Ordinarily, I wouldn’t have bothered to pick up this book from the book exchange corner if it weren’t for the fact that Webull has this promotion going on, which empowers me to get hold of 5 TSLA fractional shares. So my deposit of 1 cent into Webull yielded a rather substantial return of investment (https://www.webull.com.sg/s/6eWsg5YrE1Hj7gmTQE).
Anyway, I’m totally clueless about investing in stocks. In fact, I just learnt recently that “unit trusts” and “mutual funds” mean the same thing - and only because I researched on the differences between British English and American English as the in-charge of my school’s Spelling Bee. So this post is just gonna comprise the insights I glean from the book as a greenhorn:
- Stocks are normally sold in lots of 1,000 shares. Prices quoted are for one share.
- You must pay broker’s fee, clearing fee, GST and stamp duty whenever you buy shares.
- Income stocks allow you to earn dividends once or twice a year. Sometimes you may get bonus shares
- Fundamental analysis involves looking at the price/earnings (P/E) ratio, which shows the number of years it will take current earnings to reach the current market price.
- Technical analysis involves looking at the trend line (either uptrend or downtrend), which is a line made by joining the peaks or troughs on a chart.
- The Central Depository (CDP) securities account lets you trade in scripless shares (without handling share certificates)
- I can submit the Transfer Request form to transfer my securities from my account to my wife’s
- Fixed price shares are sold at a fixed price while tender price shares aren’t sold at a fixed price
- The Stock Exchange of Singapore (SES) and securities firms provide both daily and weekly updated bar charts on stock prices and turnover of all counters listed
- When reading market reports, look out for a) current price which is listed as the last sale, b) if the price has risen or fallen since the previous day, c) the volume as a large volume could mean the general market feeling that supported the trading
I also learnt that if I engage with the text actively by typing stuff that I don’t know, I can endure content which I condemn as boring.
