SGX is HOT! (Discuss hot stocks here!)

[Spid]

Hi Folks.

SGX is only thinking of its own interest to encourage more volume to generate revenue for its own sake. However. in short selling, the interest of the retail investors and interest of the companies are ignored....So if you hold stock position,,,,YOU ARE A GONER....You simply fork out CASH for the short sellers to take it away from you.....In the end , you will still be forced to sell of at a big loss....Of course, the big trading house and SGX know very well they make money by churning volume, regardless whether it is down or up......If it is up, the short sellers will manipulate to buy it upward and to distribute the stock at at price to you by selling.......and then slowing push down the price without you knowing....to force you to sell at low low price....Many stocks have been sucked to death by short sellers......and some poor companies are too poor to buy back their own stocks....Out of 100 retail investors, 90% will lose all their investment.....So my advice to all of you....STAY OUT OF THE SGX STOCK MARKET, YOU WILL LOSE AND LOSE......MOSTLY...Short Selling is not a fair game.....it is designed for the trading house and the big investors to cheat you outright......they can keep the stock price low for years until they sucked out every poor investor money.....So almost 90 % of all SGX stocks are now dead due to SHORT SELLING.....
The only justification for the short Selling is to provide a BIG OPPORTUNITY FOR THE CRAFTY FUND MANAGERS to buy up all your honest investment at low prices so you lose and they WIN BIG AND BIG. This is really a crafty instrument that will put you t a disavantage if you buy stocks at whatever price....20$.....down to $15.......$8......down to 4.80$....You become greedy at the prospect of making big money...So you think you buy low at $4.60....Doen to $3.90....so more small fishes come in to find low price food.....soon it goes down somemore to $2.80...and even Ah Soh Ah Ma Ah Peh used all their CPF money to buy....soon it when down lower and lower.....$1.50....$1.00...and infact a lot of small fishes came in at $1 thinking it it really cheap cheap cheap.......the trap was laid.....and thy were all eaten up with real poison at 60cents.....Cheap at 60 cents.....? You buy, and you will be poisoned at maybe 30 cents.....THIS IS THE GAME OF SHORT SELLING PLAYED BY THE BIG FUND MANAGERS AND BROKERS AND TRADERS....Buying stock to win is a game of YOU CHEAT ME , I CHEAT YOU..... Even listed IPOs is an opprtunity for the directors to sell you at the listed price...you thought is is a bargain.......the price of many IPOs went from 65 cents to 1 cents.....many of these stocks were talked up by greedy banks who made money from the commission....All investment is based on greed starting from the top down.....THAT IS HOW ALL THE SMALL INVESTORS LOST ALL THEIR CPF and hard cash

Let me know your thoughts

I share the same sentiments as you.

What it seems to outsmart them is only to play the contranian strategy and has to be fast in fast out. Holding long term a year ago is crazy but holding mid-long term for now is good.

[timebomb]

We all have our different strategies and I won't claim mine is the best but over the years, I have seen how you can easily lose your whole fortune in the stock market if you play it like the way the masses do. The trick, I think, is to do the opposite of what the rest do. Herd instinct is a natural born instinct in all of us. We tend to follow the masses. It actually takes a lot of courage (or foolhardiness) to do the opposite of what the masses are doing.

Now, everybody's either in a panic dumping their shares or they are so worried about the future they are frozen in fear. To buy stocks now is like walking into a house that's on fire. Everybody's trying to get out while you are "foolishly" trying to get in. It's like committing suicide. That's how I felt too when I used up the last of my money to buy stocks during the height of the Asian financial crisis when the ST index was at only 900 points. Everybody around me was telling me then it was going to be worse. The index will fall to 500 or maybe even 300 points, they all say. Fortunately for me, I didn't listen to them.

Warren Buffet said something along the lines that you should be greedy when the market is overcome with fear and be fearful when the market is filled with greed. I have my own take on this - I think you should be optimistic when the market is bad and be pessimistic when the market is good. So during the boom times, I stay out of the market completely because I'm pessimistic that the good times will last very long. But during the bad times, I look on the bright side and hope that the market will eventually recover to normal.

Blue33 mentioned something to the effect that once you are comfortable with what you have bought, you should adopt the mentality of "letting things be" when the prices of your shares drop. I actually do more than that. After buying, I actually hope that the prices of my shares drop. Why so, you ask? Well, if the prices drop, I can own more shares. In other words, I will buy some more. Imagine this - you bought a stock, say F&N at $3.00. Now it's only $2.40. That's a 60 cents discount. If you believe in the company and bought it when the share was $3, then why aren't you buying its share when it's cheaper at $2.40? I never believe in cutting losses. I think that's a loser's strategy because you should never get caught in such a situation when you have to cut losses in the first place.

I start off with a certain amount of money I want to invest. I went in and used up 20% of my funds when the market was at slightly above 2000 points. I went in again to buy another 20% when the market dropped to 1600 points last Friday. I will continue to buy if it drops further. If the market drops below 1000 points, I will use up the last of my funds. If at any point it turns around, I will just sit tight and wait.

That's my strategy. So far, it has worked well for me. I looked at the masses and I know that generally, hardly anyone plays like that. People often get caught up in the euphoria of a bull market and they play the market everyday. They jump in and out, making small amounts here and there. Eventually, the market catches them when it crashes. And almost invariably, the market catches them when they are fully invested.

My strategy has its weaknesses. Firstly, I can't play the market often. My opportunities to play comes around only once every few years. Most times, I'm just a bystander. Secondly, it calls for a lot of patience. It's easy to be patient when you are holding on to paper losses during a bear market but it's really hard to stay out of the market when there's a bull run, I tell you. Thirdly, my strategy calls for a certain amount of money that you don't have any use for. This excludes your savings. Don't use your savings because you never know, you may need the money during a rainy day. For me, I only play with my CPF money. I never use cash.

Loh K L

[Nicky]

Timebomb method is not the only method, but that method will definitely make money if one can ride out the storm. Personally I also do that. Anyone now got the guts to buy citigroup? I have.. lots.. Time to buy SGX bluechip.. if it comes down further.. buy more. Just make sure you can put the money aside for a few years.

[Orion]

This is getting exciting.

All of my sniper rounds are aiming at SGX blue chips when market reaches 1200pts.
So many solid companies but only limited fund. I'll buy those I am familiar with....

Then I'll continue my fish tank setup waiting for good news.....5 years?

[aquarius]

I agree wholeheartedly with Loh's strategy. I invest like what Loh did and it gave me FANTASTIC returns!! During the good times, i worked whatever overtime i could get my hands on and saved like mad!! Before you know it the bad times come and the stock market crash. I went in with whatever i have (show hand) and made a killing!! I did that during the Asian Financial Crisis and just after 11th sep 2001. During these 2 crashes i made at least 3 times profit when stocks, unit trusts etc etc recovered.

But before you buy anything, do your homework (lots of it). Go and buy Government Linked Companies (excluding chartered semicon) and hold on to it, don't go and bother about it and what for the bulls to come.

I also agree that it's very very difficult not to invest/trade when the bull run comes cos the greed of losing out or making more will come into the picture and you must be very disciplined not to follow the herd. Get out of whatever you bought during the crash and don't invest anymore. Robert Kiwosaki says that high emotional level equals low financial intelligence.

[Orion]

Another question:

Will jobless rate be so bad worldwide that it affects credit debts repayment and result in another Property-type sub-prime crisis and who knows maybe these are also repackaged as some sort of investment products.

If job market are so bad, surely more people will be forced to sell their shares at depressed price to pay off other obligations and thus lower the stock markets further and another round?

[Sunfire]

Will jobless rate be so bad worldwide that it affects credit debts repayment and result in another Property-type sub-prime crisis and who knows maybe these are also repackaged as some sort of investment products.

Actually, yeah, the recession kinda compounds things negatively. People will get retrenched without benefits, people with big housing loans and big expenditures. That's when the people with bad financial practices and IQs would get wiped out even worse. But don't think banks would dare to do this nonsense again (as in bundling loans into investments), but it's hard to say. But it's pretty confirmed that this recession would wipe people out.

If job market are so bad, surely more people will be forced to sell their shares at depressed price to pay off other obligations and thus lower the stock markets further and another round?

Yes. You're right. But during crisis, everyone is afraid, fear is in the air. That's why people hang on to their cash. Fear is contagious.

However a few guys here with good financial IQ have proven that it is possible to prosper during bad times.

I think just work hard, try to be indispensable to your boss.

[blue33]

When there's a downfall there's always a opportunity also. There's always a reverse effect and reverse psychology effect too. Before you do anything on the stocks you must have patience and clearly of what you are doing.

[timebomb]

[I]I think just work hard, try to be indispensable to your boss.

That's a good way to make it in life. But better still, don't be just an indispensable employee, but be highly employable. You never know, no matter how indispensable you are, you could lose your job. Your company can go bust or they will retrench you. As far as employers are concerned these days, it's the bottom-line that counts. Loyalty counts for little or nothing these days.

If you are highly employable, you can always find another job. In short, if you have the skills, there will always be a place in the market for you.

Loh K L

[andrewtyr]

what does it take to be highly employable?

[Sunfire]

Can get along with ppl, always willing to do your job and more, being a team player, being able to manage office politics well, most importantly getting along well with your boss and being able to create extra value for your company.

[timebomb]

what does it take to be highly employable?

Constantly improve yourself.
Don't just be good at what you do; be outstanding.
Don't stay with one employer for too long; move around because the more you move around, the more you learn.
Read. Because that's the only way to become smarter than all those around you.

Loh K L

[Sunfire]

Good insight.

But..but... I always stay in company for 3 yrs at a go....and I tend to get promoted.

Maybe if I stay for only 2 yrs or 1yr per time - my pay may rise faster.

Then again I'm only 29 and work only for 6 yrs...

But I definitely agree about reading. Read more! I don't recommend reading Robert Kiyosaki.

I prefer Adam Khoo. He don't smoke you out like RK does.

[Ah_ZhaN]

timebomb, but majority of the German and Jap companies expect you to be of total "loyal" to their company.

[Orion]

Can get along with ppl, always willing to do your job and more, being a team player, being able to manage office politics well, most importantly getting along well with your boss and being able to create extra value for your company.

Cannot agree 100%. Once you are expensive, boss sure ask you to go...
I think most important is you can do certain tasks (requires skill and knowledge) other cannot and you keep a damn low profile so boss can use you to get things done and not get ire of others.

[timebomb]

timebomb, but majority of the German and Jap companies expect you to be of total "loyal" to their company.

I find that hard to understand. Why would a company expect total loyalty from an employee? It's not like when you are hired, you swore total allegiance to your company. After all, the relationship between an employer and an employee is held by just a contract. And that's all it's good for really - whatever's in the contract.

If your company asked you for your total loyalty, ask them in return would they take care of you for life, through thick and thin, for better or for worse?

Loh K L

[andrewtyr]

Before graduating last year, I read up extensively on the middle term market outlook and pick out the strategic industry I feel would ride out the storms. I chose to go to a smaller unit of the company rather than go to the mainstream. I am very happy with my choice, as things unfolded according to what I had predicted and I have learnt alot (the good and bad) with the best in the industry. I am also happy that I have a good friend in my general manager. I dont think my pay is alot but I believe money will come with passion.

Things do look rosy, and I am aware of falling into the comfort zone. I save alot and is looking to continue upgrade myself with a professional certification in a year. I have lived and worked by Covey's 7 habits for 8 years already and I can swear by its effectiveness.

Things will reach a peak before crashing down. At the moment what I anticipate is what most guys' view as a mid-life crisis and an identity crisis when I eventually get transferred back to the main company.

Anyone has other "golden rules" that they live by?

[eddy planer]

Hi Folks!

Do you really want to become a millionaire through the Stock market ? You really have to study all the stock and the history of the price movement....You only need to invest in 2 stocks to make a million dollars.
First you need to risk only a few thousands...you start with $20,000. The most you lose only a few thousands if you invest in some fast growing stock.

You have to FIND ONE STOCK FIRST, THE BEST ONE, AND THE RIGHT ONE ..... the best timing and the BIGGEST PLUS,THE LUCK......Buy $200,000 stock and let it grows 5 times...and you will have your One Millions....in one year...

If you cannot afford, you can do more work, check and find that one stock that will grow 10 times within one year and put in $10,000 to buy the stock.....Let it grow to $100,000. Then put in all the $100,000 quickly into another stock and let it grows 10 times to one million in one year. all this growth stocks are happening all the time...if SGX jumped from $1.50 to over $15.00 and digiland jumped from 1/2 cents to 6.5 cents, and so on

I find that putting in $200,000 into the right stock and let it grows to one million is a better bet than the one low budget investor starting out with only $10,000.....especially when the WAVE is 2

Why is putting $200,000 is better and less risk? It is all about Wave 1 , 2 Rise......You will benefit tremendously from the rapid rise during Wave 2.......and in Wave 3 all stock rise will pleateau off...and descend in Wave 4..


It is very easy for a Penny Stock of one cent to rise to 6 cents or 7 cents within two months during Wave 2....So if you put in $200,000 you are already there with one million or more in just two month with margin money...

You must be able to predict precisely when the market will turn from bear to bull...theat is WAve 1..In late 2004 when even the experts were crying bear and more bear..... I told them.....THE HORSES ARE NOW ARRAYED IN LARGE NUMBERS and ready to Gallop.... So you must know not public sentiment but some more intelligent source of information...

As for the market now......the truth is Wave 4...after it went down to end the slow slide of Wave 3...If you park your money you will have to hold for a few years just to see your money break even...And if you are holding some Unit Trusts...you will see negative returns....not positive returns.

The market will eventually turn again for the next bull run....but in the meanwhile it still the see-saw down slide...

let me know your thoughts

[Sunfire]

So, Eddy, what you say sound like value investing. But you sure people become millionaire through stock market?

I hear of stock rising 5x and I also hear of stock falling (more than 5x).

So I guess it can be done.

[marle]

hey guys, care to share any blue chips in your spreadsheet?