Buy or Sell Stocks now
I think we had reached a point where people are asking this question, should we buy or sell stocks now. The interesting about blogging is I get to see the kind of queries that my readers key in, hence understand what is the current market demand. Until yesterday, there are a lot of queries on “buy what stocks now”, ” buy capitaland”, “which stocks to buy now” and etc. Yesterday Singapore Straits Times Index closed at 2621. In my previous posting, I mentioned that STI may hit 2600 and possibly some overselling to hit 25xx region. That’s why I am a bit concerned that many people are starting to look for bargain because market has not hit rock bottom. Today STI dropped something like 90 points (!?), and I saw queries like “short sti”, “short what stocks now” and etc. It’s natural. Seriously who can feel bullish now? How often u experience this kind of drop. But for those who are thinking of shorting, be careful. STI dropped 190 points for 3 straight days without any decent pullback. While we are definitely in a bear market, any shorting (especially with leverages) has to react fast to any possible retracement. Entering new short positions when sti has just lost 190 points is not wise to do. Either we can wait for bullish signal to trade short term long position (anti-trend) or wait for the market to retrace up and short from there again.
Buy or Sell Stocks now – Bullish signs
At local time 2315H (GMT1515), I noticed there are some bullish signs emerging from 4 indices: The FTSE, S&P500, Nikkei and STI futures. Let’s take a look at the charts.
Now, looking at the signs, do u like to buy or sell stocks now? The circled candlesticks are “hammer”, indicating that the markets are showing strength. Of course, it is still early now (in USA). It very much depends on how the US market closed tonight. If the upward force is sustainable, we could be seeing some greens at least for the next 2 days. Whether it’s a genuine recovery, it’s still too early to tell.
Buy or Sell Stocks now – Violatile Market
Market has the knack of recovering when everything seems doom and gloom and came crashing down to earth/hell when the feel-good mood is returning. One of the way to trade is to enter short term/intraday positions. Lock in full/partial profits when the market is running in your direction, stay nimble and exit unfavourable position at the earliest sign of warning. Go small on anti-trend positions too. So if u ask me buy or sell stocks now, I say fast fast sell sell sell, next moment fast fast buy buy buy, definitely not for the slow or weak-hearted.
The Big Market Crash
The big market crash on Thursday had sent a lot of longists reeling from their positions. Frankly speaking, it was not totally unexpected. The technical analyst would probably got an early warning on Tuesday. The Dow Jones closed with a bearish evening star on Tuesday, rising till +140 before coming down to close at +7, and on Wednesday, before Bernanke’s open his mouth, Europe closed with a bearish engulfing. Market was prepared to fall irregardless what Bernanke say. Anyway, there were two main things that he mentioned. (1) USD 400 billion stimulus package (2) the economy is getting weak. Now, if the market was prepared to move up, it will respond to (1), and if the market is prepared to go down, it will respond to (2). Seriously, is this the first day we heard that the economy is getting weak? U just need a reason to initate the big market crash.
The Big Market Crash – Singapore Straits Times Index
Personally I had short positions on Golden Agri and Noble since Monday. Today was actually quite a rare day for me that I did not even switch on my computer for the whole day until now to update the blog! At 10am local time, I check my ipad for updates. Knowing market is coming down with heavier vol, I know the drop could last 2-3 days in a row. So i don’t need to on my PC since I know my short positions are safe, and I don’t need to profit-take today either because i reckon market will remain weak for at least 2-3 days in a row. Instead, I brought my elder son to watch Smurfs at Bishan Junction 8, and later in the afternoon took a 1 and half hour run to train for my Singapore Stanchart Marathon run (i am still far far away from being marathon-fit). Anyway, lets look at the Singapore Straits Times Index to see how things are shaping up in the next few sessions.
The Big Market Crash – Sell, sell and sell
But for now, market is still in a selling mode. Don’t be too tempted by the seemingly cheap prices. The market does not come down in a straight line. The bargain hunters will provide the interval support. In a long run, so long the eurozone crisis is not solved, there will always be reasons to push down the market. But I am staying cautious to quickly take profit from my short positions once any strength is detected. We are coming to the end of September; Window-Dressing. By the next 2 to 3 days, market could be pretty depressed that fund managers may take chances to buy up some shares. So let’s stay alert. The big market crash makes it looks dark and gloom, but with such a violatile market nowsday, who knows what may happen next.
Back to Best Stocks To Buy Right Now | The Big Market Crash
Open An Online Trading Account to buy stocks Online
Have you open an online trading account to buy stocks online? If you have not, pardon me for the bluntness, you are still living in the dinosaurs’ age! In fact, for those who already had been trading via internet, chances are, your trading platform window is opened at the other end of the screen while you are reading this article.
In traditional trading, trades are executed through a broker via phone or other communicating method. The broker would advise the trader, sometimes giving “tips” to assist the decision-making process. In return of this service they charge commissions on traders, which is often higher than online rates. A lot of people are still putting orders through their brokers/remisiers. For them, their brokers could be their personal friends, so they want to continue to patronize them. Some may still be more comfortable with this approach, while the reminding, especially the elderly, may had found difficulties figuring out how to use the buttons to place orders. They still prefer to buy stocks via the “offline” method. Like a stock’s movement, trading online is a trend. It is now, and will grow even stronger and stronger because of many favourable factors.
Open An Online Trading Account to buy stocks Online – Advantages and Disadvantages
The very first and obvious reason for trading online is lower commission fee. In Singapore, take for example, if you are buying stocks with DBS Vickers, you would need to pay a minimum SGD40 if you are calling the broker to place order while the minimum amount for an online trade is SGD25. For any amount below SGD50,000 , the charges are 0.375% and 0.28% respectively for using brokers’ service and online trading. For subsequent ranges of amount, though the percentage differs, online trading commission fees are still lower. While the fee may change periodically, for examples during promotions, essentially it will still be cheaper to use online services. Generally, most brokerages in Singapore offers better rates for trading online. However, one other factor that determines the commission rate, whether offline or online, is the size of your trades. Surely, if you trade regularly and clock high volume, you are in a good position to negotiate a better rate with your respectively brokerage. I am sure they will be smart enough to offer a better rate in order to retain your loyalty.
Besides the cost, another advantage of trading online is the speed of execution. At the moment, there are a lot of instruments available for high frequency trades. For examples, stocks, forex currencies trading, commodities, Gold, Silver, Oil, Indices and so forth. Traders are highly dependent on market charts, live data and news and they have to make almost instantaneous decision to buy or sell. By going through the motion of calling and relaying orders to brokers, it could mean trading opportunity lost in that few split moments. At the same time, the information available online is tremendous. You get access to real time stock price movements, historical data, charts and even able to place contingent orders where orders are still executed at your preferred price even after you log out. And as it evolves, automation trading and robots also start to emerge, where programs were written to assist the traders to trade hands free! Buy and sell orders are executed automatically online.
Of course, for someone who is not internet-savvy, navigating around the trading platform can be quite daunting. And pressing the wrong button, sometimes, can be quite fatal, especially if you mistook the “buy” button for “sell”, and vice-versa. And online trading is also dependable, to a certain extent, the performance of the internet connection and the trading platform server. While they don’t often break down, all it takes is a fault once in a blue moon while you are hankering to cut loss. And by the time you re-discover your broker’s contact number and place your order via him, you could be a few thousands poorer just because of a technical fault. Therefore it is crucial to note that, while we want to learn and embrace online trading, we must always have back-up preparations. Personally, I would have my broker contactable and a back-up mobile internet dongle ready, in case my main internet connection breaks down.
Open An Online Trading Account to buy stocks Online – Approach your broker
Most of the brokerages would offer free orientation and training on the usage of their trading platforms. In fact your broker will gladly assist you. While they will get a slightly reduced commission payout if you trade online, their time will be free up substantially if majority of their customers are trading online. So go ahead and open an online trading account to buy stocks online today!
It had been almost a year since i started this blog. Recently, I had query from readers whether I have any apps so that they can read the latest news/posts snippet via their phones. I had actually consulted some apps expert to help me to create a Timid Trader apps.
At the same time, do drop me an email using the contact me page if you have any recommendations that is not included in the poll options