Winning the Game of Stocks

 

 
This guy can write books.

While the concepts are not new ( eg MMM is from Elder ), he has a knack of turning the old concepts into something new and practical. Now, we know why Singapore is such a successful entreport. Make Hainanese chicken Singaporean, make Hokkien mee a Singaporean invention....

Any way, the chapters are organised in a very systematic fashion :

Part 1 : the rich invest in BUSINESS, REAL ESTATE, INTELLECTUAL RIGHTS

Business : you can actually buy Small parts of the Business via Stock Market. No need to start your own business which has a failing rate of 90%.
You can the broad market via ETFs, or buy individual companies.

Real Estate : you can buy a small chunk of real estate by buying REITS. no need to buy the whole property!

Intellectual property : no mention of it...maybe in the next book ?

Part 2 : how to invest
Approaches : valuation ( logic ) and trend (emotions )
A GOOD , cheap company can go cheaper if the economy is bad as investors tend to dump stocks based on emotions. The MR Market and its moods ....
Hence, knowledge of the Market sentiment can ensure that you buy at when the market is on the uptrend, without you having to endure the ride to the bottom. This is significantly different from the Buy and hold forever approach.

Basically, the valuation can be done via :
(1) Sum of all  PV of at least 10 years Earnings ( discounted to present day ) ( the DF table is given eg
(2) PEGrowth is higher than the current PE ( for it to be under valued )
Then, make sure it is...
(3) Good company, good earnings, good growth,good economic  moat, good management , g0od debt levels, good ROE.... good price.  ( undervalued, on uptrend )

Which brings it to TA ...
(1) Buy when SMA 50 crosses the SMA 150 .. and
(2) Both are SLOPING UPWARDS...

Sell when :
(1) off the top by 6% to 8%
(2) By TA of SMA50 crossing the SMA 150 and both Sloping Downwards
( you can add you own like Smiley, FBs, F20s... )

Identify the trends ( Up, Down , sideways ) and the Changes in Trends...
And trade the Support, Resistance and Breakouts accordingly ( safest breakout is to wait for Retracement)

And the psychology of investing :
(1) PERRP : ( cannot PREDICT, be your own Expert , Rules, Responsibility, Probability

The financial calculator is very useful  in determining whether you an retire in x number of years...
http://wealthacademyasia.com/calculator.html

Flash Boys

Once you read this book, you will never see Wall Street brokers and Investment banks in the same light ever!

Except , of course, if you r broker has the "RBC nice" gene in them....

HST, High Speed Traders, exploit "slow"LATENCY speed of retail clients ie the time it takes for your BUY/SELL into the exchange, and back by gleaning into the intent of the orders BEFORE it reaches the exchange's matching engines.

This gives the HST'er a chance to forerun you ie buy before you buy, and then sell to you at a fraction higher. A penny a time, just like Google...making pennies, a billion or trillion times a day.
'Given the total value of about RM225 billion a day, imagine the gold mine that these high speed traders are able to exploit!

Add to this intrigue, the " dark pools" operated by Investment banks ( whereby retails buy orders are matched with the firm's own sell orders , without having to go through the exchange )...

... the rebates given by the public 11 ) and private exchanges ( 44)...

... the dedicated fibre optic lines from Chicago to New York... to shave off a few microseconds...

... and the modern day Robin Hood, called the IEX...

Wow... this book is one good read, man... a financial thriller!