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SGX should abolish contra. tax heavy on short term profit.

Younger investors do not have the benefit of experience, and most of them have not been through the punishing bear market of 2008-2009. Note that most of the NEW brokerage accounts were opened from 2008 onwards, signalling that interest in the stock market is building up to a crescendo.....

So when one sees 5 straight days of decline, it will turn out to be a valuable lesson for those who are new to the vagaries and emotions of Mr. Market.....

When I first started out, I used to look at the stock counter everyday. It's not really useful and good for your heart to do that. haha. Now, I only look at the stock price once every 2-3 days.

(11-02-2011, 07:11 AM)freedom Wrote: [ -> ]SGX should abolish contra.

I don't know what good abolishing contra can do to an individual investor if he is responsible and disciplined to begin with. A reckless punter will have financing options thrown at him even if contra is abolished. That will kill him faster and no one wants that. In fact, by allowing a contra period, SGX is actually promoting a "sustainable and vibrant trading market". The period can also be adjusted much like how US applies interest rates to its money supply/demand.

It costs investors and SGX nothing to have contra as unsettled trade risks are financed and managed by the brokerages. Without contra, brokerages can then charge a fee for a common service. The rate of killing the golden geese accelerates. No good.

An altruistic investor? It lies somewhere in between self-conflicting and hypocrisy.

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On second thought, SGX can sell a $1,000 yearly pass for those who want to have contra facility. On the other end, family members can apply for restriction orders over the internet.

(11-02-2011, 01:11 PM)cif5000 Wrote: [ -> ]On second thought, SGX can sell a $1,000 yearly pass for those who want to have contra facility. On the other end, family members can apply for restriction orders over the internet.

Per day contra pass at $20.
Apply to Singapore citizens only.
PRs and work permit holders are not restricted to the above ruling.

contra normally is done by people without a lot of money, like young investors....