's very easy to double your asset. If one invest 500 thousand and double or triple the money in next 2 or 3 months, he can become a millionaire, hence we say this is million dollar worth answer to the question. Still remember on Oct 2008, when Dow continuously down for 7 days and make us confirm the forming of bear

A lesson for those Greed and Fear in Stock Market

Stanford was a guy living in 70 century, he used to work as government servent cum tempolary actor. He feel the life was plain with no achievement. In one of the holiday season, he visited his uncle, who was a fund manager. He always heard his uncle's discussion with clients about which stock to buy or sell and how much they have earned. Since then, he had fall in love with stock market with believing that he can become a millionaire by investing in stock market. After Stanford returned to New York, he managed to save for 10 thousand and he decided to buy Public Film holding at USD10. In 1974, Standford very happy with this transaction as he knew from his uncle's conversation with their clients, Public Film Holding had a very good business prospect with good future earning. He also feel that the buying timing was correct as the stock already fall from 30 plus to 10 USD now, it must be a very good opportunity to buy at this price. One month later, Public Film Holding stock price

Dow Jones - Head and Shoulders

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Recent and today's trading indicate the market turn week now, especially for Dow Jones Industrial Average. First it formed left shoulder, follow by head and last Friday right shoulder. Today's trading seem to touch support level and potential down side already formed. The chances are very high for market to go south and confirm this round of Bull run / rebound near "The End" of story.

How to avoid Potential Loss?

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Dealing with investment, one of the challenge questions always raise by investor, how to avoid potential lost in your investment portfolio? How can anyone predict that Lemon Brother going to collapse in 2006? There are many example people buying a stock that seem with very good performance, but turn bad after 1 or 2 years holding. It’s really hard for one to predict the market, especially on individual stock. However, there are several precautious steps we can take, in order to minimize the potential risk. There is no free lunch in the world, especially in journey of investment. Some home work need to be done below getting involved to buy a stock. This include go through the last 5 year’s financial reports to ensure the company actually having the stable income and strong balance sheet. The hypothesis question, what will happen if financial turn bad, need to keep in mind of investors. What would be the main income to sustain the company’s operation in the worst case scenarios? Even we

Warren Buffer Power Lunch

Want to have a great lunch together with Warren Buffer, now can go to eBay and bid for it, at the time of writting, the bid is worth USD300,500. Great, maybe we can not affort to bid for this one, but we can still learn from him through his past experience. Warren say he had yet to see the light in the tunnel, many of the stock bought by his company Berkshire Hattaway still remain around or below entry price. Those who follow Buffer's buying pattern, could be still suffer a big lost right now. The ConocoPhilips bought by Berkshire Hathaway with average price of USD82.55. Now the price around USD41. For Johnson & Johnson, the average brought price was USD62, now the market price is around USD55. He also invested Kraft Foods with average price of USD33, now the price is USD25. Of course, there are many others prefer stocks we may not have the chance to buy, but the above stocks are good enough for a layman to set a good example as investment portfolio should we ask if now is too

S Reit - Worth a look

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Below base on closing price on Jun 12, 2009: Starhill Gbl (P4OU) DY:10.1%,Closing price:S$0.71,NTA: S$1.43。 CapitaComm 嘉康信托(C61U) DY:11.1%,PE:3.8,Closing price:S$0.91,NTA: S$2.94。 CapitaMall 嘉茂商产信托(C38U) DY:10.0%,PE:4.3,Closing price:S$1.43,NTA: S$2.44。 SuntecReit 新达信托(T82U) DY:12.9%,PE:--,Closing price:S$0.975,NTA: S$2.001。 SaizenREIT 最善房产信托(DZ8U) DY:40.5%,PE:--,Closeing price:S$0.135,NTA: S$0.85。 Cambridge 剑桥工业信托(J91U) DY:16.7%,PE:8.6,Closing price:S$0.36,NTA: S$0.73。 CDL HTrust 城市酒店信托(J85) DY:13.9%,PE:--,Closing price:S$0.765,NTA: S$1.39。 MapletreeLog 丰树物流信托(M44U) DY:12.3%,PE:7.1,Closing price:S$0.59,NTA: S$0.90。 LippoMapleT 力宝-丰树印尼零售信托(D5IU) DY:15.8%,PE:--,Closing price:S$0.355,NTA : S$0.727。 MacCooklReit 麦卡特库克工业房地产(BU5U) DY:25.9%,PE:--,Closing price:S$0.345,NTA : S$1.09。 AscottREIT 雅诗阁公寓信托(A68U) DY:12.8%,PE:--,Closing price:S$0.69,NTA: S$1.51。 K-REIT K信托亚洲(K71U) DY:13%,PE:23.8,Closing price:S$1.00,NTA: S$2.22。 First REIT 先锋医疗产业信托(AW9U) DY:12.2%,PE:7.4,Closing price:S$0.625,NTA: S

Dow Jones - Rally Sustainable

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As caught many investors in suprised, US market continue to break through 200 days moving average. Many traders will start to use this as indicator to enter the market as long term buying sign, at least for the next one week, more technical traders will start to move into market.

Housing Investment- how good is return rate?

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Singaporeans are obsessed with housing as an investment. Considering the large number of people scrambling to buy a house even during such times are telling signs that you can know nothing about equities, forex, commodities and derivatives, but you can never miss out on properties. “Land is scarce, so property is a sure win bet here” are one of the main reasons why the HDB auntie next door and the lawyer opposite are saving hard to fund their next property. I rarely hear people asking how much they will be yielding on their housing investment if you buy and rent for 20 years. Many are simply just interested in the absolute gain. The absolute monetary gain (if any), is likely to be large as housing like derivatives are leveraged products! Before I comment further, let’s do some maths here to see if it is really worth our while to buy a 2nd property for investment. Assumptions: 35 year old Mr. Tan just bought a new 99 year leasehold, 1000 square feet property beside Kovan MRT station, fo

Dow - Consolidation before the Bull run start

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Last week, seem US Dow has put the brakes on the recent rally after nearby 200 days moving averages. Many now wondering if this pause in upward momemtum is the end of the rally or a short break before the bull start again. The oppinion we gathered from most of traders suggest that its more toward the bull side, meaning after short while of pause, Dow could move toward the resistance level of 9000 points. Let see what the result in next few days.

NASDAQ break through 200 Day M.A.

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Here is more comforting information that the US bull run may not be over so soon. Many analysts consider a stock moving above its 200-DMA to be a buy signal. Furthermore, it is also said that a bull market can be defined as one where major market averages are trending up above their 200-DMA. Through most of this bear market, we haven't seen many stocks or ETFs anywhere close to their 200-DMA. Now, that seems to be changing. Thanks to the advent of ETFs in the US, it is easier to track movements in sectors. The sector ETFs are composed of many stocks, and that lends more credibility to the moving averages. There are a number of sector ETFs as well as the NASDAQ 100 have moved above their 200-DMA recently. Technology iShares Network iShares Semiconductor iShares Consumer Discretionary iShares In addition, the NASDAQ Composite is a hair away from crossing over its 200-DMA and the Telecom iShares. Materials and Industrials ETFs are also only a few points away their 200-DMA. Looking

Stock Market - Dow Jones will up all the way?

After many months of waiting, finally seem market have found the bottom at somewhere around 7000 points. Who care the recession is coming? As long as we can continue to make money when the upward cycle form. I want to congraturate those who able to make some money in this bear market, but don’t forget about the worst market that we experience few months ago. If the resistant level of 8000 for Dow Index is not able to break through, then reversal could happen any time. One important lesson learn from this bear market is “When to Buy”. There is only one simple rule – when the down turn form, do not catch the falling knife. Wait till the knife fall down – wait for the day where stock is not making lower low , monitor for 4 or 5 days of trading session. Then this would be very save for one to buy into a stock and wait for up trend!!

Dow Jones - Oh No - the Bear is winning

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After few months never write about stock market, now we have clear direction that down trend already form. From daily chart or weekly chart, we can see the same story not changed, each attempted rally has ended once the price approached the resistant. The bull consistently failed to send the price above the nearby trend line, which suggests that this will continue to be stronger level of resistance than many traders are hoping for. Back to the figure, Dow Jones closed last week at 7365, almost near all time low of recent year. Similar to past economy down tread few years ago, Gold also become popular this time, in fact, it's one of the investment that can be long for now. As of Feb 23, 2009, Gold price closed at USD994, almost all time high in the year. Since last few years, Gold not only for decoration and saving anymore, but has became one of the popular investment tools. If the situation not improving, we can expect Gold price continue the up tread due to most Government continu