POEMS Investor

Hi guys, i when and got an account with POEMS singapore. i was wondering anyone here is under them as well? new to it, there's a few precautions we must take when we buy or sell to avoid "Short-selling/Buying". anyone here can give me advise on it?

And i was wondering is contra buying safe? is there any penalties?

if you want to contra, POEMS offered T+3. But try to ask your broker to give you T+5. For short selling, you can borrow shares, or use CFD to short. If you want to try naked short, have to be careful, if cannot buy back, need to pay $1000 fine.

Sorry why would i want a T+5? My understanding on contra is min. An example of a scenario i think contra applies to is " Say i buy a certain stock at 3.00 and there has been an increase to 3.50 at the near closing of the market. I were to contra sell means to sell it at that time to get my profits at the end of the day right? " What i know for T+3 means it takes 3 days to process a given trade. Or is my understanding wrong? Thanks for the reply hope you could help me. Still learning and really interested.

example of T+3: u bought capitaland at 3.8 on monday. On thursday, the date line is up and u need to settle the trade. If you do not have the money to hold this stock, you need to sell them away. This is what we mean by contra, buying and selling without using our own money at all. Of course, if within these 3 days, capitaland rose to 4++ and you would like to take profit, you can sell it also. So if you request T+5, you are able to hold for 2 more days before clearing the trade. but be careful as you may lose more then what you expect when you contra...

wow. thanks alot. you've made my understanding a whole lot better about contra. which there's another way i could thank you for that. I dont see how you can lose though. is it if you were to get capitaland for 3.8 on monday and it were to increase to 4+. you than decided to sell at that point to gain your profit but after you decide to sell and made the sale, it suddenly decrease. is that how you get a lost?

because stocks dun always go up..i take yanlord for example. If you were to buy 2 weeks ago at $2++, the stock never went higher then that, instead it drop daily until it reaches $1.60.....so once your T+3 or T+5 is up, you need to sell off...so you would make a loss...this is the danger of contra...u can make a lot..you can also lose alot..

for your info...if you decide to sell at capitaland at $4..and the trade is done....you no need to worry the price after that...but if nobody wants to buy your capitaland at $4..you will need to lower the price to market value...

Ah icic. Meaning if i were to contra Buy, i would need to contra sell within those 3 days right? What if i were to just buy it ordinary, any chance i can choose to either contra sell to get my profit, or by chance the worst happened during the 3 days. Can i still continue to hold till the particular stock pick up?

correct. as i mentioned, maximum 5 days for poems.

if you want to hold, just make sure you have enough cash in your account. After T+3, they will auto deduct. If not enough, they will force sell. Note that when you buying from poems, you dont need to click the contra box. I dunno what that box is for.

ah icic. so if i were to hold. i'll just be paying the amount i bought in which way i wont have a lost. but if it were to force sell, that is how i'll make a loss. am i right?

yes ..you are right...