Monday, October 7, 2019

Why I'm Joining The SG Active Trading Tournament 2019

It was around this time last year when the SGX Bull Charge Stock Challenge competition was held and I participated in the competition which lasts about 2.5 months.

It was heavily contested with more than 136 participants competing for the main prize.

I managed to lead the competition for most of the period until the very last day when another contestant Thebearprowl leaped over the first position and took the champion.

I wasn't upset (though felt a bit disappointed to give up the lead) about losing to another great competitor and was glad that I have a lot of takeaway I could learn from the competition itself.

Today, Thebearprowl and I are very close friends where we shared a private chatgroup to discuss on stocks and companies that have potentials to outperform.

2018 SGX Bull Charge Stock Challenge

SG Active Trading Tournament (2019)

InvestingNote is holding another competition this year, which is the upcoming SG Active Trading Tournament which will commence from 14 October to 29 November 2019.

Contestants are free to join the competition and stand a chance to win the grand prize of $4000 for the 1st prize. This time, there's also cash prizes to be won for the 2nd and 3rd place and already to date we have 1065 registered contestants so I am expecting the competition to be a blow-out contest.

The theme for this competition revolves around the use of Daily Leverage Certificates (DLCs), which are essentially exchange-traded financial products that enable investors to achieve a leveraged exposure to the key Asian benchmarks such as HK Exchange or individual stocks such as DBS, Wilmar or Venture.

Because DLCs are leveraged products, there are certain imminent risks that investors have to cater to when they buy.

Having said that, DLCs are different from the other leveraged products because they are listed on the cash market of SGX, hence there is no risk of a margin call.

This could work in favour of investors who would like to short the market yet do not want the risk associated with margin calls when they purchase via CFDs.

If you are unfamiliar with how DLCs work in the trading world, this competition will allow you to get exposure and learn about the product, without risking your own real money with it. Even better, you might walk out with a cash prize on your hand if you top the competition.

What stands out in particular for DLCs is that apart from magnifying the returns (or losses) based on the underlying asset that you buy, it also has a design feature of compounding effect which might impact the returns in the long run.

What this means is that if you buy and hold DLC for consecutive days, the returns will deviate because the base value of the returns that are tracked is reset on each day such that a new base is formed on each new trading day.

In other words, DLCs thrived in an environment where the general trending market is one way up or down because the new base will then magnify the returns.

For the full list of DLCs, you may refer to the link here.

I am pretty excited about pitting myself against some of the more respected traders out there and have signed up for the competition. Have you?

To register, please use the link here.

Thanks for reading.

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  1. This is financial speculation, a negative behavior to be avoided in the moral context

  2. Everytime I woke up in the morning the first thing I do is open my laptop and searching for new blogs that is trending or not trending to become updated in the past and present events or topics and now I saw this article about retail market, I was just thinking if you are a businessman at the same time writer?

  3. It’s been a long time since I read some blinding articles like yours! You are really compliment with this, no one makes me amazed than before, maybe I should share this with my friends, If you want to go to retail market I want to come with you.