Everything around us is being segregated, sub divided label into classification for easy identification and the stock market is no different.
A recent evening investment seminar of a few hours shares some insight of stock selection. After all, there are hundreds of mine favourite to choose from compare to thousands of stock out there.
The area of focus on is call sector. Which sector is hot, which is not?
The first is to know what the market sentiment is. Is it bullish (up) or bearish (down) We don’t want to be cause buying a stock that look cheap when the sentiment is bearish or selling down a stock that is ‘overprice’ or seem expensive when the sentiment is bullish.
After which we move into which sector of the industry, just like GDP contribution making up of consumer, manufacturing, service and such. The more common one are Finance (Banks / Investment Firms), Property, (Developer / Hotels) to Transport , not to mention a hot sector call resources these days.
Next up, we identifying which sector is the leader (Sector that react strongly to market sentiment), we move on to identify which particular stock receive most attention. (The big capitalization company to the smaller one) Share price and daily trading volume and Company branding are a few common indicators.
Upon narrowing down our selection, the next thing we sniff around for in news indicating the sector we selected is still hot or is the sector changing. The term I was taught is call sector rotation which I’m relative green to it still. (Commonly used to describe deep pocket investors/ fund houses identify another sector of better return and shifting funds to that sector before retail investor does.)
In a more layman term is, look for the wave to ride on, get out before it crashes. This seminar shown me that stock buying is an art of screening and filtering. Not just buying evergreen stock that be around long and hold long for a small gain after all, inflation is in all time high again~
*I can only discuss basic as I only get the basic gist. Contact me if you like to help me out on the quest of understanding sector rotation.
Sunday, August 3, 2008
Monday, April 28, 2008
Option Course in Singapore
A week or 2 back, a friend invited me to tag along to an option seminar.
Is a 3 Day option trading with Clemen Chiang at www.freely.com
Throughout the evening, he share some of his insight and personal event that is inspiring and heart warming at the same time.
Below is bits and pieces of what I manage to capture from a load off of information that he was sharing and is by no means a gauge of the course nor to make an impact on each individual interest to take up Dr Clemen course as this blog is aim for general learning purpose and future reading fun.
Time Squeeze refers to getting maximum profit in the shortest time period. Shortest Time, Maximum profit.
Risk Reward Analysis.
1 Year time frame or more – Long Term investor.
1 Month time frame – Med Term investor.
1 Day time frame – Short Term investor.
Look for only 1 headline a day. Understand that 1 head line and you can manage your psychology
Risk is define as the amt of $$$ you are prepared to lose in the first place.
1. Margin Trading.
2. Short Selling.
The above give unlimited risk. What option provide is fixed risked, unlimited reward.
Stocks Vs Options
1. Leverage of 10 times.
2. Profit to be made in a bear, bull and sideway market.
3. Get out in style & still make $$ when your prediction is wrong.
Singapore will be the next future of growth. Areas that position to benefit are.
1. Bio Science
2. Chemicals
3. Clean Energy
4. Education Services
5. Electronics
6. Engineering & Environment
7. Emerging Industries
8. Headquarters & Professional services
9. Info Com & Media
10. Logistic
11. Precision Engineering
12. Transport Engineering.
Stock Price & Volume.
Look for company stock prices that will move aggressively in a short time. Gapping up / down. ( Eg, Bear Sterns )
Gapping that place when there is a large liquidity in the market.
The H3 strategy employed.
1. Hardworking – Understanding freely method.
2. Humility – Accepting the rules of investing.
3. Heart – Invest for the good reason.
In my humble opinion, he is 1 of a few great speaker that has make the evening fun. Inspring me that theres more upside to life then what it is now.
Well, I might have sign up if I happen to have the credit card on offer that can use installment.
Hard Luck I guess~
Should any reader be interested to know more, they can be reach at support@freely.com or thought any contact information found at their webby.
Cheers.
Is a 3 Day option trading with Clemen Chiang at www.freely.com
Throughout the evening, he share some of his insight and personal event that is inspiring and heart warming at the same time.
Below is bits and pieces of what I manage to capture from a load off of information that he was sharing and is by no means a gauge of the course nor to make an impact on each individual interest to take up Dr Clemen course as this blog is aim for general learning purpose and future reading fun.
Time Squeeze refers to getting maximum profit in the shortest time period. Shortest Time, Maximum profit.
Risk Reward Analysis.
1 Year time frame or more – Long Term investor.
1 Month time frame – Med Term investor.
1 Day time frame – Short Term investor.
Look for only 1 headline a day. Understand that 1 head line and you can manage your psychology
Risk is define as the amt of $$$ you are prepared to lose in the first place.
1. Margin Trading.
2. Short Selling.
The above give unlimited risk. What option provide is fixed risked, unlimited reward.
Stocks Vs Options
1. Leverage of 10 times.
2. Profit to be made in a bear, bull and sideway market.
3. Get out in style & still make $$ when your prediction is wrong.
Singapore will be the next future of growth. Areas that position to benefit are.
1. Bio Science
2. Chemicals
3. Clean Energy
4. Education Services
5. Electronics
6. Engineering & Environment
7. Emerging Industries
8. Headquarters & Professional services
9. Info Com & Media
10. Logistic
11. Precision Engineering
12. Transport Engineering.
Stock Price & Volume.
Look for company stock prices that will move aggressively in a short time. Gapping up / down. ( Eg, Bear Sterns )
Gapping that place when there is a large liquidity in the market.
The H3 strategy employed.
1. Hardworking – Understanding freely method.
2. Humility – Accepting the rules of investing.
3. Heart – Invest for the good reason.
In my humble opinion, he is 1 of a few great speaker that has make the evening fun. Inspring me that theres more upside to life then what it is now.
Well, I might have sign up if I happen to have the credit card on offer that can use installment.
Hard Luck I guess~
Should any reader be interested to know more, they can be reach at support@freely.com or thought any contact information found at their webby.
Cheers.
Wednesday, April 2, 2008
Thinking Hats - Life Prespective.
Recently I was having a conversation with a mentor. Its goes about say that when one is poor, with not much money. You tend to have the urge to want to eat everything during your basic meals.
I want to eat the chicken rice with the carrot cake and some fried sausage with ice freeze mango for example.
And when one move from poor to have a BIT of money. one tend to really order everything and anything and still yet finish it. Feeling content at the same time.
However, when they starts to have lost of moeny. Instead of eating quantity, they start to be selective and eat quality food.
Making choices and picking what they eat. Choosing between organic salads, fresh prawns and such now.
Does that happen to each and individual of us? Is that how we unknowingly conduct our life?
On another day, while flipping over a book in a library. I spotted a short essay that gave me some enlightenment.
A class of student was assemble with a philosophy lecturer in a garden. Among the lecturer is several buckets of rocks, stones and sands.
Taking an bucket full with large rocks, the lecturer move to an empty bucket and begin pouring it into a empty bucket. when the rocks are full too the top with no room for more.
He asked the student, 'Is this bucket consider full now?' The student answered 'Yes'
Next, he went to bucket with small stones, each about a fist size or so and pour it into the bucket fill with large rocks. after all the small stones have fill up the gaps.
He asked the student, 'Is this bucket consider full now?' The student replied 'Yes'
Do being done, he pick up another bucket, this time with small pepples and begin the same process again, managing to fill the bucket that was 'full' in the student view.
After getting the same answer from the group of student, he pick up another bucket of fine sand and begin pouring it until the bucket over flow.
And said, there maybe only 1 life, but you can live it 4 times.
Credit to the author / writter that share this insight~
For it dawn upon me was that such things are always made know to us. Priotize what is important and clear it out first and move on. This allows up to have more room..more time for other things.
Given that much thoguht, sleeping away half day and idle the other half will not yield any meaningful results in life.
As the saying goes, its the little things that we do everyday that make a big difference. Have you found the little thing which can change your life? improve it?
I want to eat the chicken rice with the carrot cake and some fried sausage with ice freeze mango for example.
And when one move from poor to have a BIT of money. one tend to really order everything and anything and still yet finish it. Feeling content at the same time.
However, when they starts to have lost of moeny. Instead of eating quantity, they start to be selective and eat quality food.
Making choices and picking what they eat. Choosing between organic salads, fresh prawns and such now.
Does that happen to each and individual of us? Is that how we unknowingly conduct our life?
On another day, while flipping over a book in a library. I spotted a short essay that gave me some enlightenment.
A class of student was assemble with a philosophy lecturer in a garden. Among the lecturer is several buckets of rocks, stones and sands.
Taking an bucket full with large rocks, the lecturer move to an empty bucket and begin pouring it into a empty bucket. when the rocks are full too the top with no room for more.
He asked the student, 'Is this bucket consider full now?' The student answered 'Yes'
Next, he went to bucket with small stones, each about a fist size or so and pour it into the bucket fill with large rocks. after all the small stones have fill up the gaps.
He asked the student, 'Is this bucket consider full now?' The student replied 'Yes'
Do being done, he pick up another bucket, this time with small pepples and begin the same process again, managing to fill the bucket that was 'full' in the student view.
After getting the same answer from the group of student, he pick up another bucket of fine sand and begin pouring it until the bucket over flow.
And said, there maybe only 1 life, but you can live it 4 times.
Credit to the author / writter that share this insight~
For it dawn upon me was that such things are always made know to us. Priotize what is important and clear it out first and move on. This allows up to have more room..more time for other things.
Given that much thoguht, sleeping away half day and idle the other half will not yield any meaningful results in life.
As the saying goes, its the little things that we do everyday that make a big difference. Have you found the little thing which can change your life? improve it?
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