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Joined: Mon, 19 Jul 2004
Location: Singapore

Postby ksl » Fri, 16 Mar 2007 2:00 am

Kurozu wrote:I thought singapore has a min limit to how much you must buy in the stock market, just like in Japan? (Now Japan is changing the rules)

for example, if ABC company stock price is $100, and you must purchase 1000stock, which you must pay 100x1000= $100,000. (expensive)

Well, MoTokyo is both right and wrong in stock investment, because the return on stock market is very little. W. Buffett and Peter Lynch's (the 2 best investors) return is 15%~30% (not sure right now), while the other minor investors (like myself) will be happy just to get 5% return each year (if market is good). If anybody can get 100% return each year, it will give $2,048,000 in 10 years with just $2000. That is unrealistic. MoTokyo is right in the analogy since I believe the return should be smaller but still a very big return if you are investing $2000 per month + 10% each year. phew....lots of money.....let me see....if my calculation is correct with the 5% guarantee return each may have 27% return in 10 years. which will give u a total of 486,283. But of course, dividend, stock split etc is not included, and I believe you may get higher return if it is included. I wish I had 2k per month to invest.

I'll give you an example of how i started short term trading, I started with 7000 pound, and I stuck to my policy of selling at between 12 and 14%, providing you know your products well, and understand the market you can do very well, much better than letting your money sit for a couple of years.

I managed to live off my earnings after the first 6 month of trading, and I still buy and sell, within a bunch of companies, I selected 7 years ago.
although you need a volatile market, and good market research.

My broker even offered me margin trading, but i refused on the grounds that, the risks are too high for me, if you get greedy you lose the lot! Never try to catch the peak, concentrate on 10 to 15% rise, sell, and buy in when they drop, and they do very often! Taiwan is so volitile, they have a 7% daily movement limit, so two good days it will can be up 14% on the third day, it can hit 21% but the normal pattern is for it to drop on the third day, because everyone is taking profits, that's why i say sell at 14%, if you get to greedy, you will get stuck in, when it falls.

I little T/A knowledge is handy, not to complicated, just the head and shoulders technique, used over a 3 month graph, will give you really good insight, to the movement. I never bother with financials, on short term trading, that's selling within 3 days to a month for me! Although I will check the companies out and see if management have purchased or sold.

But rule your own finances and don't put it in the hands of investment companies, why would you want them, to pay you 5% when you can easy score 20% to 150%, the idea is to keep it working, not let it sit there! opportunity cost!

You have to make a decision, to dump at a loss, to take other opportunities, that pay off! and just reinvest all the profits, believe me it's not gambling, as such, it's skill, and knowledge, to buy at the low end and sell at the high end.

The market is easy to evaluate if it's high or low, although many punters don't have a clue, this last month has been great, buy in when it crashes! it always comes back, and you have never lost until you sell, at a loss! Just don't panick! But there are companies, that are not safe! So home work is crucial!

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