• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

At 23, NSF is already a stock market veteran

krafty

Alfrescian (Inf)
Asset
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
<html xmlns="http://www.w3.org/1999/xhtml" lang="en" xml:lang="en">
<head>
<div class="print-logo"><img class="print-logo" id="logo" src="http://business.asiaone.com/sites/all/themes/custom/a1biz/logo.png" alt="AsiaOne Business" /></div>
<hr class="print-hr" />
<div class="print-content"><div class="ds-1col node node-article view-mode-print clearfix">


<div class="field field-name-title field-type-ds field-label-hidden"><div class="field-items"><div class="field-item even"><h2>At 23, NSF is already a stock market veteran</h2></div></div></div><div class="field field-name-field-feature-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://business.asiaone.com/sites/default/files/styles/medium/public/2014/10/20/20141020_Cheng_ST.jpg" width="410" height="267" /></div></div></div><div class="field-group-format field-group-div group-print-publication collapsible print-pub speed-fast effect-none">
<h3><span class="field-group-format-toggler"></span></h3>
<div class="field-group-format-wrapper" style="display: block;"><div class="field field-name-field-publication-date field-type-datetime field-label-hidden"><div class="field-items"><div class="field-item even"><span class="date-display-single">Tuesday, Oct 21, 2014</span></div></div></div><div class="field field-name-field-byline field-type-taxonomy-term-reference field-label-hidden"><div class="field-items"><div class="field-item even">Rachel Boon</div></div></div><div class="field field-name-field-source field-type-taxonomy-term-reference field-label-hidden"><div class="field-items"><div class="field-item even">The Straits Times</div></div></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>All it took was a TV programme featuring renowned investor Warren Buffett to kick-start Mr Cheng Xiang Nian's interest in investing when he was a teenager.</p>
<p>The 23-year-old full-time national serviceman already has five years of experience in the stock market. He embarked on his investing journey the moment he turned 18.</p>
<p>Discovering this passion has given him a sense of direction. "When I tried money management and dabbling in the markets, it was the only thing I felt passionate about.</p>
<p>I enjoyed what I did - going through spreadsheets, analysts' reports, the balance sheet - it's not dry for me."</p>
<p>This is why he intends to work at a major brokerage firm, hedge fund or bank "because I think they can bring my investing skills to the next level, so I can not only help myself, but also others in managing their funds next time".</p>
<p>He plans to study finance in Britain as part of the pathway to achieving his goal.</p>
<div class="embed">
<div id="" class="story_phototable clearfix node-18947">
<div class="ds-1col node node-multimedia view-mode-node_embed clearfix">
<div class="field field-name-title field-type-ds field-label-hidden">
<div class="field-items">
<div class="field-item even"><span class="story_photo">20 tips from Warren Buffett</span></div>
</div>
</div>
<p><span class="label-inline story_photoclick">Click on thumbnail to view. Story continues after photos. </span><span class="story_photoclick">Photos: AFP, Reuters, Bloomberg</span><br />
<div class="field-name-field-media" id="story_photo_wrap">
<ul class="field-items">
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/07.jpg" width="120" height="78" alt=" “Rule No. 1: Never lose money.
&lt;br&gt;Rule No.2: Never forget Rule No.1”. &lt;br&gt;
&lt;br&gt;Spend wisely. Buy only what you need. Ask yourself if
you can save money without compromising on value." title="1) Never lose money" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/08.jpg" width="120" height="78" alt="Don’t save what is left after spending; spend what is left after saving”.
&lt;br&gt;&lt;br&gt;
Save for a rainy day. Put money aside for your future
goals and risks after you receive your pay,
and see how you can best invest it." title="2) Save money" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/09.jpg" width="120" height="78" alt="“Life is like a snowball. The important thing is finding wet snow (opportunities) and a really long hill (long term)”.
&lt;br&gt;&lt;br&gt;
Like what Mr Buffett learned in his youth, success and
wealth take time. Make money by keeping a diversified
investment portfolio, and waiting for it to bear fruit." title="3) Have a long-term plan" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/10.jpg" width="120" height="78" alt=" “You really don’t need leverage
(borrowed money) in this world much.
If you’re smart, you’re going to make
a lot of money without borrowing”. &lt;br&gt;&lt;br&gt;
You will never become rich if you have to keep
paying back what you earn." title="4) Be debt-free" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/11.jpg" width="120" height="78" alt="“Risk comes from not knowing what you’re doing”.
&lt;br&gt;&lt;br&gt;
The biggest risks have the biggest payoffs. Just make
sure you know the rules before you play the game." title="5) Know the risks" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/01.jpg" width="120" height="78" alt="&quot;Never depend on a single income. Make investment to create a second source.&quot;" title="6) Invest" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/02.jpg" width="120" height="78" alt="&quot;If you buy things you do not need, soon you will have to sell things you need.&quot;" title="7) Spend wisely" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/03.jpg" width="120" height="78" alt="&quot;Do not save what is left after spending, but spend what is left after saving.&quot;" title="8) Save money" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/04.jpg" width="120" height="78" alt="&quot;Never test the depth of a river with both feet.&quot;" title="9) Be cautious " /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/05.jpg" width="120" height="78" alt="&quot;Do not put all eggs in one basket&quot;" title="10) Don't risk everything" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/06.jpg" width="120" height="78" alt="&quot;Honesty is a very expensive gift. Do not expect it from cheap people.&quot;" title="11) Value honesty" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/12.jpg" width="120" height="78" alt="&quot;You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick 'no.'&quot;" title="12) Say no to a quick buck" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/13.jpg" width="120" height="78" alt="&quot;Focus on the future productivity of the asset you are considering. If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on. No one has the ability to evaluate every investment possibility. But omniscience isn’t necessary; you only need to understand the actions you undertake.&quot;" title="13) Understand your decisions" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/14.jpg" width="120" height="78" alt="&quot;Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game. And the fact that a given asset has appreciated in the recent past is never a reason to buy it.&quot;" title="14) Don't speculate" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/15.jpg" width="120" height="78" alt="&quot;Games are won by players who focus on the playing field — not by those whose eyes are glued to the scoreboard. &quot;" title="15) Care about result, not daily fluctuations" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/16.jpg" width="120" height="78" alt="&quot;Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.&quot;" title="16) Be focused" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/17.jpg" width="120" height="78" alt="&quot;Owners of stocks, however, too often let the capricious and irrational behavior of their fellow owners cause them to behave irrationally as well. &quot;" title="17) Don't be influenced by comments" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/18.jpg" width="120" height="78" alt="&quot;We first have to decide whether we can sensibly estimate an earnings range for five years out or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate. If, however, we lack the ability to estimate future earnings — which is usually the case — we simply move on to other prospects.&quot;" title="18) Don't forgo an attractive purchase because of the macro or political environmen" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/19.jpg" width="120" height="78" alt="&quot;Indeed, the unsophisticated investor who is realistic about his shortcomings is likely to obtain better long-term results than the knowledgeable professional who is blind to even a single weakness.&quot;" title="19) Know your weaknesses" /></li>
<li class="field-item"><img src="http://business.asiaone.com/sites/default/files/styles/thumbnail/public/2014/06/26/20.jpg" width="120" height="78" alt="&quot; So ignore the chatter, keep your costs minimal, and invest in stocks as you would in a farm.&quot;" title="20) To sum up..." /></li>
</ul>
</div>
</div>
<div class="clear"></div>
</div>
</div>
</p>
<p>Mr Cheng has been aware of the value of a dollar since he was a child, having seen how hard his father, a businessman, worked to make his money, and says "you have to respect money".</p>
<p>He does not shy away from the mistakes he has made in investing, and wants to spread the word.</p>
<p>He says: "I just want to emphasise the point that if someone wants to attempt this (investing), he has to have proper knowledge before he begins, because if you do not respect this 'game', the market will demand its pound of flesh.</p>
<p>It's as dire as it sounds."</p>
<p>The self-taught investor also sees the need for investors to be emotionally stable.</p>
<p>"Usually when a beginner loses money, he feels angry, frustrated, his ego is hurt, and he doesn't want to admit that he is wrong."</p>
<p>The person could wait for the stock to rise to levels where he breaks even, as that proves he was not wrong, but Mr Cheng warns that "that is very dangerous thinking".</p>
<p>"Most of the time, the price will not go back to its original state and you end up destroying your account."</p>
<p>He cites Wall Street legend Martin Schwartz as a good example of someone who persevered past his failures.</p>
<p>"When he first started out, he did fundamental analysis purely, for 10 years. He said he did not make money and was terrible at it.</p>
<p>"It was only after 10 years that he made the switch to technical analysis. He started to make money and became incredibly successful."</p>
<p>Mr Cheng uses both fundamental analysis and technical analysis, looking to Mr Schwartz and investment guru Jim Rogers as inspirations.</p>
<p>Referring to Mr Schwartz, he adds: "I'm not trying to say technical analysis is better. I'm trying to say that there are many roads to Rome, so find your own style that fits your personality.</p>
<p>"Find a methodology that works for you and do not be disheartened by your failures."</p>
<p><strong>Q: Are you a spender or saver?</strong></p>
<p>I took to saving at a very early age. In Primary 1, my dad would give me $3 a day and I'd save about $2 every time if possible.</p>
<p>I have had this habit from a long time ago. I also keep all my receipts over the course of a month and log them on a personalised Excel spreadsheet.</p>
<p>I divide my expenditure into dining, entertainment, video games, clothes, petrol, insurance... so at the end of every month I can make adjustments if I am overspending in one category.</p>
<p>I spend the most on books about whatever I feel that's interesting. I may buy $300 worth of books every few months.</p>
<p><strong>Q: How much do you charge to your credit cards every month?</strong></p>
<p>I try to spend a maximum of $200. I prefer to pay everything by cash if possible, because if you allow the habit of letting the credit card interest rates snowball, it can be impossible to clear your debt.</p>
<p>I also do not buy anything unless I absolutely need to. I don't really enjoy shopping.</p>
<p><strong>Q: What financial planning have you done for yourself?</strong></p>
<p>I divide my savings and salary into four different components.</p>
<p>I devote 25 per cent to long-term holdings, where I'm looking for sturdy and strong companies that I can hold for the foreseeable future.</p>
<p>I'm honestly buying my long-term holdings, working towards my retirement, as ridiculous as that sounds.</p>
<p>In this part of my portfolio, I buy real estate investment trusts (Reits), exchange-traded funds (ETFs) that mirror indices like the Straits Times Index (STI), S&amp;P 500 and Nikkei 225.</p>
<p>I also look for blue chips like the big banks and a few prominent companies in the United States like Walmart.</p>
<p>These are big companies that will mostly withstand the test of time. If they give good dividends, that will just add to my passive income.</p>
<p>In this section, I use mostly fundamental analysis and I look for things like high ROE (return on equity).</p>
<p>I try to see how much debt they are using to finance their operations... (and) the long-term growth rate that analysts have projected for these companies to see if people are confident about this stock, as well as whether key staff members are holding and buying their own shares.</p>
<p>I use 50 per cent for this part of my portfolio that I call "aggressive growth". I use a contract for difference (CFD) account, which lets me use leverage.</p>
<p>Go into CFDs only if you're sure about yourself and your strategy. The losses can come incredibly fast.</p>
<p>When I'm using the CFD account, I buy more volatile US stocks and mostly currency pairs.</p>
<p>In this section, I use mostly technical analysis. I use long-term and short-term moving averages, average true range to measure volatility... and support and resistance, which is very basic but very powerful.</p>
<p><strong>Q: Moneywise, what were your growing-up years like?</strong></p>
<p>When I was young, I didn't really have any clear-cut direction. I didn't know what I wanted to be until I tried out investing.</p>
<p>My dad also emphasised doing volunteer work, sharing your good fortune with the less fortunate. He took me to homes for the physically disabled and schools for the intellectually disabled.</p>
<p>When I was younger, I was quite pampered, I didn't really understand what real life was about. And after seeing these people, it was very humbling as their everyday lives are a struggle.</p>
<p>That really taught me a lesson: I do not deserve the right to complain that something is too difficult or something is too challenging to be accomplished.</p>
<p>That was ingrained in me at a very young age, and translated very well into investing. It's very hard to master, but because of that mentality I was able to persevere.</p>
<p><strong>Q: How did you get interested in investing?</strong></p>
<p>I was 17 years old, watching TV, and came across a programme on Warren Buffett. The show mentioned that he was one of the world's richest men and he was investing in this thing called stocks.</p>
<p>At a young age, I was like, "How did he become so rich investing in these things?" I didn't even know what a stock was.</p>
<p>It piqued my interest, so I dived deeper into it. The basic idea I got when I was younger was: You can buy a portion of a company for $5 and you can sell it for $15. The extra money you manage to earn is money that you keep.</p>
<p>It's like a video game. You make the correct judgment and they validate you by giving you money, so I loved it. I was like, "This sounds easy, I'm going to try."</p>
<p>When I was 18, my dad and I went to open a brokerage account for me, and I went in guns blazing.</p>
<p>I thought that this was going to be a walk in the park, I'm going to be the next Jim Rogers and I'm going to make a lot of money, which was very delusional.</p>
<p>Like many amateurs, I made tonnes of mistakes, every mistake imaginable by someone who has no knowledge. I didn't know what was position sizing, when to cut my losses or take profit.</p>
<p>I bought so many books to learn from the experts. I watched YouTube videos for tips, but the painful lessons were the best teachers.</p>
<p>They ensured that I would try not to make those mistakes again. Most (of my investor knowledge) is self-taught, and another way is talking to people in the industry.</p>
<p><strong>Q:What property do you own?</strong></p>
<p>I'm working towards my bachelor pad in the east (laughs), so I may be near my parents to take care of them. Now, Singapore property is incredibly expensive, so the ideal age (to buy) would be 30 or 32.</p>
<p><strong>Q: What's the most extravagant thing you have bought?</strong></p>
<p>I buy only small gifts for my parents, nothing extravagant, and take them out to dinner once in a while.</p>
<p><strong>Q:What's your retirement plan?</strong></p>
<p>I plan to retire by the age of 50. How I deem when I can retire is the moment I've passive income from my portfolio that generates about $8,000 to $10,000 a month. I know that's an insane amount of money, so I have to start early.</p>
<p>And like the great Jim Rogers, I want to travel the world, see different cultures.</p>
<p><strong>Q: Home is now....</strong></p>
<p>A landed property in the east.</p>
<p><strong>Q: I drive....</strong></p>
<p>A Honda City that I share with my mum. I wish I could pay for something so expensive, but I just borrow it to use once in a while.</p>
<p><strong>WORST AND BEST BETS</strong></p>
<p><strong>Q: What is your worst investment to date?</strong></p>
<p>It was my first share purchase, funnily enough. I invested in Genting Singapore. My methodology was terrible.</p>
<p>I bought it because I had heard of the name before, "Genting? Yeah I've heard of it, okay buy it".</p>
<p>It's on the Straits Times Index (STI), I thought it must be good. And I read one analyst report that said you should buy Genting Singapore.</p>
<p>These three criteria were enough for me to enter the market. I didn't know when to make an exit and how large a position I should take, so it was a very painful first experience.</p>
<p>I made a loss of 40 per cent on that one counter.</p>
<p>So it comes back again to being knowledgeable (about investing) before you do anything.</p>
<p>I held it for far too long... I didn't know about risk management and had a "wait and see" mentality.</p>
<p>I just waited and waited. Finally, I couldn't handle the pain anymore and sold it at a huge loss.</p>
<p><strong>Q: What is your best investment to date?</strong></p>
<p>I've two, actually. The first was when I went "long" - I bought it and the price went up - on eBay.</p>
<p>It was fundamentally sound and strong, I approved of it by my criteria, and it was trading in a channel for more than half a year.</p>
<p>I waited till the price came down to the bottom of the channel, took my position there and placed a very small stop-loss (a stop-loss order sets the price at which a stock is bought or sold).</p>
<p>My risk was tiny and the share started to climb, and at the end of the channel, which was the resistance (a level where the market usually does not rise higher after), I took my profit. I made about a 30 per cent gain on that.</p>
<p>The other investment was when I went "short" on euro-US dollar currency pair.</p>
<p>Via technical analysis, it was on a short-, medium- and long-term downtrend. Basically it was very negative.</p>
<p>I had three profit targets and my "take profit" levels were all at support (the converse of resistance).</p>
<p>I made only 3 per cent, but because of contracts for differences and the margin, it was still quite a sizeable amount of money.</p>
<!-- Start For Web Only --><p><a href="http://www.straitstimes.com" target="_blank"><img src="http://www.asiaone.com/html/images/logos/st_logo.jpg" border="0" /></a><br /><i>This article was first published on Oct 19, 2014. <br />Get a copy of The Straits Times or go to <a href="http://www.straitstimes.com" target="_blank">straitstimes.com</a> for more stories.</i></p>
<!-- End For Web Only --></div></div></div></div>

</div>
<hr class="print-hr" />
<div class="print-footer">Copyright © 2014 Singapore Press Holdings Ltd . Co. Regn. No. 198402868E. All rights reserved.</div>
<div class="print-source_url"></div>
<div class="print-links"></div>
</html>
 

krafty

Alfrescian (Inf)
Asset
take it with a pinch of salt, there are losers and winners in this share trading profession.
 

Seee3

Alfrescian (Inf)
Asset
i treat this story under the same catergory as the taxi driver story who earns 6k per month just by driving taxi
You are absolutely correct. Once my niece was featured as a savvy young investor. I had a good laugh. Later I found out that the reporter was her friend's friend and she got involved out of vanity.

Not that there are no such clever kids but being so smart, they will know the importance of keeping a low profile and be known only to the right people.
 

krafty

Alfrescian (Inf)
Asset
dun see taxi driver no up ok..., there are acquaintances i know who sent their kids thru universities, one i know even to UK.

few are ex-remisers...:o

i treat this story under the same catergory as the taxi driver story who earns 6k per month just by driving taxi
 

sochi2014

Alfrescian
Loyal
Opposition should set aside part of their budgets for mid term investments.

So that every election they will have ample funds to provide that stupid 16K deposits for each members to stand for election.

No need to declare political contributions forms. what bureaucratic bullshits from the ruling party.
 

chootchiew

Alfrescian (Inf)
Asset
Investment is just a higher class term used - It is literally gambling. All depend on skills and luck. When my luck arrives I make tonnes of money from sg pool, more than what people invest in stock market.
 

uvwxyz

Alfrescian (Inf)
Asset
5 years experience and he is a veteran? I thought you need to something for a really long time before that word can be applied on you.
 

krafty

Alfrescian (Inf)
Asset
some pple learnt the ropes faster than others, some even faster with a mentor. like our minister mentor on his pappy ministars... they are all on the ball already...:biggrin:

5 years experience and he is a veteran? I thought you need to something for a really long time before that word can be applied on you.
 

uvwxyz

Alfrescian (Inf)
Asset
some pple learnt the ropes faster than others, some even faster with a mentor. like our minister mentor on his pappy ministars... they are all on the ball already...:biggrin:

Alright, I just thought that the word was related to the time spent on some activity rather than the skill acquired.
 

frenchbriefs

Alfrescian (Inf)
Asset
iv played poker for 4 years but i dont dare call myself veteran.....lol...

lmao look at the standard of the article,this kind of standard called veteran?like that machiam i read forbes magazine or the economist and call myself Chairman of the fed reserve,nobel prize winning economist Alan greenspan!!!!!

invest in some reits,etfs and blue chips like that call veteran?which tom dick and harry dunno?SG really jokes man.
 
Top