Key Learning Points from Ein55 Graduate Gathering 2018 July

Ein55 Graduate Gathering
We have had a successful Ein55 graduate gathering today with about 500 attendees. It is also 5 years birthday for Ein55 investing school, student size has grown 100 times from the first class 5 years ago with 30 students to about 3000 students currently.
 
Here are the 7 key learning points by Dr Tee:
1) Safer to position in high optimism stock market with shorter term trend-following strategies.
2) Align individual stock with global stock markets which are mostly bearish, waiting for reversal.
3) No need to predict the stock market. Instead, prepare a system of trading (what to buy, when to buy / sell), let the business fundamental and share price come to us, follow the signals to make decisions.
4) Form a stock investment portfolio with 6 different strategies:
– Long term growth investing
– Defensive investing
– Long term cyclic investing
– Dividend investing
– Short term momentum trading
– Midfielder investing
5) World and US stock market are still at high optimism above 75%, short term is mild bullish with support of bullish economy such as excellent job market.
6) Singapore, Hong Kong and Germany are at moderate optimism 40-60% after recent correction, short term turning bearish.
7) China stock market just falls into low optimism below 25%, officially level 3 (country level) crisis again, potential opportunity for cyclic investing but beware of short term sharp falling knife in prices.
 
Next Ein55 graduate gathering will be in Jan 2019. Graduates have learned the importance of setup exit strategies while preparing a wish list of giant stocks to buy in future.
 
For general public, you may learn the latest market outlook through free stock investment workshop by Dr Tee, register in www.ein55.com
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YangZiJiang Stock Review – Sample Ein55 Analysis

All Ein55 graduates are trained for a simple trading/investing system of Optimism + FA + TA. Here is a sample application on YangZiJiang stock review based on a request by a forum member, sharing for pure educational purpose, not a personal financial advice.
 
Stock = YangZiJiang (SGX: BS6.SI)
Current Price = S$0.90 (28 Jun 2018)
 
Optimism (long term) = 39% (below Ein55 “intrinsic value” of $1.13 but still above buying zone of 25% Optimism).
 
Optimism (mid term) = 22%.
 
FA (Fundamental Analysis) = 4.5 point (out of max 8 points for a super giant), average performance.
 
TA (Technical Analysis) = Down-Down-Down (sharp falling knife from short term to mid term to long term), potential for short term shorting but must know how to setup with entry/exit signal.
 
Strategy = Do not qualify Ein55 “giant stock” criteria, may not consider for long term investing. A cyclic stock in nature, moderate dividend, possible to buy low sell high, applying mid-term trading strategies but probability of success may be limited. For short term trading, possible to short (strong bearish trend) but need to wait for right entry signal.
 
Possible actions = wait for investor (till 25% Optimism is reached) and trader (till trend is reversed from bearish to bullish). Decision making is personality based, it is possible for investor to ignore, mid-term trader to wait to buy while short-term trader to wait til short, all are valid actions if aligned to individual.
 
This is the most simplified Ein55 investing/trading system, Ein55 graduates are trained to make a decision (Buy / Hold / Sell / Wait / Shorting) with quick glance of Optimism + FA + TA.
 
For more in-depth YangZiJiang stock review, one may need to integrate with L2 (sector – shipping for YangZiJiang, Baltic Dry Index, etc), L3 (country – Singapore / China indices for comparison with YangZiJiang) and L4 (world – economy / stock) indicators, understanding the interactions of all investment market: stock, property, bond, forex, commodity and economy, aligning with own unique personality (from short term trading to long term investing) and investment goals with strategies (investing for income or capital gains or both), consideration of political economy, PA (Personal Analysis), etc, through 55 Ein55 investing styles.
 
For general public, if you are from Singapore, feel free to sign up for free 4 hours investment course by Dr Tee to learn Optimism + FA + TA + PA. Register in www.ein55.com.
 
For those who are from overseas (outside Singapore) or too busy to attend the free course, you may sign up for Ein55 video course by Dr Tee (different content from free 4hr course, focus more on giant stocks with Fundamental Analysis). Register Here: https://www.investingnote.com/store/products/discover-giant-stocks-value-investing-strategies
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Jungle Book – Rules of Stock Market


When there is no Jungle Book (rules of stock market), 2 elephants are fighting (trade war between US and China), both would get injured (lose-lose) while observers (other countries including Singapore) will also get the splash. The best protection for weaker animals (retail traders or investors) may be to exit and hide in a safer place with precious asset, watching remotely waiting until the crisis is over to rebuild the jungle of global stock market.
 
Remember the story of movie Jungle Book (2016 version)? Sometimes it may take an unexpected wild jungle fire (global financial crisis) to wake everyone up, knowing the common enemy of unlimited greed and fear. Thinking positively, every crisis (financial, political, cultural, etc) in mankind is a wake-up call, an alarm for change to survive in long term. Human is able to adapt to changes after understanding the rules of stock market.
 
The jungle is still healthy (global economy is still bullish, eg. better job market), when these giants know that there are enough resources for everyone on this planet, they will learn to manage the emotions, sharing peacefully in an win-win manner, then the bull market could continue. If not, each of them may have to learn from a painful lesson in future.
 
Economy could be an unlimited pot of soup, each of us have a spoon with long handle, it is hard for us to feed only ourselves (I Win – You Lose) but if we could feed each other (Win – Win), everyone could share the wealth of the world together.
 
Until then, stock market is still like Hunger Game, a place for everyone (speculators, traders, investors, beginners, big funds, even government, etc) to pursue the wealth with various strategies (alliance, standalone, etc).
 
Learn from Dr Tee in free stock investment courses to master the Jungle Book, rules of stock market to be a big winner.
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Online Investing Course by Dr Tee: How to Discover Giant Stocks with Value Investing Strategies

Online Investing Course

For the first time, Dr Tee has established a high quality online investing course (9 modules of videos over 2 hours) on How to Discover Giant Stocks with Value Investing Strategies.  This is useful for both investors and traders to master the giant stocks to buy.  The online investing course is hosted by investingnote, a permanent platform, meaning after signing up, the video course will be available for repeated viewing in future.  You may also share this low cost educational program with family members (one payment for all to learn at own pace) who may have busy schedule or currently living overseas, learning useful stock investment knowledge remotely.

Currently there is a new launch special rate for Ein55 members (you may share this email with friends who can qualify the same rate), original online investing course fee is $100, currently selling at only $25 (75% Discount).  This minimal course fee is helping the host to maintain the platform for online investing course, not driven by the profit.  After the promotion period is over, course fee may be adjusted to original price.

Register Online Investing Course Here:

https://www.investingnote.com/store/products/discover-giant-stocks-value-investing-strategies

Step 1: Click Registration Link (Sign up for free investingnote account)

Step 2: Sign up Online Investing Course

$100  -> $25 (75% discount for Ein55 Members and friends)

Step 3: Learn 9 Modules Video Course

Share with family. Permanent Video.

Step 4: Write Course Review

Positive comments to encourage others

View Online Course English

Online Investing Course Description

There are 2 main stock investing objectives: investing for income (dividends) and investing for capital gains, which we could achieve through a portfolio of global giant stocks with strong business fundamental. In this value investing course, Dr Tee will teach the powerful methods step by step, how to form a dream team stock portfolio with understanding of 3 financial statements and 11 critical fundamental criteria with practical applications in global stock screening.

Learning Points:

1) Master 3 Value Investing Strategies on What Giant Stocks to Buy:

– Growth Investing Strategy (Growth Stocks / Momentum Stocks)

– Undervalue Investing Strategy (Undervalue Property Stocks / Bank Stocks)

– Dividend Investing Strategy (REITs / non-REITs Dividend Stocks)

2) Apply Fundamental Analysis (FA) with 3 Key Financial Statements and 11 Critical FA Criteria to Identify Global Giant Stocks

– Income Statement

– Balance Sheet

– Cashflow Statement

3) Practical Demo on Global Giant Stock Screening

– Selection Criteria for Growth Stocks, Undervalue Stocks & Dividend Stocks

– Sample 100 Global Giant Stocks for Singapore, US, Hong Kong & Malaysia

– 5 Free Global Stock Screeners

View Online Course English

After mastering What Stocks to Buy from this online investing course, learners may proceed to sign up for free stock investment courses by Dr Tee to master When to Buy / Sell with 10 Optimism Strategies, you could meet up with Dr Tee, coming earlier for bonus stock diagnosis.  Content of online investing course ($25) and monthly 4hr meet-up course (free) are different, knowledge can be integrated into 10 different stock trading and investing strategies.

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Amazing Wealth with Life-time Compounding Return in Stocks

Compounding Return
Just read this touching news, a real life example of long term stock investing with compounding return, helping an accountant (Mr Loh) to accumulate S$20 millions in wealth when died at 89 years old. He may be a miser, spending little on himself but he is very generous to donate more than S$3 millions to charity organization.

This is the power of compounding return in stocks, assuming 50 years of investing (assuming this investor started investing only at 39 years old), here are return for different compounding rate, return for every $1 invested:

5% compounding: (1+0.05)^50 = $11

10% compounding: (1+0.1)^50 = $117

Even with only 5% growth rate (slow growth stocks), an investor could expand the wealth by 11 times by holding blue chip for long term. For moderate giant stocks with 10% return, the return is 117 times. There is no surprise then why Mr Loh could accumulate so much wealth unknowingly by others.

What impressed me is not his wealth but his “misery” on himself but generosity on others. Money is only useful when it is used when one is still alive. Money is not almighty but if we could become master of money, knowing the skills of both making money and spending money in the right ways, this will lead to a very meaningful life.

Start learning value investing for long term compounding return of wealth with giant stocks. The first step is 4 hours of time in learning in a free course by Dr Tee, what stocks for long term investing, when to buy / sell or holding for life. This is not a sales talk, you will learn solid investing knowledge with investment of your time.

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Robert Kuok Giant Stocks

Trump (USA) and Kim (North Korea) will meet on 12 June 2018 in Shangri-La Hotel of Singapore, the same place for historical meeting of Xi Jinping (China) and Ma Ying Jeou (Taiwan) in 2015. Sometimes when we read the news, need to read in between the lines to understand the stock investment opportunities.
 
Singapore:
==========
Establish reputation similar to Switzerland as a neutral country. This is crucial for a small country to survive in a competitive international market, both in economy and politics.
 
Shangri-La Hotel:
==============
Owner of Shangri-La Hotel is Robert Kuok, the richest person in Malaysia, who also owns businesses through major shareholding of giant stocks such as PPB (Bursa: 4065), Wilmar (SGX: F34), Shangri-La Asia (S07), Kerry Properties (HK: 0683), etc.
 
Robert Kuok is a very successful businessman, known as “Sugar King” of Asia. His family giant stock is PPB Group, listed in Malaysia Bursa, also a major shareholder of Wilmar.  He has good political and business relationship with China, similar to Li Ka-shing, benefiting through assisting China in expansion over the past few decades.
 
A safe investing strategy is to be the business partner of global multi-billionaires, buying their shares with strong business at low optimism price with the huge discount in price over value obtained.  The best part is as a retail investor, we don’t have to spend any effort in running these multi-billions businesses but need to know the investment clock to buy and hold/sell these stocks.
 
Learn from Dr Tee free stock investment courses to position for giant stocks of various global multi-billionaires. 

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Stock Investment Lessons from Malaysia Election

It is very hard to write about Mahathir (老马) in history book 10 years later. 成也老马、败也老马。幸亏老马识途,大马有救!
 
Mahathir’s life is like a company, started as an activist (start-up company or disruptive technology), then leading the party or even establish country vision 2020 with own set of rules (growing company), eventually ruling for more than 20 years (matured company), finally stepping down from the stage (changing from CEO to Chairman or Advisor of a company after retirement), cannot rest during retirement (bringing down at least 2 prime ministers and 2 deputy prime ministers, similar to internal company conflicts), finally starting another party and rule the country again (start new company as competitor to take over the market share).
 
Under PH, due to balanced power among the 4 or 5 parties (if Sabah included), we are back to 1957/1963 when Malaysia first independent with balance of power among Umno, MCA, MIC and even later with Singapore and Sabah/Sarawak joined. This is similar to a company with several major powers, there is no significant major shareholders, no one has more than 50% shares (like Umno in the past few decades), then it becomes a group decision making, until one day a party becomes larger again.
 
People should be the boss, although each one is like owning only 1 share in a company but when group together, it could choose the board of director to rule the company or the country. Malaysia now has a dual-political system which is good, similar to USA, every 5 years, the board or ruling parties/alliance has to show the report card to people (you as the boss), you could decide who to fire or hire. Therefore, education is required to train the people to be a smart boss, knowing the short term needs (saving GST, toll fee, income tax), understanding to compromise for long term needs (growth of company or stock).
 
Understanding a country (general election) is similar to choose a good company. However, when a company is not good, we could sell the stock and choose a better one. When a country is wrong, we should correct it, not just abandon it. Although there is no forever right, at least Malaysia is back to the right starting point again, which path to choose will determine the growth of Malaysia.
 
Singapore without much natural resources, after SG50, could grow to be a strong country, therefore a giant (not just by size). Singapore is similar to US in the past 50 years, able to attract foreign talents who are dissatisfied with home countries, to stay as second home or even new home, contributing to success of Singapore. If Malaysia has the right management (see the example of last 10 years of statement governments in Penang and Selangor), the growth rate should be stronger than Singapore. Singapore may not have the same outstanding leader as late Lee Kuan Yew anymore but with a system setup, at least it could be a slow grower country (3-5% GDP), similar to other matured economy such as US.
 
From investment perspective, there is no need to guess or predict which country will be better 10 years from now. We could just choose from the current market. China has been recovering from the 100 years of correction since Qing Dynasty, we could ride the way by considering China related stocks, especially related to rising of middle class. For Malaysia stocks, we don’t have to guess the impact of new government, just use the next few years to observe the different Malaysia giant stocks.
 

To learn about stock investment, which country to invest, what giant stocks to buy, when to buy …. simply register for a free stock investment course by Dr Tee.

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Malaysia Political Cycle Investing

I stay till over 3am tonight (9 May 2018) so far, observing an important historical milestone in my home country, Malaysia: a dramatic change of federal government, from BN to PH. PH will also control 7 state governments (Perak is still uncertain).

Chinese believes in 60 years of cycle duration (5 x 12 = 60, 一甲子), it is about 60 years of BN ruling Malaysia since independence in 1957. 《三国演义》:“话说天下大势,分久必合,合久必分。From the wisdom of thousand years of Chinese history, we learn that when there is common interest, various groups could become friends, but one day, they will split due to internal conflicts again. It will take a long time before the next cycle to split begins, if the new PH government could use this historical opportunities to strengthen the foundation, it could continue to rule Malaysia for several decades.

How’s the impact on Malaysia future economy, stock investment, forex, etc? Short term market reaction so far is a weaker Ringgit vs USD because this is a major change in Malaysia. PH has announced 2 days of public holidays on May 10 and 11, not sure if Bursa stock market will follow the soon-to-be government to rest for 2 days. If yes, there could be some turbulence.

We don’t have to speculate which Malaysia stocks will rise or fall down. Instead, let the trading or investing opportunities come to us. Let the share prices stabilize for a few days after absorbing the market news. It is never too late to grab on investing opportunities in Malaysia.

In a longer term, if Malaysia is under a more efficient government, the economy and stock market will have higher growth potential but it will take at least 1 decade to see the results. PH is still an alliance of different parties, sometimes compromised decision may not be the best but as long as it is fair and transparent, the country could move in a positive uptrend direction again.

Optimism is also crucial for a political system. BN lost in this political tsunami, partly due to past few years of oil & gas crisis and weak ringgit, local people has been at low optimism in life, especially with the rising cost of living (eg. GST). PH may not be lucky as well because currently is Level 4 (global) high optimism, even if Malaysia stock is at moderate optimism, based on a 5 years political cycle for 1 term of government, it is not easy to achieve uptrend in stock market to show the results 5 years later. It is the same situation for Trump in US, who may try to sustain the high optimism US stock market till at least year 2020 as a report card to seek for his second term as US president.

There is no regret to witness a political cycle of a country. Sincerely hope Malaysia will become a better country, being a closer partner with Singapore. Learn about future stock investment opportunities in Malaysia, Singapore and the rest of the world with from Dr Tee free investment courses.

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When Technology Stocks Losing Momentum

technology stocks
Over the last few weeks, some technology stocks in Singapore follow the footsteps of US technology stocks, having significant correction in share prices, triggered by various negative news or market fear. Is it the end of technology stocks bubble or just a temporary price correction?
 
Strong fundamental technology stocks such as Venture Corp (SGX: V03) and Valuetronics (SGX: BN2) have dropped more than 25% in short term stock prices, disappointing many traders who hope to buy high sell higher with support of strong company fundamental. Other popular technology stocks such as AEM (SGX: AWX), Micro-mechanics (SGX: 5DD), Sunningdale Tech (SGX: BHQ), UMS (SGX: 558) also suffer various degrees of share price corrections, worrying the traders.
 
Here are the general strategies of momentum stock trading, not limited to only technology stocks:
 
1) Momentum stocks required strong support from business fundamental at least for the last 3 years for short term trading, proven growing business records of 5-10 years for longer term investing.
 
2) Due to bullish global economy with strong consumer market over the past few years, some technology stocks have been at long term high optimism with short term uptrend prices, momentum supported by strong business fundamental. This is as if walking on a layer of thin ice, mainly suitable for short term momentum trading to buy high sell higher.
 
3) When momentum of short term share prices are lost (could be triggered by earning alert, negative market news, etc) is a potential danger signal. A momentum stock trader needs to follow the trend to exit (eg. when a critical price support is broken), not to enter as a trader (aiming for 10% return) but hold as a long term investor when the stock market moves in opposite direction (potential more than 20-50% loss).
 
A trader at long term high optimism market would not guess the stock prices of next day, following trend to take action with support of strong business fundamental. Global technology giant stocks such as Facebook (Nasdaq: FB), has started to recover after significant price correction, however, the past momentum may be transformed into cyclic or swing trading. For Singapore technology stocks, beware of the sharp falling knives in bearish share prices, not to buy low too early which may result in lower share price.
 
Understand support and resistance with share price trends in Technical Analysis (TA), monitoring the business performance through Fundamental Analysis (FA), integrating Optimism signals at Level 1 (individual stock), Level 2 (sector), Level 3 (country) and Level 4 (world).
 
Regardless Buy Low Sell High (cyclic stocks) or Buy Low Hold Long Term (growth stocks or dividend stocks) or Buy High Sell Higher (momentum stocks), a smart trader or investor has to be consistent in own strategies, eg. What stocks to buy, When to buy/sell, aligning with own unique personality.
 

Learn from Dr Tee through free stock investment courses on 10 strategies of stock trading & investing.

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Crisis Stock Investing with 4 Qualities of Low Optimism Stocks

crisis stock investing

Crisis stock investing is investing in cyclic giant stocks, ideal for Buy Low Sell High investing strategy.  Usually crisis may happen at business (Level 1, company losing money), sector (Level 2, bearish sector), country (Level 3, recession) or global (Level 4, financial crisis), creating different degrees of fear in the stock market, resulting in fall of share prices.  Subsequently, when the market fear turns into greed, these crisis stocks may become uptrend momentum stocks, ideal for selling high.

There are 4 different qualities of crisis stocks with long term low optimism. An investor has to carefully identify the nature of crisis stock investing, understanding how the falling in share prices are induced.

1) Low Quality Low Optimism (L1 Crisis Stock Investing)

Long term optimism of stock is low, driven by decline in L1 business but L2-L4 are fine.  Noble Group could be an example. Without consideration of sustainable business, pure strategy of Buy Low may result in Get Lower in share prices, which is a common pitfall for Technical Analysis.  Both Fundamental Analysis (FA) and Technical Analysis (TA) should be integrated with Optimism Strategies with consideration of Personal Analysis (PA)

2) Average Quality Low Optimism (L2 Crisis Stock Investing)

Long term optimism of stock is low, driven by decline in L1 business & L2 (sector), while L3-L4 are fine. Examples include oil & gas crisis stocks in the last 1 year, casino crisis stocks 2 years ago, etc.  It happens during the sector rotation which the sector market cycle may not align with the country/global economy cycle.  If the sector is not a sunset industry, usually it would recover again as there is unique demand vs supply within each sector for investment.

3) High Quality Low Optimism (L3/L4 Crisis Stock Investing)

Long term optimism of stock is low, driven by decline in L1-L4 (business/sector/country/global financial crisis). More than 50% global cyclic giant stocks during global financial crisis would be affected in both business (drop in earning or even losing money) and share prices (L1-L4 from individual stock to global stock indices).  Since the market fear at L3/L4 may not last long (global political leaders would take actions by then to save the whole world), the downside of global stock market is limited but an investor needs to have sufficient holding power through the cold winter time of global financial crisis.  For example, many cyclic giant bank stocks may behave this way.

4) Excellent Quality Low Optimism (L4 Crisis Stock Investing with strong L1 Business)

Long term optimism of stock is low, driven by decline in L2-L4 (sector/country/global financial crisis) but L1 business is fine. Less than 10% global growth giant stocks during global financial crisis could still be profitable or even growing in business while the share prices falling relatively less (defensive in nature) than the average in global stock market.  In fact, defensive growth giant stocks are suitable for Buy Low & Hold for long term investing, sell is an optional strategy.

The safest time to buy a giant stock is when everyone is afraid the sky will fall down while the business is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis but many people are too normal, do not know how to take this advantage to truly buy low sell high.

A smart investor may not need to consider only crisis stock investing.  There are other strategies such as growth stocks, dividend stocks, undervalue stocks and momentum stocks, etc, may be integrated to form a balance stock investment portfolio.

Learn from Dr Tee through high-quality free stock investment courses.

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