What I see and heard is totally different, but I don't disagree that the stock market is risky but u can control the risk. There are many who know how to control the risk and are making their money work so hard for them to earn them more money.
Showing posts with label Stock Market. Show all posts
Showing posts with label Stock Market. Show all posts
Friday, September 24, 2010
How to make money in Stock Market?
I have heard many saying that the stock market is risky and should not be going into it.
Saturday, November 21, 2009
What is Preference Shares?
Preference shares holders will be given dividend before ordinary shareholders and have priority claims on company asset if the company go bankrupt but will have limited voting rights on company decision. Preference shareholders will get fixed amount of dividend even if the company make more profit for the financial year.
What is ordinary shares?
Ordinary Shares is the common share trades in the stock exchanges. It give the shareholders the right to vote during the Annual General Meeting (AGM) and will be given dividends when the company make profit. If company have more profit and the board of directors and shareholders decided to give more dividend, then ordinary shareholders will get more.
Friday, November 13, 2009
What is a Shares?
Shares is the ownership of the company. If the company issued 1000000 shares and you have 10000 shares, then you hold 1% of the company. This 1% enable you to vote for important matter during the annual general meeting.
Thursday, September 3, 2009
Trading US Stock Market.
Have been trading US market and make money from it. The good thing about US market is that the price is going up and down very fast:
Eg. Open: $1.00, High: $1.50, Low: $0.90, Close: $1.30
The different from Low to High is $0.60. If you buy 1000 shares at $1.00 and sell off at $1.30, you make $260 (commission: $40 for buy and sale).
If you manage to buy at low and sell at high, then you will make $540. This is within a day or minutes of trading.
Eg. Open: $1.00, High: $1.50, Low: $0.90, Close: $1.30
The different from Low to High is $0.60. If you buy 1000 shares at $1.00 and sell off at $1.30, you make $260 (commission: $40 for buy and sale).
If you manage to buy at low and sell at high, then you will make $540. This is within a day or minutes of trading.
Sunday, December 7, 2008
Averaging the shares you are holding.
The advise always given is that the shares market is risky and its for the rich to play. When its having Financial Crisis, don't go into the shares market.
I somewhat disagreed with the statement, if you don't buy during Financial Crisis (all shares are at discounted price), then when can you buy? Some will advise during the bull, all price is at the high, so again, don't buy is the advise given. When is the right time to buy?
The best time to buy is when a company's shares price is at the bottom, but how will you know when is the bottom? I think even the experts will not be able to give u that answer.
If you have buy 10000 shares of ABC at $1.00, and later it dropped to $0.80. You should buy another 10000 shares again to average out the price to $0.90. If the price goes up back to $1.00, you can sell all the shares for profit, if it drop further, just wait for another to buy at a lower price. This example can be used when you have the amount of money to buy 30000 shares, so instate of buying 30000 shares at one go, you divided it into 3 buys. That is why when the prices dropped, you can still earn money when it go back to the original price of $1.
I somewhat disagreed with the statement, if you don't buy during Financial Crisis (all shares are at discounted price), then when can you buy? Some will advise during the bull, all price is at the high, so again, don't buy is the advise given. When is the right time to buy?
The best time to buy is when a company's shares price is at the bottom, but how will you know when is the bottom? I think even the experts will not be able to give u that answer.
If you have buy 10000 shares of ABC at $1.00, and later it dropped to $0.80. You should buy another 10000 shares again to average out the price to $0.90. If the price goes up back to $1.00, you can sell all the shares for profit, if it drop further, just wait for another to buy at a lower price. This example can be used when you have the amount of money to buy 30000 shares, so instate of buying 30000 shares at one go, you divided it into 3 buys. That is why when the prices dropped, you can still earn money when it go back to the original price of $1.
Tuesday, December 2, 2008
Lesson learn - Stock Market Trading.
Does anyone invest in stock market as a newbies actually know how the stock market trading work?
I only get to know that I can buy and sell shares and I have to pay a commission for each sales transaction.
The things I found out is that:
1) The commission is $25 or 0.28% whichever is lower (based on what the T&C stated on the application form you signed on).
2) If you buy the same counters (eg. Singtel shares) twice or more in a day, then the commission charged is the total amount of share you buy for the day.
eg. - I buy 10000 Singtel Shares at 10am, then I buy another 10000 Singtel shares at 11am. The commission I pay for this two transaction will be $25 or 0.28% whichever is higher.
There is also other option of trading mode but I have yet to explore. Will update it here when I get a hand on it.
Stay tune and visit for more updates.
I only get to know that I can buy and sell shares and I have to pay a commission for each sales transaction.
The things I found out is that:
1) The commission is $25 or 0.28% whichever is lower (based on what the T&C stated on the application form you signed on).
2) If you buy the same counters (eg. Singtel shares) twice or more in a day, then the commission charged is the total amount of share you buy for the day.
eg. - I buy 10000 Singtel Shares at 10am, then I buy another 10000 Singtel shares at 11am. The commission I pay for this two transaction will be $25 or 0.28% whichever is higher.
There is also other option of trading mode but I have yet to explore. Will update it here when I get a hand on it.
Stay tune and visit for more updates.
Sunday, October 26, 2008
Financial Crisis 2008
Due to recent Financial Crisis, I have been hearing lots of people saying the market is bad and not the right time to invest. I feel its right and wrong to say that.
If its not the right time to invest in a sound and stable company at a discount price then when will be the correct time? Of course, if the market is in the down trend you will hold and stop buying. Once the downtrend is slow down, you can start to buy bit by bit and not throw all the cash you have, thinking its at the bottom price.
Why I feel it right not to invest at this moment is because most people will buy based purely on the price and not study the fundamental of the company. Once they feel the price is low, they just buy with all the cash they have. No one in the world can predict or tell you when is the price at the bottom.
My advise is to invest with you knowledge and not based purely on the price. If you do so, then you will not have to worry when the price drop.
If its not the right time to invest in a sound and stable company at a discount price then when will be the correct time? Of course, if the market is in the down trend you will hold and stop buying. Once the downtrend is slow down, you can start to buy bit by bit and not throw all the cash you have, thinking its at the bottom price.
Why I feel it right not to invest at this moment is because most people will buy based purely on the price and not study the fundamental of the company. Once they feel the price is low, they just buy with all the cash they have. No one in the world can predict or tell you when is the price at the bottom.
My advise is to invest with you knowledge and not based purely on the price. If you do so, then you will not have to worry when the price drop.
Tuesday, August 12, 2008
Stock Market for Beginners
Before going into the stock market, you must understand what is stock market is and what it does.
Basically, stock market is a place to trade shares of listed company in SGX (for Singapore), NYSE (for US) and so on.
So how do you start to trade stock?
First, go to any of the brokerage firm and open up a trading account and also a CDP account, which they will help you send in the application to SGX for the CDP account.
Trading account is for you to trade shares. Buy and sell shares with this account.
CDP account is for you to store your shares certificate. That is why now we don't receive any shares certificate anymore.
After all this is done, the one who open up the account for you will also be your broker. Any question you don't know and can't find answer to it, you can give him/her a call to clarify.
1)When do I purchase the shares of the company?
- Study what the company do for profit. Make sure the company is making profit and profit is going up every financial year and also it will distribute dividend after announcing profit. This is the kind of company I will look for as the price will go up due to profit going up every year, and I sure to get dividend every year.
2)What does buying a 1000 shares of the company mean?
- Buying 1000 shares of the company mean you have 1000 votes during AGM.
3)When do I sell it?
- When its overvalue, mean the listed price is higher than what the company is worth (you need more study and research on how to calculated the worth of the company).
4)Do I hold onto the stock if the price is neither going up or down for a period of time?
- I will hold if its giving out dividend every year and the company is maintaining the amount of profit.
The above is my opinion and to get the best answer, you got to do some self research and best is to take up courses provided by experts who is successful in the stock market.
Conculsion: The stock market can be very risky if you are not doing your homework before getting into it. If you do your homework well, then you are in control of the risk.
Basically, stock market is a place to trade shares of listed company in SGX (for Singapore), NYSE (for US) and so on.
So how do you start to trade stock?
First, go to any of the brokerage firm and open up a trading account and also a CDP account, which they will help you send in the application to SGX for the CDP account.
Trading account is for you to trade shares. Buy and sell shares with this account.
CDP account is for you to store your shares certificate. That is why now we don't receive any shares certificate anymore.
After all this is done, the one who open up the account for you will also be your broker. Any question you don't know and can't find answer to it, you can give him/her a call to clarify.
1)When do I purchase the shares of the company?
- Study what the company do for profit. Make sure the company is making profit and profit is going up every financial year and also it will distribute dividend after announcing profit. This is the kind of company I will look for as the price will go up due to profit going up every year, and I sure to get dividend every year.
2)What does buying a 1000 shares of the company mean?
- Buying 1000 shares of the company mean you have 1000 votes during AGM.
3)When do I sell it?
- When its overvalue, mean the listed price is higher than what the company is worth (you need more study and research on how to calculated the worth of the company).
4)Do I hold onto the stock if the price is neither going up or down for a period of time?
- I will hold if its giving out dividend every year and the company is maintaining the amount of profit.
The above is my opinion and to get the best answer, you got to do some self research and best is to take up courses provided by experts who is successful in the stock market.
Conculsion: The stock market can be very risky if you are not doing your homework before getting into it. If you do your homework well, then you are in control of the risk.
Saturday, July 19, 2008
Stock Market
Stock market is a place where people do their trading of the stocks they are holding.
There are many ways to invest but which is the best way, you got to do reasearch and choose one that suit you best.
Some will buy low and sell high, so they make money when the stock price shoot up. How they know when is low and high? They based on the chart. This type of investing is called technical analysis.
Warren Buffett will buy undervalue stock and hold till its overvalue. That mean he also buy low and sell high, but he did calculation before selling at a high price (overvalue). He will hold onto the stock he bought and receive dividend payout by the company as long as its not overvalue. He will also study the financial status and management of the company. This way of investing is called value investing and also fundamental analysis.
There are many ways to invest but which is the best way, you got to do reasearch and choose one that suit you best.
Some will buy low and sell high, so they make money when the stock price shoot up. How they know when is low and high? They based on the chart. This type of investing is called technical analysis.
Warren Buffett will buy undervalue stock and hold till its overvalue. That mean he also buy low and sell high, but he did calculation before selling at a high price (overvalue). He will hold onto the stock he bought and receive dividend payout by the company as long as its not overvalue. He will also study the financial status and management of the company. This way of investing is called value investing and also fundamental analysis.
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