ST Index fell 5.6%

Every thing seem so bad lately, and the one day slump on the Singapore market is really a shock to a lot of investors. It was not a surprise to me though, I am still expecting it to fall below 1800 before this November.

Straits Times Index on 6th of October 2008 closed at 2168.32, fell by 128.8. Europe has become the new flashpoint, the investors are worried over the list of ailing European banks that national governments had to prop up.

Nobody knows what will come next. So it is better to be like me, stay away from the market and keep as much cash as possible to yourself.

US fix the credit crunch crisis with US$500 billion

On 19th September 2008, US announced that it will take out US$500 billion (S$717 billion) to fix the credit crunch crisis, by buying the toxic bank assets and hope that it will free up credit markets.

In London, Sydney and New York, regulators have imposed bans on short-sellers who are blamed for aggravating the global market meltdown.

Being a short-seller, one sell shares that he/she does not actually own, hoping to cash in on falling prices.

My opinion is, by saving the credit markets with such a huge amount of money do not solve the core of the problem.

Keep away from the market for small players

There are so many things to worry about in the market:

1) the news on the Lehman Brothers
2) the Fed meeting
3) falling oil prices
4) US about its consumer prices report
5) weak Singapore's non-oil domestic exports
6) Singapore expected to have poor third-quarter growth

Tough Time for Singapore's Market

Singapore stock market will expect more turbulence and STI will continue its downward trend for the rest of the year.

Factors that affecting the weakness of the market:

- It is predicted that Singapore's full year economic growth at 3.2%.
- bad economic environment globally
- High jobless rate of US
- US saving the troubled mortgage giants Freddie Mac and Fannie Mae which own about US$5 trillion of loans (1/2 of all mortgages in the US)
- fast falling commodities sector
- falling oil prices

I would suggest that it is better to keep all your cash and stay away from the market.

Market of the Day

The sliding commodity prices, esp. crude oil, caused the commodity and mining stock a great suffering across the region yesterday. But this morning, almost all major world indices show good sign after FOMC announced that it would keep the Fed funds rate remain at 2%. Most stocks started the day off moving up with out stopping. Asia stocks continue to rally except KLSE.

Instruments traded in the Stock Market

The instruments traded in the stock market are ordinary shares, preference shares, warrants, bonds, loan stocks, options, Unit Trust, etc.

Among all the different securities traded in the market, ordinary share is the most popular securities traded.

Ordinary Shares

When you own some ordinary shares of a company, you are known as a shareholder and you own part of the company. You are entitled to a portion of the profits after deduction of expenses, taxes and payment of debts. The profits you received are known as dividends.

Stock Trading - Red Flags to Look Out For Before You Sell

The primary motivation at the back of every investors mind for buying any stock is profit, whether you choose to sell immediately or wait for a longer time before you sell to access your profit is a matter of choice, a decision I think you should take responsibility for instead of leaving it in the hands of your broker.

There are clues ever present in the capital market that tell you when to sell your stock, when fully understood can save you from loses and can also make you get the benefits for which sake you invested your money in the first place. You have to constantly be on the look out for these red flags or signs that remind you it is high time you bail out of certain stocks in your portfolio.

Let's get you started, shall we!

SELL WHEN YOU REACH YOUR TARGET PRICE
Before you buy any stock, you must settle in your mind by reason of sound facts available to you a target price that you intend to sell your stock for an appreciable return. When you reach your projected price, once you reach your objective that is the best and most reliable time to sell.

SELL WHEN YOU OBSERVE FUNDAMENTAL CHANGES
Changes that affect the fundamentals of a company must be taken very seriously. When you observe that the fundamental of a company is weakening or depreciating in terms of profit capacity, when a company profit potential has reached its peak and it starts declining is time to consider offloading your shares in such a company.

SELL AFTER THE CLOSURE OF REGISTRAR
If you are a stock trader, one who buys and sells stock actively in short durations; you might consider selling after the closure of registrar. If your goal of dividends and possibly bonus scrip in a company has been achieved, in other words, you bought into a stock because you want to avail yourself of the dividends and possibly bonus, after closure date of registrar is a good time to sell, because other stock traders like you will also be selling which can cause the price of the stock to rally down.
The bottom line of stocks trading is acquainting you with the appropriate time to buy a stock and the most suited time to sell, that in my humble opinion is the crux of stocks trading.

Visit: http://stocktradingrevolution.blogspot.com/ for more information.

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