wow louis, your xmas came in a time warp eh? :P

anyhow, i just hope forumers, especially newbies, learn to weed out white noises and misinformation in public, anonymous places like forum boards.

kawaiiboi is right: for those who are new to the market and/or who don't know TA/FA, it's really better to wait and enter, lock in for 6 mths (or more like a year), than to try and risk entries/exits every day. less "cool", of course, but then, the market isn't a place for play. there is serious money and serious work here, and equally hungry sharks waiting to eat up any fresh-faced, gungho newbie.

wenwen, CWQuah has explained shorting already. Key thing to note is that you are no longer allowed 3 days buy back; you need to cover it back within the same day if you're not on CFD. which immediately makes risk/reward unworthy most of the time already. Also, not all brokers will allow 1 day shorting now; you need to check with yours. CFD shorting: be careful that you didn't select to short a stock that dropped, then gets suspended.

Contra: Most settlement periods are T+3 days, ie, after your transaction, you have 3 days to pay up. There forms a loophole hence. If you can sell the counter within the 3 days, most brokerages will net off the transaction, hence you lock in whatever difference between the buy-sell price. That is known as a contra trade. It's literally making money out of nothing.

Be aware however that it isn't as easy as it sounds. Due to the small size of the s'pore market, contra traps abound. Especially in volatile markets like this. So unless your technical skills are good, it's not advisable, since overall, most will lose rather than gain, esp if their settlement period is T+3.

Better dun to naked short since you are new. You maybe making small sum 100 times of 100 trade. But all it takes is 1 bad move, you might be wipe out. (Look at the Up and Down spread in the Stockmarket nowdays, bigger movement) Decision make by you usually will be impaired, when market takes a sudden opp move against your trade. (Cut loss required alot of discipline, most newcomer dun have that as they are loss aversion which is human nature)

You need to have at least the basic TA knowledge to short, not stockmarket is like another casino to most people.

Bulls are strongest at support. Bears exit quickly Bears are strongest at resistance, Bull exit quickly. Support and resistance are interchangeable .

It is extremely frustrating when you want to short on CFD and the stock is a 'long only' stock',

eg Gent Int...  

Hi Wenwen,

You are right about the trade sequence of shorting i.e. sell first, buy later.

However, there are 2 ways to short, i.e. naked short, and shorting using CFD (contract for difference).

Naked short means you sell and buy back later without existing holdings of the shares being traded in your CDP account. BUT note there are heavy penalties for shorting without buying back within the same day.  (See http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_26A1DD073A1A068F482574CC004597B9/$file/09222008_SGX_ENHANCES_TRANSPARENCY_N_DETERS_FAILED_SHARE_DELIVERY.pdf?openelement).

CFD shorting allows you to legally conduct shorting although you do not in effect trade the shares itself. Rather, you get to open a trade position whose value varies with the notional underlying stock being traded. You need to put up some money as trading margin under CFD. CFD schemes vary with the brokerage firm you use, so pls check with them on the details.

Contra trading means trading without putting up capital for the trade upfront. I.e. you can open a long position (buying rather than selling) for up to 3-5 days without having to put in money, and you earn or lose the difference at the time you close the position. Not all brokerages offer this.

This is what I said yesterday.......look at CAT B COE....onli 8300.....so what happened ? This is your chance(s) to upgrade to millionaire or for that matter richer.  But definitely not this week and really I have no idea at allllllllllll.

Just be extra careful.  It is your money....It is your deal.

Be careful when you see wordings like Hidden Gem, or DON'T BUY NOW WAIT FOR WHAT laaa.....The Market has Bottom laa.....you have to be kidding, the show just begun man.....

Facts: I heard Strikes and I heard Riots......Cina New Year will really be bring out the beasts.....Let hope the snow will not be that bad next year.....

 Me ?? Still play lor....but small   KB 2bids, NOL 10bids, SPC 20bids, SL 3bids..... Just play fast......very fast.

Good luck good hunting. Oh yes....read report with a massive dose of salt....remember....they are also stuck......if still too free.....isn't it time to pickup a trick or two on FA and TA ?

Wat abt China Kunda, another sleeping dragon, yet to be awaken.

Once awaken, Chionggggg Ahhhhh...