I was going through my trading journal of my past trades, especially those in the previous years. Actually, it was kinda fun to look through them and laugh at some of the trades. There are 2 stock markets that I primarily play. They are the Singapore Market and the US Market.
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For the Singapore Market, I have done well during the extreme periods which are the highs and lows of the market. Truthfully speaking, I have made more money during the lows. I have managed to make good money in the lows such as 2003 and 2009 in which I would buy the lows in those years and sell high after keeping for a couple of years. The in-betweens are terrible and I find that it is kinda hard to trade. The stocks hardly move at times. When Dow goes up, STI may not go up (sometimes even down). When Dow goes down, STI also goes down (sometimes, it may even go up). I have to admit that it is sort of frustrating too. There are rotational plays as well. Another issue is that there are limited stocks in play everyday. And not all stocks are traded with volume. One other good area of play that I like is the dividend play. This is the common play that most sophisticated investors would go for as well. So for me, if Singapore market is at its low, I would buy the blue chips and maybe collect some of the dividend stocks. If it is at its high (3,600), I will short the index. These will be the only 2 periods(the highs and lows) that I will play them. Nothing more. Playing the in-betweens kill most traders.
I am waiting for STI to hit 1,800 before I can even get excited about the market.
Yes. 1,800. Not a Typo.
For the US market, I am able to say that I have done well in both extreme periods(high and low) as well as the in-betweens. There are opportunities every day. The market is much more matured with the availability of derivatives (options and futures). I have traded options for the last 13 years. Initially, I have almost associated options trading as “high risk”. With further pursuit into the area of options trading, I have changed that “High Risk” phrase to “Money-Making-Tool”. I have ventured deeper and have explored with a great variety of strategies in options with great success. It was a lot of fun too. I am able to play the in-between periods with great success as well. Kinda addictive too. For the similar dividend play that can be found in Singapore Market, I will also use covered calls in US Market (only during the bull period) to generate the same kind of dividends(maybe even more). The US Market has provided me with thousands of stocks to play every day. Most of them with great liquidity. It has provided me with good opportunities almost every day. 3 words to describe the US Market “I simply Love it!!”. Oops, 4 words instead of 3.
With the spotting of the Big Boys Movements,
The Game Gets More Interesting!!
Smart Passive Cash Flow Wishes All A Wealthy 2017.