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I'm shopping on the stock market tomorrow.

nayr69sg

Super Moderator
Staff member
SuperMod
Short selling is a practice as old as the stock markets themselves: https://en.m.wikipedia.org/wiki/Short_(finance)

Short seller has to borrow the stock from somebody, for a fee of course, before he can sell. He also has to deposit margin into his account with broker to cover potential losses from the position moving against him ie the stock go up instead of down. If the stock goes up such that the original margin is not sufficient to cover the “paper loss”, then short seller faces a margin call. If stock keeps on going up, he will get another and another margin calls.

If one views the stock market as a casino, then there is nothing wrong with short selling, it is just one of the many games that players can throw their chips at in the casino in the expectation of getting back more chips than were thrown out. Only requirement is rules are fair and transparent. For example, “naked” short selling is not allowed - ie can short sell when nude in front of computer but can’t sell unless you already have borrowed the stock.

Futures can also be sold short. Indices, commodities, currencies, etc can all be sold short via futures. There are even single stock futures for short seller in search of a new video game to play.

For retail traders, the very kind and generous casino owners have invented short ETFs ie ETFs designed such that their price will rise as the index they track falls. Video game not interesting enough? In their attempt to suck AUM (assets under management on which they earn management fees), casino owners also invented leveraged short ETFs ie if tracked index falls x%, ETF price rise 2 or 3 or whatever promised times more! … What’s the catch?

stock market should NOT be a casino!

Anyway it is what it is. All those derivatives invented by the Americans is designed to make money for the house.

The last time I bought any stock was in 2016. Past 4 years I have not bought anything. Have not sold anything either. Happy collecting dividend. LOL! I am not a trader.
 

eatshitndie

Alfrescian (Inf)
Asset
stock market should NOT be a casino!

Anyway it is what it is. All those derivatives invented by the Americans is designed to make money for the house.

The last time I bought any stock was in 2016. Past 4 years I have not bought anything. Have not sold anything either. Happy collecting dividend. LOL! I am not a trader.
i cash out a bunch of stocks last year and am holding too much cash right now. will most probably invest in a new property when interest rates go down further and home prices tumble.
 

Asterix

Alfrescian (Inf)
Asset
stock market should NOT be a casino!

Anyway it is what it is. All those derivatives invented by the Americans is designed to make money for the house.

The last time I bought any stock was in 2016. Past 4 years I have not bought anything. Have not sold anything either. Happy collecting dividend. LOL! I am not a trader.

But, but, but if all the players in the stock market are “buy and hold for donkey years” type, where is the liquidity going to come from? Such a scenario is bad even for the “long term investors” themselves. When they want to sell, they will have to queue for a long time and still can’t sell at anywhere close to the last transacted price, the spreads (difference between bid and ask quotes) will be very wide, commissions will be very high because volumes will be low and brokers need to survive. The markets are liquid and commissions low precisely because there are speculators going in and out as they see fit with their own hard earned money. And these speculators are expected to provide this much needed service of liquidity and facilitate the process of efficient price discovery for free?

 

nayr69sg

Super Moderator
Staff member
SuperMod
i cash out a bunch of stocks last year and am holding too much cash right now. will most probably invest in a new property when interest rates go down further and home prices tumble.
I am also eyeing property tumble.

I only invest in stocks using whatever I contributed to my RRSP account which gets me income tax savings.

So small plays lah. As long as can collect dividend and stay in black I also happy.
 

nayr69sg

Super Moderator
Staff member
SuperMod
But, but, but if all the players in the stock market are “buy and hold for donkey years” type, where is the liquidity going to come from? Such a scenario is bad even for the “long term investors” themselves. When they want to sell, they will have to queue for a long time and still can’t sell at anywhere close to the last transacted price, the spreads (difference between bid and ask quotes) will be very wide, commissions will be very high because volumes will be low and brokers need to survive. The markets are liquid and commissions low precisely because there are speculators going in and out as they see fit with their own hard earned money. And these speculators are expected to provide this much needed service of liquidity and facilitate the process of efficient price discovery for free?

I guess it serves some function that way.

Anyway if you have watched the stock markets enough you wont be so afraid.

It depends what companies you buy as well.

These panic sells are part and parcel of the stock market. In the long run stocks tend to move higher as long as the companies are well managed and the industry is not sunset.

Buying opportunities.
 

Thick Face Black Heart

Alfrescian (InfP)
Generous Asset
So many people got fucked up :wink:


That's why people should buy small amounts and accumulate over time rather than rush in big to try to catch the market.

It's far too easy to catch a falling knife. The safest time to buy in fact is when nobody feels like buying. If you see the market as a bargain, you're probably too early.
 

nayr69sg

Super Moderator
Staff member
SuperMod
That's why people should buy small amounts and accumulate over time rather than rush in big to try to catch the market.

It's far too easy to catch a falling knife. The safest time to buy in fact is when nobody feels like buying. If you see the market as a bargain, you're probably too early.

Easy to talk. Taking action is different.

Anyway price is only a very small factor. At the end it is position sizing.

If I told you I bought UOB at $10 but only bought 100 shares. And now it is $20. How much do I make despite the 100% increase in value? $1000. Cheh.

No big deal lah.

My total value in stocks is about $35k nia. Lol! My RRSP account still has another 22k in cash.

So even if I made 100% return is only 35k. Small small.

The people who make big money are those sinkies bought property in the 80s and 90s. 600k become $6 million! Not stock market lah. Property can leverage with mortgage.

Unless you are sophisticated gambler with options and warrants and what not most do not leverage.

Very hard to strike it rich in stocks lah.
 

syed putra

Alfrescian
Loyal
IMG-20200310-WA0013.jpg
 

garlic

Alfrescian (Inf)
Asset
Index tracking funds are good too. You can buy a little bit every month as a plan.

Yep been doing that for the past ten years.. healthy growth, very unspectacular though.. just simple, plain boring....

Think i'm going to buy some NOK, when the market reopens today.... USD$3.31 seems a worthy buy, given that investments in 5G infrastructure will only increase and the whole world moves toward it. Nok has the most patents in mobile telecommunications that gives it a healthy income, and has numerous 5G contracts coming its way with also many western countries influencing the boycott of Huawei, there really isn't much choice other than Nokia and Ericsson. Coronavirus ain't gonna stop 5G, and 5G is unaffected by people staying at home, if anything... more ppl on mobile devices exposes the need for higher bandwidth everywhere. Secretly though, i think some tech company like google or apple is gonna acquire NOK, especially google with ambitious plans to launch its own cellular network and to quote google. "Google believes that if it can control people's Internet connections, then it will have more opportunities to control how people use its services, and how they view online ads. ".

Just my 2c.
 
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syed putra

Alfrescian
Loyal
NewsBBC News

Coronavirus: Trump suspends travel from Europe to US
  • 1 hour ago
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Media captionThe US President made the announcement from the Oval Office at the White House
US President Donald Trump has announced sweeping new travel restrictions on Europe in a bid to combat the spread of the coronavirus.
In a televised address, he said all travel from European countries would be suspended for the next 30 days.
But he said the "strong but necessary" restrictions would not apply to the UK, where 460 cases of the virus have now been confirmed.
There are 1,135 confirmed cases of the virus across the US, with 38 deaths.
"To keep new cases from entering our shores, we will be suspending all travel from Europe," Mr Trump said from the Oval Office on Wednesday.
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"The new rules will go into effect Friday at midnight," he added. The travel order does not apply to US citizens.
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Mr Trump said the European Union had "failed to take the same precautions" as the US.
A Presidential Proclamation, published shortly after Mr Trump's address, specified that the ban applies to anyone who has been in the EU's Schengen border-free area within 14 days prior to their arrival in the US.

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This implies that Ireland is excluded from the ban as it is not one of the 26 Schengen countries. Bulgaria, Croatia and Romania are also EU members without being part of the Schengen area.
Mr Trump spoke just hours after Italy - the worst affected country outside China - announced tough new restrictions. It will close all shops except food stores and pharmacies as part of its nationwide lockdown.
He said the travel suspension would also "apply to the tremendous amount of trade and cargo" coming from Europe into the US.
He also announced plans to provide billions of dollars in loans to small businesses, and urged Congress to pass major tax relief measures in an attempt to stymie the effect of the coronavirus outbreak on the US economy.
"We are marshalling the full power of the federal government and the private sector to protect the American people," Mr Trump said.
What's the situation in the US?
Officials had said the risk of infection was low for the general US public, but concern deepened after a number of new cases were confirmed earlier this month.
Containment efforts have begun in earnest. Troops have been deployed to New Rochelle, just north of New York City, where one outbreak is believed to have originated.
The National Guard will deliver food to some individuals who have been told to self-isolate there.
The governor of Washington state has also banned large gatherings in several counties. The north-western state is the focal point of the outbreak in the US, accounting for 24 of at least 38 deaths across the country.
And in an unprecedented move, the National Basketball Association (NBA) announced that it would suspend the season after Wednesday night's games. The decision came after one player for the Utah Jazz tested positive for the virus.
Shortly after the NBA announcement, the Oscar-winning actor Tom Hanks announced that he and his wife had contracted the virus in Australia.
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Dr Anthony Fauci, director the National Institute of Allergy and Infectious Diseases, told Congress that the outbreak is "going to get worse", and that depended on the ability to contain those infected.
High medical costs make the virus particularly problematic - many Americans avoid doctor's visits because of unaffordable charges. A lack of paid sick leave is another concern, as are fears about the number of available tests.
But Vice-President Mike Pence, who is in charge of the task force co-ordinating the response to the crisis, has said that "any American can be tested, no restrictions, subject to doctor's orders", and that insurers had promised to offset the charges.
What about the rest of the world?
Earlier on Wednesday, the World Health Organization (WHO) said the outbreak was a pandemic. This is defined as a disease that is spreading in multiple countries around the world at the same time.
WHO chief Dr Tedros Adhanom Ghebreyesus said the number of cases outside China had increased 13-fold in two weeks. He said he was "deeply concerned" by the "alarming levels of inaction".
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Media captionCoronavirus outbreak has officially become pandemic says WHO
Italian Prime Minister Giuseppe Conte then announced an escalation in the country's ongoing lockdown.
He said the majority of shops as well as bars, hairdressers, restaurants and cafes that could not guarantee a metre's distance between customers would close until 25 March.
Italy has more than 12,000 confirmed cases and a death toll of 827. Nearly 900 people with the virus in Italy were in intensive care, the WHO said.
Elsewhere, Denmark - which has 514 confirmed cases, up 10-fold since Monday - is to close all schools and universities from Friday. The government also urged the cancellation of events with more than 100 people attending.
India suspended most visas for foreigners until 15 April and Guatemala banned European citizens from entering from Thursday.
Meanwhile, the UK is expected to switch to tactics aimed at delaying the spread of the virus rather than containing it.
 

Asterix

Alfrescian (Inf)
Asset
Like I said, it was too early.

The masses like to blindly extrapolate from the past. SARS was followed by V shaped recovery, so every Tom, Dick and Harry assumes it will be the same this time without considering that the virus is different, China’s place in the world economic order is larger and more vital, etc.

Time to build a watchlist and wait for the market to give a buy signal, which even if the signal comes only when the market is much higher than its bottom, is worth the patience.
 

JohnTan

Alfrescian (InfP)
Generous Asset
Today's a good day. I've picked up bargains from pro-Singapore, pro-PAP counters like Singtel, DBS and OCBC banks.

I hope pro-Singapore people have have a large war chest ready to do some bargain hunting. Oppie losers are either poor losers or ungrateful rich people who deserve to be made bankrupt like JBJ and Tang.
 

horny

Alfrescian
Loyal
If it is the end of the world.cashing out from stocks also no use.$$ become worthless paper
 

syed putra

Alfrescian
Loyal
Today's a good day. I've picked up bargains from pro-Singapore, pro-PAP counters like Singtel, DBS and OCBC banks.

I hope pro-Singapore people have have a large war chest ready to do some bargain hunting. Oppie losers are either poor losers or ungrateful rich people who deserve to be made bankrupt like JBJ and Tang.
Why did you buy bank shares?
 
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