Qns received:
"I have queries after reading the latest post. By starting with S$1,000, how is it possible to gain back positive returns since there would be commission/brokerage fee charged? It is possible, but that would mean each investment be up at least 4 BIDS. I am just curious about how to start with a $1,000 portfolio and turn it 2 fold like how Darrell Lim did(Straits times post). Or is it because they do not need to pay brokerage fees and all that? Thanks for taking the time to read this. Much appreciated if you could help fill in the gaps for me."
Thank you for your email. Some points to clear the misunderstandings.
1. First off, every client will need to pay brokerage fees. And in my case, I am not commission based. Most of the fees are going to SGX and backend offices who are preparing the purchased shares. Even for staffs like us, we need to pay a fee too.
2. as shared in my comments, you need to have consistent wins. That's where brokers can come in to share views. While brokers are also human, we get to see/hear things in the trading room. I suggest you keep in touch with your brokers. Company S and I maybe charging low fees but there is no free lunch in this world. Reason being, they (custodian brokerage houses) are the market makers who may trade against you. Thus, you will find that many times you get stuck in a position of a certain counter.
3. Discipline is very important. When I was young, I was rash and impatient. I cannot stand my money sitting in the bank. I find it as a waste of time. Eventually, you will see that stock market rewards the patient ones. If you allow me to use an analogy, which fisherman will fish in a storm with a 'sampan' (a small boat)? That said, why would you risk yourself unnecessarily by fishing in the stormy seas?
4. as attached. 24%. unlikely they are aiming for a few pips. they are investing for 10-20% returns in the market with their small capital. The figures are taken based on Parkson Retail previously.
What you have learnt, you pass it forward. And that's the purpose of the blog. Hope that helps. Cheers!
