|JUST ASK: “Can’t make consistent trading profits. How to improve?”||
|In this weekly series titled JUST ASK, we invite readers to send in questions on stock investing, and personal finance. We will ask an expert to provide answers. Below is a question from a reader on how to be more successful in stock trading. We asked three people to give their views:
a) Leong Sze Hian, President of the Society of Financial Service Professionals;
Can make a living out of trading?
Reader: I have been an active trader on the Singapore stock market for a year using Technical Analysis (candlestick charts) and fundamental analysis (stock news and related industry news). However, I have still not been able to successfully generate consistent profits out of trading Singapore stocks.
I tried using contra purchases after I have picked my stocks and always look to get out within a week thus I always look at the daily to weekly charts.
What do you suggest to the young budding traders out there in Singapore who want to trade local stocks and do you think SGX stocks could be traded? If not, how can I make a living out of stock trading and how much capital do I need to start trading?
Leong Sze Hian, president, Society of Financial Service Professionals.
Leong Sze Hian: Dear reader, it is never easy to trade and make decent profits consistently. Especially when we study the same books, use the same techniques and strategies as everybody else, listen to the
A suggestion I have for you is to try this strategy – buy if price falls 4% sell, if up ride the profits until it
If you can generate 20+% per annum consistently – you are already in the likes of Warren Buffet! The key to long term success in investing is managing the risks, and not focusing too much on the returns