Thursday, July 29, 2010

Land Banking

Hey folk

This few weeks there are many things about land banking going on. Alot of history of scam, cheat, and the company investing in land that never exist at all.
So what is land banking??
The company got fund from investor to acquire land. This land are usually raw land, mean either a big field, with tree, or a desert, it is just raw. Then blue print will be put on it and upon approval, they sell them to developer for $$$ and this is how money is made. (in short)
Well lots of complication, i think in term of conflict where the company actually invested in land that cant be develop, MAS cant step in to the picture, because is not under the legislation here. Investing in something you cant see physically require one to believe in the company and the land banker.Cos u can never check online to see whether this land exist or not...cos is a raw land and there is no record in the raw land, no name for it.
I am an investor with Walton a land banking company. They are pretty good. I would not emphasis here. If interested pls contact me @ 98340329 i can introduce my land banker whom we have become very good friends too. Walton have a track record of 30 yr and PWC did audit for them, thier return is abt 28% per yr.
Recently Temasek also acquire land in Mexico, they are in the business of land banking. which mean by default all Singaporean have a land banking portfolio with them....:)This is from today newspaper 28 Jul 2010...they aquire 272 Mil land banking venture in Mexico.
So dont be afraid of landbanking, yes there are lots of scam, but u hav to choose and pick the right company and right advisor to service you, like financial advisor too.

What new here??

Emini S&P 500 still in the trade

just to update what i did the past few days

Indoagri still in the trade current price 2.35, bought 2.11 on 5 jul
CSE Global still in the trade current price 0.95, bought 0.88

New counter
Long Cosco 19 jul @ 1.52

Monday, July 26, 2010

Emini

Was too busy this week to update any posting ...but i never miss the Emini S&P trade...More updates will come soon
Sept 2010 Emini S&P500 enter @ 1095.00 23 jul

Monday, July 19, 2010

Genting moving up??

Genting


A nice consolidation after a up trend, and a specialist trap was setup early last week.But no entry signal yet... so be patient.

Mkt drop but I still have holding that are in profit

I am still holding the below stock as it have not hit the signal to sell

Indoagri
CSE global

I cant pin point the highest point to take profit, I cant pin point the Lowest point to buy. If anyone can pls teach me. With what i have can make profit and have quite a good track records.
Despite the US came coming down last friday, Indoagri remain strong. How do I know?? I dont know. The technical analysis actually tell me so.

Always let ur loses be small and profit to run

Sunday, July 18, 2010

Methods of trading

There are many methods to trade. Find one that suit yourself that the most important.Even if you learn a method, make sure you internalise it before starting to trade.All the rules and way to enter and exit must be like your own skin before starting to trade.

Trading is not easy, you need alot of hardwork. if you think that this is a business where you can earn easy money then you are in the wrong business. Trading paint a very easy to earn money image, but it is never easy. You need alot of hard work, as in real hard work.You need to understand the market, the methods of trading, the rules, and why are they like that.Also the psychology side of trading.if it is a easy to earn money business then it wont be the case of 5% of people win money and 95% lose money.
And bcos alot of people think it is easy that why 5% of people win the 95% people's money.

Remember hard work is needed. paper trade for sometime before entering the market.

Worst thing of a trader

The worst thing for a trader is to be ill discipline. A trader must have a plan and the intention to follow the plan. When the cut lost price is hit do not even hesitate to cut lost. What if the price hit the cut lost price and bound all the way up is always the question people think about...but what if the price hit and continue to go down. You cant trade base on hope or luck, THIS IS NOT GAMBLING!!!!!YOU HAVE TO PUT ALL THE ODDS TO YOUR SIDE BEFORE YOU DECIDE ON A TRADE!!

There is nothing as give the stock some chance to move, bcos stock never give you chance. And who are you to give them chance?? DO YOU HAVE AT LEAST 1 MILLION BUCK ready to go into that particular counter???ARE YOU IN CONTROL OF THE MOVEMENT??If not pls play by the rule.

Just imagine you are a casino, you have all the odds on your side. As long as the market is there you win. But if you are the person going into casino, then is a different ball game altogether, you are bound to lose.

Trading record

Cut lost
Noble cut lost 1.67
Straitasia cut lost 1.94 on 15th

Profit sold
ezion 0.68 on 16th
ezra 1.87 on 15th
Kepcorp 8.82 on 15th
cosco 1.52 on 15th

Current holding
CSE global
Indoagri


Trade miss
I miss the Emini S&P 500 last fri as i was out... omg
Let take a look at some chart

MSCI Singapore


Exhaustion gap on the 14th, short MSCI at 348.5

STI



STI too have similar pattern

HSI



HSI have already break down from the price action.

DOW



A long bar down

A buy = a sell...if you buy who sell?that is how i know shorting can take place despite alot of people are buying
I dont favour any trend, any trend that help me make money that will be my friend. The trend is your friend, dont have to be loyal to bull or bear. Just need to follow whoever that lead the way.

Tuesday, July 13, 2010

I am a technical trader

I am a technical trader. I use mainly W%, price action and chart pattern to trade.
MACD at time will be used. I too use Adv/Dec, ROC to determine trade.

Price action is basically represent the psychology side of the trade, while indicators like W%, RSI etc represent the technical side of the trade. So by using this 2 different approach to look at the entry and sell price is quite accurate. I find using W% and RSI to predict the trend of the market movement is not that accurate as these indicators uses price to predict price.

If trading futures, pls also consider using COT. This is the fundamental of the contract.

if interested to know more pls contact me, my email is leow_yan_xiang@hotmail.com

Profit sold

Sold NOL @ 2
Sold midas @ 0.93

Both sold on PROFIT

Dow Jones Industries



Look at Dow...a downtrend. The index is going through a shoulder test.

STI



Let have a look at STI. There is a possible head and shoulder forming. The right shoulder is forming soon or may not formed. But the rate of change of prices are going down

Market is waiting for direction

Earning season

July 12 After Market ALCOA Inc (AA)
July 13 After Market Intel Corporation (INTC)
July 15 Before Market Advanced Micro Devices (AMD)
July 15 After Market Google (GOOG)
July 15 06:30 am ET JPMorgan Chase & Co. (JPM)
July 16 Before Market Bank of America Corporation (BAC)
July 16 Before Market Citigroup Inc. (C)
July 16 Before Market General Electric (GE)

Announcement
Jul 14 2:00 PM Minutes of FOMC Meeting

Comment on the previous post

The previous post on the comparison is abit too small...
Jus to highlight the difference in ILP and Traditional and term plan.
But as i say again, all product have it purpose.So what you need is a better gauge than focusing on the advantages and disadvantages

ILP VS traditional and term

Sunday, July 11, 2010

Short term trading is safer??

No is never true that is safer. Market in short term have lots of fluctuation. You need more time and effort and skills to do well in short term trading. PS I am a short term trader, and i know is not that straight forward...

Usually technical analysis come into play when trading short term. Also your psychological (mindset need to be strong and tuned).To talk about short term trading, it will take days.Bcos there are too many things involve. Let me just briefly introduce some facts and touch on them again.
some of the things to consider:

1 selection of stocks, futures, currency pair, commodities etc
2 timing,
3 management of the prediction
4 capital management
5 Cut lost price and entry price

Always have a plan when trading and have the discipline to follow the plan. Alot of people tend to hope that the things they buy will go their way. This is hope analysis and luck analysis.How many times you bet on 4D, u win?? This is like betting on your life without protection for critical illness. Cos I am young n have healthy lifestyle, I wont get critical illness lar.But statistic show that alot of people got it, so are you still using hope and luck analysis for trading??

Some fact of the market:
5% winner and 95% loser in the market.This is statistic figure. The 5% win the money of the 95% of the participant of the market. Which side you want to be??So trade with a plan and follow the plan.

Some basic of the market:
1 buy = 1 sell ( mean if u sell there is someone buying)
if u win money mean someone lost money
the participants of the market are the very rich, institution, and small player
we are small player, and our biggest enemy is institution.
institution are the one that provide liquid to the market

will talk more about short term trading the next time... Spain or Holland??

Insurance product..what are they for??

There are term, traditional, investment link product(ILP)

As mention before all product exist for a purpose. We cant say that which product is good and which is not. Durian is my favourite fruit but my dear brother hate it sooo much. my brother love to eat things that are plain, less favour, but for me i love strong favour food. So even in a family, brothers have different taste, thus product too have their different purpose.

Term insurance
premium usually low, lower admin charges, protection of individual for a period of time eg 40 years. No money to get back. Mean after 40 yr nothing happen to you, no cash will be given back.

ILP
premium higher than term, higher admin charges, is a protection plan with investment element, Guaranteed sum assured upon death, critical illness, and disable, have cash value thus able to cash out money. protection till specific time eg for death and critical illness is 99 yr and disability is 65 yr.

Traditional
premium higher than term, protection till specific time eg for death and critical illness is 99 yr and disability is 65 yr,Guaranteed sum assured upon death, critical illness, and disable, cant cash out money unless surrender policy.

all this plan are for different people with different needs.Eg if an old lady have got no coverage and is has little savings and income, is good that she take up a term plan cos is cheaper and she will still get herself covered. If a man that wish to have protection but is so afraid of investing, then a traditional plan is good for him, if a young man that wish to venture and wants to get some cash when he is in the middle age, then a ILP is good.

What about ETF and unit trust

ETF
eg SPDR s&p 500, STI ETF etc
they are exchange traded fund. You need to pay a management fee to them yearly. It moves like the market. so one can expect a growth of 8 to 12 % per annum over a long term period.

Unit trust
Is a collection of investment and channel these investment into different stocks in different countries. It is like a portfolio that one do it themselves, but this is done by entrusting the job of research and investing to fund manager. The fund manager bonus and reputation is peg to the fund performance. For this one have to pay management fee too on yearly basis.the growth is really depending on the fund performance ,some can grow 300% or more, some even negative growth.This also allow dollar cost averaging to be done.

Well all instrument are for a purpose, one should know what is their needs before invest.find out what your lifestyle you have and what you want in life before deciding. Eg if you are always busy at work then building a portfolio urself may not be suitable. These are only a few investing instrument, there are plenty more out there.

How to invest long term

I talk abt stocks, unit trust, ETF(exchange traded fund) the previous post.
let talk about how to eliminate the value, countries and sector specific risk.
Answer: Diverse and dollar cost averaging.
Diverse
Invest in different sector and countries, which will make the non systematic risk tend to 0. It will cushion the drop of the portfolio in a crisis as the portfolio involve many different good stocks. However it also will slow down the growth of the portfolio too.( there is no perfect, if u wan a quad core processor it is sure more expensive than a pentium 3 processor) everything have its price.
Dollar cost averaging
Invest in a regular basis. It more applicable for unit trust or ILP(if u consider the investment element). As an equal dollar is invested regularly, when the units price is high, one buy less unit, if the unit price is low one buy more unit.thus could average out the unit price to be lower.

Now on:
Stocks
identify the business and invest into different sectors. So eg if a H1N1 is here, the airline industry is hit but the pharmaceutic industry is going up. invest the value of the stocks, dont find the cheapest stock, usually expensive stocks do have a reason and the reason is of it value.Identify the market leader. There is a research done on how many stocks will be sufficient to diverse the portfolio which mean non systematic risk tend to 0, as non systematic risk has a exponential negative. 70 stocks atleast to bring the non systematic risk to 0. and 70 different correlation stock.
Which mean u need quite alot of money to diverse the portfolio urself. nonetheless i hope individual still invest in stocks themselve. Pls do not hearsay and buy stocks. Do research. if newspaper and analysis on TV are so accurate, why analyt still working as analyt, why dont they jus quit their job and invest all thier asset in the stock.
So check on what the company do, the past financial performance (at least 3 yrs), the competitors, the ease of new comer to enter the business, the management of the company, the market capitalisation etc...Pls do not be lazy when investing stock yourself.
next post will talk abt ETF and unit trust

Investment is simple when doing it long term

Investment is simple when you have a long term horizon. Through out the years, the indices is always going up. You can just see any chart from yahoo, msnmoney, google finance eg Dow Jones industries, S&P500, STI...
In long term stock tend to move higher, some of the reason are inflation, demand of goods goes up and indices will drop the non performing company and replace them (except for Jap)
The return from the market through out the years from 1950s to 2000s is about 8% to 12% per annum , a median of about 9% per annum.Which mean to say if you invest and hold for long term u will make money.
However what to invest become the next very important question...
Also the risk involve is the most important question that anyone need to know
U have to understd them before making decision.
In the market there is systematic risk and non systematic risk...
Systematic risk are things we cant control eg 9-11, war, natural disaster etc
non systematic risk are things we can do, like diversification of portfolio, which mean invest in different sectors and try to ensure that stocks invested within the portfolio have little correlation.
There are a few more risk too, country specific, industry specific and value risk.

Country specific
Eg like Greece, like US, or when in the asian financial crisis like Thailand. This risk is specific to the country.

Industry specific
Eg when H1N1 strike, the airline industry is badly hit and the pharmaceutic industry goes higher. this risk is specific to the industry.

Value
In any investment, there is no guarantee, mean no capital protection at all. individual have to bear the risk.

Investment is not for everyone, but i urge everyone to invest for retirement and hedge inflation. Cos working for your whole life is not the solution. Unless u are drawing 100k or much more per annum, you may lead a good life when retire. Invest is to make your money work hard for u. you work hard at work, but you let your money slack. Does that make sense??

Nxt post will talk more about how to invest

Saturday, July 10, 2010

Start of 2nd qtr earning on Monday

Markets take a breather ahead of the official kickoff of 2nd quarter earnings season on Monday.
The mkt is up quite significantly in the last few days. does that mean, the 2nd qtr result is good and the institution know it already, or people are expecting that the 2nd qtr result to be good. Whatever it is, technical analysis will tell the story. Chart is the illustration of human behavior in the market place.If you know how to read the chart proper, it will be like reading a story book where you know the meaning and rational behind them.

Monday, July 5, 2010

Look out for this

look out for long for this stock

ezion 0.65
Noble 1.72
NOL 1.94
ezra 1.79
indoagri 2.11
midas 0.92
kepcorp 8.45
straitasia 2
cse global 0.88
cosco 1.48

US Mkt is close for Independence day holiday

Disclaimer

Participate in any form of investing and trading activities can lead to substantiate financial loses. No presentation is being made that any account will or likely to achieve profits or losses. This research is purely for education purposes. Past results do not represent future performance. Hypothetical or simulated performance results have certain limitation. Trade at your own risk. You should therefore carefully consider whether such investment activities are suitable for your financial condition.

US mkt close for trading tonight for Independence day holiday

Sunday, July 4, 2010

Trading for monday 5 jul 2010

STI for monday trading ...if you have bought on Wed 30 jun 10, you are rather safe.
My take is STI is rather resilient.
W% shows STI may head up. Price action shows it heading up. Acc/Dis show it gng strong. However chart pattern show that this might be a momentary up, so be cautious of downside move.
SIMSCI show the same description as above too.

In the US
Dow Transport (the leader of the leader)
Show signs of more down side action.
Dow INDU, NASDAQ and S&P 500 show the same too.
Having said that... these indices have been down for few days, and if the W% turn and price action is obey, one can long the market.So stay tune for the bargain hunt.


Disclaimer

Participate in any form of investing and trading activities can lead to substantiate financial loses. No presentation is being made that any account will or likely to achieve profits or losses. This research is purely for education purposes. Past results do not represent future performance. Hypothetical or simulated performance results have certain limitation. You should therefore carefully consider whether such investment activities are suitable for your financial condition.

$190 000 to $700 000 to take care of a kid !!!!

190 000 to 700 000 to take care of a kid since they are born till Uni in SG!!!
Woow my family have almost spend 2.8 Million since my dad and mum have 4 kids .
I read this article on xin ming paper on Sunday 4th Jul 2010.

However i totally believed for parents, there is never too much for their own kids.Parents always want to give their child the best of the best. I remember my mum not buying any new year clothes when she has the 4 of us( me and my 3 brothers). She gave us money to buy new year clothes but not herself. So she still wear clothes that are 10 years back. I was so touch when i know that she also bought education plan for us. Which enable me to go to school exchange in Canada. She jus want to give the best to her kids and my mum is only a housewife. She is so thrifty and do everything for us. That my mum. ALL SALUTE TO HER.

I think education plan for kids are really important, as i dont come from a rich family. My mum still able to pay for the education plan and let me go for school exchange. It can also use to pay my Uni school fee too.

Cheers to all parents

Saturday, July 3, 2010

Emini

ESU10 Emini S&P 500 & NQU Emini NASDAQ: not time to long yet.W% still low
At the same time it mean there is opportunity to long
Disclaimer

Participate in any form of investing and trading activities can lead to substantiate financial loses. No presentation is being made that any account will or likely to achieve profits or losses. This research is purely for education purposes. Past results do not represent future performance. Hypothetical or simulated performance results have certain limitation. You should therefore carefully consider whether such investment activities are suitable for your financial condition.

There are plan for trading, investment. How about you?

Alot of my friends and people that i met do investment and trading. we talk about the market, the current market situation, technical analysis, strategy, cut lost for capital protection, stock that cheong and stock that dive etc. And i found out that many of them do not have plans for themselves. Plans that protect human being. I am sooo surprise.

We have cut lost price to protect our capital in trading, we have strategy to trade, moreover we always have plans and know what to do for our life goals. We study so hard and try to guess the possible question that will be out in the exam so we can get A, we work so hard to buy house, marry, buy car, want to have a good life, want to retire early and want to retire well, we trade and spend so much time to make more money.

But how about protection for ourselves??

Why do we work so hard for? Why do we go into investment? Why do we have cut lost price?Why do we need a strategy to trade and invest? There are many reasons to that some of it are because we want to lead a good life, retire well, for our loves ones.

Then what happen if you are so sick or some accident happen to you that u cant do all this things. Well liquidate everything?? forgo the dreams?? drag your loves ones to suffer with you??Let the young ones in your family not able to live the dreams like you? Dream of trading and making money stops? liquid all counter to cure your illness?Are you being self responsible...saying you love your loves ones and want to protect them, but when u got critical illness, the loves ones are the one that pay for you bills.

Protect what yours!!!! Warren buffet 2 rules: rule 1: never lose money rule 2 always remember rule 1. An insurance is the solution for that.Insurance transfer the risk to the insurer. That why having yourself protected enough and have the right protection plan is soooo important.This will protect you and your loves ones to suffer from the heavy bills of medical cost. Without insurance , it is like having a tall big nice tree without deep roots or having a soccer team without a goalkeeper. you may look nice and sweet and strong but actually so fragile.

Unless you tell me right now you have 10 million bucks and you reserve 2 million for your critical illness treatment plus ongoing treatment and permanent disability, you dont need insurance. Having said that if i tell u that having insurance is transferring risk and putting a small amount of cash to insured 2 million buck, would you think that it is a good deal. Is like you can use 10 to 20% of your monthly income for insurance to protect the rest of your monthly savings, investment and necessity expenses. Dont you think is a good catch!!!!

i really condemn any investor or trader that say dont need to buy insurance and financial planner or advisor to say dont buy stocks. you need all of them, like how we eat. we eat veg(all kind of veg tomato, kang kong, spinach blah blah), meat etc so that we have enough nutrients. too much of one is not that good too.

How about you? Do you have plans that protect you so that all the things you build up wont turn into ashes the moment something bad strike you?

Disclaimer

Participate in any form of investing and trading activities can lead to substantiate financial loses. No presentation is being made that any account will or likely to achieve profits or losses. This research is purely for education purposes. Past results do not represent future performance. Hypothetical or simulated performance results have certain limitation. You should therefore carefully consider whether such investment activities are suitable for your financial condition.


Some of my trade for Genting from the start of the year till 2 jul 10


18-Jan-10 buy 1.29 21-Jan-10 cut lost 1.23
21-Jan-10 short 1.22 5-Feb-10 cover 1.15
5-Mar-10 buy 0.88 22-Mar-10 sell 0.945
6-Apr-10 buy 0.92 8-Apr-10 cut lost 0.89
29-Apr-10 buy 0.875 3-May-10 sell 0.945
6-May-10 buy 0.925 19-May-10 sell 0.965
26-May-10 buy 1 2-Jul-10 sell 1.16