Monday, August 31, 2009

learning in progress

Super long never update as I am rather busy with school related stuffs.
Nevertheless, I am still very interested with $$ related stuffs. Took business Finance module.

Going to master..

-Bonds(convertible, callable, with/without warrant)
-stocks(common stocks...)
-Present value..future values.. annuity.. all formulas etc etc

Wednesday, July 15, 2009

My Paper: My Money [How to Diversify and conquer]

In today 15th July My paper, my money got this article.


Short summary:

qns: How can one diversify investment?
ans: 1. combine assets like stocks(growth and value options) with bonds.
2. Invest globally
3. Rebalance/evaluate portfolio perf regularly

qns: What impat does a divesified portfolio have on returns
ans: bonds often do well when stocks do poor

qns: what should the portfolio for a 30year old professional look like ?
ans: more equities and stocks when entering 40, include bonds.

Monday, July 13, 2009

Invest[property special] 2:

2nd article that caught my eye!

It teaches one to consider the interest rates and lock in period etc when consider a mortage package.

Francis Chan shares his story of when buying his first house... he is shocked when he received a letter from bank to say that '' due to the flutuaction of interest rate environment, his monthly installment would have to be increased.'' This is when he haven even unpack his stuff in the new house.

So... some important information in the article


  1. DBS

Sibor fixed rate (Sibor stands for Singapore Interbank Offered Rate)

Year 1- 1.99% Year 2-1.99% Year 3-1.99%

Thereafter 3- or 12-mths Sibor +1.75%


2. UOB'

Floating rate

Year 1- 3.5% Year 2 - 3.75%

Thereafter 4%



Floating rate

Year 1- 1.6% Year 2 - 1.6% Year 3-1.6%

There after 3.75%



3year fixed rate

Year 1-1.6% Year 2 -2.2% Year 3-2.9%

Thereafter 3.75%



2 year fixed rate

Year 1-1.5% Year 2- 2.5%

Thereafter 3-mth sibor +1.25%


Fixed rate means protected against the fluctuation of the market interest rate... Its good, thus you can see, no bank provide fixed rate throughout lo...

then the author also mentioned about locked in period. It refer to how long you are tied to the bank and allow it to penalise you if you decide to redeem your loan early.

Haha.. first time home owner, good luck!(haha, including me too!)

Invest[property special] 1: Current property RUN

After reading the Invest pages in Strait times 12th July, I am drawn to 2 articles. The first one, is the headline, the front page!

It starts with...

''Recession? What Recession? The residential property market is on a roll with owner-occupiers, speculators and investors...''

"Demand shot through the roof and prices are rising.'''

So, this article is about the increase in demand for private apartment...despite the so call recession, the property market is doing well

Property Correspondent Joyce Teo came out with some reasons. I shall summarise it here.

1. Suburban boom

As people missed the bull run after 2007, many are catching it now, having the thoughts that its at the bottom of the market.

The Caspian, 99year leasehold project in Jurong West sold 300 units over 3days. Then followed by other project. Thus, believe this spark the boom off.

2. Interest absorption.

Paying 20% of the purchase, and you will be the owner of the apartment!

More attractive, the Interest Absorption Scheme(IAS), requires you to take up a bank loan, but the developers absorbs the interest payments until the project has been finished!

3. Small is beautiful

Projects that offer smaller, affordable units

4. VIP previews

When one call to register interest, they will be invited to a special preview! Being among the first to buy and choose.. plus, preview price lower than launch one!

5. Where are the price now

Price have dropped but experts are saying it may not last long...

Being in Singapore, one very good news is that we are not very affected by the recession! I think most Singaporeans dont even care what period is this. As recently GSS(Great Singapore Sale), Mastercards purchases shot to highest among recent years. Hopefully, these are not unnecessary spending just due to the GSS.

Thus, I not very suprise by the article above . Also, for investors, it might really be a good time to go into property market! XD Before the demand shot so high and affect the pricing again.

Propery investment need be cautious as it involve large sum of money. Even if now is the best time, the bottom of the market, we need to consider some factors before jumping into it.

Factors to consider include(after study the market):

1. Location

2. Loans available

3. Interest rate

4. Ability to support the apartment if unable to resell

Cost to consider when buying a property:

-Mortage payment(<40%>

-Legal cost(<1.5%>

-Stamp duty (0.7% for first $180000 1.4% on next etc)

-Valuation report

-Insurance premium(life+fire)

-Property tax(ard 4% if owner occupied, 10% if rented)

-Maintanence and Operating expenses

People who are going to be first time home owner may be interested in the article I going to intro next:)

Wednesday, July 8, 2009

MY PAPER: The Bonds that Binds

In my paper, 8th July Wed.
Under My Money,
The Bonds that Binds, from Mr Koh. Brought by HSBC insurance.
It encourage people to invest in bonds, a loan statement from a company or government sector.
OF course, it promoting the Asian Bonds.

Reason #1
Greater variety of bonds available. Asian bonds form the 4th largest bond market. (1st is US, then Europe and Japan)

Reason #2
Higher long term growth
Asian economies are expected to have higher long term growth

Reason #3
Higher and steadier returns
Higher yields compared to Singapore dollar based deposits.

Bonds in my opinion dont really gives a high interest or high yield. In Singapore its more of a steady kind of investment. OF course, its higher than the 0.125% bank give which is eaten up by inflation...

Tuesday, July 7, 2009

Asian investment fair! TAKE NOTE investors!!

Asian Investment fair!
There is like 50 seminars held over 2days!

FOR FREE!!!!!!!!!!
Worth to go learn and listen to professionals point of views on investment..
The companies involved are SGX, standard chartered, moneysense, online trading academy, citigroup etc etc etc...
There are some seminars that held at the same time, so must really choose the one you more interested in.
For me, I looking forward to... (for the moment)
Day 1
`1. All you need to know about contra trading. BY DAVID GRANT CEO of city index asia(rmb? the one i posted on earlier...)
2. Investing with unit trusts and ETFs
3. Outlook on Singapore economy by Mr Kit Wei Zheng, Citibank
Day 2 planning for young families by Moneysense
2.Keeping financial fit...
3. Asset allocation by Mr Roger Tan, VP of SIAS research
etc etc
actually quite a lot of things seem quite vague, dunno what they going to talk about for day 2.. so make me a little curious...
Investors should go I think... no harm learning more..... though I think some will sure sell their products as the seminar goes..
Its first come first serve basis...think will attract quite a no. of ppl

Sunday, July 5, 2009

Straits Time: Invest

Bringing attention to Invest from The Sunday Times 5th July.

Haha... it says ' Where to park your hard earned cash'' Known fact that saving it all in bank may not be the best idea, with interest rate close to zilch.

The article suggested a few ways. 1) Saving and fixed deposits 2) Money market fund 3)cooperatives 4) Singapore government securities *SGS 5) structured deposits 6) endownment plans with fixed returns

What I think about the above suggestion is that generally they are rather low risk investment. Due to lehman brother, I think many think twice before investing. However, the inflation rate never change. One will always lose $$ with NOT INVESTING.

The low risk investments are really rather good in the market now.. where everyone is a little fear.. yet want to invest.. these may be the ways one can look out for


Another article that catch my attention is developers rush to catch buying wave.
(talking about the more condo launches are due this month but market watchers say the price recovery will not last)

more details..go read up oh

Online trading

These days online trading account is getting super common, perhaps, people like to stay at home to do the study of trading. For me, I prefer online trading account due to the charts available for me to study easily. The flexibility in timing etc is also a very important advantage.

However, we do need to be careful about online trading. As I am wondering what to note for online trading, I found this rather useful. The below excerpt is I adapted one... Hope is useful for all...

This is adapted from

Guidance to Investors Regarding Stock Volatility and On-line Trading
On-Line Trading
With a few keystrokes and a click of the mouse, investors today can buy or sell stocks through on-line trading accounts with the same ease as they search the Internet or play computer games. Investors’ on-line access has grown dramatically in the last several years, with more than 100 brokerage firms now offering on-line trading services.

Investors need to bear in mind that while the mechanics of on-line trading are relatively easy—investing is not. It is important not to confuse the procedure for entering an order—which can be executed with the push of a button—with making thoughtful investment decisions. Investors should exercise the same degree of care when trading on-line that they do when making any other investment decision.

In recent months, there has been a marked increase in price volatility and volume in many stocks, particularly of companies that sell products or services via the Internet (Internet issuers). Below is a brief discussion of what investors should look for in terms of firms’ practices under such conditions. Also, please see
Notice to Members 99-11, which suggests disclosures firms should make to retail customers to educate them about the risks of price and volume volatility, and Notice to Members 99-12, which provides FINRA members with guidance concerning the operation of their order execution systems and procedures during extreme market conditions.

During these periods of increased price volatility and record trading volume, customers eager to trade Internet stocks have flooded their brokers with large numbers of orders, leading to large order imbalances, system queues, and backlogs. Investors should be aware that, during these extreme market conditions, many firms have implemented procedures that are designed to preserve the continuous execution of customers’ orders while also decreasing the exposure of the firm to extraordinary market risk. For example, some Market Maker firms temporarily discontinued normal automatic order executions and handled orders manually. Firms also reduced their size guarantees on individual stocks or groups of stocks (i.e., stocks of Internet issuers) on a going-forward basis.

What Investors Should Ask Their Brokers
It is important that investors educate themselves about how securities transactions are executed, particularly during times of volatile prices and high volume. Before opening an online account or placing the first trade, investors should ask on-line firms a number of questions so they can make appropriate investment decisions.

High volumes of trading at the market opening or intra-day may cause delays in execution and executions at prices significantly away from the market price quoted at the time the order was entered. Investors should ask firms to explain how order executions are handled by Market Makers, particularly when the market is volatile. It is particularly important for online investors to make this inquiry, since most have come to expect quick executions at prices at or near the quotes displayed on their computer screens.

Types of Orders
Investors should ask the firm they are working with to explain in detail the difference between market and limit orders and the benefits and risks of each. In particular, firms are required to execute a market order fully and promptly without regard to price. In some market conditions, execution may be at a price significantly different from the current quoted price of that security. Limit orders will be executed only at a specified price or better. Customers using limit orders receive price protection, but there is the possibility that the order will not be executed.

As a related matter, if you are investing in initial public offerings trading in the secondary market, particularly those that trade at a much higher price than their offering price, or in "hot stocks" (those that have recently traded for a period of time under what is known as "fast market conditions," in which the price of the security changes so quickly that quotes do not keep pace with the trading price of the stock), you should be aware that your risk of receiving an execution substantially away from the market price at the time you place your order may be significantly reduced if you place a limit order.

You should be aware that you may suffer market losses during periods of volatility in the price and volume of a particular stock if there are delays in effecting buy or sell orders. You may have difficulty executing your trades due to limitations on system capacity. In addition, if you are trading on-line, you may have difficulty accessing your account due to high Internet traffic. Customers trading through brokers at full-service or discount brokerage firms or through representatives of on-line firms when on-line trading has been disabled or is not available may have difficulty reaching account representatives on the telephone during periods of high volume. You should ask your firm to explain its procedures for responding to these access issues.

Communications with the Public
Investors may see a firm using advertisements or sales literature to make claims about the speed and reliability of their trading services. These communications with the public must not exaggerate the broker-dealer's capabilities or omit material information about the risks of trading and the possibilities of delayed executions. Moreover, broker-dealers should have the systems capacity to support any claims they make about their trading services. Misrepresentations or omissions of material facts in public communications violate NASD rules. You should ask your firm whether it has adequate systems capacity to handle high volume or high volatility days.

Be Prepared!
Basically, investors should be aware and armed with adequate information, particularly before engaging in on-line trading activities. The market is an ever-changing environment, making it more important than ever for investors to use investing tools they understand. Get to know the firm you are dealing with, and make sure that when you choose to trade online, you do so commensurate with your investment objectives and ability to tolerate investment risks.

Below is an example of one service provider for online trading

the next way to trade

We offer:
Over 25 currency pairs, 24 hours, with spreads from 3 pips*
A flexible margin policy—You can select either 50:1 or 100:1 leverage
Auto-close out to minimise losses
Fixed spreads in all market conditions*
Professional charts featuring over 140 indicators/oscillations
Professional and expert customer service support from 7am to 7pm,Mondays to Fridays
Flexible contracts: 1k, 5k, 10k, 50k and 100k
Low minimum deposit of US$250

They provide free in house educational seminar for investor who want learn more about FX trading...

For me, I didnt try this out before.. so if anyone have any idea or tried before can tell me. I saw lots of ad on this kind of provider these days..

Whats good,
You can see the charts for yourself! the trend, the history, the supporting and resistance line! I think nothing is best than looking at it yourself.
24hrs! BEst for the working society who do not have time to kept looking at the market...

The best investor always dont kept looking at the stock fall and rise, then heart attack with it...haha, bad for health also.
Sit back, relax, study the trend at night.


Saturday, July 4, 2009

Save money on medical...

Having a very bad stomach ache in the morning..

thinking of if one got sick, how to save $$ on medical.
First thing come to my mind is the medishield I have.. and the insurance...
others? Perhaps, will be going to polyclinics and govt hospital instead.

Is there other suggestions?

shall think about it...

Saturday, June 27, 2009

Terms used in trading ( for beginners)

In stock market, they always uses some terminology.. many of us who started investment do not know all of them. So, here are definitions to the terminology...reference from several website including wiki.

an individual is an agent of a stock broker company and receives a commission for each transaction handled. The remisier need to bear the credit risk of his client.

Day Traders
trader who buys and sells financial instruments (eg stocks, options, futures, derivatives, currencies) within the same trading day such that all positions will usually be closed before the market close of the trading day.

Speculators who buy and sell financial instruments

Participants in the stock market who assume very high risk in order to earn very high short term capital gains

A paid employee of the stock broker company. Act as the agent for buying/selling.

Bear/bearish market
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining

Bull/Bullish market
A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.

Blue chips
the stock of a well-established company having stable earnings and no extensive liabilities. The term derives from casinos, where blue chips stand for counters of the highest value.

Red chips
are the stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong.

Market order
A market order is an order to buy or sell a stock at the current market price. Unless you specify otherwise, your broker will enter your order as a market order.

Limit order
A limit order is an order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.

Forced selling
Resales of securities due to buyer failure to pay up
Short selling

short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.

*Contra trade
A contra trade is an offsetting trade which is used to cancel out the effect or possible loss of an earlier trade.
*Futures trading

* both terms are not that easy to understand.. i shall post another soon to try explain them from what I learnt.

A long term call option. Maturity average= 5years

For readers who have met interesting terms and dont know the meaning yet, feel free to comment, will try to answer!:)

Millionaires dropped by 22%

Millionaires in Singapore dropped from 78000 to 61000. A great fall of 22%! This is obviously due to the hit of the recession in 2007. I believed most of their investment lies with the stock market. Thus, a bearish market, with a plunge in most of the stocks result the significant fall in millionaires. The situation is worse in HongKong, getting a greater fall as compared to Singapore.

Diversification is the key. Dont let all your investment get affected by a single factor!

Electricity price going up from 1st July

Due to oil prices increase, the electricity bill going up by 7% in coming 1st July onwards.
Save electricity, to save the Earth, and also save your own money.

Actually there are easy ways to save your bills by using the correct electrical appliances. The energy saver appliances may seem expensive initially, but definitely, in the long run, you will be glad that you purchased them.

Other than this, you can also try to find out the appliances that used most electricity... Likely would be air-con, and water heater! Of course, refrigerator is somehow no choice. Cut down usage of the above appliances, you can actually save quite a lot!

HEre's an abstract from

''RUNNING the air-conditioner to beat the heat over the next three months will cost $1.50 to $15.20 more a month.
Electricity prices here will go up by about 7 per cent from Wednesday, on the back of increasing fuel oil prices, said utilities services provider SP Services on Friday.
From next month, three-room households will pay about $4 more a month in power bills, and five-room households, about $6 more.
This is the first increase in electricity tariffs, which are revised every quarter, since the last quarter of last year.
From Wednesday, electricity will cost households about 19 cents per kWh, without the goods and services tax, up from the current 18 cents.
SP Services said the average fuel oil price over the last three months went up from $60.47 per barrel to $76.24 per barrel.
After going up 21 per cent in the last quarter of last year, electricity tariffs fell 25 per cent in the first three months of this year.
To reduce the likes of such wide quarterly swings in electricity prices, the Energy Market Authority (EMA) here, which regulates the electricity and gas industry, will now use a new formula to calculate tariffs.
This will take into account a wider spread of fuel oil prices from which an average is calculated - three months now, as opposed to the previous one month.
It also allows tariffs to reflect oil price movements more closely, instead of a three-month time lag under the old formula.

The last increase is in last october, where it have 21% increase in price!

For more details, see prime page A18 on Straits Times today!

Friday, June 26, 2009

Which kind of insurance to start with...?

Someone told me on average, each Singaporean hold on to 7 policies. Also, a recent news article also state that a very high percentage of Singaporean will buy an insurance.

One thing is always, what kind of insurance to start off with?
-Life insurance?
-Medical insurance?
-Saving plan?
-Investment plan?

Factors to consider when buying insurance:
1. Financial status. Insurance premium cannot become a burden. Or else, it will defeat its purpose. A lot of people never consider this, thus terminate the policy in early stage and make big losses

2. Your financial consultant/planner/ advisor.
-Does he/she have sufficient product knowledge to recommend you the right policy?
-Is he/she working permanently, if not, you need to note that your policy will just be handed over to another person
-Lastly, sometimes, it good to see if your advisor have a good planning themselves...

3. Consider what is your responsibility now
- Do you have children and family to take care of? or are you single?
- If something happened to you, what are the things that become a worry? Your house? the amount of loans you owned.

Thus, in my opinion, it really depend on your piorities to decide the kind of insurance to purchase.

So, what kind of insurances should we buy? or rather, what kind of insurances do we need?

For high school students(poly, JC, uni)...
I would suggest a saving plan will be best. If obtain a saving plan from insurance company, it will likely to have come with some life insurance, so you protect yourself, at the same time, ensuring having a sum in the future.

As saving plan always have higher interest rate as compared to bank, also, at young age like 19, your life insurance will be lower. After 15years, at 34years old, you can get back all your $, by then you can choose to put it in investment or the uses one choose to.

Several insurance co. have come out with saving plan with low premium such that with the pocket money saved, they are able to afford it.

Such as AIA, prudential, manulife etc.

For Singles,
An important policy will be those of medical, like all the medishield related insurance. As singles, the worse thing can happen is to be hospitalise, the high amount of bill cannot be support by spouse, thus, need to secure oneself. (in my opinion of course)

For one with family and kids,
Life insurance is one that shouldnt be missed. However, do compare among different company as there is always a differ if you look carefully.

more to be updated..

A sound forex education

Yeo Keong Kee, the author of Secrets of FOREX millionaires....

Learn How You Can Achieve FINANCIAL FREEDOM With A Sound Forex Education

VENUEAKLTG Training Center
10 Hoe Chiang Rd #01-05Keppel Towers
(5 mins walk from Tanjong Pagar MRT, Exit A)

DATE: 27th June 2009, Saturday
2.00pm - 5.00pm
(registration starts from 1.30pm onwards)

What is FOREX Trading?

The Foreign Exchange (FOREX) market is one in which a nation's currency is traded for that of another through a floating exchange-rate system. With more than USD 3 trillion being traded daily, it is the largest financial market in the world.

Despite the fact that this market presents enormous opportunities to generate a consistent stream of income, the vast majority of retail investors often dismiss it as being too speculative and risky. Nevertheless, there continues to be many successful traders who distinguish themselves by the consistency of their trading profits, and indeed build their fortunes from trading this market.

Have you been looking for ways to generate wealth and achieve financial freedom? Have you ever wondered how self-made millionaires build their net worth by trading the Forex market? In this empowering training program, you will experience for yourself how you can amass huge wealth by learning how to trade the Forex market in a systematic and consistent way. There are many who have started from scratch and made it. So can you!
Make consistent profits - At least 10% profit (return on risk capital) per winning trade. Exploit different profit opportunities.
Simplicity in trading - It is 100% mechanical strategies, with no subjective interpretation of complex charts and indicators.
Leverage of the market - Diverse selection of execution venues such as internet trading platforms makes it easier for retail traders to trade in the market

Attend Our FREE Introductory Seminar and You will Learn How To...
Learn How to Attack the FOREX market from various angles, exploiting different profit opportunities
Learn how to Identify the Best Trading Signals with high confidence of success (80% winning trades)
Discover how you can trade Without Intensive Monitoring of the Market and still Earn Consistent Profits
Learn how you can Start Trading in 2 Days!
Master the Psychology of Successful Trading

By Yeo Keong Hee...

Who is Yeo Keong Hee?
Yeo Keong Hee, CFA
Keong Hee holds a First Class Honours degree in Engineering from the National University of Singapore, where he was among the top 3% of his cohort. Keong Hee is a Certified Professional Trainer (accredited by the International Professional Managers Association, UK), and is also a Chartered Financial Analyst (CFA) charterholder, accredited by the CFA Institute. He also qualified for membership of MENSA Singapore by achieving an IQ score of 156.
After his corporate career in the investment profession, Keong Hee has embarked on a most rewarding journey of mastering the skill of trading the financial markets. As a self-directed investor, his remarkable trading results have helped him achieve independence from the rat race. By trading the Forex market alone, he now consistently makes profits of USD 15,000 to USD 20,000 on a monthly basis.
One of Keong Hee’s most phenomenal achievements in trading was multiplying a USD 10,000 account into well over USD 300,000 in just one year!

adapted from wealthacedemy website

FREE 3 HOURS SEMINAR.. and.. for what you know, even in investment, there is NO FREE LUNCH in the world.

This should be a preview to one of their course...
In my opinion, if you do not want to fork out money for the course, you can also go listen. I think investment is one thing that the more you hear, the better you can judge for yourself. Of course, if at the end, you wish to join the course then all the best!:)

SE4 Career in The Capital Markets - Opportunities for Futures Traders & Remisiers (SGX)

An opportunity for all investor and those who wish to seek trading as a career! Happened to saw this ad. Grab the chance...

Date : 27 Jun 09 to 27 Jun 09
Time : 9:00 AM - 1:00 PM
Venue : SGX Auditorim (Level 2) 2 Shenton Way SGX Centre 1
Capacity : 200

Fee : S$ 0 (incl. GST. Fees cost $10-$20 more for non-online payment. Please see details below)

Level : Beginner to Intermediate
Category : Special Events
Description : Discover the Business Opportunities in Professional Trading

Join us at Career in The Capital Markets - Opportunities for Futures Traders & Remisiers to find out more!

Organiser: SGX

Event Partners:
AmFraser Securities
CIMB-GK Securities
DMG Securities
Lim & Tan Securities
Ong First Tradition
Phillip Futures
UOB Kay Hian

- Introduction to Securities & Derivatives Markets

- Roles & Responsibilities of Futures Traders and Remisiers
- Insights to Professional Trading Success
- How to Get Started Who Should Attend*: - Mid-career switchers looking to explore trading as a profession - Savvy investors who want to take their trading to the next level

* All participants must be 21 years old and above.

adapted from SGX academy.

Personally I think this is a very good opportunities for all young investors and those who have interest to take on trading as a career. SGX is a big and reowned company.
The academy actually provide courses($280) and seminars($30) on regular basis too. The even above is free. Thus, really worth for a go!

Date : 27 Jun 09 9:00 AM - 27 Jun 09 1:00 PM
Venue : SGX Auditorim (Level 2) 2 Shenton Way SGX Centre 1

First post

Hi all,
I have started my journey of planning my own finance, the road to financial freedom recently.
This is my first post. I hope to share and learn more together with everyone.