Browsed by
Tag: investoreducation

Sucker Rally?

Sucker Rally?

Now’s a good time to take some profits.

This post was originally posted here. The writer, Willie Keng is a veteran community member and blogger on InvestingNote, with a username known as @Willie and has close to 120 followers.

Here’s why.

As far as I know about market rallies, my instinct tells me the rally will continue to go on.

I mean, money is flowing, people think we have seen the bottom.

Especially when you’re getting headlines like “Stocks Have Already Bottomed. How We know?”

The Dow has sneaked past the bear’s eyes.

And it’s already up 19%, from the bottom in earlier September. The S&P 500 is up 12% over the same period.

The Dow could possibly go back up past 36,000. The S&P 500 could possibly go back up past 4,000. But don’t take my word for it. I’m just plucking numbers from thin air.

I mean, what do I know about market predictions? I only (try to) collect great businesses.

What’s driving this bear market rally

First, in yesterday’s meeting, the Fed said they could slow down rate hikes (but more on that later), which is a good thing since this tells me actual inflation could have slowed down.

US mortgage rates have fallen, and other currencies are strengthening against the USD, which means capital is flowing back to emerging markets — or riskier assets.

I mean, the market can go from believing nothing will go wrong to believing that nothing will go right, in a flash. That’s Mr. Market. Well, at least that’s my reality of Mr. Market.

The kind of delusional optimism that will continue to push the rally on.

Or what it’s called – a sucker’s rally.

The same delusional optimism that a bold investor once said Tesla could reach $4,000 per shares in 2025.

Market cycles tend to average 33% down before they recover, some could take longer, some could be shorter – and we still have more room to go.
There are still places where they have yet to sort things out.

The UK is still in some sort of recession — fighting inflation and dealing with their fiscal deficits.

China is still dancing along theput your one leg in, one leg outcovid policy. In the most recent news, Shanghai has asked new arrivals to stay from public places for five days, starting today.

That means, people going to the 26 million populous city are barred for close to a week, including restaurants, shopping malls, supermarkets and even internet cafes.

Then, the war in Ukraine still rages on.

But what’s crucial here, tech companies, being the broader part of the S&P 500 index, have shown stunning numbers of job cuts:

  • Meta Platforms: 11,000 layoffs
  • Snap: 1,200 layoffs
  • Twitter: slashed by half
  • Alphabet: plans for 10,000 job cuts
  • Amazon: plans for 10,000 job cuts
  • Also, Apple has also stopped hiring

The thing is, when global companies freeze headcounts and cut budgets, these big companies are just getting started. What about the small businesses that drive the bulk of economies?

When businesses project gloomy time ahead, they cut spending. For consumers?

Instead of buying that thirteenth fridge, perhaps you might stick to just one.

Or perhaps just grab dinner from the hawker stall downstairs, instead of dining at Haidilao.

Well, it’s what’s looming on the horizon that could catch almost everyone by surprise.

“Most Federal Reserve officials say slower rate hike pace appropriate ‘soon’”

That’s what I got from this morning’s paper.

I wouldn’t take this as a sign of renewed optimism. At the end, it’s not how fast or how slow interest rates go up.

And who knows, the Fed could have rates go beyond 5%, since rate hikes have toppled the yield curve to a shape that doesn’t make sense for any bond analyst.

When the yield curve inverts, this is a warning signal (see red circles):

10-Year Treasury Constant Maturity  Minus 2-Year Treasury Constant Maturity
10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Read More Read More

Tencent – Dishing Out Another Special Dividend This Quarter

Tencent – Dishing Out Another Special Dividend This Quarter

I wanted to quickly run through my thoughts on the Tencent latest Q3 earnings announced yesterday.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has close to 2500 followers.

First up, operating metrics – monthly active users (MAU) is still up year on year and quarter on quarter for both Weixin + Wechat as well as Mobile QQ but as you can see, they are approaching the matured 1.3b numbers so inevitably growth is slowing down on this front.

Read More Read More

SEA Limited’s Q3 & 9M FY2022 Results

SEA Limited’s Q3 & 9M FY2022 Results

Unless you have been living under a rock, I’m sure you should know about all the negativity surround SEA Limited (NYSE:SE) at the moment – as a result of the economic headwinds, and with the company sinking deeper into a net loss position, it has made the painful decision to undergo a few rounds of retrenchment exercises.

The company’s top management have also made the decision to forgo their salaries until it achieves ‘self-sufficency.’ Additionally, the CEO Mr Forrest Li, also said the company will be changing its focus from growth to achieving net profit.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Yesterday evening (15 November), the company have made available its results for the 3rd quarter, as well as for the first 9 months of the financial year 2022, and as a shareholder of the NYSE-listed company (with my average price at US$191.87), you will find my review (where I will be highlighting the good and bad) about its latest financial performance, cash flow statement, along with comments from its CEO. 

SEA Limited derives its revenue from 3 business segments:

i. Digital Entertainment – Through Garena, a leading online games developer and publisher with games such as League of Legends, Call of Duty, Arena of Valor, Free Fire, and Speed Drifters;

ii. E-commerce & Other Services – Through Shopee, a leading e-commerce platform in Southeast Asia and Taiwan, along with SeaMoney, a leading digital payments and financial services provider in Southeast Asia (one of them is Shopee Pay.)

iii. Sales of Goods – Where revenue is generated from the sales of products on the Shopee platform which SEA Limited purchases from manufacturers and third parties. 

Financial Performance (Q3 FY2021 vs. Q3 FY2022)

SEA's Q3 FY2021 vs FY2021 Financial Performance
SEA’s Q3 FY2021 vs FY2021 Financial Performance

Read More Read More

Trading Psychology: 3 Profitable Tips To Trading Success

Trading Psychology: 3 Profitable Tips To Trading Success

Where you keep on revenge trading even though “you know” that what you’re doing is not right?  

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has close to 750 followers.

And by the time you know it, you’ve lost more than half of your portfolio already? 

Good. You’re not alone, as it has happened to me before.

So, the question now is:

  • What are the root causes of these bad trading habits?
  • What are the concrete steps you can take to conquer them?

Don’t worry. Because the answer lies in today’s comprehensive trading guide where you’ll learn how to start making changes almost instantly.

Sounds good? Then read on…

Trading Psychology Tip #1: Detach yourself from the results and attach yourself to the process

I get it…

You want to make money from the markets (who doesn’t?) !

And you can quit your 9-5 job and be your boss, make trading your main source of income, even help you pay off your debts and medical expenses.

Now let me tell you as early as now…

Read More Read More

A simple Trading Strategy with a winning rate of 88.89%

A simple Trading Strategy with a winning rate of 88.89%

In today’s training, I’ll share a trading strategy with an 88.89% winning rate.

A simple Trading Strategy with a Winning rate of 88.89%

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has close to 750 followers.

I’ll give you the following:

  • Exact trading rules
  • The performance matrix of this strategy
  • Examples
  • And much more

Are you excited?

Then let’s get started.

So first…

What is the strategy with a winning rate of 88.89%, and how does it work?

The core idea behind this trading strategy is that it’s a pullback stock trading strategy.

Why not a breakout, you may ask?

Because in the long run, the stock market is in a long-term uptrend as it tracks what the economy is doing.

The US Stock Market has been in a long-term uptrend since the 1900s because the US economy back in the 1900s compared to today has improved!

It’s the same thing for other stock markets in other parts of the world.

But here’s the thing…

Just because a market is in a long-term uptrend doesn’t mean it goes up in one straight line.

What do I mean?

In the short run, prices could go below their valuation because of panic selling and profit-taking.

These are often called “corrections.”

As pullback traders, we can take advantage of it.

Makes sense?

Let’s now go to the meat of this training guide…

Read More Read More

[Upcoming Gathering] How To Manage Risk Effectively In Trading

[Upcoming Gathering] How To Manage Risk Effectively In Trading

How To Manage Risk Effectively In Trading

Knowing how to manage your risks as a trader is one of the most under-rated but important aspects of trading.

That’s why the theme for our upcoming gathering is on How To Manage Risk Effectively In Trading.

In this session, the top traders will be sharing on the assessment to current markets’ risk, introduction of a market timing indicator, doing proper risk analysis and how to use stop-loss effectively.

This time round, we will also have a special guest speaker, Alvin Li, who is a derivatives expert from Hong Kong.

atc-gathering

Here’s what to expect:
✔ Assessing Risk in trading – protecting your returns with a simple and effective stop-loss technique
✔ How to approach Volatility and Risk in current markets – using a new market timing indicator
✔ How to capitalise on Risk using derivatives
✔ Panel Discussion on personal trading Risk management and position sizing

Date: Tuesday, 25 June 2019
Time: 7:00 PM – 9:00 PM
Venue: The Meeting Point. 73 Ayer Rajah Crescent. Singapore, 139952

Meet, learn and network with them. Limited seats.

button_register-here

*speakers’ presentations subject to changes.


InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

apple   android


Take this simple investing knowledge quiz and stand a chance to win an Amazon Kindle Paperwhite (worth $200)!

Take this simple investing knowledge quiz and stand a chance to win an Amazon Kindle Paperwhite (worth $200)!

Take our simple quiz and stand a chance* to be the Grand Winner to win an Amazon Kindle Paperwhite (worth $200) or be one of 10 other lucky winners to grab $20 CapitaLand vouchers!

quiz-1

4 Simple Steps to Win:

1. Read these articles here: http://bit.ly/cquizhw. All the 5 answers can be found in these articles.

2. Complete the quiz and answer at least 3 questions correctly. Do note that only your FIRST attempt will be eligible for the lucky draw.

3. Stand a chance to receive a Kindle Paperwhite OR a $20 CapitaLand voucher!

4. As a bonus, all participants who are new FSMOne.com account holders can also enjoy 2 FREE trades* in Stocks/ETFs on FSMOne.com.

 

This quiz is open to public from 17th June till 1st July. Answers submitted after 12pm on 1st July will not be accepted.

Winners of the draw will be selected randomly from participants with at least 3 correct answers, by 5th July and will be contacted via our official FB messenger bot.

Are you ready to win it?

button_do-quiz-now

*Terms & Conditions apply here.

Also, win up to $15,000 Worth of Prizes by Joining the Biggest, Public Stock Pitch Challenge Ever in Singapore! Join the Investor-One Challenge 2019 here: http://blog.investingnote.com/investor-one-stock-pitch-challenge-2019/

What Is A DLC? Top 5 Reasons Why You Should Trade A Daily Leverage Certificate

What Is A DLC? Top 5 Reasons Why You Should Trade A Daily Leverage Certificate

Daily Leverage Certificates (DLC) are exchange-traded financial products that enable investors to take a leveraged exposure to an underlying asset, such as a blue chip stock or an equity index.

dlc

DLCs replicate the performance of an underlying asset versus its previous day closing level, with a fixed leverage factor.

There are new DLCs with 20 regional blue chip stocks ranging from DBS to Tencent, as the underlying asset! Check out the full list of DLCs here.

For investors who want to maximise their short term exposure to market movements, DLCs can provide the opportunity to increase the exposure by a fixed factor, up to 5 times.

For DLCs with blue chip stocks as the underlying, the returns are magnified by 5x! For indexes, you can select a leverage from 3x, 5x or 7x!

Also, it doesn’t matter if the market is bearish as well – you can buy a short DLC to capitalise on a bearish situation.

For the 5x DLC with Venture as the underlying asset, it actually yielded a return of more than 70% in a week, just back in February!

The following is a detailed infographic by SGX on the Top 5 characteristics of DLCs.

dlcx

If you’ve missed our previous post where we posted a quick video on how DLC works, watch it here.

For more educational materials on DLC, use this link: https://dlc.socgen.com/en/education/handbook

Now that you’ve understood what DLCs are, see the full list of DLCs that can be traded here.

Last but not least, if you’ve never traded a DLC  and would like to know how, see if you qualify by taking the Specified Investment Product (SIP) test here.


Download our free top-rated app and you’d instantly be included in our mailing list for the latest happenings and workshops. It’s free and easy to do so!

Download our app here:

appleandroid

The STI is up nearly 10% YTD. What should you be doing now?

The STI is up nearly 10% YTD. What should you be doing now?

It’s already the beginning of the 2nd quarter of 2019.

Let’s take a look at how the Singapore stock market performed so far:

STI Singapore ES3 ETF
The Straits Times Index (STI) has rallied close to 10% since January this year.

So what should investors be doing right now? Hold cash? Buy more? Or wait for it to bottom?

There’s a sure thing that can be done…

Read More Read More

Investor Starter Workshop At Hwa Chong Institution!

Investor Starter Workshop At Hwa Chong Institution!

We had the honour and privilege to do an investor starter workshop at Hwa Chong Institution last week!

In association with SIAS (Securities Investors Association Singapore), we conducted a 3 hour workshop for Hwa Chong Institution for junior college students to take the first look into their investment journey.

20181005_115856

The famous clock tower inside Hwa Chong Institution.

whatsapp-image-2018-10-05-at-18-04-23

The structure of the workshop included the following:

Read More Read More