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.

Remisier
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.

Traders
Speculators who buy and sell financial instruments

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

Dealer
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.


Warrent
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 straittime.com

''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!

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

Highlights:
- 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.