Monday, May 18, 2015

5 Months of Investment/Trading

Hi Everyone,

Today is my five monthsary of my investment and trading journey. I certainly experience a lot of stuff during these five months. Things like learning about company, most company which I don't really seen before like Soilbuild, Cambridge industrial and many more. I also have learn from other people in the internet (hardware zone) for knowledge in trading as well as getting tips from them. I have also experience my unrealized loss which really made me worry during my episode with DBS. When I saw my unrealized loss jump from $12 to $100++, I was really panic at that point of time and was deciding whether to sell off my DBS shares because my emotion took over my sense during that point of time. 

But I manage to endure it and eventually I earn my first profit from DBS with $180++. Although is small amount of profit, but I am still happy as this is my first profit trade that I have ever made. The slowly, I sold off Sheng Siong, ST Engineering, Semcorp Industry, First REITS and Fraser Centerpoint Trust with all getting good amount of profits. Then I have shifted my attention to OCBC, M1, CapitalCommercial Trust and Q&M. 

Out of these 4 new shares, I am quite worried about Q&M at first when I purchased it at 78.5cents. Because there are many people saying that the price is quite high and it is not worth it to go in at that price. I did my homework and also do some ground realization about Q&M growth in Singapore before I purchase this share. Although the result of this is good and I was pretty shocked about it as well. 

Of course, nothing is perfect, I am still sitting on three red zones (unrealized loss) which are M1, OCBC and CapitalCommercial Trust. But these are not capital gain shares as I will be keeping them for dividends for at least 5 years. (Unless I need the money urgently hahaha)

For newbies like me, I felt that when we start off in investment/trading, it is better to invest /trade something that you familiar with rather than something that you do not know. These are the key points that I felt it is good to share with all newbies:

  1. Tips are good, but you will need to do your own research before jumping in.
  2. Go for steady blue chips if you are looking for long term investment. (At least if got bull, also wont die until that jia lat)
  3. Understand the company background (business nature, future growth, news and etc.)
  4. Learn the fundamental of investment/trading (dividends, types of period, and etc.)
  5. Don't gamble, invest or trade within your limits. (VERY IMPORTANT)
Number 5 is super important, the reason because got burned is because they exceed their limit when do trading aka playing contra/shorting. If you are not sure what is contra/shorting, do read up a bit but better don't do it (Especially for newbie). I understand that profits is tempting, but still invest/trade within your limits.

Ok that's all for my 5 months experience. Enjoy investing/trading!


  1. Hi James,

    Glad to see you learn so much in the markets. I had my losses as well and it didn't look good. I learnt to manage my risk to only a few % of my account hence it does not affect me so much. As they always say, if you control your losses, your profits will take care of themselves. Just need to make sure you do your homework.

    Shorting is borrowing stocks from your broker to sell first and buying back later. Depending on the stock you are looking at, some brokers will not allow shorting. Also to short, you need to have some cash in the account as a buffer in case the stock goes up. (you do not want the broker to call you to top up or auto buy for you to cut loss) Hence, some people use CFDs (contract with broker) to short the market. No actual buying or selling is involved. you can check with your broker about CFDs or the process of shorting and i'm sure they will educate you more.

    Contra (as far as i know), means buying the stock but not paid for it yet (using the singapore rule of T+3 or something like that) and selling it before the payment date (T+3). basically it is the buying and selling of stocks before making payment but you need to pay your broker the difference if you close your positions at a lost or the broker will transfer you your gains if at a profit.

    Hope it clarifies things up.

  2. I also investing 5 months! My investment in Lithuania looks good also I learn to manage my risk.