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Fellowship of the Shares

rickytan

U cannot have FD and margin at the same time---does not make sense.It is one or the other.

 

 

Hi Geojam and Livermore,

Thank you for taking the effort to explain the advantage of margin financing.  However, I am very slow and dont really understand (sorry, very slow lah). At the moment, I have some funds placed in FD.  So it doesnt make sense for me to trade on margin, right ?

Would appreciate your advice please.  Thank you.

 

ipunter

I agree on the salt bit.

 

 

Hi Elf,

I got this information from the $6 share book. RHB share margin financing with a low interest rate of 4.5% p.a. Call 1800 323 0100 or email at contactus@rhbank.com.sg. Website : www.rhbbank.com.sg

 

 

Hi Elf,

Just open a margin account first. If you don't wish to leverage up, you can still withdraw money wthout selling your shares.

 

Hey Elf,

To tell you the truth, I don't even know the details about A share, B share etc. My broker told me once I also forgot. When I started margin, I don't even know when I get margin call and yet I hardly ever get. In a way,  I "Just Do It". As long as you don't buy too many shares, it will be ok.

 

hullo ipunter, thanks for the compliment. :) altho i do believe many already know what i'm saying, just that perhaps they don't bother articulating the methods, that's all.

godpa! wail. i can't help it if i'm slow! you gotta admit it's quite confusing, what with the class A shares, class B, different limits, margin call = when loan more than share price, forced selling when below dunno-wat limit! meh. mehhh. 

kaoz. niama. don't believe i can't figure it out. gonna bring margin info and a momentum book on my trip. Mebbe an FA book too. hmph.

and lol. I agree with livermore actually. Investments can be quite simple: choose the method that suits your personality. You don't havta know so much, and you can still be successful.

Just that elf like stories; i like to peek behind the curtain. I'm one of those kids that if i see a puppet show, i'd want to pull the puppet off the guy's hand so i can see how he does it. keke.

So all the BB stories are what goes on behind the scene, really. You don't havta know all of that, and you can still trade successfully. It's more the processes, what goes behind, that i'm sharing. Since for me, what i find fascinating is not the end result (win or lose), but the machinations of the game.  

I don't just want to win it; i want to know how and why i won it, and how the other guy lost.

haha.

 

Not unless you've eaten more salt than they'd eaten rice...

Cos you'd be wiser when it comes to salt, at least... :)

 

livermore

Hahaha----older does not equal wiser.

I am prepared to listen to an 18 years old as long he can teach me things.

 

Hi Geojam,

4 of my friends are keen to learn from you when you come to Singapore. As you are older and wiser, they will tend to believe you more than me:).

There is no necessity to make investments so complicated with BBs etc etc.

 

Livermore

Nice to hear from u.I tried so hard to explain to elf in one of my longest email of my  life and she still cannot see my point.Maybe i cannot express myself well.

Eastonbay

Hey i read the exchanges u had with GL----U like weather man----what winter and spring.

U are truely a man of all occassion.

 

I see that SPC was one of the most exciting thread then---even now. 

 

 

 

Wow...

Elfin's last post below must be the most valuable post here ever... :)

What she has said is so full of eye-opening insight such that I will give her a large 'badge' for it.

She is only one of the very, very few who posseses such 'value-added' knowledge for the benefit of many.

Well done, Elfin... :)

 

Hi Elf,

Do give margin trading a try. There is not much risk if done in the right way. I cannot think of a better way to grow your wealth. You can withdaw money from your margin account without selling your shares. You can ask Geojam to explain to you when he comes to Singapore in August

 

Elf

I was just having some fun with Vic..But i know he is busy.

No problem,i am prepared to share my wealth making techniques,if i have any, with u and bunbun anytime.Just email me.

 

 

 

BB story for the weekend, which the SPC thread reminded me of.

btw, henceforth, small BBs are gonna be bBBs/sBBs, and big BBs will be BBBs. Definition of small: private investors, small hedge funds--those who don't trade in the usual BB pattern. Big BBs are essentially your foreign fund mgmt companies, and those like Temasek, Keppel, etcetc. If i just type BB, it includes all categories. can? Makes discussion clearer.

 

Anyhow. Someone posted on SPC that his relatives couldn't depress the price of SPC for more than a day (can't rem who but haha, godpa and bunnie, be good and give him a break k...): why i tell you guys to watch busd data, and not just the lots traded but the time of the trade:

How a BB is able to control the price, talking about buying action first: For those interested in becoming a bBB:

Unlike your average retailer, you will not just queue to buy your desired no: of lots at one price, since people will undercut you by paying that 0.5c, or 2c, or 5c higher, dep on the value of your counter. Esp if you're buying a block of say, 100 lots on a $5 counter.

So if you're looking to accumulate a counter, then what a BB does is actually to watch and see first, they do not queue. Rather, at the right price, when the number of sell quotes reaches the number of lots you want to buy, enter and sweep up the sell quotes directly.

Sometimes that's not enough, you'll need to take some of the quotes above as well.

This way, buying is neatly and cleanly done. Since there is no buy queue quote, you're also not noticed by the market until you have struck.

For selling, aka, deliberate depression of price: Do not presume a BB just whacks and dumps all their lots at one time. That's so inelegant, not to mention inefficient. Rather:

Wait til the buy quotes are under the number of lots you have. Then sell enough to match all the buy quotes, and sell down the next quote(s) under it as well.  

This in effect is how the deliberate depression of prices are achieved. Esp if it's a short time span you want to act in to shock the market into panic selling.

 And yea, you can see from the above egs why time of trade is important: 'cos when you sweep the quotes at a certain price, and take the next ones after, it all happens within a couple of min.

So for hay bees, that is how you can use busd techs to track the BB action.

 

Aside, for control of a counter: i'd expect you have to be at least in the top 20 shareholder list. Or roughly, if you look at annual reports of a lot of companies, you should hold at least 0.2% of the total shares issued by the company. It's mathematical: below that, you're not likely to have enough to swing the price.

So for SPC, for instance, if you should wish to depress its price: issued share capital of SPC as at Dec 2006 financial report is 515 mil. There are options available for a further 9000+ lots. As well, they have restricted share scheme, rights, retirement benefits etcetc. We ignore all that and ballpark the figure and just say 515mil. 0.2% of that is 1.03mil shares. At price of 4.8, means you need a conservative working capital of S$4.9mil to swing its price.

Also, take note that when a BB swings a price, they don't touch core holdings either. So that $4.9mil is just for playing.

Cool, huh? i totally love this game!

ok, will update kantang techs another time. need to go have breakfast. byes!

 

haha, godpa, if your sense of timing was really that bad as you claimed, you wouldn't have survived so long on both the STI and ASX! And on margin, too. Elf def has a lot to learn from you and the rest here.

And argh! gege, what are you still doing on SJ??? Go to sleep! for goodness' sake. sheesh. i'll update the kantang techs for you. Go! shoo! tsk.  

 

bunbun

some numbers?date of his posting to choohian or time of his posting lah.

Good gal?how come u never do the errands i ask u to do?Just joking.

 

wah uncle vic, congrats on arrival of new born, and glad to know both mother and child are doing well.

heh, give some numbers leh, then forumers here can 'invest' a bit on your good fortune. make some beer $$$

godpa, i good gal. listen to u. am off now, had my fun liao. *LOL* SJ not so boring liao.

 

Victorian

U got very good timing leh----baby born ard mother's day.

Everything u do got good timing---my timing all wrong---sharemkt etc...

 

You are right , geojam.