0. Warning
This is written by someone who has only just started to learn stock trading 1 month ago, has done less than 10 trades, and has ZERO track record (his current net earnings is just +$50 =( ). Reader's discretion is needed when reading, be it this or other entries.
1. Open a trading account
I using account from Phillips Securities -> Not bad. Cannot open account online, but finding a Phillips branch is simple enough. Account is free! Be sure to apply for CDF and ability to trade US stocks options at the same time.
2. Get the right tools
Chart Nexus - End-of-Day charting software for Singapore and US markets - Free!
Share Investor - Provides fundamental data on Singapore companies - Not Free.
CyberQuote - Provides stock alert services for Singapore Stocks - Not Free.
I only use the 1st and the 3rd one. Chart Nexus is not bad, providing 3 years data on Singapore and various other markets. It also provides technical analysis indicators.
3. Learn
I have summarised a lot of stock trading tips and technical analysis knowledgeI read from books and internet in my blog. Link to these entries can be found on the Sidebar. Of course it is better to read the books those information came from. The list of books can also be found on the Sidebar and mostly can be found in the National Library.
4. Before Trading Starts
a) Develop a Watchlist using Stock Screener - I did this using the 7 day trial Xpert Trader from Chart Nexus. Yahoo Finance also provide screener for US stocks, but I haven't tried that yet. If not, just find some stocks you are familiar with, or choose stocks in sectors that are good in the current economy.
b) Watch your Watchlist - analyse the stocks on your watchlist (using technical analysis etc) for potential stocks that will and have MOST chance of grow the most (for long positions). Normally I will decide what to buy the day before.
c) Watch the News - for potential upcoming news, eg. lowering of interest rates, earning reports etc. News affect the stocks price big time, before and after! One good source will be Phillip Securities Research - Morning Note (First part is news, last part is upcoming earning reports).
d) Get Some Trading Ideas - from some professional research, trader's blogs, forum, eg. what's the trend of the market the next day etc. Take note: these are just ideas. Do own research before acting on them.
e) Watch Markets that Open Prior to Your Market - US market opens 12 hours before Singapore market. Japan, Australian and New Zealand markets opens half to one hour before Singapore market. Look at them for clues to how your Market will open.
5. Action!
a) Always Monitor the Stock Index - See how the overall market is doing. Don't be like me, only until I sold my stocks and take losses of $500+ before I realise the Stock Index has fallen 150+ points. For SGX stocks, SGX Homepage is a good site (real time + need to refresh).
b) Always Monitor Other Countries Stock Indices Too - If Hong Kong and Japan markets are crashing, Singapore market won't rise. Stamp-chopped guarantee confirm. If Singapore market crash, your Singapore stock won't rise either. Stamp-chopped guarantee confirm.
c) Always Monitor News - News the a stimuli that will bring up or crash markets. One good source for news and market indices will be Bloomberg Homepage (around 15 mins delay + need to refresh). Yahoo Finance too.
d) Monitor Your Stock's Intraday Chart - I personally feel that Slow Stochasitics provides VERY GOOD intraday buy and sell signals, PROVIDED the market is stable, ie. no news and not crashing. Yahoo Finance provides delayed Intraday Chart for Singapore and US stocks.
e) Monitor Futures, Tick, Trin, Put/Call Ratio etc? - Currently I only glance at the Futures Index on Bloomberg Homepage once in a while. For Tick, Trin, Put/Call Ratio, I think they are only available for US stock market.
6. Things I Learnt from Experience
a) When stocks drop, they can drop damn real fast! Better sell when the stock is still going up. (Easier said than done)
b) It is hard to sell at pre-decided stop loss level... but you must do it! It always drop more after I sold the stocks.
c) It is a good idea to sell and take profit when Slow Stochastic shows overbought in Day Trades. (Still testing this theory)
This is written by someone who has only just started to learn stock trading 1 month ago, has done less than 10 trades, and has ZERO track record (his current net earnings is just +$50 =( ). Reader's discretion is needed when reading, be it this or other entries.
1. Open a trading account
I using account from Phillips Securities -> Not bad. Cannot open account online, but finding a Phillips branch is simple enough. Account is free! Be sure to apply for CDF and ability to trade US stocks options at the same time.
2. Get the right tools
Chart Nexus - End-of-Day charting software for Singapore and US markets - Free!
Share Investor - Provides fundamental data on Singapore companies - Not Free.
CyberQuote - Provides stock alert services for Singapore Stocks - Not Free.
I only use the 1st and the 3rd one. Chart Nexus is not bad, providing 3 years data on Singapore and various other markets. It also provides technical analysis indicators.
3. Learn
I have summarised a lot of stock trading tips and technical analysis knowledgeI read from books and internet in my blog. Link to these entries can be found on the Sidebar. Of course it is better to read the books those information came from. The list of books can also be found on the Sidebar and mostly can be found in the National Library.
4. Before Trading Starts
a) Develop a Watchlist using Stock Screener - I did this using the 7 day trial Xpert Trader from Chart Nexus. Yahoo Finance also provide screener for US stocks, but I haven't tried that yet. If not, just find some stocks you are familiar with, or choose stocks in sectors that are good in the current economy.
b) Watch your Watchlist - analyse the stocks on your watchlist (using technical analysis etc) for potential stocks that will and have MOST chance of grow the most (for long positions). Normally I will decide what to buy the day before.
c) Watch the News - for potential upcoming news, eg. lowering of interest rates, earning reports etc. News affect the stocks price big time, before and after! One good source will be Phillip Securities Research - Morning Note (First part is news, last part is upcoming earning reports).
d) Get Some Trading Ideas - from some professional research, trader's blogs, forum, eg. what's the trend of the market the next day etc. Take note: these are just ideas. Do own research before acting on them.
e) Watch Markets that Open Prior to Your Market - US market opens 12 hours before Singapore market. Japan, Australian and New Zealand markets opens half to one hour before Singapore market. Look at them for clues to how your Market will open.
5. Action!
a) Always Monitor the Stock Index - See how the overall market is doing. Don't be like me, only until I sold my stocks and take losses of $500+ before I realise the Stock Index has fallen 150+ points. For SGX stocks, SGX Homepage is a good site (real time + need to refresh).
b) Always Monitor Other Countries Stock Indices Too - If Hong Kong and Japan markets are crashing, Singapore market won't rise. Stamp-chopped guarantee confirm. If Singapore market crash, your Singapore stock won't rise either. Stamp-chopped guarantee confirm.
c) Always Monitor News - News the a stimuli that will bring up or crash markets. One good source for news and market indices will be Bloomberg Homepage (around 15 mins delay + need to refresh). Yahoo Finance too.
d) Monitor Your Stock's Intraday Chart - I personally feel that Slow Stochasitics provides VERY GOOD intraday buy and sell signals, PROVIDED the market is stable, ie. no news and not crashing. Yahoo Finance provides delayed Intraday Chart for Singapore and US stocks.
e) Monitor Futures, Tick, Trin, Put/Call Ratio etc? - Currently I only glance at the Futures Index on Bloomberg Homepage once in a while. For Tick, Trin, Put/Call Ratio, I think they are only available for US stock market.
6. Things I Learnt from Experience
a) When stocks drop, they can drop damn real fast! Better sell when the stock is still going up. (Easier said than done)
b) It is hard to sell at pre-decided stop loss level... but you must do it! It always drop more after I sold the stocks.
c) It is a good idea to sell and take profit when Slow Stochastic shows overbought in Day Trades. (Still testing this theory)
d) What goes up, must come down. You can hope it will go up forever, but it will never happen, be it intraday, daily, weekly monthly or yearly basis.
e) During severe downtrend, daytrade... or dun trade at all to prevent loss. During short term uptrend within downtrend, swing trade to capture more profits. During uptrend, position trade?
f) Market tends to go up before announcement of expected good news and go down after the news announced, no matter the result. The keyword is 'expected', eg. bail out plans, interest rate cuts, elections.
.
.
No comments:
Post a Comment