Hong Kong unveiled its first stamp-duty increase on stock trades since 1993, sparking a broad selloff in the US$7.6 trillion (S$10 trillion) market and sending shares of the city’s exchange to their biggest plunge in more than five years.
The planned trading-tax increase to 0.13 per cent from 0.10 per cent was part of a raft of new measures announced in Hong Kong’s budget that included increased spending to help residents weather the pandemic. Even as the city’s economy has plunged over the past year, stock prices and turnover have surged amid a global market boom.
Technically, HSI had risen too much and the stamp duty increase give the smart monies a nice reason to sell down their HK shares. Personally, I view this as temporary sell off as it is like our GST hike, overtime, traders will start trading again as they forgot about the increases.
HSI 5xLongSG230420 (SGX: CWAW)
HSI 5xShortSG230420 (SGX: CXQW)
Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.
Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.
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