Student here (18 this year), relatively new to investing/trading. Attended quite a few free investment/trading talks and seminars. Recently bought 10 lots of $YZJ Shipbldg SGD(BS6.SI) at $1.03 with CFD but the price went down and hit my stoploss of $1.00, resulting in a loss of $300. I bought it due to good news and share buyback, hoping to profit from an intraday trade with huge gap up. It may seem less to many of yall here but is quite a pain to lose $300 in 1 day on my first trade. LOL. With a capital of $5000 in my CFD account, there is little I could trade/invest.

I have came across some news/articles saying market is bearish, funds/bbs are leaving the market, market gonna crash etc. And also funds/bbs are needed to push share prices up easier. Moreover, it has been almost 10 years since the last financial crisis. I heard some gurus say market cycle is about 10 years. This leave me in a dilemma state, whether should I trade/invest more in the highly volatile and bearish market or should I save more money and do homework on what stock in my bucket list to buy when the market revive from the next market crash?

I have seen so many investors/traders posting their portfolio, trade wins, profit gains etc. making me so envy of their return. Im always so curious how they are able to make so much money from the market. How they are so good at picking good quality JEM stocks and their precise entry into the market. Is it all about who got the most capital to pump it to the stock market (e.g funds/BBs) to move the market and retail investors like us will follow? Then when they sell, we also follow? Like macham the big players eat the small players?

Lastly, since I will only have about $10,000+ from my savings as a student, I will not be able to buy many quantity of a stock or many stocks. So should I trade/invest with CFD to leverage my small capital Im aware of how CFD leverage my loss too so I will trade with cautious with stoploss). If I were to go ahead with CFD, should I trade/invest with a CFD DMA (direct market access) account or a normal CFD (market maker) account? Currently im using City Index CFD account.

Thanks for reading my essay LOL. Any opinions/suggestions, please feel free to comment below! Really appreciate your help to guide this young boy into the investing world. Really hope to learn from you guys! Cheers! =)

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11 likes 107 comments
IntelligentSperm

A very sincere piece of writing..I started investing from 2015.For 6 months, no live trading,just read the essential financial & investing books, developed strategies, learn to read the market both TA, FA & market psychology. Train my mind to overcome fear&greed.embrace 100% discipline.Then spend 1 month, did simulated trading. Learned all these under a mentor.Then finally..come the real stuff...live trading..I must say, this process works well for me...so far in the green.Still learning & reading..but more advance stuff.Hope you can develop a right trading strategy for yourself. Happy trading...Cheerio.

Darren68

Reply to @IntelligentSperm : Hi, do you mind sharing the contact of ur mentor?

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RetiredYoungMan

Dont use CFD
Learn to study stocks first

terrylim2

YZJ Shipbuilding chart is clearly on a downtrend. U are trying to catch a falling knife. The odds are against you.

daniellee

Similar to you I've started with 10k during my second year of poly. I'm 23 now and it had since grown to 25k.

During this process the only loss I suffered was 2.5k which represent 50% of my invested capital in that counter itself.

If there's one take away I could share with you is focus on the past performance of the company to decide if it is a good investment and take future earnings with a pinch of salt.

Warren buffett said this: "if you can't hold a stock for 10 years, don't bother holding it for 10minutes"

daniellee

Reply to @Darren68 : I got lucky haha most of my counters started on bull run after holding on a few years. All the best on your future endeavour and let me know if I can help you with anything :) always happy to share and make new friends with similar interest and background

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clim

with so many helpful comments below, i dont think i can add anything...

just take the $300 as tuition fees and start learning investing?

10k is not a small amount at your age. and if u start so early, 10 years later you will be so rich even if u only compound it 10% annually.

good luck and enjoy learning

durian_kia

Reply to @ThumbTackInvestor : lol.... true true... the truth always hurt.

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Reo_Reo

Learn with cash account for a year first before using cfd. Alternatively use a demo/virtual account in cfd if city index provides. If u think the market is bearish, then u shud focus more on the demo/virtual cfd learning. If u think the market might still be bullish, then do cash account more

Wit regards to dma vs otc both have their pros and cons but as someone who first started with the cash market, I much prefer dma as it is more seamless a transition. I don’t think city index has dma though I could be wrong

Reo_Reo

Reply to @Darren68 : You can consider ig then if u want to use dma. The only real advantage of OTC is cuz u can abuse illiquidity in a stock like if u wanted to sell 20 lots of dbs but there are only 5 lots at the current bid price and 5 one bid below and another 5 one bid below and so on, then in cash mkt/dma u would end up selling ur 20 lots at an average price Lower than the current bid price. With otc, u can key in an order selling down 5 lots at the current bid price and do that 4 times and it will always go thru at that price since u aren’t actually selling those 20 lots on the mkt

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MaoZD

1) An advice I would give is to invest in yourself first. Learn skills that will compound your earning power while you are young. No stock guru here can beat an earner who is making 10k a month.

2) If you treat the stock market as a casino, you might win in the short term but lose in the long term. Go read investment books (graham, buffet) if you are interested in FA or study technical indicators if you are interested in trading

3) In investing, always take a long term horizon, the aim is never to make 10k a year and then lose 8k in the next year. In this case, take the approach that gives you consistent 2k a year returns.

jeremyowtaip

Reply to @duckie : OK. OK. I accept your compliments. Thank you very much la! =)

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jacksonsim

And also, don’t buy a stock because of news. The price may well be factored in with the news unless you have some insider news that no one is aware!

AvgJoe

My take is you should stop trading with leverage. You can still trade with your money but note that losing them is part of the process. That will be part of the learning curve you are going to take in this journey. How much you make or lose in dollar value should be the least of your concern now. With that amount you are investing, you will be able to make it back with your human capital down the road. There is no one size fits all investment strategy. Some are comfortable with TA, some with FA and some with Both. As you continue investing in the years that come, you will get to know yourself better than which method suits you well

With regards to when the next crisis will come it is anyone guess. I have been hearing about the next crisis for the past 3 years and well its not really here yet.

Put it this way with the 10K you have now, even if a crisis come and wipe 50% off your networth, you can make this capital back within a year.

At 18 with 10K, you are pretty much a good saver which many people your age will not be able to achieve . Continue this good habit.

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