Darren Lim8
liked
Many people claim that they're "in it for the long term", but in reality, most people are momentum traders at heart. People panic when the things are red, and do impulsive things. People also FOMO in when things are green, and end up regretting their decisions. How many of you truly hold long-term investments?
To me, a long-term investment in a company is a company where you can say: "I like what this company does, I believe in this company, and I believe its price will increase in the long run." Very extensive due diligence is required to come to this conclusion, and quite frankly, there aren't many companies that make the cut.
There's so much uncertainty in the stock market. For example, $Alibaba (BABA.US)$ is a monster when it comes to cash flows and revenue, yet it has fallen by half in months over many developments that even the smartest value investors couldn't have predicted.
However, the idea of long-term investment is simple - no matter what the price action is, you're going to stick with what you believe in, maybe add on dips and sell puts to grow your position because this is the position you're going to hold for at least 10 years. This will be the money that pays for your housing, your future business, your retirement etc.
A long-term investment is one that requires the most detailed due diligence and fundamental analysis. Many choose $SPDR S&P 500 ETF (SPY.US)$ or $Invesco QQQ Trust (QQQ.US)$ as safe bets, as they have been proven to perform well over a long period of time. I concur with this and hold a large position myself. Such long-term investments are safer as you aren't placing bets on the fate of one company, but rather a basket of proven performers.
Some believe that $Apple (AAPL.US)$ and $Tesla (TSLA.US)$ are worthy long-term investments as well. It is definitely debatable, and honestly I do see a case for them. Apple aims to launch a self-driving electric vehicle by 2025 - a massive area to tap into. Elon has done wonders with Tesla and doesn't seem to be stopping. It is without a question that these are great companies that will do well in the long run, but what's concerning is the current valuation - are today's prices justified? The stock market has been in the biggest bull run since the shock drop due to Covid-19, which frankly wasn't as big of a market crash as what we've seen in the past. The prices we pay for companies today leave a lot to be questioned, and I'm not saying that these companies are overvalued, but that is just a possibility that definitely needs to be considered, for all valuations across the board today.
It will take time to find the right one, but I do believe that every investor should have a decent amount of money allocated to long-term investments. These are the investments which your future self will thank you for.
To me, a long-term investment in a company is a company where you can say: "I like what this company does, I believe in this company, and I believe its price will increase in the long run." Very extensive due diligence is required to come to this conclusion, and quite frankly, there aren't many companies that make the cut.
There's so much uncertainty in the stock market. For example, $Alibaba (BABA.US)$ is a monster when it comes to cash flows and revenue, yet it has fallen by half in months over many developments that even the smartest value investors couldn't have predicted.
However, the idea of long-term investment is simple - no matter what the price action is, you're going to stick with what you believe in, maybe add on dips and sell puts to grow your position because this is the position you're going to hold for at least 10 years. This will be the money that pays for your housing, your future business, your retirement etc.
A long-term investment is one that requires the most detailed due diligence and fundamental analysis. Many choose $SPDR S&P 500 ETF (SPY.US)$ or $Invesco QQQ Trust (QQQ.US)$ as safe bets, as they have been proven to perform well over a long period of time. I concur with this and hold a large position myself. Such long-term investments are safer as you aren't placing bets on the fate of one company, but rather a basket of proven performers.
Some believe that $Apple (AAPL.US)$ and $Tesla (TSLA.US)$ are worthy long-term investments as well. It is definitely debatable, and honestly I do see a case for them. Apple aims to launch a self-driving electric vehicle by 2025 - a massive area to tap into. Elon has done wonders with Tesla and doesn't seem to be stopping. It is without a question that these are great companies that will do well in the long run, but what's concerning is the current valuation - are today's prices justified? The stock market has been in the biggest bull run since the shock drop due to Covid-19, which frankly wasn't as big of a market crash as what we've seen in the past. The prices we pay for companies today leave a lot to be questioned, and I'm not saying that these companies are overvalued, but that is just a possibility that definitely needs to be considered, for all valuations across the board today.
It will take time to find the right one, but I do believe that every investor should have a decent amount of money allocated to long-term investments. These are the investments which your future self will thank you for.
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Darren Lim8
liked
Morningstar Ultimate Stock-Picker's Top 10
$Alphabet-A (GOOGL.US)$ $Alphabet-C (GOOG.US)$ $Comcast (CMCSA.US)$ $Microsoft (MSFT.US)$ $UnitedHealth (UNH.US)$ $Visa (V.US)$
$Alphabet-A (GOOGL.US)$ $Alphabet-C (GOOG.US)$ $Comcast (CMCSA.US)$ $Microsoft (MSFT.US)$ $UnitedHealth (UNH.US)$ $Visa (V.US)$
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Darren Lim8
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Order history
I've always bought domestic funds and made some money, but now I want to learn how to trade on my own. I don't know what it will be like this time next year. Keep studying. I've been reading my knowledge about options recently. I feel that it's a bit complicated to understand. Buying options is easier to understand, and selling options is still a bit confusing. I don't know how my friends can all figure it out.
I've always bought domestic funds and made some money, but now I want to learn how to trade on my own. I don't know what it will be like this time next year. Keep studying. I've been reading my knowledge about options recently. I feel that it's a bit complicated to understand. Buying options is easier to understand, and selling options is still a bit confusing. I don't know how my friends can all figure it out.
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Darren Lim8
liked
$Meta Platforms (FB.US)$ Meta going up and down. What should you be expecting this week? Do you know your entry and exit points for meta?
Knowing entry points help you maximise profits and minimise losses. 80% retail traders lose money because they don't kno the right entry and exit points.
Do take some time to watch my video if you missed it yesterday and know the support and resistance levels!
As always trade safe and invest wise!
Knowing entry points help you maximise profits and minimise losses. 80% retail traders lose money because they don't kno the right entry and exit points.
Do take some time to watch my video if you missed it yesterday and know the support and resistance levels!
As always trade safe and invest wise!
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Darren Lim8
liked
China is a huge market with enormous potential. They have very good and large companies that can rival US firms. Personally, I believe there are big growths and opportunities in Chinese stocks.
That said, I opine that for those who choose to start your journey of investment in Chinese stocks or choose to remain invested in them, you must be able to:
1) Be in for long term. Think 5 years, 8 years, 10 years etc. It’s a marathon, not a sprint.
2) Accept the high volatility due to regulatory pressures.
3) Be mentally prepared for Murphy’s Law - anything that can go wrong, will go wrong.
4) More importantly, invest only what you can afford to lose.
If you can stick to the above, and weather the current storm, the potential flip side / upside would be high returns from these beaten-down cheap stocks - like a sleeping giant (bull) waiting to be awaken and unleashed.
Short term fluctuations do not change the long term positive outlook. Not financial advice though. DYDD and invest safely.
$Alibaba (BABA.US)$
$BABA-W (09988.HK)$
$JD.com (JD.US)$
$NIO Inc (NIO.US)$
$XPeng (XPEV.US)$
$BYD COMPANY (01211.HK)$
$Li Auto (LI.US)$
$Baidu (BIDU.US)$
$Bilibili (BILI.US)$
$TENCENT (00700.HK)$
$PDD Holdings (PDD.US)$
$Futu Holdings Ltd (FUTU.US)$
That said, I opine that for those who choose to start your journey of investment in Chinese stocks or choose to remain invested in them, you must be able to:
1) Be in for long term. Think 5 years, 8 years, 10 years etc. It’s a marathon, not a sprint.
2) Accept the high volatility due to regulatory pressures.
3) Be mentally prepared for Murphy’s Law - anything that can go wrong, will go wrong.
4) More importantly, invest only what you can afford to lose.
If you can stick to the above, and weather the current storm, the potential flip side / upside would be high returns from these beaten-down cheap stocks - like a sleeping giant (bull) waiting to be awaken and unleashed.
Short term fluctuations do not change the long term positive outlook. Not financial advice though. DYDD and invest safely.
$Alibaba (BABA.US)$
$BABA-W (09988.HK)$
$JD.com (JD.US)$
$NIO Inc (NIO.US)$
$XPeng (XPEV.US)$
$BYD COMPANY (01211.HK)$
$Li Auto (LI.US)$
$Baidu (BIDU.US)$
$Bilibili (BILI.US)$
$TENCENT (00700.HK)$
$PDD Holdings (PDD.US)$
$Futu Holdings Ltd (FUTU.US)$
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Darren Lim8
liked
Key themes affecting the internet sector this year include the economy reopening, online ad acceleration and e-commerce growth, according to JPMorgan. With these trends in mind, JPMorgan named six stocks as the best ideas in 2021 heading into next year.
$Amazon (AMZN.US)$ $Meta Platforms (FB.US)$ $Netflix (NFLX.US)$ $Twitter (Delisted) (TWTR.US)$ $Uber Technologies (UBER.US)$ $Peloton Interactive (PTON.US)$
$Amazon (AMZN.US)$ $Meta Platforms (FB.US)$ $Netflix (NFLX.US)$ $Twitter (Delisted) (TWTR.US)$ $Uber Technologies (UBER.US)$ $Peloton Interactive (PTON.US)$
Expand
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Darren Lim8
liked
Columns Chinese Stocks bottom yet?
$KraneShares CSI China Internet ETF (KWEB.US)$ $Alibaba (BABA.US)$
I will show some of my technical analysis that I have been doing on KWEB and also BABA.
BABA has been falling non stop from the start of the year and investors still do not know whether this current price is the bottom yet. KWEB the china internet ETF which holds about 50+ holdings mainly the big china tech stocks has always similarly suffered the sell off ever since the start of the year.
BABA has lost about 65% and KWEB about 62%. Both stocks are in bear market territory. If anyone were to tell you this 2 stocks could drop to current valuation last year, nobody would have even taken you seriously. However now that we have seen how a prices can drop 60% in a span of a year, people are starting to wonder when will this fall stop. However, we all know, stocks do not only go 1 direction. There will always be pullback and retracement from the overall trend. This is when swing trades are set up for good risk to reward ratio.
BABA
BABA experienced huge sell off after earnings miss on the 18th Nov and has been free falling ever since. Even long term bulls of alibaba around me have started to get worried about whether the bottom is in yet. When BABA had a huge sell off after earnings miss, the fall did slow down and this are early signals of the selling pressure weakening. However due to low volume, it does also show there wasn't much buyers at those levels. It even broke through the 129 key support pretty easily which was the US China trade war lows.
However last friday, the signal was in for an incoming technical rebound after there was huge volume coming in yet it failed to break the key support of 108. Wick of candle is about 39% to the spread of the candle. This is usually a good sign that buyers are entering and supply is getting low. Which means a upside swing will be in motion soon. Currently as of the time of this post, HK BABA does seem to be rebounding and this are early signs for us on what is about to happen on the US market later on cash open.
However, this upside swing does not guarantee any overall trend reversal and can only be a short term swing. Thus do take note of the resistance levels to know your entry and exit points.
KWEB
Lastly onto KWEB, it has been in a consolidating trend since late july after it broke the 60 and 55 support in a huge sell off due to tech clampdown. My fibonacci level for a buy entry was at the 39 point. It was a long wait as I did thought we would go down quite soon after hitting 43 lows. However with the consolidation that happened over the few months hovering above 43 and below 55. It was looking more like an accumulation phase. Thus meaning 2 things, either a break up of the wedge to transit towards the mark up phase, or a break down of the wedge to activate the ''Spring'' before the mark up phase. Springs are usually a false break down to catch the stop losses of traders and shake out the final batch of people who are waiting to cut loss should it break the previous lows.
It broke down the wedge on 26th Nov and that was when I mentioned to keep a lookout on the 39 price point as it will very likely rebound there. If it rebounds off 36-39 price point and breaks back into the 43.40, we could very likely start to see the transition towards mark up phase. Similarly large volume day on friday with a rebound off the 39 key support level which was COVID sell off lows. Wick to spread is 45% and this is a huge signal of an incoming rebound due to lack of supply or demand overpowering supply. We call this the selling climax. This is a good set up for a swing to the upside.
Keep a look out on the resistance levels above to see if it does break back above to have a confirmation of the accumulation phase coming to an end and the transition to the mark up phase. If it doesnt break back above 43.40, this could mean the china internet stocks are not yet ready for a reversal of trend and could still see a lower bottom.
As always, trade safe & invest wise!
I will show some of my technical analysis that I have been doing on KWEB and also BABA.
BABA has been falling non stop from the start of the year and investors still do not know whether this current price is the bottom yet. KWEB the china internet ETF which holds about 50+ holdings mainly the big china tech stocks has always similarly suffered the sell off ever since the start of the year.
BABA has lost about 65% and KWEB about 62%. Both stocks are in bear market territory. If anyone were to tell you this 2 stocks could drop to current valuation last year, nobody would have even taken you seriously. However now that we have seen how a prices can drop 60% in a span of a year, people are starting to wonder when will this fall stop. However, we all know, stocks do not only go 1 direction. There will always be pullback and retracement from the overall trend. This is when swing trades are set up for good risk to reward ratio.
BABA
BABA experienced huge sell off after earnings miss on the 18th Nov and has been free falling ever since. Even long term bulls of alibaba around me have started to get worried about whether the bottom is in yet. When BABA had a huge sell off after earnings miss, the fall did slow down and this are early signals of the selling pressure weakening. However due to low volume, it does also show there wasn't much buyers at those levels. It even broke through the 129 key support pretty easily which was the US China trade war lows.
However last friday, the signal was in for an incoming technical rebound after there was huge volume coming in yet it failed to break the key support of 108. Wick of candle is about 39% to the spread of the candle. This is usually a good sign that buyers are entering and supply is getting low. Which means a upside swing will be in motion soon. Currently as of the time of this post, HK BABA does seem to be rebounding and this are early signs for us on what is about to happen on the US market later on cash open.
However, this upside swing does not guarantee any overall trend reversal and can only be a short term swing. Thus do take note of the resistance levels to know your entry and exit points.
KWEB
Lastly onto KWEB, it has been in a consolidating trend since late july after it broke the 60 and 55 support in a huge sell off due to tech clampdown. My fibonacci level for a buy entry was at the 39 point. It was a long wait as I did thought we would go down quite soon after hitting 43 lows. However with the consolidation that happened over the few months hovering above 43 and below 55. It was looking more like an accumulation phase. Thus meaning 2 things, either a break up of the wedge to transit towards the mark up phase, or a break down of the wedge to activate the ''Spring'' before the mark up phase. Springs are usually a false break down to catch the stop losses of traders and shake out the final batch of people who are waiting to cut loss should it break the previous lows.
It broke down the wedge on 26th Nov and that was when I mentioned to keep a lookout on the 39 price point as it will very likely rebound there. If it rebounds off 36-39 price point and breaks back into the 43.40, we could very likely start to see the transition towards mark up phase. Similarly large volume day on friday with a rebound off the 39 key support level which was COVID sell off lows. Wick to spread is 45% and this is a huge signal of an incoming rebound due to lack of supply or demand overpowering supply. We call this the selling climax. This is a good set up for a swing to the upside.
Keep a look out on the resistance levels above to see if it does break back above to have a confirmation of the accumulation phase coming to an end and the transition to the mark up phase. If it doesnt break back above 43.40, this could mean the china internet stocks are not yet ready for a reversal of trend and could still see a lower bottom.
As always, trade safe & invest wise!
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