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
Tuesday, July 13, 2010
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
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
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??
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.
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.
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
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
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