How To Manage Your Trading Portfolio

 

If you want to manage your trading portfolio better, here are some tips that would be beneficial.

Knowing how to manage a trading portfolio is critical if you want to stamp your footprint into the world of trading, and it’s a crucial skill that many day-to-day traders need more time to understand fully. It doesn’t matter whether you’re a seasoned trader with years of experience or a newbie who’s trying to find what works for them; the key to being successful is being able to manage a portfolio and be able to assess risks, get the best returns for your investment, and stick to the goals you set.

In this article, we’ll look at how you can manage your trading portfolio and share some tips to help you trade smarter.

Define Your Investment Objectives

If you want to be a successful trader, having a sole idea of your end goal will be pivotal and will significantly impact your trading behavior and future success. Setting goals will help you decide what you get from trading, whether long-term growth, short-term gains that can be quickly turned around, or a mix of both. Once you’ve decided on a trading strategy that you want to use moving forward, it’ll be a lot easier to find a pattern that works for you and is sustainable long-term, which is where tools like TradingView can come in very helpful.

Diversify Your Portfolio

Being overly leveraged in a particular direction could spell disaster for your future in trading, ending it before it’s had a chance to begin. Diversifying your portfolio is a term used to describe traders making sure to have investments in various sectors or industries, some of which may compete with one another. This means that should one of your investments go badly wrong, you’ll be able to survive because you have investments elsewhere that can prop up your portfolio as a whole.

Monitor and Act Accordingly

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Your portfolio could easily become unbalanced, affected by market conditions beyond your control. This is why monitoring your assets and being able to act decisively is essential, but this isn’t an easy skill to master, and it will take time to get this right. Rebalancing involves selling stocks that have outlived their usefulness or maxed out, freeing up capital that can be used to invest in other stocks that are undervalued and have high-growth potential.

Set Stop-Loss Orders

While this may seem like a no-brainer when it comes to acting sensibly and with a clear sense of direction, many traders neglect this aspect of trading because they don’t think the unthinkable could happen. Stop-loss orders will help you offload assets that suffer from a sudden drop in value, helping protect your portfolio by ensuring that it doesn’t become flooded with low-value assets that will be much harder to liquidate. It might take time to research, but it’s certainly worthwhile.

Stay Informed and Analyse Data

It’s been said before that knowledge is power, which is more accurate than ever in the world of high-stakes trading. It’s easy to stay informed about the latest trends and developments in trading. Still, the real skill is knowing where to look to get the most effective information before anybody else. Make sure to use social media to find out about the latest developments in real-time and follow people who are most likely to have exclusive track news that could have a considerable impact.

Avoid Emotional Trading

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The worst thing you can do is act impulsively when trading, so if you’re ever feeling upset and overwhelmed, it might be a good idea to step away from the computer and give yourself a break. As well as not trading when you’re overcome with emotion, it’s also important not to let fear and greed influence your behavior, as this will often result in you making decisions that you would not typically do. Staying disciplined and in control is one of the best things you can do to be a successful trader.

Keep a Trading Journal

Organisation is crucial, and keeping track of your activity is a surefire way to make decisions that will have a much better impact on your trades in the long term. Many seasoned traders use their trading journey to keep track of the trades they make and note the circumstances around them so they can reflect on these and analyze them later. Self-reflection is a compelling trait for traders, and if you can do this successfully, you’ll be able to make much smarter decisions moving forward.

Knowing how to manage a portfolio will put you in excellent stead, as it’ll help you remain disciplined and develop the ability to make smarter decisions in the long term. There are many different skills that you can sharpen to become a better trader, but by making these small changes, you should see an increase in the profitability of the trades you place.

 

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Singapore banks are phasing out Singdollar checks and here’s what you need to know

checkbook

There’s a major shift happening in the world of Singapore banking and it’s all to do with our trusty Singdollar checks.

Here’s the scoop.

Starting this November, some of the biggest banks are going to start charging for Singdollar checks and more.

In fact, our local trio of DBS, OCBC, and UOB are already asking for a S$0.75 fee every time you issue or deposit a corporate check.

Maybank is doing things a bit differently now—they’re only charging for issuing checks, at the same S$0.75 fee per check. But if you hold certain accounts with them, you can enjoy up to 30 free checks a month.

But hang onto your hats, because there’s more.

DBS revealed that from 1 November 2023, they will be applying check processing charges to all Singdollar and local US dollar checks, whether they’re issued or deposited.

They’re keeping us in suspense about the details, but promise to give us more info as we get closer to November.

UOB is following a similar path, introducing charges for both Singdollar and US dollar checks. But they’re playing it cool, rolling out these fees “in phases” from November.

OCBC and Maybank are keeping things under wraps for now, but they’ve said they will spill the beans about charges in due time.

OCBC Bank

Image Credits: reuters.com

And here’s another big news: by the end of 2025, corporate checks will be a thing of the past in Singapore.

Individuals will still be able to use checks for a while longer, but we don’t have an official end date just yet.

This all comes after a public consultation conducted by MAS last year, suggesting a roadmap to phase out checks in Singapore. The use of checks has been steadily declining, thanks to the rise of e-payments among both companies and individuals.

Also, the cost of processing checks has been increasing and is expected to rise even further by 2025.

Until now, most banks have been absorbing these costs, but that’s not sustainable. Hence, they will start passing these costs onto us, the customers.

It’s not all bad news, though.

The goal is to usher in a new era of electronic deferred payment (EDP) solutions, allowing users to make deferred payments or issue a cashier’s order, without needing a physical check.

After the EDP solution is rolled out in 2025, banks will stop issuing new checkbooks to corporates. This will give businesses more time to transition to the EDP solution and other alternative payment methods.

For individuals who are still using checks, don’t worry. You will have a longer time to switch to alternative payment methods like PayNow, FAST, and GIRO.

So, if you’re one of the few who still prefers checks, it’s time to start familiarizing yourself with digital payment options.

The future is here, and it’s digital for sure.

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HDB Prices Continue Their Steady Rise in 2Q 2023

In the second quarter of 2023, HDB resale prices marked their 13th consecutive quarterly increase, rising by 1.5% quarter-on-quarter (q-o-q). This adds to the 1% q-o-q increase witnessed in the first quarter of the year, reflecting a sustained uptrend in the public housing market.

While the prices have been steadily climbing during the first half of the year, it’s worth noting that the pace of resale price growth has shown some moderation compared to the overall trend observed in 2022, where the average quarterly growth was 2.5%.

According to the latest public housing statistics, executive flats saw a significant 2.3% q-o-q increase, with prices rising from $800,000 in 1Q 2023 to $818,000 in 2Q 2023. Meanwhile, five-room flats also experienced a rise of 1.9%, with prices climbing from $638,000 to $650,000 during the same period.

Let’s take a closer look at the areas that experienced the biggest price increases for HDB estates in 2023, compared to the growth observed from 2020 to 2023:

3-Room Flats:
– Bukit Batok recorded a substantial price growth of 52.53%
– Toa Payoh followed closely with a growth of 50.35%
– Sembawang saw a rise of 43.26%
– Woodlands experienced an increase of 42.84%

4-Room Flats:
– Bukit Batok topped the list with a remarkable growth of 59.71%
– Sembawang followed with a growth of 48.82%
– Ang Mo Kio saw a rise of 43.86%
– Woodlands experienced an increase of 38.64%

5-Room Flats:
– Sembawang led the way with a substantial growth of 47.07%
– Bukit Batok closely followed with a growth of 46.03%
– Woodlands experienced an increase of 40.19%
– Choa Chu Kang saw a rise of 32.01%

The Housing Development Board (HDB) attributes the moderation in the rate of price increase to the government’s measures aimed at maintaining a stable and sustainable property market. These measures, implemented in December 2021, September 2022, and April 2023, include a 15-month wait-out period for private property owners before purchasing a non-subsidized HDB resale flat and a lowering of the loan-to-value limit for HDB housing loans.

Analysts have noted that the slower price increase observed in the second quarter is not an isolated event. Eugene Lim, key executive officer of ERA Realty Network, emphasized that 21 out of 26 HDB towns experienced price gains in the second quarter, compared to only 12 towns in the previous quarter.

Geylang stood out with the highest increase in resale flat prices at 18.7%, followed by the Central Area with 8.6% and Bedok with 4.3%, according to Mr. Lee.

It’s worth mentioning that the resale flat prices in Bukit Timah have seen a contraction for two consecutive quarters, and this could be attributed to factors such as a lack of new supply and an aging stock of resale flats.

Image Credits: unsplash.com

In conclusion, the HDB resale market continues to show strength, with prices maintaining an upward trend. While the rate of increase has slowed somewhat, the market remains dynamic, and various factors, including government measures, continue to influence price movements across different HDB towns.

Sources: 1 & 2

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Find Out How 1.5M Singaporeans Will Receive up to $700 in August

In August 2023, the Singapore government will implement an enhanced Goods and Services Tax Voucher (GSTV) – Cash scheme to assist approximately 1.5 million Singaporeans with their living expenses. This initiative, announced by Deputy Prime Minister Lawrence Wong during the Budget speech earlier this year, aims to alleviate financial burdens by offering cash aid of up to $700. Let’s explore the details of this program and how eligible individuals can benefit from it.

Under the GSTV – Cash scheme, eligible citizens will receive a one-time cash payment in August 2023. Compared to the previous year, the enhanced scheme will provide up to $300 more, with a total potential payout of $700. This initiative is part of the government’s ongoing efforts to support lower-income and elderly Singaporeans by assisting them with their GST expenses and cost of living.

Streamlined Payment Process

To simplify the payment process, the Ministry of Finance (MOF) will replace cheques with GovCash for individuals who have not provided their bank account information or linked their NRICs to PayNow. GovCash recipients will receive a payment reference number at the end of August, which they can use to withdraw their GSTV – Cash and GSTV – Cash Special Payment at OCBC ATMs across the island. Importantly, recipients do not need an OCBC bank account to withdraw the funds at these ATMs.

Furthermore, GovCash recipients can utilize the LifeSG app for payments to merchants by scanning PayNow or NETS QR codes. They can also transfer funds to their bank accounts through PayNow if they subsequently register for PayNow-NRIC. These measures aim to provide convenient and accessible options for individuals to manage their funds effectively.

MediSave Top-ups

In addition to the GSTV – Cash scheme, eligible Singaporean adults aged 65 and above in 2023 will receive MediSave top-ups through the GSTV – MediSave program. Approximately 624,000 individuals will receive up to $450 credited to their CPF MediSave Accounts. This top-up is part of the 5-Year annual MediSave Top-up initiative announced during Budget 2019 and represents the fifth year of contributions. Eligible Singaporeans born on or before December 31, 1969, who do not receive Pioneer Generation or Merdeka Generation benefits will benefit from this scheme.

Future Support

The Ministry of Finance has assured Singaporeans that additional support will be provided throughout the second half of 2023. This includes top-ups to the Child Development Account, U-Save and S&CC rebates, and the Assurance Package Cash.

Checking Eligibility and Payments

Singaporeans who have previously signed up for government disbursement schemes and are eligible for the GSTV scheme can check their allocated GSTV – Cash and MediSave amounts by logging into the official GSTV website using their Singpass. Individuals who have not registered previously will receive notifications via the Singpass app, SMS, or hardcopy letters sent to their NRIC address by the end of August 2023.

To ensure timely payments, individuals should sign up for the GSTV scheme by July 10, 2023, to receive their payment in August. Those who sign up between July 11 and August will receive their payment in September 2023. Individuals who sign up after September will receive their payments by the end of the following month. The deadline for signing up for the 2023 GSTV scheme is April 30, 2024.

Preventing Scams

To safeguard individuals against scams, the SMS notifications sent by “GSTV” will solely provide information about their benefits. Recipients will not be required to reply to the SMS, click on any links, or provide any personal information. It is important to note that no messages regarding GSTV will be sent through WhatsApp or other mobile app messaging platforms.

Image Credits: unsplash.com

BOTTOMLINE

The enhanced GSTV – Cash scheme introduced by the Singapore government aims to alleviate financial pressures and provide essential support to 1.5 million Singaporeans. By providing cash aid of up to $700, the government strives to assist lower- to middle-income individuals in covering their living expenses. With simplified payment methods and future support planned, Singaporeans can access the financial relief they need during these challenging times.

Sources: 1, 2, & 3

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