Why Should We Invest in Real Estate Investment Trust (REITs)?

By Stella Goh – Market Data Analyst | 18 August 2018

The term REITs stands for Real Estate Investment Trust. It is a trust fund that invests in Rental properties. REITs allow companies to purchase real estate or mortgages by using the combined of investment from the investors. They offer the benefit of real estate ownership to the investors which they may not face any problems that landlords usually encounter. Due to the nature of real estate investing, REITs typically do better in the low-interest rate environments and when the interest rates are increasing, it is usually a bumpy ride for the REITs market.

How Does a Company Qualify as REITs?

The company must hold at least 75% of total investment assets in real estate. The 75% of the assets that they owned must come from rents or mortgages property. The REITs pay out 90% of its taxable income to their shareholders as dividends. They are taxable entities that managed by a board of directors or trustees. They must be at least 100 of shareholders, and a few of the shareholders do not have more than 50% of shares during the last half of each taxable year in the market.

There are two types of main REITs in the market, generally known as Equity REITs and Mortgage REITs.

 Equity REITs

Equity REITs is used to purchase, own, and manage income-producing real estate properties. Equity REITs typically invest in residential, retail office, industrial and hotels. The revenue is mainly from the property rental income. Equity REITs can be beneficial to the long-term investors. This is because they not only pay out the majority of their income from rental to their shareholders, but also the shareholders may receive capital gains if there is the sale of properties.

 Mortgage REITs

Mortgage REITs is a type of REITs that generally lend money to the real estate buyers or acquiring the existing mortgages or mortgage-backed securities (MBS). Mortgage REITs do not invest in the properties, but they will generate revenue through the interest paid on their mortgage loans.

A mortgage-backed security is a type of securities that sold to a group of individuals such as government agency and investment bank that use to securitises packages loans together into a product that investors can buy. Mortgage REITs purchases mortgages on the secondary market.

Why Invest in REITs?

  1. Affordable and Convenient
  2. Regular Dividend & Inflation Hedge
  3. Diversification

 Affordable and Convenient

REITs listed on the stock exchange in Bursa Malaysia which allows investors to buy and sell in the exchange market. The minimum amount of units to be bought and sold is set to be 100 units per transaction. It tends to be more liquid when it compare to physical properties. REITs can be bought and sell off quickly due to it had been a package like shares, where you do not need to own a whole building which will cost a lot more and needs to go thru a time-consuming process.

Regular Dividend & Inflation Hedge

Real Estate Investment Trust (REITs) can be an attractive investment option because they are producing a stable flow of passive income for the investors who seek consistently, regular income and long-term growth. The usual dividend payout schedule for REITs is on quarterly or bi-annually basis. Dividend payout for REITs is pretty attractive because they pay out nearly 90% of their net income that to be eligible for tax treatment. Besides that, REITs’ dividend tends to be higher than fixed deposit rates in the bank. Therefore, it helps investors to reduce the devastating effect of inflation.

Real Estate Investment Trust can be helped to hedge against inflation. This is due to the rising of the resale value of the property over time, and also the real estate can be used to generate rental income. Just when the value of the property rises with inflation, the rental will be increased steadily, enabling the income generated by an investment property keep pace with the general rise in prices across the economy.


REITs offer access to the real estate market typically with low correlation with other stocks and bonds, due to real estate markets price had lower volatility than in the stock markets. Capital gains play an essential role in the REITs as the ongoing collection of rental from the properties contributes excellent value. Such income does not link directly to the market’s sentiment at all. By adding REITs to the portfolio, it will help to improve overall diversification and create stable long-term returns.


It is critical for us to understand the REITs first before investing in it. REITs are structured to be long-term investments because of its specific features of affordable and convenient, regular dividend, hedge inflation and diversification. In conclusion, an appropriate allocation of REITs in one’s portfolio can improve its potential to generate higher returns at low volatility.

3 Common Risks When You Invest In Stock Market

By Stella Goh – Market Data Analyst | 26 July 2018

The stock market could be one of the valuable investment tools. However, some people may be reluctant to invest in the stock market because the fear of possible significant losses occurred due to the uncertainty and riskiness of the stock market. The risks associated with the stock market is not fully understood. Wise investors will always seek to minimise their risk as much as possible without diluting the potential of rewards. Let us look at the 3 significant risks faced by investors and the ways to avoid it.

Market Risk

Market risks is a type of systematic risk that may cause investors to suffer losses due to the factors affecting the financial market’s overall performances, such as stock market bubbles, recession and so on. When there is a decline in the stock market, all the stocks would be affected regardless if they are large cap, small cap, mid-cap, growth stock, etc. This kind of risk cannot be diversified away, but investors can reduce the market risk by using tools such as portfolio construction. The examples, investors can protect themselves by investing in different types of securities such as stocks of both large or small companies, or bonds from both corporate and government issuers.

Business Risk

Business risk happens to the company when there is a new competition, or unexpected events occurred causing the company to suffer loss rather than earning a profit. This risk may occur due to several reasons such as disappointing earnings reports, change in leadership, outdated products, wrongdoing within the company, competitions, government regulations, overall economic climate, etc.

We frequently see such scenario, that when a specific company is facing any problematic event, the news will spread across to various media platforms. Therefore, the negative sentiment will be aroused and causes the shares price of the company drop. However, the other business with the same industry may not be affected and could be even profitable from it. To lower the exposure to the business risk, investors can invest in different companies categorised by sector.

Liquidity Risk

Liquidity risk arises when the investment is lack of buyer and seller in the open market. This type of risk will become higher when some investors wish to cash out their investment. Investors may find it hard to convert the assets into cash without incurred some loss due to widening spread on pricing.

Diversification in an investment portfolio can help investors to reduce the liquidity risk. Investors can diversify their portfolio that consists of investment that has higher liquidity such as top 30 KL Index stock with some lesser known potential growth companies stock or bonds. Therefore, investors should always keep enough for his liquid asset to cover their short-term obligations. The practice will allow them to sell their long-term investments when they have risen in value, not when they desperate for cash and may need to take a loss or limit their profit.

There is a way to evaluate the liquidity of an asset before purchase. Investors can observe the bid-ask spread of the stock over time. Illiquid assets will have a wider of bid-ask spread relative to other assets. The narrower the bid-ask spread and the higher of volume indicate that there is a higher of liquidity.


The common saying of high-risk, high return only reflects a gambler’s mindset. As a seasoned investor, one should minimise the risk and maximise the profit growth. To do so, each investor should spend the time to equip themselves with relevant knowledge and skills. Just like the teaching of Sun Tzu, “To Know One’s Own Strength And The Enemy’s Is The Sure Way To Victory”. Thus, maximum and continuous profits come from well versed with the market.

5 Fundamental Factors That Will Affect Futures Crude Palm Oil Trading

By Evelyn Yong | 19 July 2018

Due to the high liquidity and low cost of trading, a lot of investors will opt to trade in derivatives market especially Futures Crude Palm Oil. FCPO is one of the popular derivatives traded in Bursa Malaysia market, and most of the traders are focusing on technical analysis and market news or arbitraging. However, the fundamental part should not be neglect as it can be a decisive factor to determine the market trend as well.

  1. Weather Season
  2. The Festive Season
  3. Competition from producing Country
  4. Competition from other edible oils
  5. Tariff & Policies

Weather and Season Factor

The plantation of Palm Oil Tree follows their specific season and period. The whole process from planting to harvesting takes up to 4 years, and the lifespan of the tree can be up to 25 years. Palm Oil Tree requires warm weather with high humidity environment to grow up healthily as too much rainfall could flood the plantations and hamper the harvesting and dry spell would affect the plants’ growth thus lowering the production. For example, the El Nino effect influenced Malaysia’s palm oil yield in 2016. The production dropped to 3.12 tonnes per hectares which the lowest of these years (average 3.7 and above). Hence, drought or flood season can affect the yield of palm oil which the lower the production translate to a higher the palm oil price in the market.

The Festive Season

The festive season can increase the demand for oil. For example, Chinese buys for the Lunar New Year holidays, Indian buys for Deepavali while Pakistan, Bangladesh and Middle East countries buy for Eid. People use it for the religious praying purpose. With the high demand for oil use, the price will increase too.

Other than the festive season, China, India and Europe are among the largest importers of palm oil. While crisis arises in those countries like eurozone debt crisis, slowing food demand and global economic downturn, it can lead to a decrease in demand for palm oil. The consequences can cause the supply more than demand which can lower the palm oil price.

On the other hand, the short of labour on harvesting the palm fruit will affect the supply to the market too. Recently, nearly 70% of the palm industry’s workforce has extended their holiday and delaying the palm fruit harvest. There is expected a 5% to 8% drop in production due to losses of overripe fruit. Harvest the palm fruit on time can make sure the quality of palm oil and also avoid the production overcapacity or lack of supply which can affect the price.

Competitor – Indonesia

The production of palm oil in Malaysia and Indonesia has taken up around 90% of the supply to the world. Malaysia is currently the second largest palm oil exporter in the world who is surpassing by Indonesia in 2006. Indonesia expects to double their production by the end of 2030. While Indonesia keeps increasing the output, it can cause the price decrease, and the profit margin of Malaysia can be affected. Or there might be another situation is if Indonesia can supply most of the demanders in the market and with better tariff rate, Malaysia will lose our competitive ability or been forced to sell at a lower price.

Competitor- Prices of Vegetable Oils

The price of palm oil can be affected by other vegetable oils like sunflower oil, rapeseed oil, corn oil and especially soybean oil. When the bad weather falls on the soybean plantation, it can help in increasing palm oil prices. US, Brasil and Argentina are soybean producer countries, once their oil supply is below the market needs, palm oil will be the substitution.

Other than that, China is a world biggest oil-import country, when those countries have a massive production on vegetable oil like early of this year which had lower down the price of vegetable oils, China has tended to import vegetable oil instead of palm oil. The data has shown that China might break their record on the amount of vegetable oil importation. Hence, there is an inverted relationship between the vegetable oil and palm oil.

Tariff and Policies

Malaysia relies on exporting to build up the country’s economy. Hence, to hit the GDP higher government may lower down the tax rate to help in strengthening the exports and reduce the inventory level. This action can make the liquidity if the market higher which is more favourable to traders.

Besides, the tariff issue of the importing countries can suffer the palm oil producer. India is the world second largest oil-import country, and they rely on imports for 70% of its edible oil consumption. Early of this year, they had raised their import duty on crude and refined palm oil to the highest level in more than a decade which up to 54% to protect their local farmers. With this action implemented, it has forced a palm oil producer country to compete with local farmers in business.

Australia had proposed a bill of enforcing labelling palm oil as a product ingredient instead of vegetable oil. It was due to boycott as they believe palm oil plantations have contributed to deforestation. With the lower demand for palm oil-based products, therefore, affecting the palm oil price to go lower.


FCPO trading should not only focus on technical trade as the fundamental factors can affect the price trend. Other than the factors listed above, there is still another factor like Ringgit exchange rate. A fall in the Ringgit makes the price attractive to foreign buyers and therefore increased demand from them will raise the FCPO price. Hence, FCPO traders should not only focus on the chart but more on the essential factors of the palm oil.

The Basic of Commodity Derivative – Crude Palm Oil Futures (FCPO)

By Evelyn Yong | 4 July 2018

FCPO is a Ringgit Malaysia (MYR) denominated crude palm oil futures contract traded on Bursa Malaysia Derivatives which providing market participants with a global price benchmark for the Crude Palm Oil Market since 1980 in the Commodity Futures Exchange. It is a legal agreement to buy or sell crude palm oil at a predetermined price at a specific time in future.

FCPO were standardised for 25 metric tons for a contract with minimum price fluctuation of RM1 per metric ton. The settlement of FCPO is on physical delivery. Hence, the buyer of the futures contract is taking on the obligation to buy the agreed amount of crude palm oil when the futures contract expires.

FCPO trading market available with 2 categories of market participants, hedgers and speculators. For those oil-related businessmen such as plantation companies, refineries, exporters and millers, they trade FCPO to manage price risk. To control their product cost and profit margin, they will hedge into FCPO to against unfavourable price movement in the physical market. For traders, they act as speculators in the market and gain leverage exposure to price movements of crude palm oil and earn the spread.

There are some rules and limits in trading FCPO. The daily price limits for FCPO are controlled to trade within the 10% of price varying in the spot month (the futures contract month closest to expiration). Once the FCPO price has raised or (dropped) by its daily limit, there will be not allowed to trade at any higher (lower) price until the next trading day. When there are at least 3 non-spot month contracts are traded at within 10% limit, the Exchange will announce a 10-minute cooling off period for all contract months (excluding the spot month). During the 10 minutes, all trades are only able to take place in the 10% limit. After this cooling off period, all contract months shall specify as interrupted for 5 minutes. Then, all contract months shall not be in trading more than 15% vary from the settlement price of the preceding business day.

The contract months for FCPO are spot month and the next 11 succeeding months, and after that, other months up to 36 months ahead. So, producers can hedge the prices by up to 3 years forward and with the first year of 12 consecutive contract months. For traders, the most active trading month usually will be the 3rd month of the contract due to the contract liquidity. The final trading day for a contract will be at noon of 15th (or preceding business day if 15th is the holiday) of the delivery month. The tender period of FCPO will be from the 1st to 20th of calendar day of spot month.

The trading hours for FCPO separated into 2 sessions, which morning trading session is from 10:30 a.m. to 12:30 p.m. and afternoon trading session is from 2:30 p.m. to 6:00 p.m. As FCPO is a global trading platform, there are high volumes of trade from China’s traders in morning trading session while afternoon session is more attracted to European countries’ traders .

Bursa Malaysia Derivatives has restricted speculative position limits to prevent large price swings associated with excessive speculative trading. Hence, there are only 800 contracts allow for the spot month, 10,000 contracts for any contract month except for spot month and 30,000 contracts for all months combined.

FCPO is considered the most actively traded CPO futures contract in Malaysia and widely recognised as the Global Pricing Benchmark for Crude Palm Oil. Beside, FCPO is also the most price sensitive to the Palm Oil trading community. To increase the market liquidity and trading volume, Bursa Malaysia Derivatives had extended trading hours and the contract period of FCPO in the past February to encourage more trades and stimulate the market. Hence, traders can try to explore this market while seeking another investment tool.

Bearish Candlestick Patterns

By Stella Goh – Market Data Analyst| 27 June 2018

Bearish candlesticks are probably the most important things we have to learn in candlestick pattern analysis. Every candlestick is delivering a unique and important message to us whether there is a selling or buying point. The tug war between bulls and bears will influence and decides the market. There are many different forms, patterns and size for a bearish candlestick. Let’s us look at these few common types of bearish candlesticks.

Bearish Engulfing Candlestick


The bearish engulfing pattern consists of a white candle, followed by a long black candle, mark by the first candle of upward momentum being overtaken or engulfed by a larger secondary black candle.

Before the Bearish Engulfing patterns occur, there are a bull controls which creates a definite of the uptrend. They will continue to push upwards during the crucial period. The second black candlestick formed when there is early buying pressure causes the security to open above the previous close, and the seller steps in and drive the price down, and the candle closes lower than the last.

The signal conveys a very drastic change in investor sentiment which allows investors to predict that a reversal on the horizon. When the bearish engulfing pattern is present, investors who will focus on short-term gains may choose to sell the due to changes of sentiment.

Bearish Harami


In Japanese term, “Harami” means pregnant, which means that the second candle determines the pattern of potency. The smaller the candle may have the higher the chance of reversal to occur. Bearish Harami formed at the end of an uptrend. It starts to develop with a relatively long white candle, followed by a relatively small black candle which is engulfing by the previous candle. This formation is showing that the buying momentum is weakening.

Bearish Tri Star Pattern


Bearish Tri Star pattern is a scarce reversal pattern which appears in the market that dominant in an uptrend and comprises by three Dojis candlestick. The first Doji always occurs in the uptrend which reveals that the market is indecision between buyers and sellers. The second body of Doji is higher than the previous Doji which emphasised more uncertainty, while the third Doji’s body is gap downward indicates that bears will soon to take over the control. These three Dojis strongly suggests that the trend is about to change.

Three Black Crows


Three Black Crows is a moderate trend of a bearish reversal pattern. It consists of three large consecutive long-bodied black candles. Each candle will be opened below the previous open and close progressively downwards than the same preceding candle. There should also be a little or no wicks formed on the candles.

Three Black Crows is an indicator that used to determine the weakness in an established uptrend and potential emergence of the downtrend. Therefore, when this happened in the uptrend, the negative market sentiment will push the price downwards, and this strong reversal will confirm that the upward price movement has ended. However, if the three candlesticks are overextended and make significant price declines, it could get into oversold territory.

Bearish Belt Hold


Bearish Belt Hold is a bearish reversal candlestick pattern. This candlestick pattern is straightforward to identify because it is formed by a single candlestick which is also known as Black Opening Marubozu that no upper shadow but with a small lower shadow.

This candlestick is always appearing after the stretch of the bullish candlestick. The opening price begins to decline against the overall trend of the market. It will eventually stop and close near to the low by leaving a small shadow at the bottom of the candle and formed a bearish candlestick. The longer the candle is, the more powerful and more significant it is. This candle should confirm by a bearish candlestick that developed in the next session.


Reading technical chart is essential knowledge to all investors. It helps every type of investors, both of short-term or long-term to take action accordingly to their strategies. Bearish candlesticks provide useful indications for short-term investor, and it helps long-term investors to buy relevant stocks at a lower better entry.

Bullish Candlestick Patterns

By Stella Goh – Market Data Analyst | 20 June 2018

Candlestick charts are perhaps the most popular financial chart which assists investors to predict the price movement of their securities. Swing traders have internationally used it to understand how the price of the stock has changed over a specified period. There are dozens of bullish reversal candlestick patterns and this time we will focus on few popular bullish candlestick patterns.

Bullish Abandoned Baby

Bullish Abandoned Baby is a type of candlestick which use by technical analyst to signal a reversal in the current trend. It can also be known as a rare form of morning Doji star. There are three distinct of candlesticks to make up this bullish abandoned baby. The first candle will be the red candle which located in a downtrend, followed by a Doji. There is a gap below the two adjacent candle shadows. The following candle will be a white candle which uses to indicate the strong bullish sentiment.

Bullish Engulfing Candlestick

Bullish Engulfing Candlestick chart formed when there is a large white candlestick fully cover the smaller previous black candlestick without regards to the length of the tails shadow. This type of candlestick will usually happen during a downtrend, found some support or buying volume, and then it will be made a bullish move back up by breaking the previous day’s high. It will be indicating that there is a potential reversal and it is also the signal of the beginning of a bullish trend in the security.

When there is a bullish engulfing candle form at the end of a downtrend, the reversal is much more powerful as this will represent a capitulation bottom. The lows of the candle should be the lows of the downtrend. There shall precede by a minimum of 4 consecutive lower low candles which should close near to the candle highs before the bullish engulfing candle.

Three White Soldiers

Three White Soldiers pattern consist of three consecutive large bullish candles that open within the previous candle’s real body and close that exceeds the last candle’s high. There is no gap between the candles, and do not have very long shadows open within the real body of the other candle.

When this frenzy buying continues third days, three white candles will be formed side by side with higher highs and higher lows. It signifies that the increased in the momentum in the ongoing of bullish phase.

Bullish Hammer

Hammer candlestick is just made up of only one candle and it may occur at the bottom of a downtrend. The candle looks like a hammer with an extended lower wick and short body at the top which is a sign of the sellers are driving the prices lower during the trading session and followed by strong buying pressure to end up market close higher or near to opening price.

Morning Doji Star

A Morning Doji Star is formed when the first candlestick is a long and bearish black candle, followed by a Doji that gapped below it, and then the third candle will be a white candle. If the penetration of the third candle is over 50%, it will be indicating that this pattern has much higher success rate. Morning Doji Star is a strong bullish price reversal candlestick pattern which appears at the end of a downtrend which will turn the current downtrend into the upwards direction.


While fundamental analysis helps investors to select the potential stocks, the technical analysis allows investors to determine when is the best time to buy and sell. Candlesticks pattern are an excellent way to read the current market sentiment. Combination of both pieces of knowledge will significantly help investors to survive in the volatile market.

Warrants in Stock Market

By Evelyn Yong | 13 June 2018

A warrant is a security that gives holders confers the right, but not the obligation to buy or sell a specific underlying asset at an agreed price (strike price) on the expiry date. The price movement of the warrant is usually much greater than the underlying share. Hence, investors may expose themselves in higher volatility price movement due to leveraging positions in warrants.

There are 2 exercise styles for warrants, American style and European style. An American style warrant can be exercised at any time within the period before the expiration date, while European style warrant can only be exercised on the day of the expiration date. In Malaysia, we only practice the American style of warrants.

There is 2 type of warrant traded in Malaysia, which are company warrant and a structured warrant.

Company warrant

Company warrant also called as a stock warrant. It is issued by the listed company itself to raise money. It gives you the right to purchase a company’s stock at a specific price within the contract period. Once holders choose to exercise the warrants, new shares will be issued by the company for the transaction.

The validity period for company warrant can up to 10 years and determined by the issuance company. Once new shares were issued, the total company shares will increase and earning per share will be reduced. This situation makes existing stockholder owns a smaller or diluted percentage of the company. Issuing warrants can help to lower down the financing cost for the company(as raise capital through issuing instead of borrowing) as well as secure the additional capital if the stock does well.

Company warrant can be found in Bursa market with the stock code followed by –WA or WB or WC. ‘W’ stands for the representative code of company warrant while the ‘A/B/C’ is the series of the warrants issued and it can up to ‘Z’ depends on the company issuance. A company warrant price is usually lower than its mother share price and has listed the conversion ratio for exchanging into 1 share. The said of buying warrant can be volatile mostly due to the gearing ratio. When the gearing ratio is high, it will reflect higher changes on the warrant when the price of mother share is increasing or decreasing. When investors expect there is appreciation on company future value, they will purchase the company warrant which is lower cost at the same time minimises the loss if the share price drop.

Structured warrant

The structured warrant also named as an exchange-traded option or stock option and issued by financial institutions. The structured warrant settlement is in cash and does not involve any mother share. In Malaysia, there are 6 licensed issuers which are AmBank Berhad, CIMB Bank Berhad, Kenanga Investment Bank Berhad, Maybank Investment Bank Berhad, Macquarie Capital Securities (Malaysia) Sdn Bhd and RHB Investment Bank. The objective of having a structured warrant is to create the capital liquidity in the market as the price of the warrant is just a fraction of its underlying share. The issuer aims to make a profit on the risk management of the warrants sold, in doing so they also take on risk. When issuers sell warrants, they will buy shares or other derivatives to hedge their positions and attempt to capture a margin spread regardless the share price goes up or down.

Structured warrant separated into call warrant and put warrant. A call warrant gives the right but not obligation to buy the underlying asset at the fixed exercise price within the limited period of time. It will increase in value when the price of the underlying asset goes up due to the gearing ratio effect. If the settlement price of the underlying is above the strike price at expiry, the call warrant is deemed to be “in-the-money” (profit) and the holder will receive a cash payment. Otherwise, the warrant will expire worthless.

Put warrant gives the right but not obligation to sell the underlying asset at the fixed exercise price within a limited period. The value of put warrant will increase when the price of the underlying asset goes down. Put warrant price will inversely differ from the movement of the underlying asset. When the settlement price of the underlying is below the strike price at expiry, the put warrant is deemed to be “in-the-money” and the holder will receive a cash payment. Otherwise, the warrant will expire worthless too.

So the value of the structured warrant will be much valuable when in longer maturity date compare to shorter validity, which deemed to have a higher risk. Below illustrated the different company warrant and a structured warrant.

Company Warrant vs Structured Warrant

  Company Warrant Structured Warrant
Issued by Company itself Financial Institution
Maturity date Up to 10years Maximum 2 years
Liquidity Low High
Stock issued Dilution, new stock Not involving underlying stock
Code -WA -PA (Put warrant)
-CA (Call warrant)
Benefits Encourage sale of shares and raise capital without incurring new debt Enabling traders to long and short the stock market or index with minimal entry cost


Features of Dynamic Chart on ShareInvestor Station

By Stella Goh – Market Data Analyst | 1 June 2018

Technical analysis played a significant role in investor’s life especially a big help in forecasting future price movements in the market. It is a term based on the historical price movement of an asset to predict future price movements which may help investors in making a financial decision.

Investors may use some trading tools such as identifying the trends, supporting or resistance points as well as other mathematically derived indicators to predict the future price movement of the stock. ShareInvestor Station provides with a variety of features that help in technical analysis. Let us look at this few awesome features offered in the dynamic chart of ShareInvestor Station.

Dynamic Technical Analysis Chart

Dynamic Chart of ShareInvestor Station provides both historical data up to 20 years and real-time intraday data which are up to 3 months. Investors can choose the duration of chart views such as years, months, days and up to second. Besides, there are also options of 5 years and 10 years length which may allow investors a quick zoom-in to their preferred chart range. The chart also will enable investors to select, zoom in, and zoom out to make them more convenient to identify the future trends of the stock. (Refer 1st & 2nd picture below)

Highly Customizable Indicators

The indicator is calculated formula derives from price, volume data, and others info.

ShareInvestor Station provides more than 100 of basic and common indicators such as Native indicators, Bands indicators, Momentum indicators, Oscillator indicators, Price Volume indicators, Trends indicators, Volatility indicators, Volume indicators, Predefined Technical Analysis indicators and financial ratio indicators.

All of these indicators came along with definition, formulas, explanations and examples. It helps investors to have a better understanding of each indicator which is customizable to some extent such as horizontal shift, line colours, and weight. Investors can create and edit their indicators via the Technical Analysis Formula Editor. All of these indicators built can be applied to the charts. (Refer picture below)

Chart Comparison

One of the most significant features of ShareInvestor Station available in the dynamic chart is Performance Comparison. This feature allows investors to compare more than 2 of any history stock price in a single chart as per the example above.

On the other hand, investors can also select the how to display the stock price by modify the colours and line weight or display it as candlestick chart, bar chart, line chart at closing price, mountain chart, Heikin-Ashi Chart and Hollow Solid Candlestick Chart. (Refer picture below)

 Drawing Tools

ShareInvestor Station consists of more than 35 drawing tools to enable investors to draw charts for analysis. There are some advanced drawing tools such as Fibonacci Retracement, Fibonacci Projection, Linear Regression, Gann Fan, Gann Grid, Andrew’s Pitchfork, Standard Deviation Channel and so on.

By using these drawing tools, investors can predict the future price movement of the stocks based on their criteria. The display of the colours, apply line width, line style or line value to their chart can be changed as well with a simple click.  Investors will able to save the studies of their chart as a template, review back the drawings and use the enhanced of drawing tools for later use. (Refer picture below)

News and Events on Chart 

Last but not least, the features of news on charts makes tracking stocks much more accessible to investors. News and events can be display on a specific date along with the trends in the chart. Therefore, investors can quickly correlate the price movement of their stock to market-moving news to make a better decision on their investment. (Refer picture below)


As the wise man said, useful tools are prerequisite to the success of a job. ShareInvestor Station is a great investment analysis tool to assist investor. It does not just shorten the time needed for studying the market but will also the provide the comprehensive data that not readily accessible to the retail investor.

The Common Mistakes Made By Investors

By Stella Goh – Market Data Analyst | 7 May 2018

When you begin investing in stock, it’s important to understand how you might lose money if you not careful enough by making some common mistake. Investors must know how to seek vital information and be sharp minded to reduce the risk of failed investment. Here are the few common mistakes that investors should watch out.

Diversification – Too Much / Too Little

As what Warren Buffet said, investors should not put all eggs in one basket; they should diversify their portfolio to spread out the investment risk. However, investors may over-diversified and under-diversified their shares portfolio. Over-diversification may result in retail investors lose tracks of their investment efficiency by diversifying into such as stock, futures, commodities, bonds and so on. As a result, any profit makes from the specific investment will be quickly written off by other non-performing investment. However, it can multiple investment portfolios can be managed together with a dedicated team of the fund manager.

On the other hand, if the investor was under-diversified, which he may only invest in one or two stock at the same time,  his portfolio will become highly sensitive to the fluctuation the stock pricing due to the short-term market uncertainties.

For another reason, if the investors concentrated only on one investment class such as bonds, he might not enjoy the opportunities arising from other asset classes such as equities when it happens.

Emotional Attachment

Commonly there are two types of emotions that influence most of the retail investors. They are none other than the sense of greed and fear. Investors may quickly catch by fear when the share prices dropped drastically in short period. They will lose their rational and make wrong judgments by disposing good investment on hand at the wrong time. These will cause them suffer a loss on the capital over an extended period.

While the market is bullish, the majority of the retail investors may turn greedy so FOMO (fear of missing out) will kick in, and they will chase to buy particular hot trending stock even though the shares are way overvalued. These will cause their capital easily locked up at peak price for an extended period.

Just as what Warren Buffet said, “When Investors sell on fear; it will drive a stock price down. Likewise, when they buy on greed, it will drive the stock price up in short-term.” Investors should invest based on the reliable information tools, instead driven by emotion.

Lack of Knowledge

Another common mistake made by retail investors is lack of investment knowledge. These group of people wish to earn quick profit from investment but lazy to learn a new skill. They do not know where to set the cut-loss point and also target profit. They more willing follow blindly what the analysts and experts said without doing own analysis. Most of the analyst report was for long-term investment period so it will be irrelevant for retail investors to look at it and try to make a quick bet based on the analysis report.

Therefore, investors should know how to establish an entry and exit strategy which can help them to make better and quicker decision.

Not Doing Research

Analysis research on the stocks is essential as it tells the better story inside the company. As what Warren Buffet said, “Risk comes from not knowing what you are doing”. Investors should study how well the company is operating, where the fund of the company investing and the company’s objective which will give us the insights of the company future and gauge the risk. Investors should always look at the business potential and prospect of the company to make their own investment decision.


In conclusion, investors should always keep all these factors in mind as a lesson so you can make a right investment decision in future. Discipline is the key to success, be patient and look at the long-term gains instead of short-term profit. As what Warren Buffet said, “The stock market is a device for transferring money from the impatient to the patient.” Therefore, investors must invest smarter with patience to grow their money.


By Benjamin Lai | 17 April 2018





国际货币基金组织(IMF)总裁克里斯蒂娜•拉加德周三在香港大学(University of Hong Kong)发表演讲时警告, 针锋相对的关税措施只会衍生全球的保护主义意识和破坏全球贸易的规则。

克里斯蒂娜•拉加德也强调, “多边贸易体系在过去的一代人时间里改变改变了我们的世界。但是,现在这套基于规则和共担责任的体系有被撕裂的危险。这将是不可原谅的集体政策失败。”

众所周知提高进口关税只会提高通货膨胀,只会提高通货膨胀。随着物价逐渐昂贵,人民的消费能力更加有限,影响贸易在提高生产率和推广新技术方面发挥关键作用以及全球复杂的供应链 。比例,亚洲的贸易供给已经形成产业链,中美贸易摩擦存在很多不确定性,可能会引起亚洲经济波动。因此没有人会从贸易战收益。这也就是拉加德呼吁各国“避免一切形式的贸易保护主义”的原因 。



中国国家主席习近平最近出席博鳌论坛表明,中国将扩大对外开放。除了创造更有吸引力的投资环境,中国也将完善保护知识产权制度。此外中国也承诺降低汽车和其他产品进口关税,主动扩大进口市场。中国重申将致力于推动经济全球化朝更开放和包容的方向发展,以及放宽外资进入中国金融市场的限制,为贸易和投资自由化, 便利化,维护多边贸易体制做出贡献。外界指中国国家主席习近平在博鳌亚洲论坛上,宣布的一系列市场开放措施是为了缓解两国近期的贸易摩擦以及受到美国贸易制裁的施压而释放的善意。



然而实际上, 中美贸易战中, “大豆”是中国最具杀伤力武器之一。因为中国是美国大豆的最大买家,一旦中国提高大豆关税,这将会减少美国大豆对外出口,也将会打击美国多州的农户。值得一提美国中期选举的将在今年11月举行,而他们(农户)都是美国总统特朗普的支持者。

美中贸易全国委员会副会长彭捷宁 说,“他们认识到,美国的大豆种植者多在特朗普总统部分核心政治选区,这不仅会影响中国从美国进口的最大进口品的整体贸易逆差,也可能对未来政府产生政治影响。” 如果中国真的以大豆来施行反制措施, 不止会影响特朗普选民的支持率,影响政权,甚至无法连任下届总统。特朗普是个成功的生意人,一般相信特朗普不会跟中国打这一牌,因为政治的现实会让他意识到最大的输家会是他本人。

在笔者看来, 美国并非想打贸易战,无非想避免对巨额的贸易逆差和侵犯知识产权的问题恶化下去。特朗普此举是为了确保自己有筹码好让中国能回到谈判桌, 终止几十年来一直采取不公平、非法的贸易手段,多次违反世界贸易组织的规定。

特朗普将是这数十年以来,第一位美国总统在这每个国际社会都知道的问题上都能勇敢地和骨气地表态。 有趣的是中美贸易之间的摩擦,不会让他们变成敌人,互相指责彼此的他们始终都会依旧保持友好,因为经济要成长,两个世界最大的经济体系必然会合作,这就是政治。