Collin Seow CFTe, CPM - Seedly
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Collin Seow CFTe, CPM

I was a ex-principal remisier for 12 years. Currently, I run a prop trading outfit that hires full-time traders and trade algos.

Collin Seow CFTe, CPM

Founder at The Systematic Trader

About

I was a ex-principal remisier for 12 years. Currently, I run a prop trading outfit that hires full-time traders and trade algos.

Credentials

Founder at The Systematic Trader

Collin Seow CFTe, CPM

Founder at The Systematic Trader

  • Answers (12)
  • Questions (2)
  • Reviews (0)

Property

Investments

Stocks Discussion

Credit Cards

I answer this 2 weeks ago when someone else ask the same question. I copy and paste the answer here. I also did a video to explain clearly later. "Usually, when the market goes down impulsive like this, it will take about a few weeks to settle down. There are force selling and people trading on margin may have margin calls. We are unsure this is a bear market or just a correction. We should wait and see how the market reacts first. If it is a bear market, the market can correct much more than from here. If it is a correction, we should also wait to see whether the level will hold. Chart 1 shows that when SP500 breaks the 200week moving average in Asia Financial Crisis and Global Financial Crisis, the drop are 36% and 47% respectively Chart 2 is the current market from 2009 onwards. Each of the correction did not break the trend line or the 200 WMA. SP500 continue to head higher. So based on the current drop, it is still a correction, price did not break the 200WMA or the trendline. However, we do not know how much it will drop from here. So wait first. How to know it is a correction? The price will rebound from support and then make a higher low and higher high. Eventually, it will clear the high. How to know whether it is a bear market? The price will break the trendline and 200WMA. So conclusion wait, in a few weeks, if we know it is a correction then we can buy. But if you buy now, and it is a bear market, it can still drop a lot. I am sorry, not sure I explain myself clearly. If there was some kind of video or webinar with feedback and questions, maybe can explain clearly. " https://zoom.us/rec/play/u5wofrj-zg3SdWR4QSDAfEvW42-LK2shnMY-cKxUvnW3BXNAaiY7ZAMebG8LbbZ5IjnKCa9zLP05wi?startTime=1583968928000
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Stocks Discussion

DBS

Investments

It is all depending on your time frame. If you are long term, can just buy and hold. If you are trading then you need to have a short loss. When you are trading, you should already have a plan : when to enter, take profit and cut loss before you enter the trade.
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Stocks Discussion

Investments

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM, Founder at The Systematic Trader
Level 4. Prodigy
Updated on 02 Mar 2020
! ! Usually, when the market goes down impulsive like this, it will take about a few weeks to settle down. There are force selling and people trading on margin may have margin calls. We are unsure this is a bear market or just a correction. We should wait and see how the market reacts first. If it is a bear market, the market can correct much more than from here. If it is a correction, we should also wait to see whether the level will hold. Chart 1 shows that when SP500 breaks the 200week moving average in Asia Financial Crisis and Global Financial Crisis, the drop are 36% and 47% respectively Chart 2 is the current market from 2009 onwards. Each of the correction did not break the trend line or the 200 WMA. SP500 continue to head higher. So based on the current drop, it is still a correction, price did not break the 200WMA or the trendline. However, we do not know how much it will drop from here. So wait first. How to know it is a correction? The price will rebound from support and then make a higher low and higher high. Eventually, it will clear the high. How to know whether it is a bear market? The price will break the trendline and 200WMA. So conclusion wait, in a few weeks, if we know it is a correction then we can buy. But if you buy now, and it is a bear market, it can still drop a lot. I am sorry, not sure I explain myself clearly. If there was some kind of video or webinar with feedback and questions, maybe can explain clearly.
Answer image preview
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Stocks Discussion

Investments

REITs

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM, Founder at The Systematic Trader
Level 4. Prodigy
Updated on 26 Feb 2020
! Mapletree Com Trust pays about 0.075 - 0.126 of dividends a year from 2011 to date. Using price 2.24 we can get a yield of 3-5%. It really depends on why you are going in? Is it for dividend or for capital growth If you are going in for dividend assuming there is no change in the payout are you happy with the dividend now? If yes, then when you invest is not important. Secondly, looking at the chart. The Support level for MapletreeCom is around 2.20. If it drops below 2.20, it is likely to go to 2.00. Long term trend(more than 1 year) is still up but short term(3-6months) is sideway.
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Investments

Stocks Discussion

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM, Founder at The Systematic Trader
Level 4. Prodigy
Answered on 26 Feb 2020
Shorting is only for speculation. When you short, it is trading using margin. On top of that, the loss is indefinite because price can keep going up. Saying that, you can use it to hedge your position or take outright naked positions but you need to know what you are doing. For most people, I dont advise them to do it without training.
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Unit Trust

ETF

Investments

Stocks Discussion

Fundamentals

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM, Founder at The Systematic Trader
Level 4. Prodigy
Updated on 20 Feb 2020
This is how I will analyse a fund manager. 1) Age of fund ( longer the better) 2) Returns 3) Drawdowns ( from the highest point how much they drop) 4) Stimulated Equity curve 5) Exchange risk ( if you spend in SGD, then SGD is best) 6) Cost ( front end cost, management fee, back end cost) 7) Diversification ( Are they focus on any particular stock?) In general, ETF is cheaper than Unit trust. Unit trust is actively managed which means you need to pay the fund manager.
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Investments

Fundamentals

Technical Analysis

Stocks Discussion

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM, Director at TradingPLC Venture
Level 4. Prodigy
Answered on 17 Feb 2020
Fundamental Analysis Find the intrinsic value of an investment, buy it with a margin of safety. Hope that the market will realize it is undervalued and the price will be closer to value. The disadvantage of FA Opportunity cost. Price does not always go back to the value Subjective. When do you actually buy it? Low can get lower. Technical Analysis Study of past prices to predict the future. The disadvantage Analysis paralysis. The field of TA is ever-growing. When is it enough and make a decision to buy? Subjective. One way of using TA may be totally different for another way of using it. It takes time to be good at TA. Using a system Entry and exit rules are fixed. Money management is part of the system. You can backtest a trading idea to find an edge in the market. Study the returns, drawdown, equity curve, etc. Then put some money to forward test. If it works, then scale in the positions. Conclusion Using a system is using FA and TA, on top of that, you need to test the idea. You also need to do money management unless you have unlimited funds. Hope it helps, cheers.
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FIRE Movement

Investments

Stocks Discussion

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM, Director at TradingPLC Venture
Level 4. Prodigy
Updated on 17 Feb 2020
Hi , I agree with Aaron Leow. Do NOT aim to get rich quick. Invest in yourself. Education gives you the best leverage. We will be rich by 40 if we just avoid the mistakes we make in investment. Read good books on investing and if you like it trading too. Personally, I trade index and forex but this is not the cup of tea for everyone. In the end, find out not just about the instruments but also yourself. The best investment is one the suit you the most in term of volatility, returns and time/effort.
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Stocks Discussion

Investments

ETF

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM
Level 4. Prodigy
Updated on 10 Feb 2020
The average correction for the S&P 500 since World War II lasts four months and sees equities slide 13 percent before bottoming, if it is a bear markets average a loss of 30.4 percent and last 13 months So if you are expecting to buy on crisis, I will wait for market to correct about 20%( definition of bear market), wait for a further 3months( after bear market, market takes time to build confidence, sideway trend). Then I will buy 50% of my warchest, I will then add in 30% then 20% over next 6 months. The 30% and 20% could be higher in price then the 50% entry price. What I will not do is to average down. Based on history,keep in mind stock market down up over time due to inflation. Hope it help :) :) The average correction for the S&P 500 since World War II lasts four months and sees equities slide 13 percent before bottoming if it is a bear markets average a loss of 30.4 percent and lasts 13 months; it takes stocks nearly 22 months. So if you are expecting to buy on the crisis, I will wait for the market to correct about 20%( definition of a bear market), wait for a further 3months( after a bear market, the market takes time to build confidence, sideway trend). Then I will buy 50% of my war chest, I will then add in 30% then 20% over the next 6 months. 30% and 20% could be higher in price than the 50% entry price. What I will not do is to average down. Based on history, keep in mind the stock market down up over time due to inflation. Hope it help :) :)
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CPF

Insurance

Savings

Investments

Collin Seow CFTe, CPM
Collin Seow CFTe, CPM
Level 4. Prodigy
Answered on 10 Feb 2020
Firstly, I will set aside 3 month of salary for liquidity purpose. If you are out of job, this will last you about 6months to find a new job. The money here I will put into a high yield bank account. Note that, you will have low returns in exchange for liquidity. Next, I will ask myself is that any need for the money for the next 2-3 years. Eg: buying a house or a car. If that is the case, I may not want to invest it as the market may not be in my favor when I need the money. For this money, I will put into a low-cost bond ETF. Lastly, the balance of the money, I will put into the stock market. Me personally, I will trade stock directly however this is not suitable for everyone. I will look for stocks that are trending to ride the trend. You can also use a low ETF that is tied to the SP500. SP500 automatically filter the good stocks and remove the bad ones.
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