Stock Market Archives - Page 25 of 28

4 Critical Actions in Bullish Stock Market

Posted on February 25, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 054 - image - Action

There are many people confused, what they should do in the phase2 of bull market. Which action is right? Buy, Hold, Sell, Wait or Shorting?

The answer is dependent on unique personality and condition. In general, we could broadly categorize 4 types of critical actions for 4 groups of traders and investors. Each of them as a gift from heaven:

1) Long Term Investor (No Stock)
– best gift from heaven is to wait patiently for global financial crisis, applying low optimism to buy fundamentally strong stocks at lousy price

– intermediate plan is for a long term investor to apply mid-term trading (provided able to match with this personality) to profit from the phase2 of bull market, but the investor must follow trading exit strategy as Optimism is high.

2) Long Term Investor (with Stocks)
– examine the past entry price, was it low optimism? If yes, hold during intermediate optimism (with consideration of L2-L4 signals), prepare to take profit when optimism is high. Ein55 Graduates have learned many techniques to integrate trading into investing to maximize the gains.

– after selling the stocks one day, move to Group1 for next action.

3) Short Term Trader (No Stock)
– 2 possible strategies, 1) buy low sell high (swing trading) which requires a minor correction, 2) buy high sell higher (position trading) with momentum trading or breakout strategy, entering when a critical resistance is broken upward.

4) Short Term Trader (with Stocks)
– hold and take profit using quicker signal, different price target as Group 2.

– after exit, the buy/sell process could be repeated many times until the bull run has ended one day, then applying reversed strategy of shorting to profit from bearish market one day. Trend follower for short term trader.

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In summary, there is no one solution, one could make money with any action aligning to one’s personality: Buy, Hold, Sell, Wait or Shorting. If there is a mismatch in personality with strategy, then any action could result in losses eventually. So, we should know ourselves first before planning for stock trading or investing. Actual personality is much more complicated, each one of us is unique but the 4 types above are the most common ones: trader vs investor, with and without stocks.

We need to take action to convert knowledge into fortune. It has to be the right action at right time, aligning to our unique personality.

Filed Under: Market Cycle Investing, Market Optimism, Stock Market Tagged: bullish stock market

Make Friend with Billionaires in Investment

Posted on February 24, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 053 - image - Richest Billionaire

A multi-billionaire could become super rich mostly because they they have a profitable business or they invest in other people’s profitable business. Their wealth is growing over the years, some could be as rich as the wealth of a small country.

We may not be able to establish the same business as them but we could make friends with these multi-billionaires by becoming a shareholder of their business. Alternatively, we could also study their stock portfolio because they also invest in other businesses.

So, what are the billionaire stocks to buy? The Billionaire Index is a compilation of stocks owned by global billionaire investors

https://www.ibillionaire.me/ibillionaireindex/

Based on a homework done by Ein55 Graduate, many (but not all) of these stocks by billionaires are strong business. So, it it is critical for us to know what are the truly giant stocks which make these billionaires richer over the time. Even we may not become a billionaire, we could share a profit by becoming a millionaire one day, if we know their investing mindset. More importantly, many of these stocks are at high price due to high optimism of US market.

We only make friends with these billionaires when their net worth is reduced by more than 20% one day during global financial crisis due to falling down in share prices but the strong business still make money consistently yearly for them and for us.

Filed Under: Fundamental Analysis, Stock Market, Value Investing Tagged: billionaire index

Consumer Stocks: Discretionary vs Staples

Posted on February 23, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 052 - image - Consumer products

Stock prices will rise over time when business is growing. Consumer stocks depends on businesses in consumer market. A consumer business sells us products and services which could be in 2 broad categories:

1) Good to Have (we WANT)

Optional for us, eg high end restaurants, premium property, branded handbag, children enrichment programs, etc.

In stock market, “Good to Have” are Consumer Discretionary stocks, they are usually dependent on consumer purchasing power which subject to economy condition. In a bull market, many people could make money in stocks or properties or having a higher increment in salary, therefore having more budget to buy non-essential products, eg. a car with high COE price, even public transportation is easily available. In a bear market, this type of stocks are likely to fall down badly in share prices.

One could position with “Cyclic Investing” strategy for Stocks or Business with Good to Have products or services.

2) Must Have (we NEED)

Essential for us, eg. basic 3 meals in foodcourt or simple bread & coffee at home, a house (HDB) to stay (rent or own), a bag which we could carry when going for work, children public transport to school, etc.

In stock market , “Must Have” are Consumer Staples stocks, they are usually more defensive, needed in daily life regardless of economy condition. Whether good time or bad time, people still need to eat & drink, taking bus or train, wearing clothes. Most people are unlikely to cancel their mobile phone plans or cut their utilities (water/electricity/gas) supplies.

One could position with “Long-term Defensive or Dividend Investing” strategy for Stocks or Business with Must Have products or services.

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In actual stock market, most stocks are hybrid of Good to have and Must have, because the definition of needs are dependent on individual. Therefore, we could have a variety of investing strategies over a spectrum of needs for products and services.

Filed Under: Commodity Market, Stock Market Tagged: Consumer Stocks

10 Strategies of Buy Low Sell High in Stocks

Posted on February 22, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 051 - image - buy low sell high

There are many strategies of entry & exit for stocks, all are possible to make money but must be aligned with our unique personalities. Here are some methods which Ein55 Graduates have mastered:

(Swing Trading / Market Cycle Investing)

1) Buy Low Sell High (short term: weeks)

2) Buy Low Sell High (medium term: months)

3) Buy Low Sell High (long term: years)

(Position Trading / Growth Investing)

4) Buy Fair Price & Hold to Sell Higher (short term)

5) Buy Fair Price & Hold to Sell Higher (medium term)

6) Buy Fair Price & Hold to Sell Higher (long term)

7) Buy Fair Price & Hold permanently

(Momentum Trading)

8) Buy High Sell Higher (short term)

(Shorting)

9) Short High Recover Low (short term to mid term)

(Value Investing / Dividend Investing)

10) Buy Low & Hold (short term, mid term, long term, permanently)

There are many other different combinations of strategies which Ein55 Graduates have learned (eg. integrating stocks with forex, properties, commodity, bonds, macroeconomy, Level 1-4). At the end, you just need to master 1 strategy, you could make money in stocks.

There are many trading / investing schools which will focus in 1 or 2 strategies above. We need to know ourselves first before knowing the right choice of investment and strategies to apply.

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I like this new term: “wrong term investment”, mismatch of personality and strategies. There are many people who fail simply because wrong choice of term, eg:

– a long term investor who learns short term forex trading

– a short term trader who learns undervalued property stocks

The saddest thing is to enter as a short term trader, when wrong, does not know how to cut loss, ending up as a long term investor, holding on to junk stock for life or until the company goes bankrupt. We should choose to be a long term investor, not being forced by the market to be a long term investor.

There are also a few more unique styles applied by some Ein55 Graduates:

1) long term trader = buy & sell like a trader every few years

2) short term investor = buy fundamental stocks for short term

3) long term CFD investor = buy CFD for long term dividend investing

In fact, investing and trading can be fun, we are investment coaches, designing the right and unique strategy for ourselves.

The safest time to buy a stock is when everyone is afraid the sky will fall while the business is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis; we should learn how to take this advantage to truly buy low sell high.

When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful as one can take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with his own personality.

The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc.) to buy safely, when to buy, when to sell, including the option of long term holding. So far over 20,000 attendees have benefited from Dr Tee high-quality free courses to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.

Learn 10 Strategies of Stock Trading & Value Investing (股市投资策略)

1) Master Buy Low Sell High for all investment markets (stock, property, commodity, forex, bond) (买低卖高：股票、房地产、商品、外汇、债券)

2) Profit in bearish and bullish markets, understanding the true impact of US Interest Rate Hike, Bullish Global Economy, Oil & Gas Crisis (环球经济)

3) Long-term investing strategies to outperform portfolio return of Temasek, Li Ka-Shing, Warren Buffett, major stock indices/ETF and other funds (长期投资策略)

4) High-probability Shorting techniques for short term traders to profit from falling stock market while others are losing money or doing nothing (短期卖空技巧)

5) Generate consistent Passive Income with REITS and real property with knowhow of high dividend stock and property market cycles (房地产信托股的被动收入)

6) Methods of Spring Cleaning for own stock portfolio to eliminate junk stocks without any hope (股票大扫除)

7) Time for Global Financial Crisis to buy blue chip stocks on sale (危机也是良机)

8) What to buy (stock screening), When to buy/sell (buy low sell how), How much to buy/sell (risk management): (股票三部曲：买何股？何时买卖？买卖多少？)

9) Fundamental Analysis (FA) + Technical Analysis (TA) + Personal Analysis (PA), integrated with unique Optimism Strategy by Dr Tee (乐观指数：三法一体)

10) Global Stock Market Outlook: emerging opportunities with high potential in Singapore, US, China & Hong Kong stock markets (环球股票市场展望：新美中港，股票良机)

3 BONUSES for Dr Tee Workshop Attendees:

Bonus #1 for Readers: Dr Tee Investment Forum with over 6000 members (Private Group)

(Please click “JOIN” with link above and wait for Admin approval of membership)

Market Outlook (stocks, properties, bonds, forex, commodities, macroeconomy, etc)
市场展望 (股票、房地产、债券、外汇、商品、宏观经济等)
Optimism/ Fundamental / Technical / Personal Analyses
（乐观指数 / 基本分析 / 技术分析 / 个人分析）
Investment risks & opportunities （投资风险及机遇）
Dr Tee graduates events and activities updates （Dr Tee学员活动最新消息）

Bonus #2 for Readers: Dr Tee Investment eBooks x 2

Fresh from Oven: Download the latest 2 eBooks by Dr Tee on “Global Stock Market Outlook“, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & “Dream Team Portfolio” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited, learning Simple and Powerful strategies which deliver incredible results in stocks. Learn to position for each market crisis and opportunity with Optimism Strategies.

Click here to join future Dr Tee (Ein55) investment courses: www.ein55.com

Filed Under: Stock Market, Technical Analysis Tagged: buy low sell high

Healthcare Stocks – Choice between Life or Money

Posted on February 21, 2017 Written by Dr Tee (Ein55)

Ein55 Newsletter No 050 - image - Hospital
Healthcare sector is one of the strongest sector in most countries of the world, business has been growing steadily. Between “Life” and “Money”, most people would choose life over money. Regardless rich or poor people, they are willing to pay to cure their sickness, prolong their lives, staying alive as long as possible.

As a result, doctor / medical specialist is also one of the most respectful profession because one could make a lot of money with this specialized medical skills. Hospital could save millions of lives and make a lot of money at the same time due to this unique economic moats, especially for reputable hospitals.

Healthcare related stocks (eg. hospitals, medical services, healthcare REITs, healthcare products and services) with strong fundamentals worth consideration by investors. However, some of their stock prices could be at sky high due to bullish market. We need to wait for market crisis to buy some of these strong healthcare stocks at discounted price.

Feb 2017 Ein55 Class has just found 5 global giant hospital stocks:
1 in India (Nifty)
1 in Australia (ASX)
2 in Thailand (SET)
1 in Singapore (SGX)

Even we may not know these regional hospitals, we could find them easily if we master the skills of 8 FA Weapons + Giant Detector. Of course, local people would confirm the choice is correct as these hospitals are well known.

We don’t have to get a doctor license nor knowing how to run a hospital business. We could become a business partner of these hospitals, sharing their profits while helping to save lives at the same time with this investment.

We could form a dream team with 10 key players in stock portfolio, 1 could be a healthcare giant stock. However, we must partner with a giant hospital stock, because not all the stocks in this sector are making money with long term growth prospect.

Filed Under: Stock Market Tagged: Healthcare Stocks, Hospital Stocks

Summary of Seminar with Hu Liyang 胡立阳 in Singapore (14 Jan 2017)

Posted on February 1, 2017 Written by Dr Tee (Ein55)

Hu Liyang (胡立阳) and Dr Tee

I was invited as a co-speaker in this seminar (14 Jan 2017, Singapore) with Hu Liyang (胡立阳), a famous stock investing guru in Asia. As requested by a reader, I am giving a summary here to show the similarities and differences of my views with Hu Liyang (胡立阳) on Market Outlook for the next few years.

The last time I met Hu Liyang (胡立阳) was probably 4-5 years ago. The first impression of him again is that both of us are getting much older. He has a few more “railway tracks” on forehead while I have many more white hairs.

Both of us have observed many economy cycles in the past few decades, although Hu Liyang (胡立阳) is probably 10+ years more senior than me, that’s why we are mostly aligned in many understanding on market outlook. Hu Liyang (胡立阳) hinted a retirement which I think he deserves it. For me, I don’t feel I am “working” on my interest of investment education, so I don’t feel tired yet. Perhaps one day I may also start a new phase in life, hoping investment is also part of lifelong learning for all the readers.

Hu Liyang (胡立阳) and Dr Tee - Similarities

Similarities in Market Outlook

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1) Final Phase of Bull Market

Both agree that the market is entering the final phase of bull run. I am supported by high optimism of stock market at Level 3 (especially US) and Level 4 (world), while Hu Liyang (胡立阳) is mainly based on interest rate cycle: “bull market starts when interest rate is cut, ends about 1-2 years after interest rate hike in US”

2) Danger Signals for Investment Market

Both agree that bond market is at high risk, bond yield has been at historical low, when bond yield hits 3% (now is 2+% for US 10 years bond yield), the fund is moving from bond to stock and property market, creating risky investment bubbles.

3) Market Cycle Investing

Both agree on market cycle theory. Hu Liyang (胡立阳) uses “pendulum theory”, market will swing from high to low, low to high, sometimes may be even over-corrected, applying his 50% discount theory and other correction factor. I mainly use Optimism to declare the market risk (>75% Optimism) or opportunity (<25 Optimism). Despite the exact methods may be different, both are suggesting buy low sell high based on economy cycles.

Hu Liyang (胡立阳) and Dr Tee - Differences

Differences in Market Outlook

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1) Timing of Global Financial Crisis

Hu Liyang (胡立阳) has been trying to predict the timing of global financial crisis. I remember a few years ago, he predicted the great crisis may come around year 2013 or 2014. This time, the time bomb is extended to around year 2019. With political economy such as global QE and near zero interest rate for so many years, the current market cycle duration is much longer than last time. I could understand why Hu Liyang (胡立阳) still tries to predict the future as there are too many audience really hope to have a crystal ball to see the future, especially Hu Liyang (胡立阳) has an amazing record to predict the ending time of last global financial crisis in year 2008.

My view is that market cycle duration is unpredictable because it depends on the rate of optimism reaching danger zone of 75-100%. However, there is a predictability within the unpredictability. We just let Optimism shows us the risk level, no need to guess the future. If US takes 10+ years to reach high optimism, market cycle duration will be prolonged. If US behaves like China, stock index is doubled in 1 year, then market cycle will be shorter. This is one of my Ein 55 Investment Styles (of course, Hu Liyang (胡立阳) also has his 100 Investment Styles in his famous book), Optimism is a market thermometer. We will never know when we will have the next fever (eg >38 deg.C), but we will know when we have a fever because we could feel overheated, temperature measured is too high. It is never too late to find a Panadol to cool down the body when we really have fever. Similarly, we will not know when the next crisis may come, but we could guess the probability with market temperature using optimism. When market is having a mild fever (38 deg.C or 75% Optimism) or high fever (40 deg.C or 100% Optimism), we will know as well. The key challenge is whether a trader or investor is willing to take profit (as if taking Panadol), admitting the market is feverish. Based on my observations of past market cycles, more people work harder despite having high fevers, ending up losing what they have accumulated when the market bubble is burst.

2) Factors for Success in Stocks

Hu Liyang (胡立阳) believes the stock market is a probability game of 3 possibilities: up, flat or down in share prices (more of a TA believer); fundamental or business are not as important. He mainly uses “money analysis” to analyze the money flow in economy cycles, combining with many TA methods to predict the mega stock market low and high, both in prices and timing.

I believe in an integration of 3 pillars to be successful in stocks:
2.1) Optimism + Fundamental Analysis (FA, buy giant stock with strong business fundamentals).

2.2) Optimism + Technical Analysis (TA, investment clock to wait for giant to fall down and recover),

2.3) Optimism + Personal Analysis (PA, emotional control) to take actions.

I also believe there is a need to match the strategy with our unique personality:

– short term trader (buy/sell every few weeks),

– mid term trader (buy/sell every few months),

– long term investor (buy/sell every few years),

– life time investor (buy and not need to sell for life).

Warren Buffett, Jim Rogers, Hu Liyang (胡立阳), Jesse Livermore, etc, each investing master or trading guru, could have their own styles of making money, but it may not be suitable for everyone, unless you share the same frequency in mindset. This is the reason I teach the complete Ein55 Styles with consideration of both short term trading and long term investing, FA, TA & PA with economic analysis, showing Ein55 graduates how to customize an unique trading or investing style for individual.

Learn 10 Strategies of Stock Trading & Value Investing (股市投资十大策略)