ABOUT

I am a remisier with a local Singapore stock broking house. This blog was set up as a personal endeavour for all stock investors to share their knowledge on stock investment, be it on Fundamental Analysis (FA) or Technical Analysis (TA). The combination of this knowledge would be FATA (发达), which means to prosper in Mandarin.
It is my sincere wish that members will benefit from this sharing of knowledge and prosper. For many of us, we need to make our money work harder for us so that we can have sufficient for retirement. But at the same time, be careful about your investment. As Warren Buffet said: "Do not lose your capital".
DISCLAIMER: It is important to state here that this information sharing and discussion is purely for that purpose - sharing and discussion. This blog was started in good faith by the administrator, but all investors should take personal responsibility for their stock investment decision. Neither the administrator of this blog nor any of the contributors to this sharing/forum will be responsible for any loss that you may suffer as a result of your investment. You are advised to do your own research before making any investment decision. It is also important to state that inevitably, there will be stocks where the administrator and/or blog members would have an open position (or interest) in. This is inevitable as surely we would "put our money where our mouth is". In no way does it mean that we are soliciting your support to "pump up" the stocks as it is totally your choice whether to trade that particular stock or not.

Wednesday, 29 October 2014

General commentary

If you have observed, during this current market correction, the high dividend yield stocks had held up reasonably well compared to most of the other stocks. For medium and long term investors,  this is much welcomed.
Investors ought to identify their own trading psychology and objective, whether it is long or short term, and trade accordingly. Many people, I know, are confused and do not have a clear picture of their stock trading objectives. As a result, they are neither here nor there. They trade rather randomly. This has often resulted in unfavourable results for them. 
Trading methodology is a combination of FA (Fundamental Analysis) and TA (Technical Analysis). So, the equilibrium of the equation would be FA + TA = Your trading methodology. If you are a day trader or short term trader, your reliance on TA would be higher, almost 100%. As you move towards a more medium and longer term view of your stock investment, then your reliance on FA would be much higher. That is why, Warren Buffet, who is basically a long term investor, can recently remarked in an interview that he doesn't care if DJIA had risen 500 pts or fallen 500 pts - he would still buy a company if he sees that it is a good company. Short term traders would need to be highly skilled in their TA, while long term traders would need to do their FA research well. There is no right or wrong style. Know your trading objective, brush up your skills for that type of investment objective and stick to the discipline of it.

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