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Summary of Key Learning Points for Ein55 Graduate Gathering (July 2019)

Posted on July 19, 2019 Written by Dr Tee (Ein55)

Some of you may miss the last Ein55 Graduate Gathering (14/7/2019), here are the key summary for your reference (educational purpose, please make your own decision):

1) Short-term Bond Strategy
Besides preserving cash in bank, another option for investor is holding short term bond while waiting for global financial crisis. Analyze company with bond <1-2 years maturity, ensure it is a giant, waiting for discount in unit bond price (<$100). G8 Education (GEM.AX) was quoted as an example (bond matured in May 2019), having both coupon interest (5.5%) and capital gains in bond price (8% when unit bond price was $92). Applying stock analysis in bond selection, focusing on business fundamental.

Here is bond screener (we will study more case studies of short term bonds in coming Ein55 coaching): https://www.ifastgm.com.sg/igm/bonds/bond-selector

2) There are 4 qualities of crisis stocks (long term low optimism), better ones are aligned with high level of crisis (eg. Level 3 country or Level 4 global) with better business fundamental. First Reit was quoted as case study, Level 1 (individual stock) is strong but related party (major customer & sponsor), Lippo Karawaci is weaker in business (negative operating cashflow for many years), therefore First Reit is an average quality of crisis stock.

The precondition for crisis stock investing is protection by its business (value), only then it worth to buy low, then either sell high or hold long term, depending on stock characteristic and investor personality.

3) Singapore REITs stocks / sector are suitable for short term momentum trading, partly due to defensive investors with support of possible increase in gearing to 55% (currently at 45%) for stronger REITs. Many REITs (eg. Mapletree & Ascendas related stocks) have strong price momentum but trading strategy has to be applied (combined with optimism for entry/exit).

4) With the latest giant detector, there are 1480 global “standard” giant stocks with 6 main strategies for trading & investing. There are 110 global dividend giant stocks but only 9 are from Singapore. One Singapore dividend giant stock (Challenger Technologies) was nearly delisted, investor has chance to accumulate this valuable stock for passive income investing during the next global financial crisis.

5) Global Stock Market Outlook
Enjoy summer before winter is coming. Current higher optimism stock market is more suitable for shorter term trading. Longer term investor may wait for potential opportunity (1-2 years after inverted bond yield) to buy low. Understand own personality (eg. trading or investing, growth or dividend investing, reward vs risk, etc), then align the right strategy (buy low sell high / buy low hold long term / buy high sell higher, etc).

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For general public who is interested to learn 5 strategies of LOFTP (Levels, Optimism, Fundamental, Technical, Personal Analysis) stock investing , you may sign up for the next free 4hr course by Dr Tee.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)

Filed Under: Uncategorized

3 Simple Steps to Make Money or Lose Money in Stocks

Posted on May 5, 2019 Written by Dr Tee (Ein55)

To make money in stock trading or investing can be as simple as 3 steps:
1) Buy giant stocks (eg. using Giant Detector)
2) Buy Low at price below the value (eg. using Optimism Strategies)
3) Either Sell High or Hold for capital gains (duration depends on personality)

To lose money in stock trading or investing can also be as simple as 3 steps:
1) Buy weak fundamental stocks
2) Buy High at price above the value
3) Either Sell Low or Hold for capital loss

Most traders and investors assume “Methods” are the most important, actively searching for “secrets to make money”. In fact, based on 5 steps of Ein55 trading or investing analysis of LO-FTP, most important step should be reversed in order (PTF-OL) to evaluate PA first:

1) PA (Personal Analysis) – Determine own personality to align the with right strategy (eg. short term trading or long term investing)

2) TA (Technical Analysis)- Following trend of stock prices in trading or investing

3) FA (Fundamental Analysis)- Extra protection with a portfolio of stocks with strong business fundamental

4) OA (Optimism Analysis)- Buy Low Sell High to increase winning probability

5) LA (Level Analysis)- Align Level 1 (individual stock) with Level 2 (sector / industry), Level 3 (country stock market) and Level 4 (world stock market), let big fish (big funds) protect the small fish (individual stocks).

Since making money or lose money in stocks are easy, it is important for us to learn and apply the right way aligned with own personality. Interested readers may sign up for free 4hr stock investment course by Dr Tee to learn 5 steps of stock trading or investing with LO-FTP analyses. Register Here: www.ein55.com

Filed Under: Uncategorized

Investing Strategy in Monopoly Stock Exchange – SGX Stock (S68)

Posted on March 14, 2019 Written by Dr Tee (Ein55)

Stock exchange is a monopoly business, sponsor usually is by the government of entire country because stock market is an engine to provide capital for growth in business (Level 1 – individual company) and economy (Level 3 – country). At the same time, stock exchange usually is a profitable business for major economy, growth depends on trading volume of stocks and other derivatives, number of stocks listed and new IPO yearly, etc. Let’s learn the monopoly stock strategies (Optimism with FA + TA + PA) to profit from global stock exchange stock, using SGX stock (S68) as an example:

1) Personal Analysis (PA)
SGX has strong sponsor of Singapore government which is AAA credit rating. Not all the monopoly stocks are good choices for investing, especially for declining industry. SGX is a reflection of Singapore economy through stock market, a growing financial industry. Liquidity is a major constraint for SGX, therefore SGX has to collaborate with regional stock exchanges to promote flowing of investing funds globally.

2) Fundamental Analysis (FA)
Buy a stock means one is in partnership with someone doing business together. It is meaningless to buy cheap (common mistake for a beginner investor) for a stock if one does not know the value in business. SGX stock has over 30% ROE for the past 13 years, a strong growing company with stable positive operating cashflow generated each year. It is also a stable income generator (due to stable positive free cashflow) with yearly dividend yield of about 3-4% for the past 10 years (except for 7.5% dividend in year 2008 during subprime crisis due to drop in share prices with stable dividend).

3) Technical Analysis (TA)
SGX stock has been oscillating +/-30% between a tight price range of $6+ to $8+ for the past 10 years (correlating well with stable STI within 3000 +/- 300 points), a simple investing + trading strategy could be buying SGX share just above $7 while it is uptrend, shorting just below $8 while it is downtrend, collecting about 3-4% dividend along the way during the holding period (as if a fixed deposit in stock market with 3-4% “interest” if one ignore the little movement of share prices, double of 1-2% bank interest rates over the past 10 years).

SGX is a monopoly stock with strong fundamental (FA), protected indirectly by trusted sponsor, the Singapore government (PA), therefore a giant stock. A trader could simply apply optimism & TA to buy low sell high while it is moving in a cyclic way.

4) Optimism Analysis
Long-term Optimism of SGX stock is about 10% currently, considering an investing opportunity to invest at low optimism <25%. However, there are different qualities of low optimism or “crisis” stocks (price is much less than value), SGX low optimism at Level 1 (company) is not aligned with optimism at Level 2 (Financial Sector), Level 3 (country level, STI which is at mid optimism level of about 45%) or Level 4 (world level which is about 70% optimism for global stocks). Therefore, SGX is more suitable for swing trading (within $7-$8 share price range) in short term and/or dividend investing in medium term (collect 3-4% dividend yearly), instead of investing for long term (a global financial crisis is required to correct the share prices, only then one could invest to buy low and hold long term).
Interested readers may study other global stock exchanges, selecting a suitable one for possible investment, ideally aligning with Levels 1-4 crisis to buy low. FA performance and credit rating of sponsor (respective country) for different exchange could vary, do your own studies to compare with global stock exchanges, eg. Bursa, HKEx, etc.

There are other much better global monopoly stocks in the world, especially in private sectors which can have control over the prices of products or services to generate enormous profits. Another close example is ICBC (HKEx: 1398), world largest bank, a cyclic trading stock protected by FA & PA, similar strategy as SGX may be applied.

Interested readers may learn from 4hr free stock investment course by Dr Tee to learn the complete 10 strategies, including discussion of many local and global giant blue chip stocks with potential. Register Here: www.ein55.com

Filed Under: Stock Market, Stocks A-Z, Uncategorized

Investing in Parent Stock vs Subsidiary Stock

Posted on January 15, 2019 Written by Dr Tee (Ein55)

When 2 large businesses are combined, it does not mean it would become a giant stock. Capitaland + Ascendas-Singbridge of Temasek are merged into the 9th largest global property investment company (Asian largest), 51% shares is under control of Temasek.

Before merging, Capitaland has been a slower growth giant stock due to its large size. An investor may not need to consider large parent company. Instead, its subsidiary company with much smaller size could be more profitable, eg. Capitamall Trust (SGX: C38U) of Capitaland and Ascendas Reit (SGX: A17U) are stronger REIT / property giant stocks than its parent company stock.

A giant is not defined by its size of business, but by its internal strength of strong fundamental. An investor could have the best of 2 worlds investing in a strong subsidiary stock of a large parent company (fine if slow in growth), enjoying the fruit of profitable business in smaller market with protection of parent company.

For example, one could invest in Vicom (nearly monopoly business) with protection by parent company, ComfortDelgro. During the last subprime crisis in year 2008-2009, share price of Capitamall Trust drops significantly, Capitaland strongly support this subsidiary with injection of more funds during global financial crisis.

Learn from Dr Tee in free 4hr stock investment course to invest in various giant stocks of small cap, mid cap and large cap companies globally. Register Here: www.ein55.com

Filed Under: Uncategorized Tagged: parent stock, subsidiary stock

Key Learning Points of Ein55 Graduate Gathering 6 Jan 2019

Posted on January 7, 2019 Written by Dr Tee (Ein55)

Thanks to overwhelming responses of Ein55 graduates, we just had the largest graduate gathering event today with 550 attendees, entire 550-seats auditorium is full (see group photo taken). I am touched to see a few late comers were even willing to sit on the floor, not to miss the learning.

Here are the 7 key learning points for sharing:

1) Year 2018 is a bearish global stock market, confirmed by the last bullish stock market, US (contributed to 50% value of global stocks), which has turned bearish for short term since Q4/2018.

2) There are 2 main possibilities: major correction or global financial crisis. Regardless of which outcome, mastery of 4 exit strategies are explained:

2.1) Exit when direction is wrong with risk tolerance reached

2.2) Exit with counter-trend strategies

2.3) Exit with follow-trend strategies

2.4) No Exit is required (only certain criteria allows so)

3) Stock investment is an integrated plan with 5 factors: LO-FTP, maximum of 5 stars for the best opportunity, minimum of 3 stars are required.

L = Levels 1-4 (alignment with smart money)

O = Optimism 0-100% (alignment with market emotions)

F = FA strength (alignment with business)

T = TA trends (alignment with prices)

P = Personal Actions (alignment with personality)

4) Defensive-growth-dividend giant stock is ideal dreamteam stock for long term investing during Levels 1-4 crisis. A few examples were given.

5) Decision making in stock is personality dependent. Long term investor may consider to buy at long term low optimism as contrarian investor while a short term trader may short at the same stock to make profits. Both could be correct actions. Do not blindly copy another expert’s best strategies, need to internalize them, forming own unique personalized investing.

6) 2 major actions are required: Spring Cleaning (if having stocks, following 5-steps processes given) and forming of Dreamteam Stocks (if do not have stocks).

7) Cash is King. A smart investor would not lock in the cash for over 1 year commitment (eg. long term bond of a few years). Crisis could become opportunity when cash is used at the right time in future with consideration of giant stocks and Levels 1-4 crisis.

General public may catch up with Global Stock Market Outlook 2019 by Dr Tee through free 4 hours investment course. Register Here: www.ein55.com

Filed Under: Uncategorized Tagged: Ein55 Graduate Gathering

Reduce Electricity Bill in Singapore with Investment Knowledge

Posted on January 6, 2019 Written by Dr Tee (Ein55)

Singapore has opened up electricity market to different service providers, starting from west, central / northeast (my area is just invited), will extend to east in next few months.

Electricity tariff (varying from 18 to 27 cents/kwh over the past 10+ years of market cycle) is partially related to natural gas price (remaining is fixed cost of power generation, so volatility amount may not be similar but general trends are aligned) which is connected to oil price. Current rate of 25 cents/kwh is still on high side, recent major correction (30% dip) of crude oil in Q4/2018 has not fully reflected in currently quarterly electricity tariff.

We may apply the principles of “trend-following”, consider shorter contract (eg. 6 months) while observing the trend of EE prices over the next 2 quarters since the prices are still at “high optimism”, may not worth it to lock in for 12 or 24 months. The partial relationship of oil price trend (now is weaker) and market cycle range (18 to 27 cents/kwh) may be used to position the “optimism” of current EE price.

Regardless which choice, it will be always cheaper than SP (Singapore Power) rates, so we should make the choice of new EE service provider ASAP when it is available in your area. With intense competition, it is hard for EE power generation company to make profits, one company has recently withdrawn from the market.

You may benchmark prices different EE companies here (enter size of house and average kwh used monthly). Comment below on your choice of company + package (fixed price or 23% discount over standard SP price), stating the reason of your choice.

Knowledge of investment (eg. commodity market: crude oil, etc) could be helpful in our daily lives, including reduction of electricity bill. You may sign up for free 4hr investment course by Dr Tee to learn about different investment markets: stock, property, commodity, bond and forex.

Filed Under: Uncategorized Tagged: reduce electricity bill

Global Stock Market 2019 Risk and Opportunities

Posted on January 1, 2019 Written by Dr Tee (Ein55)

Stock Market 2019

Happy New Year 2019 to Ein55 Readers!

Year 2018 has been a bearish year for global stock market including Singapore, US, China, Hong Kong, Europe, etc. Crisis is nearly always an opportunity for stock market if one knows What to Buy, When to Buy/Sell. There are 2 possibilities for Year 2019, both are “good news”, either a major correction (moderate return, suitable for trading) or a global financial crisis (tremendous return, suitable for investing).

1) Major Correction (>10-25% discount) – Political Economy

Uncertainty in US-China trade war has resulted in major correction in global stock market, starting with the rest of the world (except US) in beginning of the year 2018, then dragging US stock market along to join the bearish train since Q4/2018. Before Q4/2018, US was the only major economy which still has bullish stock market, therefore Trump was confident to fight against China and the rest of the world to reach the best trade deals for US.

Trump views S&P500 as his performance indicator which has risen by about 30% since he got elected 2 years ago to a peak of 2900+ points. With S&P500 falling below critical 2500 points (lowest was 2300+ points) over the last quarter, Trump has to think twice as his KPI could become negative if falling below 2200 points for S&P500. Both US and China have to compromise during 90 days cooling period, reaching a win-win deal by end of Feb 2019. If not, it may not be a just a major correction.

China has suffered in real economy, not just a “crisis” in stock market. Recent China PMI is falling below the critical 50 points, if trade war continues further, China could suffer long term recession as Japan several decades ago. Burst of China property market with high corporate debts could make it worse. If China is willing to “give face” to Trump with major compromise, Trump could declare “victory” to end the Episode #2 of Trade War to support his re-election for second term US President by end of next year.

So, current stock market is mainly suitable for short term trading, applying trend-following strategy. VIX (Volatility Index) has been above critical 20-30 points, daily market volatility could wipe out many day traders. Since short term stock market is bearish, any recovery of stock market could be short-lived, a more consistent uptrend has to be established before entry. Based on probability, shorting strategy in short term still has higher winning rate but careful selection of stocks (eg. weak fundamental with downtrend with certain form of crisis) is important with enforcement of S.E.T. (Stop Loss, Entry Price, Target Price) in trading plan.

2) Global Financial Crisis (>25-50% discount) – Systematic Risks

Political economy (eg. US-China trade war, US interest rate hike, etc) alone may not be powerful enough, when combining with a Black Swan (eg. burst in property / commodity / forex markets) at high stock market optimism, then it could trigger the next global financial crisis which is overdue.

Some stocks could go bankrupt during crisis at Level 1 (company crisis), Level 2 (sector crisis), Level 3 (country crisis) or Level 4 (world crisis). Therefore, it is important to consider 10 fundamentally strong giant stocks (minimize unsystematic risks), buying at low optimism price (minimize systematic risks), aligning with L1-L4 crisis.

Position in current global stock market requires alignment with own personality, eg. time frames of interest, risk tolerance level, reward expectation, etc. Unique personalized strategy is required, defining own 10 dream team stocks with entry and exit.

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Crisis is an Opportunity only for those who are prepared. You may join the next 4hr free stock trading/investing course by Dr Tee. Register in www.ein55.com

For overseas readers, you may join the online stock investment course by Dr Tee ($100, currently at special rate of $25).

Filed Under: Uncategorized Tagged: Stock Market 2019

Root Finding Trip to China Fujian (寻根之旅) with Personal Analysis of China Stocks Opportunity

Posted on December 18, 2018 Written by Dr Tee (Ein55)

I just complete a meaningful cultural tour with family to Fujian of China, having better understanding of different dialect groups common in Singapore & Malaysia: Hokkien, Teochew, Hakka, Fuzhou (Hockchew), etc.

My grandparents came to Nanyang (Muar, Malaysia) about 100 years ago from Yong Chun (永春) of Fujian, China, to pursue a better life. Even my own parents don’t have chance to visit China. So, after travelling to many big cities globally, I have decided to visit “ulu” area of China to understand the original root of my family. 饮水思源！

The trip over 9 days, travelling over few thousands km around Fujian （福建）& Guangdong （广东） provinces, covering second / third tier cities such as Xiamen/Gulangyu （厦门/鼓浪屿）, Chaozhou/Shantou （潮州/汕头）, Meizhou （梅州）, Wuyishan （武夷山）, Yongding （永定）, Yong’an （永安）, Fuzhou （福州）, Quanzhou （泉州）, etc.

It is an eye opening for me, especially I can hear Hokkien spoken in Xiamen and changes in dialects in different cities, as well as different local signature dishes for meals. I have forgotten how many cups of tea and beer which I have drunk in the entire journey. The special show (印象大红袍) designed by Zhang YiMou is truly enjoyable with 360 degrees rotating seats around the nature.

We also visited the old house of ancestor for late Mr Lee Kuan Yew in Dapu (大埔), a museum with statue of Mr Lee is built nearby there. The tour guide could not understand why Mr Lee never really visited this place before last time. I explained to him that Mr Lee does not want people to remember him in this way, this is related to old house incident in Singapore. This makes Mr Lee “immortal” as we would remember of what he has done for Singapore, not just respecting a statue.

I was very touched when the tour guide pointed at the harbour of city which could be the same port of departure for many of our ancestors 100 years ago. Their sacrifices have given a better new life for the next generations.

Now looking back, China has been suffering over the past 100 years due to political instability. Over the past 2 decades, China joins the WTO, opening up the door to the external world, economic development is beyond imagination since then. China stock market has been falling into crisis with low optimism, many people worry on the impact of recent US-China trade war.

Here are my Personal Analysis (PA) of China stocks / economy based on observations in current trip, comparing with past experience in other China cities.

1) Consumer Stocks

China is still dependent on domestic market for consumer market, at least for smaller cities, few foreigners (non Chinese) there in smaller cities. This would help to reduce the impact of trade war with sustainable domestic consumption. Stocks with consumer staples (essential products such as food & beverages, household products, etc) are relatively more defensive due to popular support on daily basis, Consumer discretionary is suffering, shopping malls with branded premium products have few customers, especially RMB is getting weaker with declining China stock market.

China is no longer “cheap”, even with 1 SGD to 5 RMB, prices of certain products or services (eg. movie ticket, milk tea, Big Mac) is only half of Singapore or even more expensive than here. This is tremendous pressure to China local people staying in cities, high cost of living (property, spending, etc) with slower growth in salary.

2) Healthcare Stocks

China Chinese people have very different practices, eg. “aunties” could wake up 7am+ in winter to exercise qigong, then dancing as a group in the evening. China has too many people, older generation would retire earlier to give the chance of job opportunities to younger generation. Staying active is a way to remain healthy, dancing in the park or square is one of the best options.

Healthcare stocks would have brighter future due to aging population with rising in middle class, having strong spending power. Despite the new second child policy, some families are used to 1 child or no child at all (similar to Singapore experience), therefore spending on oneself could be more.

3) One-Belt One-Road Stocks

Even before One-Belt One-Road initiative, China has pumped in a few trillions of dollars since year 2008 (last global economic crisis) to build up infrastructure (highways, high speed railways, long bridges, mega buildings, etc). The spider web of connections have helped money (products & services) to flow all over the China, balancing between cities and rural areas, connecting to external world.

Compared with trip to China 20 years ago with many bicycles seen, now the scene on the road is replaced with cars everywhere, not even motorbikes, a sign of modern developing country. Highway is getting important, it is easy money for China stocks with monopoly business to collect toll fee.

Sinopec (HKEX: 0386.HK) petrol stations could be found nearly everywhere, the business fundamental is strong, better than counterpart PetroChina (HKEX: 0857.HK). Both giant stocks are the second & third largest oil & gas companies in the world, currently at low optimism in share prices. Brent crude oil price has dropped below US$60/barrel, combining with bearish China stock market, oil & gas stocks in China are heavily corrected.

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Chinese people could live in any continent or city globally but each generation will have its unique root. Malaysia is root or hometown to me and my parents while Singapore is extended root for my own children as they are born and growing up here. Investment could be integrated into our daily lives, mastery of financial literacy would help us and our future generations, there is no need to migrate again due to financial reasons.

Crisis is an opportunity for giant stocks. You may learn in free 4 hours stock investment course by Dr Tee to integrate Optimism, FA (Fundamental Analysis), TA (Technical Analysis) and PA (Personal Analysis) for global giant stocks. Register Here: www.ein55.com

Filed Under: Uncategorized Tagged: china stocks

6 Strategies NOT to Lose Money in Stocks

Posted on November 12, 2018 Written by Dr Tee (Ein55)

Most people focus too much in making money in stocks. In fact, we should learn how NOT to lose money in stocks. When we take care of downside (possible way to lose money), upside would take care of itself (making money naturally).

Let’s learn what are 6 common ways to Lose Money in Stocks, solutions are given to reverse the probability from likely to lose money to likely to make money in stocks.

1) Buy Cheap Stocks regardless of business fundamental

This is a common mistake for novice investor, especially focusing on historical low share prices to buy low or buy cheap, ending up lower or cheaper share prices over the time, therefore a loss. There is always a reason for stock prices to fall down, eg. market fear, declining business, negative news, etc. If the share prices fall down to low optimism due to declining business, this is a low quality opportunity.

Solution to Make Money:

For every low or cheap prices, double check the reason of falling. Fear driven (eg. market crisis while fundamental is strong) is better than weak business driven. Combine TA (price) with Optimism and FA (business), don’t buy just based on “cheap price”. Only consider giant stocks (strong business fundamental) before considering lower prices with TA or low optimism opportunity.

2) Buy Low for Share Price with Downtrend

Trend-following is critical, especially for short term to medium term trader. During market correction phase, when trend is bearish, action to buy low could end up lower in share prices, even the business fundamental is strong.

Solution to Make Money:

Align buy low with uptrend of prices, shorting with downtrend of prices. At least wait for price breakout the next resistance before buying, breakout the next support before shorting.

3) Buy Crisis Stock without protection

It is nice to buy crisis stocks, including giant stocks (eg. oil & gas / commodity stocks, China / Hong Kong stocks, casino stocks, etc) when share prices drop to less than 1/2 or 1/3 of prices, even at low optimism. Sometimes, the crisis could be so severe, even a giant could fall down and business could go bankrupt due to unexpected crisis beyond the risk tolerance level of company, eg. short term cash is insufficient to pay for short term debt, resulting in selling of valuable assets, increasing the market fear to drive down the share prices further. Investor could suffer huge loss this way.

Solution to Make Money:

It is fine to take risk for crisis stock but one has to limit the capital allocation (eg. less than 10%) for speculative investment. To take calculated risks, focusing in crisis stock with business which has strong sponsor (major shareholder with > 30% share), debt/equity < 1, sufficient cash to pay for short term liability. For trading, always apply SET in plan: Stop Loss, Entry Price, Target Profit. The Stop Loss is a natural defense system, especially there is insufficient diversification but Stop Loss should not be abused as random trading with SET would not give an edge, decision on SET should be based on Optimism, FA (Fundamental Analysis), TA (Technical Analysis), PA (Personal Analysis), etc.

4) Buy only a few good stocks

There is always uncertainty in future business, even a stock is doing well today technically (prices) and fundamentally (business), it does not mean they will continue to do well in future. Sometimes unexpected business risk (unsystematic risk) related to company scandal, hidden risks, management issues, etc, could affect the company business and share prices. If an investor invests in only a few stocks (eg. less than 5), even they are strong fundamental / technical stocks, when unexpected crisis comes, the loss could be tremendous.

Solution to Make Money:

A smart investor would need to have at least 10 stocks for diversification, ideally distribute over giant stocks in various sectors and countries to avoid the concentration risk of a few stocks. Having 10 stocks could help to minimize unsystematic risks significantly related to business / operation in future.

5) Focus only in individual stocks (Level 1)

No matter how strong is one’s analysis (eg. Optimism + FA + TA + etc), even with enough diversification (10 or more stocks), if there is misalignment between individual stocks and mega trend of stock market (eg. country), one may suffer eventually. Country and world stock indices represent the money flow of smart investors and big funds through blue chips, prices go up when money is flowing in, prices do down when money is flowing out. If the stock market is bearish, 90% stocks are falling down with only 10% stocks are uptrend, even a trader is aligned to buy low with uptrend, the probability of success is lower as it is against the higher Level 2 (sector), Level 3 (country) or Level 4 (world).

Solution to Make Money:

There is no need to diversify into too many stocks (eg. over 100 stocks) because this could not fight against the systematic risk (eg economic cycles), which can only be minimized with investing in low optimism stocks aligned with Level 1 (individual stock), Level 2 (sector), Level 3 (country) and Level 4 (world).

6) Personality Mismatch in Strategy

Even if one could learn the best method or strategy but misaligned with own personality, results could be negative. A short term trader may lose money if buying an undervalue stock at low optimism but not having patience of a few years to hold for recovery and capital appreciation. A long term investor could also lose money when buying a strong giant stock at high optimism price with downtrend in short term prices as the minor correction in share prices could become a major global financial crisis if trading is not integrated into investing.

Solution to Make Money:

Perform a personality test on inclination towards trading (short / medium terms) or investing (long term / lifetime). A successful trader or investor has to align the trading plan or investing strategy with unique personal condition (eg. reward expectation, risk tolerance level, health condition, capital amount, time resources, technical knowledge, response time for actions: Buy / Hold / Sell / Wait / Shorting, etc). Knowledge could only be translated into fortune through taking at least 1 action (which may not be Buy or Sell) which has to be aligned with own unique personality.

The right or wrong in strategies above very much depend on one’s personality. Eg, a professional trader may not study business fundamental at all, applying pure trading (trend-following, following SET plans consistently, careful money management) with price actions, could also make money. Similarly, a smart investor could buy undervalue stocks with downtrend prices in contrarian way (buy when others are fearful) without consideration of TA, also could make money. However, for most traders and investors, it is relatively safer to integrate fundamental (FA) and technical (TA) with Optimism Strategies with alignment with own PA (Personal Actions).

Remember Warren Buffett’s first rule of investment: “Never Lose Money”. Based on my understanding, it does not mean don’t lose money at all. It means we need to have a strategy which aligns with our personality which eventually chances of winning is much more than losing money, therefore naturally one would “not lose money”. Even Warren Buffett himself has suffered 50% “loss” in share prices for Berkshire (BRK Class-B dropped from $100/share to $50/share) during 2008-2009 subprime crisis but he is confident to hold them through the crisis, share prices now is above $200/share, therefore he is “not losing money”. However, another person who copies Warren Buffett to buy the same stock portfolio but does not have the same faith, could suffer capital loss if Buy High Sell Low eventually for strong giant stocks.

Reader, consider other possible ways (eg. buy based on rumours / news / insider tips / own feeling) likely to lose money and propose a solution. Let’s avoid these traps in stock trading or investing. We can learn from mistakes, then the probability will change from losing money to making money in stocks.

You may learn 10 strategies (Optimism + FA + TA + PA) to make money in stocks from Dr Tee free monthly workshop, register in www.ein55.com

Filed Under: Uncategorized Tagged: Lose Money in Stocks

Download Latest 2 eBooks by Dr Tee: Market Outlook 2019 & Top 10 Dream Team Stocks

Posted on November 9, 2018 Written by Dr Tee (Ein55)

Fresh from Oven: Download the latest 2 FREE high-quality stock investment eBook by Dr Tee on (1) “Global Market Outlook 2019”, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & (2) “Dream Team Portfolio 2019” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited both stock investment ebook, learning Simple and Powerful strategies which deliver incredible results in stocks.

Are you worried or excited about the current global stock market, especially with the controversial US President, Donald Trump with US-China trade war? Every crisis is an opportunity for investing. You will learn useful methods step by step from 2 valuable FREE stock investment eBook by Dr Tee which work in stock market. Take action now to surprise yourself!

Dr Tee 刚完成2本投资秘籍。《环球市场展望2019》书内覆盖很多在环球主要市场 (美国、新加坡、香港、中国、欧洲) 的投资议题及提供解决方法。《10大梦幻股票2019》书则分享了各种实用投资策略于10大高潜能股票。很多读者已经从Dr Tee过去发表的股票投资书中受惠，大家可在Dr Tee 的最新报告中洞悉环球市场目前面对的风险及机遇。

Table of Contents (FREE Stock Investment eBook #1: Global Stock Market Outlook 2019)

Mass Market Sentiment Survey （大众市场情绪调查）
Review of Global Stock Markets （环球股市回顾）
US Market Outlook （美国市场展望）
Regional Market Outlook (Europe, China, Hong Kong) （区域市场展望）
Singapore Market Outlook (Stock & Property) （新加坡市场展望）
Conclusions and Recommendations （总结及建议）

Table of Contents (FREE Stock Investment eBook #2: Top 10 Global Stocks – Dream Team Portfolio 2019)

Personalized Stock Investment Portfolio （个人化股票投资组合）
Ein55 Global Top 10 Stocks （10大全球高潜能股票）
Summary of Actions （投资方向总结）

The safest time to buy a 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, 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 30,000 attendees have benefited from Dr Tee high-quality free stock investment course to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.

Dr Tee建立的乐观指数策略让投资者知道哪种投资(股票、外汇、产业、商品、债券等)可以安全进场；何时买入；何时卖出；或选择长期持守。迄今已经有超过3万名人士从Dr Tee为大众提供的高质素免费课程中受惠。在这些高品质的免费股票投资课程里，Dr Tee会按部就班教导学员威力无比的方法，如何挑选强大的环球增长型股，然后耐心等待从不同的危机水平以低价买入，为股息收入持守，之后最终以高价售出来获取资本收益。马上行动，利用你的金融知识进行投资，开始你迈向财务自由之旅。

Stock Investment Course in Singapore: 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 stock investment 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 Stock Investment Course in Singapore:

Bonus for Readers: Dr Tee Investment Forum with over 7000 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）

Dr Tee Tong Yan (Ein55) Stock Investment Course in Singapore Review:

“I attended your free seminar on 11 March 2015 and CWT was mentioned a couple of times. I entered CWT when it hit $1.50 support on 23 March 2015. I found CWT to have better FA while using the free stock screener shared. I have already recovered the 5-day course fees from CWT. Thanks!”

Robin (audience who attended free stock investment course in Singapore, following by 5-day course in May 2015)

Click here to join FREE Dr Tee (Ein55) Stock Investment Course in Singapore: www.ein55.com

Filed Under: Uncategorized Tagged: stock ebook

Stock Investment Course in Singapore: Learn 10 Strategies of Stock Trading & Value Investing (股市投资策略)

2 Free eBooks by Dr Tee (Click to Download)