Operators of Certain Companies

This blog post is contributed by Tobi Damaris

This is what I think. Let me share my thoughts:
I remember when I was a foreign exchange student in Guangzhou more than a decade ago. While I was walking I saw some people gathering around in the corner of the street. They were apparently doing some street gambling. The gambling is quite simple, it required only a cotton string, a smart brain and a flock of friends. 
So the way they cheated people is something like this:

the main person who performed the trick would arrange the cotton string on the ground in the form of 2 holes. You place the bet, choose either first or second hole by putting your index / middle finger in it, when the performer pull the string, the string will either grab your finger or miss it. If the string somehow grab your finger, you win the bet.
But to made this trap worked, they needed to work in group.
So the other 3-4 people were pretending as bystanders and acted as if they joined the game. Of course when they place their bet the performer let them win, they are his own friends. But when stranger joined in and thought will get a easy money, the performer would “eat” the money. 
I was one of those strangers. I lost 50RMB.
Same thing applies in s-chips. The operators of these chinese companies know that most of us are just retail traders who know nothing about the nuts and bolts and just want to get some extra bucks.

They know that when we see some s-chips counters whose price rose from 3 cents to 5 cents would think “wow, I can’t miss this one.

Die die should try.” So without checking whether this company making profits or no, without checking whether these companies have any representative office in Singapore or no, without
checking whether these companies have any official website or no, without checking whether these companies incorporated in Singapore or no, they just put their bet in their stocks and hopefully the stock price will rise.

The result is:

sometimes it rise, sometimes it doesn’t. Most of the time the operators just lock-in their money inside and after gained enough capital / reached their certain amount of goal, they will intentionally set the price lower to certain
level. Seeing this, inexperienced retail traders, whose goal is just want to make a quick buck, start to panic and they sell their share with a loss.

Retail trader loss money, the operator of these stocks gain money. And as soon as the retail traders sell their share, the price rise up again! And this circle goes on and on and on… 
Anyway, this is just my thought. Maybe I’m wrong though, because I’m just a beginner, only trading for less than 5 months. But most of my losses can be traced back and all thanks to these so called s-chips. Thanks for reading.

A Christmas Gift for Everyone!

A Christmas Gift for Everyone.

Seven Points in Entering a Position.

1. Never Place Pending Order for the Next Day unless the Price provide a Good Margin of Safety or a Dividend Yield which fit your criteria.

2. Always have a Plan be it in Investing or Trading.

3. Give yourself a Setup, Trigger, Target Price and Stop Loss. This work for investment too but the criteria will be up to your objective and time frame.

4. Always make sure the Risk Reward is worth it and take note that is ok to miss an upside then to sink with a downside.

5. Before Entering a Position, make sure you check the XD Date and don't get caught with getting dividend at your own expenses. The same goes for rights issue and so on, that is even worst.

6. One way to help you to keep to your Stop Loss is to Chart out what is the downside for the counter when the market reverse on you. This should be done before you enter a Position, not after.

7. Last but not least, Working with the Trend is definitely safer then looking for bottom fishing.

Trade and Invest Safely Everyone!

Have A Merry Christmas!

My Advice for Newbie in Singapore Exchange

My Advice for Newbie in Singapore Exchange,

1st of all, pick up FA. Basic TA is enough to make you feel good.

The important part is more on how you select business which you can understand.

FA will give you a good psychology cushion even when you buy in but at that point of time the price go lower due to macro events.

 (TA allows you not to buy at resistance/high unless you are the breakout guy which leads mean to 2nd)

2nd, understand that opportunity is everywhere.

 ( I mean is ok to lose chance and see people make money vs people make money daily but you are holding on to a losing position which go lower everyday because we chased fearing we don't make money like how others did.)

So buy at a bargain price which your FA can help you calculate. (est)

3rd, don't invest all your money into 1 business. With that even if you are in a losing position, you did buy at a bargain price.

You won't have fear and sell off for the wrong reason. Holding on allows you to have better opportunity and Margin of safety will allow you to ride the up swing of the business.

4th, if you don't understand the above 3 points, just treat your investment in Sg Exchange as a fixed deposit which give you a good interest rate.

To protect your principal/capital is to buy into the business at a bargain price.

Capital Appreciation will be a Bonus.

Lastly, if you are in a losing position, even though the vested business is at a further bargain price, it is ok not to average down.

Instead use your other portion of money to buy into other company that can give you more green then red at a Bargain Price.

Invest and Trade Safely Everyone!