We could apply discounted asset strategy to buy good business at undervalue price. One simple method is to buy strong property stocks with low Price-to-Book ratio (share price divided by net asset value). Hongkong Land (H78.SI) is a property stock listed in Singapore with commercial properties in Hong Kong, Singapore and China. Currently Price-to-Book ratio is exactly 0.5, at its historical low (see chart below), owing to falling share price and consistent growing net asset value. If an investor owns Hongkong Land at current share price (about US$6), it is as good as owning a portion of Hongkong Land properties at 50% discount. This is a combination of value investing (buying at discount) and growth investing (company with growing business, share price went up 8 times over the past 15 years).
However, a trader or investor needs to apply optimism strategies to know the investment clock, when to buy and sell Hongkong Land. Due to cooling measures of property in Hong Kong and Singapore with slowdown in economy, the market sentiment has corrected Hongkong Land to 26% Optimism. It means the stock has 26% downside and 74% upside from long term perspective, Reward to Risk Ratio (RRR) nearly 3 to 1. Optimism is a probability calculator, we could know the chances for trading or investing in short term, mid term and long term.
Currently Hongkong Land is under both Level 2 crisis (bearish Singapore property market) and Level 3 crisis (Hong Kong Hang Seng Index at low optimism), suitable for medium term trading but technical analysis should be applied before entry. For long term investing, this stock may be considered during Level 4 crisis (global financial crisis) one day when optimism of world stock indices are low.
When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful when one is able to take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with own personality.
The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc) to buy safely, when to buy, when to sell, including option of long term holding. So far over 10,000 audience have benefited from Dr Tee high quality free courses to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.
Global oil & gas related stocks have experienced significant corrections over the past 1 year, many stocks including blue chips are at attractive low prices. Although investors know that crisis is an opportunity, the share price could become lower with time, therefore few people dare to grab the opportunity.
Is it time to buy or sell Oil & Gas stocks? The answer is to align the strategy with personality (short term trader vs long term investor):
1) Long Term Investor
For a long term investor with at least 3 years of holding power, oil & gas crisis presents a rare opportunity for entry to buy low. As shown in the Optimism Chart below for Oil & Gas Stocks Index, long-term optimism is 22%, an attractive low price, having RRR (Reward to Risk Ratio) of 3 times. However, no one will know the true bottom, therefore the best strategy is to buy low enough (below 25%), not to depend on luck to wait for the lowest point. The investors enter with long-term low optimism require 3 additional weapons to be successful:
- Know what to buy for giant oil & gas stocks. Some weak stocks may not survive through this storm, losing business with high debt could break the camel’s back. Giants with strong fundamentals will last and revive as final winners.
- Holding power of at least 3 years to wait for the recovery of oil & gas
- Ability to control the fearful emotion during crisis, certain stocks may fall in price further due to market sentiment.
2) Short Term Trader
For a short term trader, the holding power is shorter (a few weeks to a few months), therefore the strategy is totally different from long term investor. A trader has to align with the short term market sentiment which is still bearish over the past 6 months. With the recent recovery of oil & gas prices, the short-term optimism is high at 77% (see chart below). For a short term trader, the upside is limited, downside is 2 times, having RRR (Reward to Risk Ratio) of 2 times if shorting strategy is applied. Of course, a short term trader could also wait for stronger breakout above 100% Optimism, if still want to long the market for a short period.
The traders who long/short the oil & gas stocks require the following strength:
- Know what to buy for trading, either for long or short, choices are different from investing.
- The ability to cut loss when direction is wrong based on risk tolerance level, knowing when to take profit, not to be too greedy. Winning or losing is a probability game in trading. Retail traders may have hard time to manage own emotions as the trades are their own capital, they could be forced to hold the stocks from short term to long term when direction is wrong, finally ending up sell low when price breaks below their psychological limit one day.
Optimism Strategy developed by Dr Tee provides a special advantage in probability with high RRR when strategy is aligned with personality. So far over 10,000 audience have benefited from Dr Tee high quality courses to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.
- Author of “The Systematic Trader” and co-author of the national bestseller “Secrets of Highly Profitable Traders“, Collin Seow is a Top-Tier Remisier at Phillip Securities. He has spoken at numerous conferences and seminars and is a trainer with CyberQuote (a member of Phillip Capital) where he has equipped finance professionals with proven trading and investment strategies.
- A qualified Chartered Portfolio Manager (CPM) and a Certified Financial Technician (CFTe), Collin has been awarded Top 10 Achievers in PhilipCFD for the last 4 consecutive years. With in-depth knowledge of the finance industry, he developed CSI Trading System, a stock trading software that is a fundamental aspect of his training courses at CyberQuote.
- Colin has been at the forefront of trading education, contributing his expertise as a bi-weekly columnist at Shares Investment Publications. He is also currently a member of MENSA Singapore and Technical Analyst Society Institute (TASS).
I so strongly believe that this will revolutionize your trading life, wealth and happiness; just like it has for countless people, that I’m willing to give you 100% no questions asked money-back guarantee!
1) Product Management
- Research Reports
- FA vs TA
- Market Cycle vs Economic Cycle
2) Position Management
3) Psychology Management
- Trading Journal
- Precession Effect
4) Price Management
- Medium Term Trading
- Cumulation of Momentum
- Trend Impulse Factor
- Setting Stop Losses
5) Fundamental Filters
- Market Capitilization
- Identifying Trading Candidates
- Spotting Risky Plays
6) TraderGPS Power Tools
- Using Comparative Scans
- Using XpertTrader Module
- How professionals form their trading psychology and mind-set
- The ultimate trading strategy: Price action strategies & analysis
- The secrets of using the volume indicator to predict future price action
- How to successfully trade breakouts & spot fake-outs
- The secret of trading with different time frame charts
- The definitive way you should drawing trend lines
- How to profit from professional manipulation and profit from it
- Learn to spot low risk, high reward entries/ exits
- Live Trading Demonstration
- I’m sure you’ve hear stories of how someone earns additional passive income through investing.
- Or how one lucky friend struck gold by investing correctly into the right stock at the right time only to sell it off for insane profits.
- But is it really possible?
- First thing you must realise… putting money in the bank is NOT the way to grow your wealth.
- Just ask Warren Buffett or any financial life coaches anywhere, no million was ever made by sitting in the bank.
- Then why do so many of us still continue to do this?
- Fear and uncertainty my friends.
- I don’t blame you, the stock market’s roller-coaster movements will make anyone nervous.
- Plus many Singaporeans believe that investing is just too complicated, involves too much maths, and just takes too much time.
- But what I can show you a systematic way? A No-brainer strategy for you to constantly keep making profits.
- A systematic process that you can use part-time while keeping your day job.
- Forget the nonsense that many have you believe that you need to keep monitoring stocks.
- I’m going to expose the real secrets of successful stock traders.
Do you feel you are not getting the maximum return from you stock investment? Or felt that you are always buying too late and selling too early? You are not alone. Many average stock investors jumped into market thinking he can make a lot of profit from it by just listening to friends or follow well know big investors. Little do they know that most often than not, the strategies employed by the big investors are not be suitable for smaller investors.