Friday, 29 October 2010

A few good inspirational quotes...

Man cannot discover new oceans unless he has the courage to lose sight of the shore.
- Andre Gide
Trust your hopes, not your fears.
- David Mahoney
Success is never final and failure never fatal. It's courage that counts.
- George F. Tilton


To achieve something, basically just need three steps:

1) Set your goal
2) Plan your actions
3) Do it

Sometimes along the way when we are tired, think of something that can motivate us and push us along. When we are afraid, summon our courage but be prepared for the worse. Don't be overly pessimistic but also don't be overly optimistic. Sounds simple eh? Maybe not.

***

Techinical charting tips

  • Drawing trendline from right to left may give a more relevant prediction of support / resistance

  • Bullish reversal bar (dip but close at high) after several periods of falling prices --> buying opportunity

  • Bearish reversal bar (dip and close at low) after rising trend --> time to close long position

  • 3 black crows (blue candles) consecutively --> bad sign

Reference: Trading for Dummies

Useful ratios - debt and profit

Debt ratios

Current ratio = Current assets / Current liabilities

*Look for current ratio close to the industry average

Quick ratio = (Current asset - Inventory) / Current liabilities


Profit ratio

Gross margin ratio (indicates efficiency at making profit) = Gross profit / Net sales

Wednesday, 13 October 2010

Savings on shopping

Girls love to shop, yes and that includes myself. I couldn't figure out why, but it is just innate that we can't resist anything that looks pretty on the shelves. On top of earning money and making money work for you, I realized that saving money is just as important. Here are some quick tips on how to save when shopping.

  1. Ask yourself if you really need that item before you buy on impulse. Think about what you already have and if they are functioning just as good.

  2. Can you foresee yourself using this item that you intend to buy frequently? If it is just another collection to your wardrobe of white elephants, then forget it.

  3. Maximize cards discount. Credit cards are hot on promotion these days and if you happened to have the right card for a discount on something you really wanted, that's good for you!

  4. Wait for the Sales. You may be able to get just what you wanted a few months ago at a fraction of the price now. Seasonal sales, Great Singapore Sales, End-year sales...

  5. Quality vs Price. Many a time I find myself buying something just because it looks nice or it's selling cheaply, which ended up not lasting very long on use. Good brands that not always equate to good quality but if the brand really deliver the quality it deserves, then part with that little extra cash for it.

  6. Compare prices. Common sense isn't it?

  7. Keep records of large purchases so you can keep track of your budget and spend within it.

  8. Make a note on things that you think you have wasted money on. And don't repeat it again.
That's 8 shop savvy tips for now. =)

Tuesday, 12 October 2010

Stockwatch: Ship building & shipping co




Top dividend yielders -

Golden Ocean div yield = 5.30%
Cosco div yield = 1.58%

***
2015: I was not vested in any of them from then till now. Cosco suffered tremendous price drop due to earnings not hitting target and the oil crisis. What happened to Golden Ocean? Merged with Golden ocean group?

Interest rate and stock market

The relationship between interest rate and stock -->

Government lowers interest rates to help stimulate the market, so falling interest rate would typically cause the market to change from a bearish to a bullish market. On the other hand rising interest rate would do the opposite to cool down the economy. The transition may be slow but nevertheless interest rate can be a hint.

Knowing when to 'breakup' with your stock

  1. Short-term traders would use MACD as a guide for change in trend direction. Buy signals when the MACD crosses above signal line, sell signals when MACD crosses below signal line.
  2. Using stoch indicator, sell when stoch goes above 80 indicating an overbought condition
  3. Spotting price gap that is significantly lower accompanied by high trading volume (spelling trouble ahead)
  4. Setting a target price for minimizing loses can be done with a few methods using stock charts:
  • Simply setting a stop loss at 10% loss from current price or adopt the trailing stop-loss strategy as your stock price goes up
  • Exit if the stock price falls back below the resistance level after breaking through resistance - which gives smaller financial risk but prone to whipsaws (getting out of a potentially winning trade too soon)
  • Exit if the price falls below the mid-point of the trading range - gives a higher risk but less prone to whipsaws

Thursday, 7 October 2010

STI on the climb

STI is climbing. It closed at 3190 today.

BUT why is my only blue-chip showing a blue candle? I really can't figured out what's wrong with it. I know I have bought it at an overprice. It is a mistake. If only I had been more patient... Looking on the bright side, it is still some way from analyst's target value. I guess one problem is that the company has too many competitors, further research needs to be done. Hindsight analysis - it was the operating cost / oil price causing the down price of the share.

Oceanus and MIIF is showing gains. Good signs. It was a good tightening of the bollinger bands for MIIF. =)

Let's observe if STI can climb past the 3300 mark.

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Had some streaks of good luck today - won $100 Choice vouchers from GSK draw. Woot!

Sunday, 3 October 2010

Summary notes on investing with CPF money

  • CPF monies are allocated into 3 sections - Ordinary account (where you can use the money for properties, study loan etc), Special account (for retirement) and Medisave account (for hospitalisation expenses and medical insurance) Refer here for the allocation rate

  • Current interest rate: OA 2.50%, SA & MA 4%, Retirement account 4%
    See rates

  • You can only invest if you have more than $20,000 in your Ordinary Account or more than $40,000 in your Special Account
*Note that the first $60,000 in your combined CPF account earns an extra 1% interest
  • Charges are applicable for the various instruments you invest in. Read more.
For more details, please refer to the CPF website under my links section.

***

Before you make any investment or fixed deposit arrangement, weigh the risks and benefits involved and ask about the charges. Compare your investment return rates with the prevailing CFP account rates to see whether you are better off just leaving your money in the CPF account which earns you guaranteed interests or putting your money elsewhere. I don't really see the point of putting the CPF money into other fixed deposits because the CPF interest is by far better than most banks'. If you want additional interests, might as well transfer your money from OA to SA, but note that this tranfer once effected is irreversible.

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