In an uptrend, buy on dips. Buy after the price bounces off the support line. You never know if it breaches the support and reverses into a downtrend
Sell when uptrend reverses into a downtrend. Signs to look out for:
- 200-day SMA breached with STRONG volume
Buy when downtrend reverses into uptrend
Signs to look out for
- breaks above 200-day SMA with strong volume
At this point, the headlines are usually still full of gloom. Recession, high unemployment. The market always precedes the economic cycle.
That said, buy only when PE is below average or you'll be overpaying. market bottom, in dips, whatever. Never pay 2 dollar for a 1 dollar item.
Friday, September 30, 2011
Thursday, September 29, 2011
Buy the Index
The index will always go up over time in the long run. This holds true for s&p500, sti, klci, hang seng, asx200 and many more.
Why so? Inflation drives costs up and thus revenue of companies goes up. Population is ever increasing, so these companies sells more.
My pick of index to invest in:
- sti
- s&p500
- asx200
For KLCI, i'd prefer to buy individual stocks directly as i'm more familiar with the local companies here.
How does one buy the index? Well you don't, you buy the corresponding ETF *Exchange traded fund. As its name suggests, it trades on the exchange, just like a common stock. However buying these from the local brokerage will incur high commission charges. I gotta get myself a US online brokerage account to buy these ETFs.
Index > ETF
STI > STI ETF
s&p500 > spr
asx200 > spdr s&p/asx 50, ishars-s&p/asx 20 index fund
Why so? Inflation drives costs up and thus revenue of companies goes up. Population is ever increasing, so these companies sells more.
My pick of index to invest in:
- sti
- s&p500
- asx200
For KLCI, i'd prefer to buy individual stocks directly as i'm more familiar with the local companies here.
How does one buy the index? Well you don't, you buy the corresponding ETF *Exchange traded fund. As its name suggests, it trades on the exchange, just like a common stock. However buying these from the local brokerage will incur high commission charges. I gotta get myself a US online brokerage account to buy these ETFs.
Index > ETF
STI > STI ETF
s&p500 > spr
asx200 > spdr s&p/asx 50, ishars-s&p/asx 20 index fund
Wednesday, September 28, 2011
Why I start this blog on Financial Freedom
Financially Free is what I chose to be. It is what I will be working towards to, everyday of my life, until I achieve it. When I do, I shall write a book about it, for young adults out there who are trapped in their employment lives, believing that they do not have a choice. Till then, this blog documents my every step in my pursuit of financial freedom.
What you will read here are the practical actions I took to build up a comprehensive portfolio consisting of properties, stocks, ETFs, options, and a business. What I read, which seminars I attended, what I have learned, what I do to analyse stocks, what are my strategies, who are my gurus, what tools I use.
At the same time, I am learning to do financial planning for myself, family and friends. When I do get somewhere with this, I will gladly share my knowledge with everyone out there.
I hope you will give your constructive feedback along the way.
What you will read here are the practical actions I took to build up a comprehensive portfolio consisting of properties, stocks, ETFs, options, and a business. What I read, which seminars I attended, what I have learned, what I do to analyse stocks, what are my strategies, who are my gurus, what tools I use.
At the same time, I am learning to do financial planning for myself, family and friends. When I do get somewhere with this, I will gladly share my knowledge with everyone out there.
I hope you will give your constructive feedback along the way.
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