How To Start Investing In Singapore




For beginners, investing sounds complicated and scary. In this video, I will give you a step by step guide on how to start investing in Singapore, what should be your mindset, how to choose your stocks, what should be your strategy. Enjoy!

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0:00 – Introduction

0:49 – Before you start investing
Pay yourself first. Investing is like going to the gym. It must be consistent and long enough to see the result. Every month, pay yourself first by setting aside a sum of money to invest.

Start investing as early as possible. The earlier you start, the less risk you have. On top of that, by investing early, you will have the power of compounding, which is the longer you invest, the faster your money will grow.

2:49 – Which investment type should I choose?
If earning money is your goal, investing is like riding a vehicle to reach that goal. There are a few criterias to choosing investment type.
1. Low risk. The chance of losing money must be as low as possible. With this, stock trading, forex, cryptocurrency are out.
2. Low fees. You want to avoid paying high commissions. With this, mutual funds is out.
3. High returns. Aim for a high return, like the S&P500 which gave 10% annualized return over 90 years. With this, bonds is out.

4:27 – Investing in index funds
Index fund is just a group of stocks representing a certain sector. There are several benefits to investing in index funds.
1. Well diversified. By owning 1 index fund, you will own a small percentage of each stock in that sector. Even if 1 stock doesn’t do well, you still have all the other stocks to back it up.
2. Self cleansing. If any company were to underperform for too long, it will be removed from the fund and replaced with another company. Hence by buying into an index fund, you won’t have to manage your portfolio.
3. Same performance as the market. Many investors are unable to outperform the market. Rather than trying to beat the market, you could just invest into the market itself.

Check out this video where I recommend some stable ETFs.

6:57 – Investing in dividend stocks
Dividend stock investor rely on dividends to earn money, rather than on stock prices. This makes them immune to market fluctuations.

On top of that, generally dividends do not drop as much as stock prices

Here’s my thought process when buying a dividend stock
1. Can the management continuously increase their dividend?
Treat your investment as your employee. Your investment must get a payraise every year. 3. 2. Look for companies where the management is always looking to expand, so that they can continuously increase dividends.
3. Does the company have a moat?
A company with a strong moat will be a strong company. Otherwise, they can be easily replaced.

How to find good dividend stocks?
Stock screener
Check out this video where I give financial criterias on how to find good stocks

Or get the stock list from STI ETF, KLSI or S&P500, then filter from there. Look at other people’s stock portfolios

Check out forums, YouTube videos about what everyone thinks about any stock, eg Hardwarezone, InvestingNote, Lowyat or klse.i3investor.com

12:51 – What should be your investing strategy?
1. Pay yourself first
2. Have a shopping list ready
3. Consistently buy every period.

13:33 – How should you learn about investing?
If you are a beginner, I would recommend avoid reading investing books, as most of them are catered towards investors with experience.

As don’t go for investing courses. You do not have to pay money to learn stuff that’s easily available online.

Watch my videos, or any investing YouTube videos, read investing articles like Seedly, join forums and telegram to discuss about stocks.

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