AMID weakening economic growth and strong inflationary pressure, traders are feeling the heat. There is now a pressing need to extract more value than ever from their trades. But this is easier said than done, given the high market volatility in a time of uncertainty.
In today’s challenging environment, the pressure is on traders to fine-tune their strategy and equip themselves with better tools to seize timely opportunities in their trading journey.
Here are four possible focus areas to give your trades a better chance of success.
1. Harness the power of AI to select stocks more effectively
Technology can make the stock selection process faster and more thorough. But it is key to use a platform that is able to effectively harness advanced technologies such as artificial intelligence (AI) to identify trading opportunities.
OCBC Securities’ AI-powered virtual trading assistant, Oscar, is an example of a powerful tool that is able to help traders reduce time spent on research and market monitoring by highlighting stocks that are showing potential for short-term price movements.
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Oscar’s AI model crawls large volumes of market data including historical prices, as well as fundamental and technical indicators to identify stocks with potential for short-term price fluctuations. It then offers personalised stock highlights based on a customer’s behaviour such as history of trades made within OCBC Securities’ trading platforms. The more a customer engages with OCBC Securities’ trading platforms, the better Oscar will be able to offer personalised stock highlights.
Currently, personalised stock highlights identified by Oscar are communicated directly to customers via e-mails. It will soon be extended to the iOCBC Mobile Trading app and iOCBC Online Trading platform.
Although past performance is not necessarily indicative of future trends or performances, the use of AI tools to automate time-consuming research and analysis can save customers valuable time and help them make better informed trading decisions.
2. Choose a brokerage with a variety of products and good market access
In good and bad times, diversifying one’s portfolio is key. Traders need to cast a wider net by looking for opportunities across a broader range of products and markets.
That is why it is important to use an established broker that offers a diverse range of products and market access.
OCBC Securities, for example, gives traders access to trade securities, derivatives, leveraged foreign exchange and futures in addition to over 5,000 marginable securities. As of end September 2023, traders have access to over five markets for share financing, including Australia, Hong Kong, Malaysia, Singapore and the United States. In addition, traders of OCBC Securities also enjoy extensive coverage with global market access around the clock on 31 exchanges.
3. Don’t overlook ETFs as you build your portfolio
Exchange-traded funds (ETFs) offer a popular way to capitalise on growth, but traders might make the mistake of overlooking them in the midst of falling global growth.
One key aspect is to look for those that can capitalise on areas enjoying high growth in the current market, while still providing diversification from single stocks and exposure to broader themes. This can be achieved by choosing ETFs that hold a variety of growth stocks, rather than just one or two, and that have a low expense ratio. By doing this, investors may potentially reduce their risk while still benefiting from the potential growth of the market
OCBC Securities has launched a series of ETFs, including the Lion-OCBC Securities Hang Seng TECH ETF, which won Investment Product Innovation of the Year – Singapore at the Asian Banking and Finance Retail Banking Awards 2022.
The award-winning ETF tracks the 30 largest tech-themed companies listed in Hong Kong and is designed to capture growth in domains such as cloud, digital e-commerce and fintech, which continues to enjoy excellent potential for growth even in the current environment.
Other noteworthy ETFs include the Lion-OCBC Securities China Leaders ETF and the Lion-OCBC Securities Singapore Low Carbon ETF. The former offers exposure to the 80 largest Stock Connect-eligible Chinese companies, while the latter tracks the performance of 50 Singapore companies with a lower carbon footprint.
ETFs that are able to capture growth in difficult economic times, cater to your portfolio and fulfil your preferences as a trader can be one of the keys to thriving in a difficult market.
4. Use a reputable brokerage with a good track record
While success depends to a large degree on traders’ skills and knowledge, the quality of the brokerage used can give traders an edge by offering enhanced resources and tools.
When selecting a broker, doing your due diligence is the key to ensuring that your brokerage of choice is an established player in the industry.
One example of such a brokerage is OCBC Securities, whose customers enjoy the stability that comes from being a wholly-owned subsidiary of one of Singapore’s largest local banks, OCBC. By trading through a well-supported and reliable brokerage, the risk of costly disruptions to your trading activities can possibly be better managed.
OCBC Securities was recognised as Singapore’s industry leader when it was crowned Singapore’s Best Securities House at the Asiamoney Best Securities House Awards 2023. Its trading platform also gained recognition after winning the Best Mobile Trading Platform in Singapore for 2022 and 2023, and Most Innovative Trading Platform in Singapore for 2022 and 2023 at the Global Banking and Finance Awards.
Be rewarded as you trade
All new customers who open an OCBC Securities Basic Trading Account before Dec 31 2023 and execute their first trades within the first three months of account opening receive up to S$100 in trade commission rebates. The promotion is limited to the first 800 customers. Terms and conditions apply.
Learn how you can enhance your trading experience with OCBC Securities.
Important note:
Trading in capital markets products and borrowing to finance the trading transactions (including, but not limited to leveraged trading or gearing) can be very risky, and you may lose all or more than the amount invested or deposited. Where necessary, please seek advice from an independent financial adviser regarding the suitability of any trade or capital markets product taking into account your investment objectives, financial situation or particular needs before making a commitment to trade or purchase the capital markets product. In the event that you choose not to seek advice from a financial adviser, you should consider whether the capital markets product is suitable for you. You should consider carefully and exercise caution in making any trading decision whether or not you have received advice from any financial adviser.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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