"Market Has Life" - Singaporean Style of Market

Stock market if you notice is different from one country to another country. Therefore some indicator is suitable for STI used only.

From what I have seen, market changes and market does evolve as well. Hereby I will write some views of mine on the market and I decided to name it as "Market Has Life".

First of all before I start with today's topic, please take note the key points:

1) Market changes - yesterday's market is not today's market and today's market is not tomorrow's market.

2) Market does evolve - from the level of knowledge of their 'players' and their cultural, their risk appetite, their experiences, market's characteristic is being formed and it does evolve time to time. Just compare STI to SSEC and KLSE and you shall know the difference.

Therefore "Market Has Life".

To win in the game you must know your enemy, to win stock you must know your market. STI is very similar to Singaporean's nature due to large amount of its 'players' are local. Think of two words that can describe STI - Kiasu and Kiasi.

From my observation, most of the STI's stock like to have 1-2 days UP continue with 2-3 days PROFIT TAKING and the cycle continues. From here you should know how to play the game. Some like to buy during the profit taking period and force-selling period - which is T+3 to T+5 and sell on next rise. As a result, you shall see the chart most probably go up like a "stair-step".

Remember the characteristic, Kiasu and Kiasi. Therefore contra trading is heavily utilized. So, to conclude, each "swing" is much shorter and can define by T+3, T+5 and T+7. Most of the market swing players take about 2-3 weeks to complete a swing whereas STI takes about 1 week. Be smart to take this as your advantage - kill those who buy high at the 1st and 2nd day.