..having you here reading my very first blog on this site and on internet. This blog is all about trading equities on the Straits Times Index in Singapore. You can read more about the background of this blog in About me.
How I started trading. I have been trading intermittently for 15 years. While I have had my successes I have to admit that I have had my share of losses as well. In my younger years my trading started off very impulsive and without much of a plan, hence without money management taking high risk trades were very common. These high risk trades came sometimes with large profits but also with extensive losses.
Over the years I have become much more disciplined and structured in my trading. The aim is not (and should never be) making quick and huge profits with single trades. That is no longer feasible with good money management in place. Likewise, my trading nowadays is according a structured system and not based on rumors, gurus, or other baseless assumptions. In time to come I will blog individually about these highly essential elements of trade (trading plan, money management and trading system) that should become deeply ingrained habits of each trader.
Which market do I trade for this blog. Up to this year I have always traded the European markets (AEX, FTSE) and occasionally the US markets (Dow, Nasdaq), but this year I started actively trading the STI in Singapore. While I have experience trading equities, futures and options I will for this blog only trade equities to make it accessible for more traders who do not trade other than equities. The STI consist of 30 stocks.
The revamped Straits Times Index, calculated and disseminated by FTSE, comprises the top 30 SGX Mainboard listed companies on the Singapore Exchange selected by full market capitalization. The index was revamped effective January 10, 2008. -Bloomberg-
What is the size of the portfolio. The size of the portfolio is determined at 75.000SGD (approx. 59.500USD). This is for most traders a reasonable amount. Besides, since I apply strict money management rules any amount lower than 75.000SGD will make the cost of trading (commission, slippage, fees) per trade increasingly significant which is not desirable.
What tools are being used. Buying and selling of equities is mostly based on technical analysis. In order to determine entry and exit signals I use Metastock software with Reuters end-of-day (EOD) data. For submitting orders to the broker I use the platform Saxotrader provided by Saxo Capital Markets. Use the following links if you wish to know more about:
Metastock – www.metastock.com
Thomson Reuters EOD data - http://www.equis.com/whc/fundsoft3.aspx
Saxotrader - www.saxobank.com