Monday, June 15, 2015

How to select winning Singapore stocks?

I have been spending quite some time screening out stocks, potential Singapore stocks which will stage a rebound, since most Singapore stocks have been quite sold down. After some time, looking at the technical charts and fundamental analysis, I garnered that it is still not easy to spot a winning stocks with no clear buying signals. For those who think buying Singapore stocks based on a strong US stocks showing overnight alone is enough, I will respect your decision. For myself, I have benefitted from this rigorous analysis of charts and business fundamentals, looking at key market trends and industry news so much so that I have shown readers how I have done a quick profitable trade from Lian Beng stock, given my outlook on Noble Group stock when it traded from eighty cents per share to the current trading price and so much more.

As for the most important question on which Singapore stocks to buy, I will urge investors to take note of the following:

a) Progress of Greek debt talks

b) US Federal Reserve Open Market Committee Meeting

as really, these two market-events of a possible Greek default and a “Grexit” as well as the decision of interest rate hikes will shape the stocks markets. An interesting fact of Greece’s debt saga: Greece has been receiving 400 billion pounds from its European creditors since year 2010.

Beside the above two market-events, I read that the El-Nino effect is confirmed by the Japan Meteorological Agency; earlier on, the Australia’s meteorological authority has also confirmed the likelihood of El-Nino. I believe investors who believe in El-Nino will be interested in stocks like Golden Agriculture, Wilmar stocks.

To summarise, investors should note the following industry themes:

a) Oil prices going up after bottoming

b) El-Nino effect benefitting plantation stocks

c) when US interest rates will go north, benefitting banking counters

The market-events and market-themes shaping Singapore stocks listed above are nothing new. However, I hope my post here will serve as a guide for you to know that stocks function in a larger environment of market events and investment themes.

Profitable investing and trading is about:

a) understanding market events and themes (as shared above);

b) picking good stocks in line with a) above; and

c) know when to buy and take profits

I hope you will find this post useful in picking out winning stocks. Remember it is not easy to beat the overall stock market trend and a good stock in a “so so” industry is better than a “so so” stock in a good industry. Company fundamentals are still important. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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