Bull trap!
$Singtel(Z74.SG$
Those who are taking the opportunity to catch some dividend, well I believe this is what we call a classic bull trap. Price is being push up by hedge funds and shortists. When it’s ex-dividend, they will shoot it down. So, if you have already bought Singtel be ready to hold on for the next few months as they won’t let traders exit easily. Hope some of you are prepared for it. This is not a financial advise. If you have done your DD and have the power to hold, then you have nothing to worry about.
Those who are taking the opportunity to catch some dividend, well I believe this is what we call a classic bull trap. Price is being push up by hedge funds and shortists. When it’s ex-dividend, they will shoot it down. So, if you have already bought Singtel be ready to hold on for the next few months as they won’t let traders exit easily. Hope some of you are prepared for it. This is not a financial advise. If you have done your DD and have the power to hold, then you have nothing to worry about.
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傻B先生 : What is DD
Zerocool888 OP 傻B先生 : DD = Due Diligence means you need to do your own research another each company before you invest in.
行情总在绝望中诞生 : How do u identify this is a bull trap?
Zerocool888 OP 行情总在绝望中诞生 : Singtel price movement usually do not go up so fast and so high unless someone decides to push it up. Dividend is almost here, so plenty of traders will buy in. Once it’s ex dividend, price will drop and it will force genuine traders to hold for next few months. That’s how to lock people’s money so the outflow doesn’t go too high when price drops. No one will sell below cost price.
行情总在绝望中诞生 Zerocool888 OP : Share Price will be adjusted after ex dividen. So no difference u buy now vs buy later. Anyway, from FA perspective, it should be a bull start. From TA perspective, if it breaks the $2.65 resistance, the next resistance is $2.88. If it fall down to re test the support, then the bottom seems strong. I would recommend to minor add If fall to 1st support, and 2nd support. Let's revisit this post in the next 2 months
Zerocool888 OP 行情总在绝望中诞生 : I understand there will be Dividend adjustment but if you check Singtel history after ex dividend, price never go up until a few months later. I know it will go sooner or later but new traders may not understand why after they purchase, the price keeps dropping even when there are good news. I am holding to a lot of Singtel as well. I just want to let those new traders not to panic or look down on Singtel after ex dividend. I am just sharing my knowledge. It’s a bull trap for some who wants to hit and run. I m sure you know what I am talking about. Buy to get dividend but once ex, it’s bye bye. I m projecting it will hit $3 before 2023. Yes what you mentioned is definitely legit on adding after it drops but no many traders have so much cash to lock on Singtel.
HippoTrade Zerocool888 OP : so in short, for short term holder it is a trap, for long term holder it is a good opportunity.
行情总在绝望中诞生 Zerocool888 OP : It needs to have strategy to add. If there has $1000 cash, then can split into 3 portion to add. When drop to 1st support, use the 1st 1/3 to add, when drop to 2nd support, use the 2nd 1/3 to add...
Zerocool888 OP HippoTrade : Yeap. Long term holders will benefit from it. There will be day traders to screw the price which is to confuse some traders. I am sure you know the rule of thumb not to panic when you see your share price drop. In fact can buy to average down if you holding at a high price.
Zerocool888 OP 行情总在绝望中诞生 : Yes but usually I don’t have that luxury time to keep monitoring daily. I just buy and lock in. My yearly Singtel dividends is enough to let me buy 5-6 full shares annually. This is the only counter I never sell any of my lots but just keep accumulating yearly. Singtel is considered a defensive stock and a low risk investment. Parking money in here is better than most local stocks as it does not fluctuate up or down and you get dividend along the way. Some treat this counter like casino which is a pretty silly thing to do. Which is why it’s one of the heaviest shorted counters in Singapore. There will be paper hands along the way to make shortists happy. My only strategy is to keep accumulating and when I retire 10 years later, I know I don’t have to fully depend on CPF to survive. Investing long term on Singtel is actually better than buying properties in Singapore. Just think the hassle you need to go through to sell a property with tonnes of paper work compared to selling a share. You can earn profits from buying and selling properties but so can shares with less hassle.
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