Update and Requests for info

Hey folks, sorry for the virtually empty blog posts of late. I’ve been really snowwed under and tired out from work but it’s all good. To destress, I was jazzing up a new set of remixes on the decks which turns out to be a good pick-me-up when I need it.

Market wise, as we all know we seem to be experiencing an outflow of money to the US/Europe/Forex market perhaps which basically takes the upward momentum away, along with a few support lines below. Property counters got decapitated while some of the others managed to hold on for dear life. At least for now. The trendline support on the STI remains at 3080 with resistance between the 3110-3120 range still intact. A narrow range we are in and one of these lines will eventually give way. Singtel dragged the entire STI down earlier today and it remains to be seen if the familiar and strong support will hold. Offshores seem alright while commodities have been taking a beating.  It’s a tad confusing as momentum hasn’t exactly been broadbased so a long position at a strong support wouldn’t be wrong as with a short position near a cluster of resistances.

I’ve received a couple emails that were referred to me by AK71.

Here’s the first:

 > I am 23 years old this year and is just stepping out to the workforce.
> I follow your blog regularly and is keen to start an investment.
> However, there are many online brokers to choose from such as POEMS,
> DBS vickers etc so I am not sure which one to choose from. Do you have
> any recommendation or any reason why you choose one over the other?
> Especially if I want to invest in REITs and precious metals, which
> broker would be best for it? I am sorry if you have mentioned this
> before in your blog but I couldn’t find the relevant information.
> Really hope you can help me. Thank you very much.
>
Comment – There a couple factors that I consider. Primarily, I’ll like a TR who understands my style and hence be able to best advice me according to that. It can be hard to get enough attention sometimes and to be frank, sometimes all it takes is that personal touch. That undeniable trust. You’ll also need to look at which markets you trade under and the sector of preference. A TR who has expertise in those areas would of course be good. Signing up with a TR is free (while you need to put in money to open an account, there is no charge in maintaining an account whatsoever) so you can actually sign up with a few TRs, get to know them and see which one you prefer. Many of us have more than 1 TR and that’s how competitive the market is for them too. Every TR will try to give their esteemed and loyal clients the value-add that would hopefully be beneficial on both sides. Your TR needs the license in the particular market that you look at so if you are into forex but the TR has no license in that area, then it’s of little use. I would think most, if not all TRs have the license to advise and trade on your behalf in the various equities market. Each TR can only work for one brokage firm at any one time so you can take your time to look around. Eg Lim & Tan offers link points for the trades done but is small and has a smaller pool of stocks to trade with in CFD (if you take part in margin trading too) while Phillips CFD has a bigger pool of stocks to long and short  but has it’s short comings too. There’s also UOBKH and DBS Vickers, etc. You could very well open an account with each brokage firm! Jay (who’s my TR) may be able to add more to what I have said above. Do feel free to drop a note if you have any questions for me on the above.

> Today I came across your blog.  I wish to open a small account in
> Singapore.  Hopefully your advice  will be great help.  I am based on
> us
>
> And has been investing since  1998.  Predominantly  a value investor
>
> I  am planning my account  to be around  $10000. Which I will build
> over a time.
>
> Which is  a decent online discount broker ?

Comment – This is a little tricky as you are based overseas and want an account here in Singapore I believe. I don’t know enough to answer this so I will turn this over to Jay. Anyone else who can answer, please comment back too.