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Showing posts from October, 2010

Techinical charting tips

Drawing trendline from right to left may give a more relevant prediction of support / resistance Bullish reversal bar (dip but close at high) after several periods of falling prices --> buying opportunity Bearish reversal bar (dip and close at low) after rising trend --> time to close long position 3 black crows (blue candles) consecutively --> bad sign Reference: Trading for Dummies

Useful ratios - debt and profit

Debt ratios Current ratio = Current assets / Current liabilities *Look for current ratio close to the industry average Quick ratio = (Current asset - Inventory) / Current liabilities Profit ratio Gross margin ratio (indicates efficiency at making profit) = Gross profit / Net sales

Technical indicators for selling

Short-term traders would use MACD as a guide for change in trend direction. Buy signals when the MACD crosses above signal line, sell signals when MACD crosses below signal line. Using stoch indicator, sell when stoch goes above 80 indicating an overbought condition Spotting price gap that is significantly lower accompanied by high trading volume (spelling trouble ahead) Setting a target price for minimizing loses can be done with a few methods using stock charts: Simply setting a stop loss at 10% loss from current price or adopt the trailing stop-loss strategy as your stock price goes up Exit if the stock price falls back below the resistance level after breaking through resistance - which gives smaller financial risk but prone to whipsaws (getting out of a potentially winning trade too soon) Exit if the price falls below the mid-point of the trading range - gives a higher risk but less prone to whipsaws ***

STI on the climb

STI is climbing. It closed at 3190 today. BUT why is my only blue-chip Comfort Delgro showing a blue candle? I really can't figured out what's wrong with it. I know I have bought it at an overprice. It is a mistake. If only I had been more patient... Looking on the bright side, it is still some way from analyst's target value. I guess one problem is that the company has too many competitors, further research needs to be done. Hindsight analysis - it was the operating cost / oil price causing the down price of the share. Oceanus and MIIF is showing gains. Good signs. It was a good tightening of the bollinger bands for MIIF. =) Let's observe if STI can climb past the 3300 mark. ***

Summary notes on investing with CPF money

CPF monies are allocated into 3 sections - Ordinary account (where you can use the money for properties, study loan etc), Special account (for retirement) and Medisave account (for hospitalisation expenses and medical insurance) Refer here for the allocation rate Current interest rate: OA 2.50%, SA & MA 4%, Retirement account 4% See rates You can only invest if you have more than $20,000 in your Ordinary Account or more than $40,000 in your Special Account *Note that the first $60,000 in your combined CPF account earns an extra 1% interest Instruments that you can invest in are: bonds, treasury bills, annuities, fixed deposits, endowment policies, equities, unit trusts, investment-linked insurance and ETF. CPFIS-OA and CPFIS-SA instruments are different, read more Charges are applicable for the various instruments you invest in. Read more . For more details, please refer to the CPF website under my links section. *** Before you make any investment or fixed deposit arrangement, weig...

Disclaimer:

The contents of this blog are author's personal opinions and do not constitute advice to hold, buy or sell any securities, commodities or assets mentioned. I do not guarantee the accuracy and reliability of any information provided, and shall not be liable for any losses incurred from reading my posts or using the materials herein. This blog may contain affiliate links to external sites.