A series of video tutorials to help you get started! (In collaboration with TradeHero & SGX)

Swing Trading vs. Intraday Trading: Which is Better?

When it comes to trading, most people think that trading is stressful and boring because it involves staring at a screen the whole day and watching prices move, and then having to execute trades at lightning speeds to make any profits.

That is quite often what is shown in the movies, and very much dramatized.

In reality, there are many different kinds of trading, and here is a simple infographic depicting the main categories.

Source: Forex Useful

 

Generally, what you see in the movies tend to depict scalpers and day traders, which is the most stressful kind of trading. I myself tried it for a couple of years, but it started to take a toll on my health, which I decided was not worth the money, even though it was pretty good.

Position trading is more useful in timing the market to build your long-term portfolio, as I mentioned in my previous blog post: http://synapsetrading.com/2018/05/how-to-build-a-1m-dollar-portfolio-by-30-the-practical-stuff/

Hence, I find that the most useful kind of trading for anyone who is doing it part-time, or does not want to get too stressed out, is to use a swing trading approach. This means taking tactical positions to capture the medium to long-term trends.

With just 15 minutes a day, it is more than enough for me to place and manage my swing trades, which leaves me more free time to focus on the things that matter in life.

Of course, there are some drawbacks to swing trading as well, for example your income will be more lumpy as compared to intraday trading, and you will need a ton of patience in waiting to enter the perfect trades, and also waiting for trades to play out.

In summary, the type of trading style really depends on each individual personality and amount of free time, but personally I prefer to use the swing trading approach because it gives me the best returns for my time and effort.

Do you know what is your preferred style, and does it play to your strengths? 😀

 

How to Build a $1M Dollar Portfolio by 30 (The Practical Stuff)

This is the dream of many millennials, to build a million-dollar portfolio as soon as possible, so that they can live off the passive income, and focus on pursuing their dreams, interests or hobbies, without having to worry about money any more.

When I was in my 20s, that was my dream as well, which was why I read hundreds of books ranging from investing, trading, psychology, motivation, philosophy, biographies, businesses, digital marketing, finance, accounting, etc. And that was when I realised that most of wealth creation boiled down to 3 simple core principles.

1) Multiple sources of Cashflow

The first thing you need to get started is a solid base capital, so at the start if you do not have much capital, almost all your time and resources should be focused on generating as much cashflow as possible to build up your ammunition.

If you have a well paying job, then you can start saving aggressively, but to speed up the process, most people will seek to generate multiple sources of income or cashflow. Some examples include working a side job, starting an online business, etc.

For me, I decided to use forex trading, because it did not require much capital to start, and also because I did not have much spare time, and could only afford to spend 15-30 minutes a day. Now, it provides me a steady monthly cashflow, which allowed me to move on to step 2.

2) Timing your portfolio purchases

Once you have sufficient capital and consistent cashflow, the next step is to start building your long-term portfolio. Start by having a rough idea oh what your ideal portfolio is, and what kind of risk/return profile you are looking for. Look out for assets that have a good chance of capital appreciation, as well as passive returns in the form of dividends or rental yield. Over time, I tend to favour having more “passive income” type of investments.

Do not be in a hurry to buy everything at once. Watch and study the market cycles, and aim to buy stuff only when they are cheap or “undervalued”. This can be done easily by looking at the charts of any product over the past 50-100 years of history. There is no need to spend hours reading financial reports or analyst reports. Remember, our goal is to get the most out of our limited time.

3) Re-invest the passive income

As your portfolio grows, and you continue to add to it via your monthly cashflow contributions, the real kicker is when the effect of compounding kicks in.

The best way to do this is to also re-invest the passive income which you get from the portfolio itself, creating a snowball effect which will literally grow your portfolio exponentially.

Once you have assembled your ideal portfolio, all you need to do is to check on it once every 3 months or so, and do some rebalancing. In the meantime, you can pretty much enjoy the fruits of your labour, and focus on living your life instead of having to worry about money.

For me, this means travelling around the world (50+ countries to date!), and sharing my knowledge to inspire and help others do the same.

Now, are you ready to start building your own portfolio?

Educational Video Series – Where & How to Buy Bitcoin?

In this short video, our trainers share on the different types of brokerage accounts (fiat vs. coin exchange), and which are the popular ones that most people are currently using, as well as how to get started.

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P.S. We have helped our members make over $300k of profits to date, and the number continues to grow!

The One Key Trait which Separates Billionaires from Millionaires

*Note: This article is adapted from Quora (written by Ziad K Abdelnour, Wall Street Investor), and the source to the original article is listed at the end of the article.

Given the nature of my business, I am often asked by friends how does it feel like to deal with billionaires on a daily basis and what really makes them tick. Understanding after all the billionaires psyche is key in unlocking potential not seen anywhere else.

Well for a start…let me tell you that the main thing I realized after starting dealing with billionaires a decade ago is that billionaires tend to be really good at understanding systems of value creation and placing themselves into those systems more effectively than anyone out there.

Billionaires tend in fact to view the world as a tangibly fungible place. They see the world and want to move the puzzle pieces entirely around. They look for the faults in the ecosystem and identify massive holes and what could be added to fully capture that value. Then they spend about 10 years maniacally attacking the gap, organizing people, recruiting and generally creating a “cult”. They create a bible so to speak of values and ideas that bundle together in such an appealing way to attract the smartest people around (aka the future millionaires).

The billionaires I know don’t look forward to the weekend. They don’t drink. They work from 5am to midnight everyday including weekends. They don’t socialize with friends and they often mix friends and work. It’s all one big chain that supports their vision of the future and tying up the value. This is a different internal programming than most people have out there.

What do you do if you live in Trent, Michigan today? The auto plants around you are closing. It’s tough to be a billionaire potential person in that environment, but 100 years ago in 1912 it was actually possible. Ask the Ford family about this. So overall, location, timing, industry and proximity can be a major factor that comes into play. Tech is what’s happening now, but other industries happened before. 1950s Texas oil well drilling, 1910s autos Michigan, 2010s Silicon Valley. There is much to discuss, but the mindset pieces are the key and are universal.

So what to make of it all?

Well, I see billionaires having 3 types of focus

1) Inner/self: a keen sense of where you want to go, and self discipline to get there.
2) Empathy and the ability to inspire others.
3) Awareness of where the greater world is going, and what can be done to shape it.

The young millionaires I know seem to spend a lot of time working on 1 and 2, talking about emotional self discipline & company culture.

The billionaires & ultra high net worth power players have on the other hand mastered all 3, particularly the 3rd. They are the “unreasonable” ones who adapt the world to their vision. They are absolutely fearless. Perfectly willing to move mountains, change cultures, lobby regulation to achieve their vision and kick real ass..

Come to think more of it, billionaires would seem to have more in common with a homeless man on the street than a millionaire in the sense that they are completely unconventional and independent thinkers. They are outcasts from regular society and most probably will always be.

A millionaire might have more sense about her-himself and scale back to preserve wealth and “quit while they are ahead” sort of speak.

The billionaire mindset defies logic and decisions are made against all outside reason. They really don’t give a rat’s ass about the money and frankly have a clean detachment to it, therefore with that clarity of thought mixed with pursuing their passion, make most of the money.

One common theme that I see all the time in my billionaire friends and that’s the theme of failure before success. Self-made billionaires NEVER give up if they fail. They just go on and on and on until they stop failing and become a success.

Now that you know the basics of the billionaires psyche, go use those priceless tips to make a killing and never turn back.

Source: https://www.quora.com/Whats-it-like-to-be-a-billionaire/answers/7455932

 

Here are 5 Reasons Why Singaporeans May Never Get to Retire Despite working Harder

As the cost of living continues to increase year after year, you probably would have spent some time pondering about your financial security. You probably would have heard stories of or personally experienced a company downsizing, a pay cut, the loss of your job, mounting expenses, or just a sudden realization that the world isn’t such a stable place.

No matter when you discover this truth, it is critical that you come to terms with it. Only by knowing the truth can you deal with the reality of financial troubles ahead. Last year was marked by uncertainty, and it probably is just the tip of the iceberg of what can happen going forward.

1For most people, wages will never be enough to sustain their lifestyle at retirement.
Source: media.cagle.com

Talk to any taxi driver and he will probably complain to you about any of the following:

  • Rising healthcare costs
  • Rising petrol costs
  • Rising food costs
  • Rising housing costs
  • Instability in the economy

These money issues are real. However, before we go into the solutions, we have to understand where these problems come from.

 

1. Low Interest Rate Environment

A low interest rate environment means that you need to go beyond your bank deposits to preserve your wealth.

However, despite having more mobile phones than people in Singapore, we are painfully ignorant in financial matters. We are educated, but not wise; we are connected with each other, but disconnected with reality.

Truth be told, most people have no idea how to even match up to the bank interest rate, much less beat the bank interest rate. The average level of financial literacy in Singapore is still shockingly low. To be a decent investor, it would be necessary to at least understand basic financial instruments, financial asset classes, methods of speculation/investment, and simple risk management.

Financial literacy is the first step to fighting inflation. You don’t necessarily need to know exotic strategies like statistical arbitrage, premium collection on SPY options, futures pairs trading, spread betting, or betting on changes in the yield curve. But a basic understanding of market cycles and trading principles will make a large difference in one’s investment results.

2. CPF Alone May Not Be Sufficient

In years of economic boom, Singapore tends to experience inflation of 4-5%. The CPF ordinary account grows at 2.5%, which means your money’s losing value when the economy grows. Counting on CPF alone may help you get by, but would it really sustain the lifestyle you desire? Even if the inflation rate falls to 1-2% a year, very few Singaporeans can say they are able to retire comfortably.

It is more prudent to have something besides CPF to fall back on.

Some solutions include:

  • being willing to downgrade your apartment
  • holding structured deposits (can yield 4% or more)
  • holding high-dividend stocks

However, these strategies will probably only help in wealth preservation, not wealth creation.

For wealth creation, you need far more investment sophistication and dedication.

Doing a refresher for the setups before we embark on live trading! ??? #tradingarcade #realtraders

A post shared by Spencer Li ?? Synapse Trading (@iamrecneps) on

 

3. Zero Inflation Could Be the Norm

A world of zero inflation is good for the average consumer (he thinks he won’t be paying more for his food/car/house/petrol), but it’s bad for wages.

Truth be told, when inflation suffers, it is normally a terrible situation for the economy to be in. Remember the productivity drive a few years ago? The government aimed for 2% productivity growth every year, because inflation was terribly low and the country had to do something about it.

sgInflation has fallen and fallen, and has even turned negative in 2015 and part of 2016.
Source: tradingeconomics.com

Stagnating or falling wages can become the norm. With wages in peril, it is even more essential to generate additional streams of income, or risk falling into financial destitution.

Examples of shrinking professions include:

  • F&B services
  • Marketing professionals (yes! because the supply has caught up with demand in recent times)
  • Insurance Agents
  • Property Agents
  • Logistics professionals (yes! because the supply has caught up with demand due to the euphoric onslaught of e-commerce firms)

If you have children, the best thing you can do is to advise them regarding these trends. Don’t be so concerned about their math scores, science scores, or whatever score; look to give them training in these skills, and to explore their interests in these areas.

 

4. Persistently High Property Prices

This is good news for existing property owners, but bad news for new property buyers. Singapore will continue attracting rich foreign buyers because that’s our value proposition as a nation. This problem keeps worsening as long as our property is affordable to wealthy investors from overseas. The government is likely to step in if property prices start falling.

The issue with high property prices is that most people end up taking 20 to 30-year loans and live with debt for most of their adult life. This keeps the economy stagnant and unable to experience growth like we’ve seen in the 1980s and 1990. A debt-ridden adult is much less likely to splurge. With an entire generation of people living with huge mortgage loans, we won’t see fantastic growth in a very long time.

Opening speaker for SMART Expo SG 2017! Thanks to everyone who came down to support! ? #suntec #property #guestspeaker

A post shared by Spencer Li ?? Synapse Trading (@iamrecneps) on

 

5. Rising Medical Costs and Falling Government Support

Take note: it’s not the government’s fault; blame it on falling birth rates. With a smaller workforce, tax revenues will fall and Singapore will be less able to provide for its elderly.

Singapore will age, and more and more sick people will depend on a smaller proportion of working adults in this country. It’s inevitable that the government cannot support the large number of elderly who will reside in our hospitals and hospices. It’s the same ‘graying’ problem that Japan is facing.

Falling government support, along with higher demand for doctors and strained infrastructure will cause medical bills to rise. Sure, it’ll be great for healthcare stocks, but healthcare spending on the elderly is not expansionary. Basic health economics would differentiate between healthcare spending that improves economic well-being (vaccinations on children, basic sanitation etc.), and healthcare spending that does not improve economic well-being. We’ll be seeing a lot of spending that does little to boost the economy.

 

So, “What Should I Do?”

The fact that you’re reading this shows that you are concerned for your financial future. Keep learning, reading, and exploring ways to combat this reality. After all, people perish for the lack of knowledge, not the lack of determination. Acquiring the right investment skills, financial management practices, and general knowledge will help protect you and your family from financial destitution.

My greatest hope is that you, the reader, would be motivated to start educating yourself financially, and to get your hands dirty in the investment world.

Cheers, and see you all soon! 😀

P.S. If any of you are keen to start learning about trading, I strongly recommend you join us for our next “Trading Foundation Workshop”, where you will learn 4 easy strategies to tackle any market (stocks, forex, CFDs, etc), and how you can apply them with as little as 15 minutes a day to make 20-40% annual returns consistently.

In our previous workshop, during the live trading segment, one new trader made US$200+ from following our USD/SGD short trade, while Spencer made US$454 on the same trade and over US$1,200 of profits in total during the workshop.

 

 

RESEARCH SOURCES & REFERENCES

www.blog.linkedin.com/2016/10/20/top-skills-2016-week-of-learning-linkedin
www.cnbc.com/2016/10/20/the-top-10-skills-that-will-get-you-hired.html