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The Trading Floor
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wavehunter
Supreme |
04-Jul-2022 12:06
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
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wavehunter
Supreme |
04-Jul-2022 11:43
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
Bro investor, Your US Tech 100 and US 500 .... thru IG ? You may already know this. But in case you are not aware, at IG, for S & P 500, they offer 2 versions - CASH and FUTURES. The CASH version has no expiry date but there is overnite interest. If you choose the FUTURES option, there is no overnite interest. All you need to jagar is to close your position before the contract expires quarterly. Expiry is on the 3rd Friday of the months of MAR, JUN, SEP and DEC. Trading Futures without the burden of paying overnite interest is sibeh song one. For Nasdaq, IG does not offer the FUTURES version. All the best.
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wavehunter
Supreme |
04-Jul-2022 11:35
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
Leverage, if used sparingly to seize an intraday trading opportunity and the trade is closed intraday then no issue. No overnite interest. CFD can also be used for shorting. It is convenient and is something you cannot do with a cash account. So no choice if want to short have to use CFD and pay the overnite interest unless you close your shorts intraday. But if want to LONG to collect dividends or to hold for some time, dont use CFD. Use only cash account. And that is where a brokerage which offers very low com comes in handy. And a brokerage with zero minimum com or very low minimum com is a plus for those who want to nibble with very small bites at a time to do dollar cost averaging.
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investor999
Elite |
04-Jul-2022 10:44
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I know the system in IG as I am using it. I Don't like CFD as the risks are very high. Anyway it is a useful tool and I am using to compliment my other tools. | ||
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wavehunter
Supreme |
04-Jul-2022 00:50
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
Bro investor, I went into CFD trading becoz it was back then the only way to trade stocks at very low com, so low that depending on the price of the stock, I could run with just 1 bid. Ofcoz when I trade, I will aim to make as many bids as possible but knowing that I can run with even just 1 bid, if necessary, was very comforting. It gave me an edge. I went into CFD becoz of this, not becoz of leverage. But CFD trading is like that. You cant have the low com without at the same time accept the leverage that comes with it and pay interest for overnite positions. That was back then. Running with 1 bid was impossible with a normal cash account with my Lim & Tan Account. But things have since changed with the appearance of new broking houses such as Tiger. MooMoo and Fundsupermart. These houses charge very low com which is only slightly higher than IG' s 0.1% com but much lower than my Lim & Tan' s com. More than 50% lower in fact. So much so that now I can revert to using cash account to trade stocks and retain the ability to run with 1 bid, if necessary, but without the hindrance of having to use leverage and pay interest for it. I signed up with Tiger. Their all-in com and platform fee is 0.107% of transaction value plus $0.3475 (SGX Exchange Settlement Instruction Fee). This essentially mean if need to, 1 bid I can run for stocks trading at $4.00 or lower. This " 1 bid can run" is an important trading edge to have becoz sometimes when a stock is moving sideways, high and low is only 4 to 5 cts spread but you can still trade and make meal vouchers but without the headache of leverage which comes with interest. There is one downside though with Tiger. When you trade, there is no DMA - Direct Market Access. Unlike my Lim & Tan Account, when I buy or sell via Tiger, I cannot key in an order to queue in the order books of The Exchange. My order is either a Market Order or Limit Order. Market Order means if I want to buy, I buy at the current SELL price and if I want to sell, I sell at the current BUY price. I cannot queue to buy at the current BUY price or queue to sell at the current SELL price. At IG, I can queue to buy at the current BUY price or queue to sell at the current SELL price. However, IG doesnt offer cash trading for stocks. They offer CFD only which comes with overnite interest. I am in the process of persuading IG to offer cash trading for stocks. This will take time becoz their current business model is to stick to CFD only. I told them their business infrastructure is already there up and running. It is not as if they have to invest millions into infrastructure to offer cash trading in stocks. All they need do is to make the service available. And they will get to earn the extra income from people who want to trade with cash only. And meantime whilst they are deliberating whether to offer the service, all the business from cash trading is going to elsewhere - their competitors. And mind you, cash trading in stocks is a much bigger market than CFD trading in stocks. For big traders, Fundsupermart offers an even better deal - flat commission rate of $8.80 per trade regardless of transaction value. This is actually very, very attractive. Imagine you trade 5 lots of DBS. For a stock like DBS to run 20 cts intraday is sub sub soy one. 20 cts x 5000 = $1000. But your 2-way com is around only $150 due to the low flat rate com. If you have the capital to trade 5 lots, you can make $850 intraday many times a month if you are a market timing genius. |
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investor999
Elite |
03-Jul-2022 23:22
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x 0
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We share same experience
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wavehunter
Supreme |
03-Jul-2022 18:55
Yells: "Trade what you see, not what you hope to see." |
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x 0 Alert Admin |
Bro Investor, I used to trade very actively in stocks using leverage. I was so active that my broking house wrote me an email after just 3 months to inform that: " You have been identified as a high frequency trader. As such, we have upgraded your account to Premium Account status. As a Premium Account holder, you are entitled to etc etc etc...... " So I do know quite alot about using leverage to trade. Leverage is like fire. It is a good servant but a bad master. If you are in control, this fire...you can use for lighting, cooking, recreation, aesthetic, hobbies, work, etc. But if you lose control of it, like a real fire, it can burn down your trading account and everything you have in it. Leverage, when properly used, can make you OR break you when improperly used. We are in a bear market. A general rule of thumb is do not use leverage when you trade in a bear market. Becoz to increase your odds of winning, time in the market is what you need. Unless you are a genius in market timing. In order to have time in the market, you must have holding power. And the only way to do that is if your positions are fully funded. That way, you will never face margin calls and will never have to be forced to close a position at a loss becoz you dont have the funds to meet the margin requirements. But if your position is fully funded, you can hold for as long as it takes for the market to rise to above your level. Although you are required to provide only a 5% to 10% margin when you open a position, have 100% of the value of your positions in your trading account. That is how your positions can be fully funded. And you will never have to face a margin call. So for every position you open, back it up with 100% funding. Never mind whether your broking house set aside 5% of your funds for margin leaving 95% as " Available To Deal" . Do not use that 95% to open more positions. Or you will over-leverage and put yourself at risk of a margin call if the market moves against you meantime. Then have to cut again. And weeks later or months later when the market moves back up in your direction above your positions, it doesn' t matter anymore. Coz you are already timed out. But had you been able to hold your positions, you would have lived to that day to see your positions becoming profitable. |
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wavehunter
Supreme |
03-Jul-2022 17:44
Yells: "Trade what you see, not what you hope to see." |
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Life is a journey. In this journey, we will get to meet and come to know many people. People are like bridges. What I have once read is - never burn your bridges. You never know when you may need to turn back and use those bridges again. How true. Words of wisdom indeed. A businessman client once said this to me - in the battlefield of business, no one is forever a friend. Neither is anyone forever an enemy." These are words of wisdom too. And it complements the teaching " Never burn your bridges. You never know when you may need to turn back and use those bridges again" . In a period drama swordfighting movie, a swordsman was stabbed in the back by an unknown person who is not shown on the screen. When the dying swordsman turned around to see who had stabbed him, his face was surprised and he said " No wonder master said a weapon in the hand of a friend is your worst enemy" . Words of wisdom too. Anyway, that' s life. We will just have to pick up the pieces and move on. |
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wavehunter
Supreme |
03-Jul-2022 13:36
Yells: "Trade what you see, not what you hope to see." |
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Bro investor, Yes, buying an index is one way to profit from the market. If we cant beat the index by investing ourselves in stocks, forex, indices, Oil or whatever, then just buy the index and as the index rises over the years, our portfolio will rise with it. Over time, the index will surely rise, no doubt about that. And why? Becoz bad companies which underperfform will be kicked out and a better company which outperfoms will take its place in the index. Which is why the index always rises becoz the index is constantly reviewed and renewed to ensure that it consists of only the best performing stocks. So buying an index like Dow or S & P 500 and holding it for a long term is a guranateed way to make money. Having said the above, there are 2 things we need to do to ensure we are profitable. 1. Dont use leverage. Your investment has to be fully funded becoz you need to hold for 3 years....5 years or longer to see results. 2. Instead of buy an index ETF at any time, do try to time the market to buy at a market crash or market correction and since this doesnt come by that often, then when there are no crashes or corrections, wait for a swing low to come around to buy. By at least trying to buy when the market is at a low, over time when the market recovers and I am not talking about days or weeks but months and years, your portfolio will grow.
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investor999
Elite |
03-Jul-2022 13:15
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Bro Wavehunter: I am currently using the method I buy stocks with US Tech 100 and US500 ( S&P) Buy small and as the indices drop average down. Would you like to try? 5% margin margin call can be huge. Need to have spare funds t | ||
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wavehunter
Supreme |
02-Jul-2022 14:33
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
" The view of the majority is usually wrong." I have read this many times. Heard it many times also. It is one of the principles of contrarian investing - that the herd is usually wrong. From Mon to Thu, the market fell. Sentiment was weak. People were bearish. The talk was dont buy the dips, the market has more downside to go as we have not bottomed yet. Interest rate is still rising, inflation has not come down yet, Oil price also has not abated yet and a recession is on the horizon. Plus Fed is pulling liquidity out of the market with Quantitative Tightening. And so ofcoz what we hear is dont BUY. SELL instead. Or HOLD. Just dont buy. And then Dow and S & P 500 rose last nite in a way which showed the bull has strength. So what is happening ? The view of the majority is wrong again this time round is it ? Just when we expect companies to report lower earnings and guide lower and those planning to stagger their SHORTs may have already started to do so, a liquidity pool consisting of stop losses at various levels is bulding up. What remains to be seen is whether the king kongs of Wall Street want to do another bola squeeze to squeeze the juice out of these opportunistic kateks. If the squeeze really happen and you are stuck, be reminded that there is no limit to how much you can lose. And if you have the misfortune of coming face to face with a one-way phoenix this time round and you play the LOON game or worse, LOON + add more SHORTs, this phoenix will take back your entire year' s gains. I am speaking from past experience. It is no fun being short when a phoenix comes. Everyday, the one word which will come out of your mouth the most number of times thousands of times per day for as long as the squeeze is still on is NABEH. Or SHIT. 
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wavehunter
Supreme |
02-Jul-2022 09:57
Yells: "Trade what you see, not what you hope to see." |
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   http://www.investing.com/news/stock-market-news/stock-market-today-dow-rides-consumer-stocks-higher-to-make-strong-start-to-q3-2843308 |
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wavehunter
Supreme |
02-Jul-2022 00:35
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
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GoldenPig
Member |
01-Jul-2022 22:25
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x 0
x 0 Alert Admin |
The movie sounds good and I like Stephen Chow movies. Thanks very much for the link. 😊 I don' t have Netflix or Spotify etc etc. Don' t watch movies or listen to music regularly enough to justify the expense. Free sites with ads are fine for people like me. 👍 🏻
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wavehunter
Supreme |
01-Jul-2022 18:52
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
But Kungfu Hustle is a very good movie. For me, it is Stephen Chow' s best ever movie. I have watched it many times and chio many to watch it and they all love it. You click on Part 1 and when done, Part 2 will automatically come on etc. Watch it at Netflix if you have, for AD free entertainment. |
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wavehunter
Supreme |
01-Jul-2022 18:48
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
Sis Piggy, I was mistaken. All along I thought the guy who punched the wall was Stephen Chow. It wasnt. That punching down the wall was a scene in a movie called The Story of Riki Oh. I have never watched this movie before and dont intend to. It seems gory. Here' s a video clip of that same scene where he punched the wall down. http://www.youtube.com/watch?v=zXgtqG3rpW0 |
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halleluyah
Supreme |
01-Jul-2022 18:17
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SSB fr august yield is 3%....much higher than CPF OA....but each pax will only be given ard 15k till 18.5k .....total max oldin per pax is 200k....will apply again.... | ||
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wavehunter
Supreme |
01-Jul-2022 17:39
Yells: "Trade what you see, not what you hope to see." |
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x 0
x 0 Alert Admin |
From this one, Sis Piggy. You can watch it from Netflix or from here. http://www.youtube.com/watch?v=m012db_uyro& list=PLcYvEGOGtqj7J1rC72EhbjEx7238KzRtc
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GoldenPig
Member |
01-Jul-2022 16:25
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x 0
x 0 Alert Admin |
The wall-smashing video clip is damned shiok. From which Kungfu show har? | ||
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wavehunter
Supreme |
01-Jul-2022 14:33
Yells: "Trade what you see, not what you hope to see." |
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x 0
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 . People tend to like round numbers and queue there or hide behind it. But if a Wall Street King Kong is selling, these BUY walls wont hold. Earlier, 29.50 was a BUY wall too. There were more than 100 lots queueing there to buy. But what happened? This happened. . 
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