Tuesday, 18 November 2008

CIMB Top Picks

This is the list of top picks and top short ideas from CIMB. If you havent opened a CFD account, perhaps you should really consider opening one. Phillips Securities is one of the pioneer for CFDs in Singapore and Kim Eng has recently started CFD trading this year. The foreign players in CFDs are Saxo, Igmarkets, CMC markets. The advantage of having a CFD account is that it allows you to play both long and short positions and operate like a hedge fund. It will help you "cure" your biasness towards a "long-only" trading strategy and widen your trading options.

Friday, 7 November 2008

Wealth Creation Technique for Traders

Today i learn a new "wealth creation technique" for traders from Fergus. I wonder why i havent thought about it before.

For example, he said that some of his clients will buy 20 lots of ABC stock and if the trade is a profitable one, he will then sell 19 lots away when he exit the trade and keep the 1 "free" lot. I think that this is an excellent wealth creation technique because it allows you to be vested for a long time when you know that the entire portfolio of stocks is a "free" one. This will also be a source of passive income going forward if there are dividends declared by the company. Perhaps it might even give you a free lunch next time when you are retired and is free to attend the AGM! (not to mention the free annual reports which you can sell to rags-and-bone man).

I think this is an excellent wealth creation technique for traders who trade stocks and may generate the 'passive income' for you next time. I will try to adopt this principle in my trading.
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