Stock Wealth - Let's Go Stock Trading!

Friday, June 09, 2006

Stock Trading On Hold, World Cup Now!

It's World Cup time!

The market is still too volatile. A friend was considering buying Landwind at 38 cents recently. I am also looking at this stock, but will not be entering now cause we really don't know when is the bottom. Most analysts are already talking about the bear market...

Will carry on observing and wait for the uptrend. For now, it's all about World Cup!

Link to Stock Wealth blog

Monday, May 22, 2006

When Time to Cut Loss in Stock Trading, Do It!

Remember my post on 6 May that says "recently I read that we should not give up the stocks too early as they tend to bounce back. Plus the economy is still going strong. So, let's see if this saying is correct." ?

This is half correct. Just like the stock market, it is either going up or down :p I think it all depends on the sentiment of the stock market. If the market sentiment is good, then tendency is it will carry on with an uptrend, and it is worth waiting. But if the market sentiment is lousy like today
for Singapore Stock Market and other Asia stock markets, or like last Monday, then tendency is it will turn into a bearish downtrend, and we better cut loss!

I should have listened to the expert's advice, ie. "Sell in May and Go Away!" Plus this is a world cup year. Probably the stock market will only picked up in July!

Got to stay put and observe further before I enter the stock market and start trading again. Now my short term stock investment will become long term...

Fortunately, I have world cup to keep me occupied in June and July, while waiting for English Premiere League (EPL) to resume in August, and waiting for the stock market to resume its uptrend in July...

Link to Stock Wealth blog

Wednesday, May 17, 2006

So our GDP Data did Help our Stock Market!

Singapore economy expanded by 10.6% in 1Q06, better than the median estimate of 10.1%. The Ministry of Trade and Industry has raised the 2006 GDP growth to between 5% and 7%, from the previous forecast of between 4% and 6%.

The stock market responded slightly positive to this economy report. I guess the stock market has been too volatile for the past two days. Investors have become very cautious, and the stock price did not move up much. Sigh, I went in too early last Friday and Monday, so my stocks have not reached my buying price...

What is the moral of the story? It is something that I all along knew, and I just could not get over it. That is, when the stock market is in the downtrend, we should not be buying, as we do not know where is the bottom! We should only buy when the trend turn up! And why is it that I always could not resist the temptation to buy when the stock price went down, especially in such a drastical manner! Guess what? I am just afraid of losing opportunities! But like someone ever said, it is always better to lose opportunities than to lose money!

So, what is most important in stock trading?

Discipline! Discipline! Discipline! Discipline! Discipline! .........................

Link to Stock Wealth blog

Monday, May 15, 2006

Bear Stock Market Coming?

Today's Straits Times index plunged 85.75 points to 2,534.83, the single biggest decline in about 14 months. Initially I thought of being an observer today as I am not sure if the decline will carry on till the next sessions. But the stock price was so tempting that I bought UTAC at 0.965 cents. I waited till the final ten minutes before the stock market closed cause I realise that the stock market is usually very active duing this period, the stock movement can be quite drastic. Well, UTAC still closed lower at 0.96 cents. Need to monitor the market closely tomorrow and try to close the position asap!

Just received an email that there are signs that indicate the beginning of global bear market. If this is true, let's hope that the landing is a soft landing! Anyway, the advice from my broker is to stay light in equities, then can pick up cheap quality stocks when market corrects big time!

btw, Singapore will be releasing Q1 GDP data on Wednesday, May 17. This will be the first release after our general election, so I thought the results should be quite positive. And should be providing some good sentiments to our stock market. Let's see if I am right : )

Link to Stock Wealth blog

Tuesday, May 09, 2006

Election Over, Stock Trading Carry On...

Looks like the election results did not have much impact on the stock market. The ruling party reported that they have received a strong mandate from the people. At the same time, we have some oppositions in the parliament. Also, more promising and exciting new faces from the opposition party! Guess most people are happy with the results, um... not the ruling party of course. And I presume the results are expected by most analysts, that's why there's no impact to the stock market. We seldom have surprises with our election anyway. So, good or bad? It really depends on what one wants...

So looks like there's no push factor for the stock market these few days. For the past few days, the market went up because of blue chips like banks that have significant impact on the Straits Times index. Those stocks that I am trading do not belong to this category, so got to wait for their turn to bounce back. Before I started stock trading, I always have this impression that the Straits Times index represents the whole of Singapore stock market, or at least the majority. Now then I realise that a few giant stocks can actually bring up the index by so many points with most of the other stocks lag behind! I wonder if it is like some countries when the minority rich get richer, and become the richest, because they took away majority of the wealth earned in the country, with the majority ordinary people lag behind, and the economy will still be reported as going strong?

Now got to wait for the interest rate announcement and see how it will impact the stock market. Let's see if I can trade some cheap stocks this round : )

Link to Stock Wealth blog

Saturday, May 06, 2006

Will Election Results Impact the Stock Market?

Today is Singapore's 10th General Election. Some analysts said the results of the election may impact the stock market, depending on whether the going-to-be ruling party receives a strong mandate from our people. A friend of mine jokingly said better sell all the stocks before the polling day as this time the opposition is quite strong. I have not closed some positions as the stock price has gone quite low, and recently I read that we should not give up the stocks too early as they tend to bounce back. Plus the economy is still going strong. So, let's see if this saying is correct.

As for the election, this is the first time that PM Lee Hsien Loong is leading his party into this election. He said his party has presented its vision for Singapore and explained what this means in concrete terms for Singaporeans. This means, Mr Lee said, "opportunities for all who work hard to secure good and better-paying jobs; top-quality education for your children to give them the best possible start in life; first-class living environment, with homes that all of us can be proud of; high quality but affordable medical care, with no one denied medical treatment because of inability to pay; and focused and targeted assistance for the poor and needy so that no one will be left behind as Singapore progresses." Let's check this blog again five years later and verify if these have been achieved...

PS: Use of language is an art. Different people can have varying interpretation for the same piece of art. That's why fortune teller can be right most of the time because it really depends on how we interprete the fortune :p

Link to Stock Wealth blog

Friday, May 05, 2006

A Happy Day for Stock Trading

I bought 10,000 shares of Landwind Medical at 54 cents on Tuesday. Managed to sell them at 56 cents yesterday. The profit is about $140. For experts out there, this is peanuts. (btw, if you have followed our local news, you may know that peanuts can be quite expensive in Singapore :p). But it was a very pleasant experience for me, a beginner trader, cause I manage to do a range trade within 3 days! There was lots of discipline involved as it is always very tempting to wait for the stock price to rise further. I am not sure if this will happen, but I do know that it is coming to the end of the week, and next week will have interest rates news again. And I am going to get $140 deposited into my bank account soon :D

Hey, imagine it's about 2.59 % returns for an investment of about $5429 in 3 days! What we get from the bank of 3 % is an annual return! So I was quite happy when the trade was cofirmed : )

Link to Stock Wealth blog