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My experience with short term trading
13 Oct 2021 (615 views)  

Dear Mr. Tan,
You appear to be doing quite well with your short term trading as well (apart from long term investing in good value stocks). Can you share you tips? Do you use technical analysis?

REPLY
I am not doing well on short term trading. I do make some gains, but I also carry some losses that are not realized. 

I made good profit on the growth stocks that went up during the bull run, including Tesla, Nano Dimension (NNDM) and Sensionics (SENS).

I have described my experience in earlier posts in FISCA (https:fisca.sg).

It was easy to make money in a bull run.

I have also a few good trades in a "normal market".

From my experience, the good results come from:

a) 30% due to data and good analysis
b) 20% due to courage, i.e. a conviction to hold the stock in a downturn
c) 50% due to luck.

The interesting time about luck is that in the long run, it averaged out. So, the first two factors may be the key contributing factor.

I want to explain "courage". Often times, the market moves in the wrong direction, due to panic or market manipulation by the big players. 

You will need the courage and conviction to ride through a rough period, and wait for the sentiment to turn around. 

The difficulty is - it could be due to new developments that caused the market to change. It is often difficult to differentiate between an irrational or a fundamental change of direction.

In my stock picks, I would still go for the stocks that are undervalued, based on its low PE ratio or discount to asset value. 

In this respect, the approach in picking the stocks appear to be similar to the stocks for long term investing. 

I am not good in technical analysis. However, I do look at the price chart for 5 years and for the recent months. They give me another perspective about what is a good price to buy and to sell.

You can also follow my stories on some of these trades in FISCA (https://fisca.asg).

Disclaimer: I am sharing my investing experience. This is not investment advice.

Tan Kin Lian


 


My experience with short term trading
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Dear Mr. Tan,
You appear to be doing quite well with your short term trading as well (apart from long term investing in good value stocks). Can you share you tips? Do you use technical analysis?

REPLY
I am not doing well on short term trading. I do make some gains, but I also carry some losses that are not realized. 

I made good profit on the growth stocks that went up during the bull run, including Tesla, Nano Dimension (NNDM) and Sensionics (SENS).

I have described my experience in earlier posts in FISCA (https:fisca.sg).

It was easy to make money in a bull run.

I have also a few good trades in a "normal market".

From my experience, the good results come from:

a) 30% due to data and good analysis
b) 20% due to courage, i.e. a conviction to hold the stock in a downturn
c) 50% due to luck.

The interesting time about luck is that in the long run, it averaged out. So, the first two factors may be the key contributing factor.

I want to explain "courage". Often times, the market moves in the wrong direction, due to panic or market manipulation by the big players. 

You will need the courage and conviction to ride through a rough period, and wait for the sentiment to turn around. 

The difficulty is - it could be due to new developments that caused the market to change. It is often difficult to differentiate between an irrational or a fundamental change of direction.

In my stock picks, I would still go for the stocks that are undervalued, based on its low PE ratio or discount to asset value. 

In this respect, the approach in picking the stocks appear to be similar to the stocks for long term investing. 

I am not good in technical analysis. However, I do look at the price chart for 5 years and for the recent months. They give me another perspective about what is a good price to buy and to sell.

You can also follow my stories on some of these trades in FISCA (https://fisca.asg).

Disclaimer: I am sharing my investing experience. This is not investment advice.

Tan Kin Lian