Summary of Monthly Season Effect on Global Stock Market

For medium term trading (buy & sell every few months), a stock trader may feel the importance of relative monthly stock performance. If one could apply statistics to understand the months with relative stronger or weaker performance, the knowhow … [Continue reading]

US Interest Rate Hike to 2.25%

US interest rate hike

US consistently increases the interest rate, latest adjustment is to 2-2.25%. Despite the US and global economy are still bullish, this implies less time remaining for the bull market. When US interest rate exceeds 3% and/or when 10 years US bond … [Continue reading]

Key Learning Summary of Ein55 Business Analysis Course

Business Analysis Course

The Ein55 students have learned the details of Business Analysis Course #1 from Ein55 Mentor Kean Lim, understanding how to choose a giant stock with strong business fundamental with sound management.  Here is the key summary: Master 4 Steps of … [Continue reading]

Impact of US-China Trade War on Stock Market

US-China Trade War

China may need to make significant compromise to end the US-China trade war. The worst is once US has the first big bite in Round 2 of negotiation, it might continue to ask for more advantages in future. In fact, US and China have reached agreements … [Continue reading]

Leveraging on 3 Key Buyers in Stocks (2 Case Studies on DBS & Venture)

key buyers in stocks

In a practical investment world, sometimes a stock with strong business may stay undervalue for many years, while another stock with little fundamental but exciting rumors or corporate news, could double in share prices over a few … [Continue reading]

Impact of Currency with Hyperinflation on Economy

Hyperinflation

If you think Venezuela hyperinflation of 1 million % is a crisis, then Zimbabwe dollar would be a disaster. Political induced crisis of Zimbabwe results in hyperinflation of 79 Billion %, Zimbabwe dollar becomes nearly worthless, a collapse of … [Continue reading]

Value Trap of Financial Ratios: PE, PB and DY

Price-Earning Ratio (PE), Price-to-Book Ratio (PB) and Dividend Yield (DY) are 3 common financial ratios which shows relative performance of share prices and business fundamental. A smart stock investor needs to apply these 3 financial ratios with … [Continue reading]

Trading, Investing or Gambling in Stocks?

Gambling in Stocks

Investing style is similar to one's personality, sometimes it could be reshaped with lessons learned, but sometimes the habits (good or bad) is like DNA, may last for whole life. So, are you trading, investing or gambling in stocks?   There … [Continue reading]

Stock Fair Value – Growth Stock & Undervalue Stock

There are many ways (eg. FA, TA, PA, Optimism) to define a stock fair value or price, depending on the strategies. From only FA (Fundamental Analysis) perspective, there are 2 main strategies:   1) Asset Approach (Undervalue Stocks) - … [Continue reading]

Stock Strategies to Reduce Unsystematic and Systematic Risk

Systematic and unsystematic risk

A smart stock trader or investor has to learn to manage the risks before one could achieve the goals of profit. There are 2 main types of risks for stocks, unsystematic and systematic risk.   1) Unsystematic Risk (Level 1-2) This risk … [Continue reading]