Entries by Spencer Li

DBS – are the banks leading the decline? | Technical Analysis | Singapore Stocks

In my previous post, I mentioned that Genting was going to continue its decline, and currently it is below 1.50. The STI Index has closed on a new low, below the previous low of 2720. What does this mean? It means that there is a good chance of seeing new lows, either with or without […]

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Representativeness Bias – The Dangers of a Small Sample Size

In order to derive meaning from life experiences, people have developed an innate propensity for classifying objects and thoughts. When they confront a new phenomenon that is inconsistent with any of their preconstructed classifications, they subject it to those classifications anyway, relying on a rough best-fit approximation.     There are two main types of […]

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Cognitive Dissonance Bias – This Can’t Be True!

When newly acquired information conflicts with preexisting understandings, people often experience mental discomfort – a psychological phenomenon known as cognitive dissonance. Cognitions, in psychology, represents attitudes, emotions, beliefs, or values; and cognitive dissonance is a state of imbalance that occurs when contradictory cognitions intersect.     This term encompasses the response that arises as people […]

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Market Seasonality and Patterns – When is the Best Month to Buy?

One aspect of market analysis is statistical analysis, which is using statistics to find correlations and patterns, where opportunities of skewed probabilities may lurk, giving you an edge over the market in the long run. For investors, this lets you know the best month to start building your portfolio, or to rebalance/adjust your portfolio allocation. Seasonality […]

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Superior Long-term Investing: How to Catch the BIG Swings

There is a general misconception that chart-reading and technical analysis are only for short-term traders, but this is not true. Investors who learn to read charts and adopt long-term trend-following techniques can achieve superior returns to a pure buy-and-hold investor with the added benefit of taking on less risk.     Why the traditional buy-and-hold […]

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