Who Are Day Traders & Should You Be One

Author: Louise Andrea Jimera

 

Traders. When you hear this word, you instantly think up an image of two types of people: One that is wearing a business suit while on a tropical vacay with a drink in hand (however inappropriate) and the other looking like a chronic couch potato in his boxers watching Netflix.

 

 

 

Why is this so?

People have different idealizations of traders, you see. Some tend to think that people who aspire to become traders want a life bigger than what they have now. And who wouldn’t? I’m pretty sure that if you were given a chance to live a completely different life than you have now, you too will have second thoughts. To dream big and actually become big is an accomplishment worthy of praise. And for many people, they believe that trading is there ticket to success.

Another perception of people who claim to be “traders” is that they’re nothing but a bunch of unemployed individuals (who also refuse to be employed, btw) and is looking for a shortcut to success. This really puts traders in a bad spot as their reputation is viewed incorrectly. Check this out: https://www.investopedia.com/articles/active-trading/013015/worst-mistakes-beginner-traders-make.asp.

The reason why there are two completely different perceptions of traders in the first place is because it’s true. Some people are getting into the activity in order to bring change into their lives – even if it means working really, really hard at it – while others tend to make trading an excuse for lazy and complacent lifestyle. Among these two different types of people, we are hoping that you are the first one – a person with a real drive for financial freedom. You know why? It’s because trading, when done for the right reasons, can really change your life for the better.

Still, it wouldn’t work for a Mr. Lazy Pants though.

What Makes A Real Trader

Trading is not for everyone (read more). Even if lots and lots of people take an interest in trading (like back in 2010 when the internet was crazed over Bitcoin), it doesn’t mean that they can all be traders. To become one, you need to have patience, perseverance, and the right skill set to make meaningful financial decisions. If you do it half-heartedly and haphazardly, you’re in for terrible financial losses. This is why many so-called “traders” go bankrupt as soon as they start trading real money.

First off, you have to be willing to learn. Whether it be the stock or cryptocurrency market that you’re planning on entering, fact of the matter is that you will need to invest a significant amount of time and effort to familiarize yourself with market activity. If you think you have these kinds of attributes, then I guess that prequalifies you to become a trader. At the very least, you would have the aptitude to become one.

What comes next is just hard work and patience. If you simply rely on trading software and not learn how to deal with these kinds of negotiations yourself, you’ll end up digging your own financial grave. I mean, sure there are many promising software out there but if you really want to be on top of your game, you have to get in the game – understand? Also, you have to be clear on what kind of trader you’re going to be.

You basically have two options: Day or Swing Trader.

 

Day Trading VS Swing Trading

This is not really gibberish; it’s quite easy to spot the difference between these two types of traders. If you choose to “day trade,” this means that you acquire and dispose of stocks or currencies in a period of 24 hours. Trading Review can also provide you good input on this topic.

Say, you start by investing $500 into stocks. You let it roll for the next couple of hours and sell them off when you think the time is right, and maybe earn yourself a little profit on the side. As you may already guess, in day trading, there are good days and bad days. There are times when you make right purchases and you get to bring home the bacon. Other times, you sell off what you have for less than what you bought them for. I guess it’s just all in a day’s work.

Now, swing trading is a little different. This is the kind of trade you do when you don’t really have any plans for your money yet – so you invest it in stocks or currencies (or both). And instead of selling them off after just a couple of hours, you let them sit for a while. Most people would go several months at a time. This gives your investment more time to grow and assuming that you’ve partnered with a company with promising growth, your stocks are bound to increase in value over time.

 

Lendlease Global Commercial REIT IPO Prospectus and Summary

Overview of Lendlease Global Commercial REIT

Lendlease Global Commercial REIT (“Lendlease Global REIT”) is a Singapore real estate investment trust (“REIT”) established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally that are used primarily for retail and/or office purposes as well as real estate-related assets in connection with the foregoing. The Manager is Lendlease Global Commercial Trust Management Pte. Ltd., an indirect wholly-owned subsidiary of the Sponsor

Lendlease Global Commercial REIT IPO Listing in Singapore

 

  • Type = Commercial + Retail Malls
  • Sponsor = Lendlease Corporation Limited. (Sponsor will subscribe about 27.2% of the total units.)
  • Total Units Offered = 387,474,987 units (to raise S$341.0 Million)
  • Portfolio = 1 retail property in Singapore (71.5%); 1 commercial office property (Grade A Freehold) in Milan, Italy (28.5%)
  • Portfolio Size = S$1.403 Billion
  • IPO Offer Price = S$0.88
  • NAV per unit = S$0.8134
  • Price / NAV = 1.082
  • Distribution Yield = 5.8% (2020), 6.0% (2021)
  • Distribution Policy = 100% for 2020 & 2021. At least 90% thereafter. Semi Annual Payout.
  • Occupancy Rate = 99.9%
  • WALE = 4.9 Years
  • Gearing Ratio = 36.4%
  • WADM = 3.8 Years
  • Offer Closing Date: Sep 30, 2019, 12pm
  • Listing Date: Oct 2, 2019, 2pm
  • Lendlease Global Commercial REIT IPO Prospectus

PORTFOLIO

 

TENANT / SECTOR DIVERSIFICATION

LEASE EXPIRY PROFILE

INCOME PROJECTION

TRUST STRUCTURE

INDICATIVE TIME TABLE

 

Compare to other Singapore REITs here.

 

If you need an independent professional review on your current REIT portfolio and need any recommendation, you may engage me in the REIT portfolio Advisory. REITs Portfolio Advisory.  http://mystocksinvesting.com/course/private-portfolio-review/

3 No-No Reasons to Invest in Cryptocurrencies with your Retirement Fund

Many retail investors are drawn to the hype of investing in cryptocurrencies as they believe this asset class, which is aggressively marketed as a phenomenal wealth creation tool, fulfils “get rich quick” dreams.

Bitcoin is the best known and largest of the 1,600-odd cryptocurrencies. The US$140 billion market capitalisation of Bitcoin is even bigger than the famous McDonald’s (Ticker: MCD) of US$129 billion.  The meteoric rise of Bitcoin has drawn many investors, with some believing that the underlying blockchain technology could become one of the most powerful tools in the future financial world. No doubt cryptocurrencies may change the financial world in future, but this asset class may not be suitable to everyone due to the underlying risks. The following are the 3 No-No reasons if you are investing in cryptocurrencies for your retirement planning.

1st No-No – Valuation

There is no intrinsic value of a cryptocurrency. A bitcoin has no proper valuation method or intrinsic value and it is not backed by any tangible asset – unlike equities which can be valued by their earnings using PE (Price-Earnings) Ratio or valued by future cash flows via the DCF (Discounted Cash Flow) model; bonds by future coupon pay-outs; property valued by rental income or comparative method by location; and commodities’ prices determined by the actual demand & supply. No one can determine what the actual value of a cryptocurrency is. Should Bitcoin be worth US$100,000, US$1,000, 10 cents or be worthless? As there is no measurement to help you value the cryptocurrency, there is no way you can judge whether you are buying at over its value, below its value, or throwing your money away if the Bitcoin becomes worthless one day.

2nd No-No – Safety

There is no central bank, government or financial authorities, such as custodians, registries, and the like, to protect investors. Investors mainly depend on their private keys and digital wallets to safeguard their own coins. For instance, if the investors forget or misplace the login details of their private keys and digital wallets, there goes all their investments.

best retirement plans - financial alliance

3rd No-No – Transferability

Transfer of the money, buying & selling at different exchanges, keeping different coins in different digital wallets and exchanges can be a very daunting task to most people. For example, investors have to transfer cash from our banks through XFER to Coinhako, buy Bitcoin and transfer to Bittrex / Bitfinex (exchanges), then sell Bitcoin and buy Ripple (XRP). If investors want to take profit from XRP and return the cash back to their bank savings account, they will have to reverse the process. Every transfer involves cost and the transfer can go MIA (Missing In Action) if the investors are not clear about what they are doing.

Blockchain may very well be one of the technologies of the future, but this alone doesn’t warrant investing in cryptocurrency, especially for something as crucial as retirement planning. The risk of “losing everything” is just too high to take if something goes wrong. Building a diversified investment portfolio with traditional asset classes is still a safer way to build up your retirement fund. Don’t forget, you can also talk to a Financial Alliance representative in order to get the best retirement plans  to suit your needs.

 

Kenny Loh is a Senior Consultant of a largest Independent Financial Advisor in Singapore. He won 4 Awards in 2017, Financial Alliance Quality Class Merit Award, Top 5 Investment Asset Under Advice (AUA) Award, Rookie Consultant of the Year Award and Best Practice Consultant Award. Visit his personal profile here. https://fa.com.sg/kennyloh/