With less than a month to go, some of the top participants have achieved double digit portfolio returns within the timeframe of just 3 months. Impressive! For those who are wondering, the SGX Bull Charge Stock Challenge is only open to professionals and influencers in the finance industry.
But the question we should really ask is, how did they do it? What is their investment or trading philosophy? Who inspired them? What styles of investing or trading are they using?
We believe that every one of these professionals have different styles of investing, expertise in different types of securities and also have their own story to tell.
Recently, we got in touch with Dan Chang, to understand more about his investing strategies, his philosophy, and what motivated him to get started in the first place.
1. Tell me more about yourself and how did you get started in investing or trading?
I am presently a Trading Rep in a local stockbroking firm, and had been in this industry for more than 16 years. I started investing in shares in my Uni days in the late 1990s when internet trading was just taking off. I was then intrigued by the constant movement of the share prices and thus opened a trading account. Of course, being inexperienced, I had my fair share of bad investments. That is when I started to realise the importance of doing my homework before investing.
2. What type of trader or investor would you say you are?
I based my trading/investment a lot on macro-economics and company-specific news. Macro-economics will give me a feel of the market in general and company-specific news would help me sniff out potential positive catalysts for individual companies. After that, I would then look at the charts for trends and support / resistance to aid my entry. Due to the nature of my work, I am constantly exposed to the real-time movement of the stock market. Thus I would say most of my investments are pretty short-term and intra-day.
3. What are your best investment and worst investment since you started investing?
In the 16 years that I had been in this industry, I had so many good and bad investments that is really hard to pin-point one. If I can vaguely recalled, my best investment got to be this small-cap company called Advanced Sys, which I bought in mid or late 2000s. I think I bought it at 0.020 and sold it at 0.12. But it is good to note that the bid size then for stocks <$0.200 is $0.005, thus it is easier to move up then. I forgot about the merit of the investment, but I think it is pertaining to some company-specific news. As for my worst investment, as far as I can remember, I think I lost quite a bit in this stock called Shanghai Turbo, also in the late 2000s.
4. Do you have an idol in investing or trading? If so, what’s the most memorable teaching from them?
I don’t really have an idol, but I do read up a lot of articles by financial gurus and some financial bloggers/writers. There are so many different stakeholders in the stock market and they come with different perspectives. I am sure each and every one of them had something for me to learn from.
I recalled coming across an article that have this phrase “There is no secret in investing. If there is ever one, it is called PATIENCE!” I had no recollection of the writer’s name, but this phrase strike a chord in me. In my early years of investing, being young, i tend to be more impatient, and “buying on impulse” had always been my pitfall. Over the years, I had learned to cultivate patience, which I think is very important in successful investment/trading.
5. Do you have any rules to stock picking?
For stocks, I usually look out for profit-making companies and companies that have a positive catalysts going forward. Then I will use technicals to time my entry, but with an eye on macro-economics. I won’t want to invest if I feel that my investment objectives/horizons cannot align to the macro-economics conditions.
6. What do you think of the current market conditions in Singapore right now?
Personally, the macro-economics conditions is not very positive, with trade war uncertainties looming. However, it is also important to note that our market had dropped quite a fair bit from its high. With US mid-term election coming up, and China economy faltering, hopefully , US and China can strike a deal soon. As for the Singapore Market per se, blue chips and fundamentally strong companies with a sizeable market cap would be my choice of investment as they are more resilient to downtrend. And if the market do recovers, these companies are usually the first liners to move.
7. Which industry and sectors are you currently looking at and why?
The activity and volume of our Singapore Market had dropped quite a fair bit over the years. One sector that I am looking at is actually the banking sector. With interest rate rising, I think there should be some volatility in the banking sector. Of course, there are only 3 banks in our market and they are pretty “capital-intensive”. Therefore, for trading, I might look at structured warrants on these banks.
The other sector I am looking at for medium term would be healthcare. Healthcare is important and necessary, considering our ageing demographics.
8. What is your day to day strategy towards investing or trading? i.e. a top-down or bottom-up approach for stock picking?
Bottom-up approach. For trading, liquidity is a very important factor. Thus, it had to be bottom-up. As for investment, as mentioned earlier, I look for profit-making companies, preferably with positive catalysts going forward, regardless of the sector they are in.
9. How do you manage your portfolio, passively or actively and elaborate on it?
I do active management of my portfolio. The financial landscape had evolved over the years. Fast and easily accessible news, robotic trading, technology disruption, regulatory changes, macro-economics uncertainties, had all made long term investment a bit tedious. Things changed at the blink of an eye. So active management is required to maximise the potential of my portfolio.
10. If you can go back in time to change one mistake about your investing/trading journey, what would it be?
Due to the nature of my work, I tend to get caught up in the hype of the fast-moving market. I think I had stressed on this quite a few times in this interview, but I got to say, the one thing that I want to improve on is to constantly remind myself is to be more patient.
11. Last but not least, what advice would you give to new traders or investors?
Patience, Due Diligence, and Nimbleness
We got to be more patient when trading. We can’t just rush into trades just because it is moving up rapidly. Do not chase the market.
Do your due diligence before investing/trading so that you will not got caught up in ill-advised news and rumours. Last thing you want is to get caught in a fraudulent company.
Last but not least, learn to be more nimble. Market moves so fast. You got to match it by being nimble. Take profit fast when you feel something is not right. Hesitation kills!
Follow him to get the latest updates of his portfolio and all his transactions.
For more juicy analysis and personal stories by other financial influencers, check out our previous episodes on # InsightsInterview here:
- Ep 1: Terence, founder of TUBInvesting
- Ep 2: James Yeo, founder of SmallCapAsia
- Ep 3: Li Guang Sheng, founder of WealthCoachAcademy
- Ep 4: Rayner Teo, founder of TradingWithRayner.com
- Ep 5: Joey Choy, Top-Tier Remisier, founder of Trading-impossible.com
- Ep 6: Lynlynnakamori, One of the top contributors in InvestingNote
- Ep 7: ThumbTack Investor, one of the top contributors in InvestingNote
- Ep 8: Sporeshare, one of the top contributors in InvestingNote
- Ep 9: WellHandy, one of the top contributors in InvestingNote
- SGX Bull Charge Professional Contestants: Aylmer Tham
To learn more on how to get started, we have other topics on investing here.
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