I have shared about using Tiger Brokers if you have little capital to invest as well as the quick account opening, funding and withdrawal features of this discount broker.
Today, I am going deeper into the app features. The user interface was designed for non-professional investors (aka you and me) and first-time investors should not have much difficulty placing trades on it.
Here are some tools on the app which I find useful and worth highlighting.
1 – P/E and P/B trading ranges
I like to use price multiples for simple valuation as they are simple enough to get a sense of whether a stock is worth buying. Comparing the ratios among a group of similar stocks is an easy process. But there aren’t good and free websites to plot the historical price multiples of a stock.
I would use P/B range for companies where their assets are valuable – examples are banks, insurance and REITs. Below is a P/B chart for DBS (SGX:D05):
We can see that the average P/B was 1.18 for DBS in the past 5 years. The blue line (P/B ratio) is at 1.07 which is one standard deviation below the average P/B ratio. This means that DBS is undervalued.
Alternatively, Tiger Brokers also provides historical P/E ratio plots for asset light stocks with positive earnings. An example is TalkMed (SGX:5G3) which provides oncology services – the doctors are not assets on balance sheet but the business is highly profitable.
The average P/E ratio for TalkMed in the past 5 years was 20.90. The current P/E of 17.55 is one standard deviation below the average and hence TalkMed is also undervalued by this measure.
These plots can be generated manually on Excel but it would take time. Or it could be found on high-end data platforms like Bloomberg whose subscription fees may be too hefty for retail investors.
Tiger Brokers has made it free for her users.
2 – Tiger Labs
Tiger Brokers even offers quantitative screening on their app itself. You can see a sample screenshot below where they devise and back test a handful quant strategies for you.
For example, the growth momentum strategy seems interesting and in vogue considering growth stocks are running up and not showing signs of stopping. It might be good to see what ideas are thrown up from this screen.
Tiger Brokers explained that the strategy was based on 3 criteria (the text in the screenshot may read funny because it was translated from Chinese. Just get the gist of it.)
- Highest ROE and long-term D/E
- Highest momentum
- Buy when there’s a golden cross between two moving averages and sell when momentum weakens
It also explains the position sizing – 10% allocated to one stock. According to the back-test results, the strategy would deliver a 29.53% return annually! You can tap on the strategy to get the details as well as the historical transactions and the current holdings.
I personally wouldn’t follow the quant strategies exactly but I could definitely get some ideas from here.
3 – Similar candlestick charts
For those who are into technical analysis and chart reading, you are in luck. Instead of staring into charts trying to identify patterns, Tiger Brokers offers a function called Similar Candlestick Chart Searching whereby the app can identify highly similar chart patterns of differing stocks and predict their future movements. I believe there must be some machine learning in order to do this.
For example, Beijing Enterprises Water is in a different industry as with Zhou Hei Ya, but they had very similar chart patterns. If the similarity holds, Beijing Enterprises Water is expected to go up in the next 15 days by 41.63%. Of course, you should investigate this further with your own technical analysis indicators instead of following it blindly.
4 – Hot Collections
Another trade idea generation tool is the Hot Collections – it contains a list of stocks from various investment themes. These are not your conventional sectors but emerging themes that are about the future. SaaS, Cloud, e-commerce, 5G and gaming are some exciting examples.
Not many investors are aware of these new age stocks and some of them might even have been listed not long ago. These lists would become helpful if any investor wants to find ideas from a theme that he is bullish on but not sure what stocks are in it.
5 – Business segments
Some companies have more than one product, service or market and it is hard to tell which is the main profit driver based on the consolidated figures in the income statement. The only way to tell is to look at the breakdown in the business segments. But you have to download the annual report to get the details.
Not anymore. Tiger Brokers has made it available in their app so that you can do a quick check without having to dive into the annual report.
The screenshot below shows the business segments of Microsoft. We can see that 34% of the operating profits came from Cloud, another 34% from personal computing and 32% from productivity products and services. There’s also a geographical breakdown which showed Microsoft made half of the operating profits from the U.S. alone!
Besides providing the common financial ratios, Tiger Brokers goes the extra distance to provide advanced information for free while other sites are charging for it.
6 – Calendar of upcoming major events for stocks in your watchlists
Do you find it difficult to keep up with upcoming events such as earnings release, dividend dates, and IPOs? What you need is a comprehensive calendar that covers the markets you are investing in.
Tiger Brokers does it for you. There’s an automated calendar that populates every financial event in the future so that you can have a quick glance what are coming up. This will ensure you do not miss out any critical events and give you enough response time to act.
7 – A treasure trove of tools
I have only scratched the surface with this article. There are so many tools in the app that I would probably need to write a book if I were to cover every single one of them. I have also observed that Tiger Brokers continues to introduce new tools and enhance the app frequently. It is almost impossible to keep up but the user experience is going to be richer overtime.
Don’t take my words for it. You can try it out yourself.
Use this referral link or you can use our referral code: “DRWEALTH“.
Dr Wealth receives referral fees when you sign up and trade. You can refer your friends too and get rewarded in the future too!
See you inside.
