Posts

Deciphering share buybacks

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Newcomers like myself must have perused through all the market events on SGX and one of the most common title that comes up is either  Company Share Buybacks  or  Disclosure of change in interest of Director . Today we are going to uncover how we can use this information to our advantage! Company Share Buyback occurs when the issuing company purchases its own stock at the current market prices using their company funds while Disclosure of change in interest of Director occurs when members of the board of directors purchases the stock of the company in their own personal capacity. Why Company Share Buybacks occur One might wonder why a company would use cash to purchase their own shares when they were issued for the purpose of raising capital for growth in the first place. Generally , companies purchase their shares on the free market to consolidate their ownership as they feel that their shares are undervalued at the current market prices . This is done for...

Being a Tech-Savvy Investor.

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The year is 2017, we are in a digital age where there has been an obscene increase in information in the world and internet. Content creation is happening 24/7 and we are at the mercy of fake information and news all the time. North Korea Fired A Missile At Japan! Trump Decides to Allow Refugees Into USA! Singapore Abolishes NS! FAKE FAKE FAKE ! With all the false information going around, the average investor has to sift through tons of news and shady investing gurus around in order to get the true information he needs to make a sound investment decision! In this post, I am going to recommend(No, I am not paid to do so) a few trusty websites/ applications I use to get my daily financial news and conduct my research on! 1. StocksCafe A shout out to one man who is changing the Fintech Scene here in Singapore, Evan Koh, he created StocksCafe(aka SGXCafe) to meet a demand for a growing community of investors here. On this platform, you are able to maintain a portfolio of SGX ...

When you have nothing left but money

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Recently, a close friend of mine shared a video with me which caused me to really reflect and change how I envisioned my life, when I make it big in the stock markets. I always thought that when I earn my first bucket of gold, I would buy that dreamy Maserati I always loved, enjoy the finest food the world has to offer, party till the world ends and do it all over again. However, after watching this particular video, I thought to myself ; would I truly be happy with all the material gains? All of us might have started this journey into investing for different reasons, be it for ego ,fame ,power or hopefully provide financial security for your loved ones. I would like you to watch this inspiring video of a man that once thought he had it all, lost it all and found a new perspective on life through his journey. Sometimes we get so consumed with improving our financial situation and gaining traction in our career, but pause to think, time does not stop for you to achieve succ...

Be a Trump in your own right!

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            We all know that The Donald made his fortune through the Real Estate markets and if you want to live the high life like him, you can begin right here , a favourite amongst passive investors here in sunny Singapore; Real Estate Investment Trust (REIT). We all know that if you weren’t born with a silver spoon(or platinum spoon in Singapore’s case) in your mouth, you wouldn’t be able to afford to buy properties to rent out and generate passive income. I mean like, people here spend half their lives to pay off their own house, how the heck are you able to own multiple properties!? But what if I told you that you could own part of the buildings you see in the above picture? Well you could, through REITs! REITs are able to own buildings by funding it through debt and collective funds from retail and institutional investors! It is a relatively low risk form of investing due to the highly regulated REIT scene here in Singapore. Futhermore, ...

Candlesticks you NEED to know!

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The candlestick techniques were the second most important invention by the Japanese, right after the sushi. It is one of the most popular methods to analyse price movement to use due to it’s accuracy. Here’s the definition of a candlestick chart for you! A candlestick chart (also called Japanese candlestick chart) is a style of financial chart used to describe price movements of a security, derivative, or currency. Each "candlestick" typically shows one day but may also be used in 15min intervals As I mentioned in an earlier post “Technician or Fundamentalist”, candlesticks are able to forecast the direction of future price movements in the near future by assessing the psychology of investors. (Would be great if they had one for our spouse’s moods right?) Reversal candlestick patterns are used to identify a potential price movement towards the opposite of it’s current direction. There are probably more patterns in the world than there are Justin Bieber fans,...

Technician or Fundamentalist?

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Akin to the 3 teams in Pokemon GO, the world of investing is split into two factions, those who believe in  Technical Analysis(TA)  or  Fundamental Analysis(FA)  . Technical Analysis is the art of studying price patterns in order to forecast the future price movements. Fundamental Analysis on the other hand, relies on studying the books of the company such as the Balance Sheet and Income Statement to gauge the profit and growth potential. While both methods are proven to be successful for investors around the globe, I personally feel that a combination of both methods are able to produce stellar results for the retail investor like yourself! FA will aid you in making decisions on what to buy while TA tells you when to buy at the lowest point and sell them at the highest point! What to look out for in FA: 1. Company has to have consistent profits and sales -Make sure the management is capable in generating sales rather than being a one trick pony in their...

The Big WHY

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Many people would ask, why invest and risk losing money when I could save it all and one day have enough to survive? Common misconceptions by our parents and perhaps friends, would be that investing is akin to gambling and I quote : “Don’t burn your fingers in stocks!” “Investing? Same as going to MBS what…” “ If can make money, everyone also go invest what” But hey, haters stay hatin’ right? In a conformist and conservative society like Singapore, people say this because they are defensive towards an idea or concept they do not understand and wish to stay in their bubble where they feel safe and protected.  Financial literacy  and  ambition  will allow you to break out of this thought and give you the courage to stand up for yourself and tell them : “I want a better future for myself and get out of the rat race! No more sleepless nights over the fear of losing my job!” With that in mind, let me give you some facts which you can graciously bestow upo...