Trading

The goal of trading is to generate returns that outperform buy-and-hold investing.

ASK A QUESTION
Trading
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun

    Top Contributor (Feb)

    93 Answers, 148 Upvotes
    Answered 3d ago
    Wow, that's really a pickle, let me just take out my biz law textbook to help you out here blows dust okay, so according to Singapore's Securities and Futures Act (which prohibits insider trading) under section 219, people who are not connected to the corporation who recieve price -sensitive information will fall under this act, which means you . Even if you pass this information to another friend, who tells a stranger at a bar, who then buys that stock, that stranger will still be liable for violating the Securities and Futures Act for insider trading. So your dad, you and of course your dad's friend will all be liable for insider trading if found out. I highly suggest to politely decline participating in this and talking your dad out of it - you are looking at possible criminal liability - you will be charged in court and if convicted, be deemed a convict. Under section 221 you will be looking at a max fine of $250 000 or imprisonment of up to 7 years. If you're lucky to get off with a lighter civil liability, you are still looking at a penalty of 3 times the profits gained, or $50 000, whichever is greater. I got this all off "introduction to business law in Singapore" by ravi chandran 4th edition. If you don't believe me, buy the book, check page 278 -280. It's cheaper than getting fined 50k and going to jail for 7 years.
  • Asked by Anonymous

    Leonard Tan
    Leonard Tan

    Top Contributor (Feb)

    83 Answers, 118 Upvotes
    Answered 4d ago
    Just a little meme I found online:) But in all seriousness, I think a good simple reference point would be to look at Boeing before they announced their Airmax 737 model. I would assume instituitional and retail analysts then would have forecasted their future Cashflows based off that and priced in their stock. However that would not factor in the recent scare and fall in public confidence towards Boeing planes in general. This would be hard to calculate, but the good news is if you are looking to capitalize at an opportunity like this, the fall in public confidence is probably temporary in your opinion against the LR potential of the company. If so, unless you feel markets are underreacting to the current track of flight bans- or that the worst is not over, there already exists a good opportunity to buy into Boeing right now.
  • Asked by Anonymous

  • Asked by Isaac Chan

    Isaac Chan
    Isaac Chan, Business at NUS

    Top Contributor (Feb)

    141 Answers, 184 Upvotes
    Answered 5d ago
    Personally, I think that they are overvalued, based on the hype surrounding these companies, and the fact that the growth potential is based largely on long term tech trends and business opportunities that seem less tangible. There were several predictions that did not come as true as we hope to, such as the onset of high usage of virtual reality, internet of things and self-driving cars. I think much of these trends were over-hyped based on very strong growth in the tech industry previously, but they seemed over-estimated. Some even compare that to the dot-com bubble. I also feel that it is harder for the market to understand the value of the stocks as well, since technology has a higher knowledge of barrier to entry compared to F&B, retail etc.
  • Asked by Anonymous

    Isaac Chan
    Isaac Chan, Business at NUS

    Top Contributor (Feb)

    141 Answers, 184 Upvotes
    Answered 6d ago
    I think that starbucks is quite an interesting example, being a trail blazer by setting the coffee culture and developing this culture around itself. I feel that what's fascinating about starbucks is that they focus so much on the overall experience of the customer in the store. To them, it's not just about the coffee but about the entire experience of being in the store. This in-house store experience helps it to differentiate itself from other players in the coffee industry. Like McDonald's, I believe Starbucks has also got it right in terms of choosing the best spots for where the store is held, even if rental costs there are exorbitent. That kind of frontage and accessibility seems to be one of the key drivers of growth for both these companies. Not really well-versed in marketing here, but starbucks seems to also be a success story (along with Apple and Google), about brand equity and the need to nurture and develop brand awareness within the consciousness of the public. Paying 7 to 8 SGD for a drink is actually expensive if you think about other comparable F&B items you can buy with that same amount, but somehow Starbucks has done it. Something else I believe it has done right is in specialising and promoting its core items, coffee, and not veering too much off course with other food items like it had done before
  • Asked by Anonymous

  • Asked by Anonymous

    Yeo Enk Loui
    Yeo Enk Loui
    55 Answers, 102 Upvotes
    Answered 6d ago
    Hi there! Trading shares would suggest that you will be actively entering and exiting your positions in these shares. Knowing when is the right time and how to best execute these trading stategies require some degree of understanding of how the financial markets work and technical indicators. I'd say that if you are completely new to stocks and have no prior finance knowledge/background, it would be advisable that you start by looking at the fundamentals (eg: ratios, company prospects, industry and macroeconomic factors) and buying stocks to hold instead of starting out with trading. Of course, there are always people who loves the thrill of trading and jump straight into it - The choice is ultimately yours!

Download Seedly’s free

Expense Tracking App
Download on the App StoreGet it on Google Play
  • Sync all your banks in one place
    Sync all your banks in one place
  • Quickly add transactions and view reports
    Quickly add transactions and view reports
  • Community Q&A and blog integration
    Community Q&A and blog integration