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The Basics of Technical Analysis

A technical analyst’s best friends are charts and patterns. But to the uninitiated, these are hard to make sense of. Once you get a hang of the basics however, your new-found knowledge can be used to search for potential investment opportunities.

The Assumptions

Before we get ahead of ourselves, let’s start from the beginning. What is technical analysis anyway?

Simply put, it is a study of past price movement patterns and market data to forecast future price movement directions that is built on 3 key assumptions:

1) Key factors are accounted for
The company’s fundamentals, broader economic factors and market psychology, are all priced into the stock, removing the need to consider these factors separately.

2) Prices follow trends
After a trend has been established, prices tend to move in the same direction.

3) History tends to repeat itself
This is because market participants tend to react consistently to similar market events over time.

However, it is important to remember that past performance is not necessarily indicative of future results. New factors or market conditions may arise which deviate from past trends and patterns.

Candlesticks as Building Blocks

You can’t think about technical analysis without picturing a candlestick chart. It may surprise you to know that candlestick charts are not a modern-day invention. They have been used since the 1700s, having been introduced by Homma Munehisa, a rice merchant in Japan.

There must be something to candlesticks if they have been able to stand the test of time. And indeed, a single candlestick holds invaluable information which investors can distil at a glance:

Spotting Patterns

Individual candlesticks can be strung together to form charts which technical analysts pour over, looking for patterns which give them trading ideas. However, you will have to understand how to spot these patterns and what they mean before you can capitalise.

Here are two simple patterns to ease you into things:

Putting It Into Practice

These two patterns are just the tip of the iceberg. There are many other technical analysis patterns that you can learn about that may help you spot potential trading opportunities.

But even if you know what patterns to look out for, there is an entire universe of stocks to choose from. If you have no prior interest in any stock, it would be hard to know where to begin. It simply wouldn’t be efficient to look at charts of every single stock and find actionable patterns within.

One possible option is to use stock screeners to identify stocks that meet your own criteria. For example, a stock screener can help you find stocks like the one below that exhibited a head and shoulders pattern, during a specified period of time.

Source: Technical Insight on Maybank Kim Eng’s KE Trade platform

Technical analysis is useful for investors to understand. But like we highlighted earlier, it isn’t infallible and is built on several assumptions. Therefore, it is best to use technical analysis along with other tools in your investment toolkit, like fundamental analysis, and to practice often in order to gain a better understanding of how these strategies could help you meet your investment goals.

Disclaimer: This message is for general knowledge or information only. It is not an offer or invitation to buy or sell securities, futures or other products or services. Our products or services vary in different jurisdictions, subject to their respective terms and conditions and the licences our affiliates and us hold. This message is not an advice or recommendation for any financial planning, investment, legal, tax or other purposes and, accordingly, no responsibility or liability is assumed by us or our affiliates, whether directly or indirectly, from any person taking or not taking action

Surefire Ways To Waste Your Money As A Parent

Many parents, including my own, are guilty of spoiling their children with affection and attention. They spend money on the things that would make their child happy. Do not get me wrong! This is a normal reaction. However, excessively giving in to these impulses can lead to serious monetary consequences.

Awareness is the first step!

Repair your spending habits by knowing the “Four Ways To Waste Money As A Parent”:

ELECTRONIC ENTERTAINMENT

Back when I was a child, coloring books and sticker albums were all the rage. My friends and I used to compare each other’s collections and artworks. Let us fast forward to the present age. The children of today are utterly obsessed with Smartphone apps and video game consoles. Downloading no-cost gaming apps are okay, but its extras come with costly price-tags. Furthermore, the unit upgrades of video game consoles are insanely rapid.

For instance, the Xbox One may potentially be the last generational console from Microsoft. The renowned brand is looking forward to re-imagining consoles by combining its features with a Windows-operated PC.

DESIGNER CLOTHING FOR CHILDREN

Children can have sudden growth spurts. Thus, it is unnecessary to purchase loads of baby or toddler clothes. This holds true for shoes and socks as well. Instead, you may ask your friends and family members if they still have their kid’s outgrown clothes.

A kid’s wardrobe is both temporary and cluttered. This is why you must not purchase designer or boutique apparel.

SPECIAL BATHROOM PRODUCTS

The people behind children’s bathroom products lure you with the vibrant array of cartoon characters in their packaging. Barbie bath bombs and Angry Birds toothpaste sounds attractive in theory. However, they may contain chemicals that are harmful to your beloved child. Look at the ingredients rather than focusing on the pictures.

If you really care for the well-being of your child, you will take care of his or her health first.

INFANT FORMULA

Breastfeeding is among the most empowering gifts that women can offer to their babies. As much as you can, opt for breastfeeding because it will not only be healthy but also be able to save you as low as S$1,500 per year.

You may also borrow a breast pump from your friends or family members, but ensure that you change the plastic attachments. You can buy those for far less than a brand new pump.

Image Credits: pixabay.com

Whether you want to throw an extravagant birthday party or to purchase a domestic pet for your child, there are different ways to flush your money down the drain. It is time to make better choices for your family and your finances!

Sources: 1 & 2

Start 2017 Right By Creating A Year-End Financial Checklist

As we reach the end of the year, there are several things that you need to pay attention to.

DETOXIFY YOUR WALLET WITH THE DEBT DIET

The Yuletide season is all about merriment and festivities. Due to the overall positive spirit that it exudes, you may want to shy away from the looming shadows of your debt. I suggest that you pause for a moment. Now is a good time to acknowledge your credit score and to cut back on your spending.

Debt takes a toll on your relationships, your family, and your future. It is only hurting your financial health. You do not want this suffering to roll over the next year. This is why you must consider to go on the “debt diet”. The debt diet uses practical ways to help you get back on the right track. Read about it, here.

OPT FOR GROWING YOUR WEALTH

It comes as no surprise that the newbie investors are apprehensive when it comes to the timing of their initial stock purchases. However, it is important to realize that time is your ally whenever you first invest.

The compound interests of your strategic investments will add up despite the current condition of the market. You will most likely have time to recover. This idea may seem like common sense to you, but there are many Singaporeans who wish that they started investing earlier on.

KEEP YOUR INSURANCE POLICIES IN ONE PLACE

Insurance is your safeguard against unforeseen and unpleasant events. It is a way to minimize your risks and cushion your potential losses. If you are a client of several insurance companies, it is a chore to hold all the policy documents. This is where PolicyPal app comes in. It is an app that allows you to keep all your insurance policies in one place.

After collating your policies, get a summary of your overall coverage. This will help you to decide if you have too much or too little policies. For example, you may avail the AIA GLOW OF LIFE (Critical Illness Insurance) instead of adding a special rider to cover female-focused diseases.

AUTOMATE THE PAYMENT OF YOUR BILLS

December is a hectic month! To save valuable time and effort, consider automating the payment of your bills. Schedule electronic transfers thru your internet banking feature.

You may also set up a bank GIRO. GIRO payments take a substantial amount of time. This is why your money must be available at least 3 working days before the bill’s due date.

Image Credits: pixabay.com

Doing an annual review of your finances can help you spend and invest wisely for the upcoming year. Take the pro-active route to financial wealth!

Sources:1, 2, & 3

Booming industries in Singapore

Singapore is one of the world’s leading countries in commerce and finance, as well as having been recently voted the top country for expats by HSBC. In fact, it is also the top voted country in the world for starting up a business because of the support available for entrepreneurs and their SMEs and SMBs. Added to that is the Singaporean work ethic and the success of financial tech companies currently holding offices there. It’s really no wonder that some of the biggest names in the world are setting up on the island.

Whilst recent years have seen a proliferation of tech companies across the world, there are some industries which are successfully thriving in Singapore. These include but are not limited to those listed below.

IT Services

Whilst this is a broad term for a huge umbrella of industries, there are some information tech services which are thriving more than others within Asia’s finance hub. For example, Twitter has headquarters in the city, a chain of international success stories such as Apple, Google and Microsoft have invested in offices, with Netflix opening their Asia division in Singapore next year. App creators and developers, cloud storage and cybersecurity are some of the divisions of tech which are really booming now.

The Singapore government knows and supports the value of tech industries and launched Smart Nation – an initiative to empower citizens through the use of tech and pervasive accessibility, to encourage growth in this key industry.

Automotive

Having pumped some serious money into R&D recently, the Singaporean government have encouraged experts from all over the world to research and develop all industries. One of the major players is the automotive industry, both Delphi and Bosch have set up R&D departments for the industry. With a workforce enriched with electronics and engineering, it is unsurprising that the automotive industry is racing to the forefront of successful sectors in Singapore.

Healthcare/ Biomedics

Again, the country’s provision for R&D makes Singapore a thriving hub of healthcare and many big pharma companies have offices in the city. SMEs from the medtech sector have been sprouting up all over Singapore, using the excellent support and resources to incubate their ideas before spreading to the whole of Asia. This means the markets in this area are very successful too, rendering it a solid investment.

Creative industries and arts

With the amount of tech developments happening within the country, Singapore is awash with creative agencies offering design services, game creation and development and animation to name just a few. The Singaporean government expect to see more of these companies as we head into 2017.

Arts and performing arts are respected in Singapore and have seen a steady increase in recent years, making it a cultural place, nurturing cultural interests.

Communications

Its thriving tech opportunities, educated workforce and the desire to be independent and self-sufficient have led to a proliferation of communications companies springing up throughout Singapore. From telecommunications to information marketing and internet comms. companies, the tech advancement in Singapore lends itself well to the ever expanding communications industry.

Beat The Christmas Shopping Rush With These 5 Tips

If you are a fan of late Christmas shopping and holiday parties, curb your spending by following these five savvy tips:

#1: ACCEPT THE REALITY

The first step to survive the Yuletide rush is to mentally prepare yourself for what is about to come. Recognize that you tackling one of the most stressful seasons of the year. Except the huge crowds and the long queues at the shopping centers. These are inevitable.

Do not try to convince yourself that you are collected when you are not. Instead, change your mindset by accepting the gravity or reality of the situation.

#2: CREATE A LIST AND CHECK IT TWICE

Create a comprehensive list, which contains the people whom you want to buy gifts for. Go through each name and allocate a specific amount beside it. Strictly follow this plan when you are shopping. If your budget still falls short, make necessary revisions.

For larger families, consider giving one present per married couple. Remember that you are not Santa Claus and it is not your duty to give everyone a gift!

#3: SHOP DURING OFF-PEAK HOURS

It does not take a sharp scientist to come into conclusion that shopping during the peak hours is a horrible idea! Prevent the rumination and nightmares about the hours-long frenzy in the mall by avoiding the weeknights and the weekends.

Come out victorious by frequenting your favorite shops during the early mornings and the weekdays.

#4: USE THE INTERNET TO YOUR ADVANTAGE

Use the power of technology to make your life easier. Firstly, do a comparative study to pinpoint the latest deals. It is worth spending the effort in order to stretch your dollar.

Secondly, buy your gifts directly from the online retailers. This will give you the convenience of not having to leave your home. More so, the items will be shipped on your doorstep.

Browse through the credible reviews to aid your search for the best brand at premium prices. Stuff Singapore provides reliable information regarding the latest gadgets while Renotalk focus on the latest in furnishing.

#5: OPT FOR OLDER MODELS

If you are planning to purchase gadgets or appliances for your parents, you can score greater savings by buying the older models. Sometimes, stores offer discounts on last year’s units to prepare for the upcoming release of the new one.

Since stores constantly rotate the models, the previous models are left at the sides or at the back. Look for those!

Image Credits: pixabay.com

It is important to work with how much money can afford to spend this Christmas. As soon as you start spending through credit, you will have the burden of paying it all back on the next year. That is not worth it!

Sources: 1 & 2

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