I love one-liners
Okay, I will stop with the silly one-liners now. But who doesn't love one-liners- ;-) [ Btw, this is a one liner again]
I just opened a Philips online trading account and am trading on it quite regularly. I made a little bit more than I lost, so at the moment it is still quite ok. Now now you guys must be asking for a treat, but its really peanuts. Made a few bad calls late in the week and eroded some of my realised profits. Greed is bad. I was chasing for the sky when i bought Cosco Corp- the China-based shipping firm- call [or buy ] warrant and release it's put[sell] warrant at its peak. It started dropping just when I bought the call warrant. Greed is evil.
For those economics buffs out there, if you are looking for examples of efficient markets i recommend the financial market. The financial market close up discrepancies in a single securities/product so fast that there is no way to obtain excess returns for a retail investor like us. The professional traders working with securities firm and investment banks have access to the best analytical tools and markets that they can beat you to profiteering from the gaps in the value of the securities.
Let me quote you an example. When Raffles Medical Group announced that they have sold a certain percentage of shares to Temasek Group, the market had to react to reflect the higher value of it's share. The moment it's trading halt was lifted, the share went up by 20ct in a min and sky-rocketed to $1.61 in 10mins. I wanted to take advantage of this gap, but I could not as the traders had swooped up shares so fast that I couldnt get hold of any. It was only when it simmered down that I managed get hold of 2 lots at a decent price of $1.51. The next day when this deal was announced in the Money page of the Strait Times, the morning frenzy shot the price up to $1.61 in 5 mins before settling down to about $1.56. A few days later the share continue to hover between $1.54-$1.56. That is if you bought a lot at 1.51 and release it at 1.56, you will still lose money because of the brokerage charges. For those amateur investors like us, there is no way of earning a risk-less profits without taking some risk- and that is a oxymoron- because the professional traders or abitrageurs are there to ensure that there are no cracks in the value of the security.
For those hoping to make a quick profit in hot market right now, I strongly advised against it. I would suggest that you do your homework and do some research on the companies before sinking your money into their security. If you are looking for growth or long-term capital gains, search for companies with potential for expansion. If you are looking for a constant streat of income, go for companies with a good dividend policy. If you are lazy to do so, go for unit trust because they help you to diversify and manage your portfolio for you. Some brokerage firm levy only a sales charge of 1%, so I think its a pretty good deal.
I do not want to sound didactic but that's just my opinion. :-) But if you have any hot tips, recommendations or ideas, let me know so that we can make some money together. Woohoo!!
Happy Investing!!
I just opened a Philips online trading account and am trading on it quite regularly. I made a little bit more than I lost, so at the moment it is still quite ok. Now now you guys must be asking for a treat, but its really peanuts. Made a few bad calls late in the week and eroded some of my realised profits. Greed is bad. I was chasing for the sky when i bought Cosco Corp- the China-based shipping firm- call [or buy ] warrant and release it's put[sell] warrant at its peak. It started dropping just when I bought the call warrant. Greed is evil.
For those economics buffs out there, if you are looking for examples of efficient markets i recommend the financial market. The financial market close up discrepancies in a single securities/product so fast that there is no way to obtain excess returns for a retail investor like us. The professional traders working with securities firm and investment banks have access to the best analytical tools and markets that they can beat you to profiteering from the gaps in the value of the securities.
Let me quote you an example. When Raffles Medical Group announced that they have sold a certain percentage of shares to Temasek Group, the market had to react to reflect the higher value of it's share. The moment it's trading halt was lifted, the share went up by 20ct in a min and sky-rocketed to $1.61 in 10mins. I wanted to take advantage of this gap, but I could not as the traders had swooped up shares so fast that I couldnt get hold of any. It was only when it simmered down that I managed get hold of 2 lots at a decent price of $1.51. The next day when this deal was announced in the Money page of the Strait Times, the morning frenzy shot the price up to $1.61 in 5 mins before settling down to about $1.56. A few days later the share continue to hover between $1.54-$1.56. That is if you bought a lot at 1.51 and release it at 1.56, you will still lose money because of the brokerage charges. For those amateur investors like us, there is no way of earning a risk-less profits without taking some risk- and that is a oxymoron- because the professional traders or abitrageurs are there to ensure that there are no cracks in the value of the security.
For those hoping to make a quick profit in hot market right now, I strongly advised against it. I would suggest that you do your homework and do some research on the companies before sinking your money into their security. If you are looking for growth or long-term capital gains, search for companies with potential for expansion. If you are looking for a constant streat of income, go for companies with a good dividend policy. If you are lazy to do so, go for unit trust because they help you to diversify and manage your portfolio for you. Some brokerage firm levy only a sales charge of 1%, so I think its a pretty good deal.
I do not want to sound didactic but that's just my opinion. :-) But if you have any hot tips, recommendations or ideas, let me know so that we can make some money together. Woohoo!!
Happy Investing!!