June 2009 passing rate 46%
December 2009 passing rate reverted back to normal of 34%. Yes I am one of them.
Wednesday, January 27, 2010
Sunday, January 10, 2010
My Trading Story Thus Far.... Stocks
This series is a real life trading story of mine. Armed with a capital of $8000, it is my own record of the investments I made and to share my experience, which was quite painful for a start. In this case, I believe some experience has to be bought with money (by losing) and I have to remind myself not to make the same stupid mistakes again.
Number 1 trade of my life - Sinomem at $0.60, I believe this is one of the strongest water treatment companies listed. Dropped to a low of $0.47 during holding period for 2009. (click on picture below to see chart and description)
Number 2 trade - Unifiber. Worst piece of investment. Learnt my lesson, never to listen to recommendation without doing any research. Speculating makes me a victim. End 2009, still holding on, making losses, looking for the best time to breakeven and offload.
Number 3 - Swingmedia. Another lesson learnt. Believed too much in research reports and not knowing the best time to enter. Bought at the highest point. Looking to offload half of the holdings.
Number 4 - Frasers Centrepoint Trust. One of my favourite REITs. Great prospects following Northpoint 2 mall and Yew Tee Point. Offloaded holdings due to liquidity needs and after receiving dividend of 2.04 cents per share. Only made a pathetic $15.61 (1.23% holding period for less than 1.5 months). Looking to buy back when price is good and if I have the cash.
Number 5 - Singtel. Bought at the lowest point for the 2nd half of the year, at $2.90. Best piece of investment thus far. Still holding, looking to sell at $3.20 or $3.30, depending on the strength of resistance.
Also made a contra loss of $135.86 on Hock Lian Seng.
Total for 2009 (3 months) - realised loss of $120.25.
This series is a real life trading story of mine. Armed with a capital of $8000, it is my own record of the investments I made and to share my experience, which was quite painful for a start. In this case, I believe some experience has to be bought with money (by losing) and I have to remind myself not to make the same stupid mistakes again.
Number 1 trade of my life - Sinomem at $0.60, I believe this is one of the strongest water treatment companies listed. Dropped to a low of $0.47 during holding period for 2009. (click on picture below to see chart and description)
Number 2 trade - Unifiber. Worst piece of investment. Learnt my lesson, never to listen to recommendation without doing any research. Speculating makes me a victim. End 2009, still holding on, making losses, looking for the best time to breakeven and offload.
Number 3 - Swingmedia. Another lesson learnt. Believed too much in research reports and not knowing the best time to enter. Bought at the highest point. Looking to offload half of the holdings.
Number 4 - Frasers Centrepoint Trust. One of my favourite REITs. Great prospects following Northpoint 2 mall and Yew Tee Point. Offloaded holdings due to liquidity needs and after receiving dividend of 2.04 cents per share. Only made a pathetic $15.61 (1.23% holding period for less than 1.5 months). Looking to buy back when price is good and if I have the cash.
Number 5 - Singtel. Bought at the lowest point for the 2nd half of the year, at $2.90. Best piece of investment thus far. Still holding, looking to sell at $3.20 or $3.30, depending on the strength of resistance.
Also made a contra loss of $135.86 on Hock Lian Seng.
Total for 2009 (3 months) - realised loss of $120.25.
Saturday, January 09, 2010
Rule of 72
Last week, we discussed about the power of compounding, which of course, more is better and if the frequency of the compound is higher, the more money for you to put in the pocket.
Today, I will introduce a tool for you to compound your growth: The rule of 72.
Apparently, Albert Einstein is the owner of this rule and what it says is that by taking 72 divided by the interest rate, that will be the number of years needed for your money to double. Amazing, isn't it?
The effect of compounding can actually be represented by a mathematical function called e, the exponential function. People are always interested to find out how long it takes to double their money, so this is a useful tool to use.
Again, for illustration purposes:
Suppose the bank pays you 0.5% interest every year. Take 72 divide by 0.5 and you will know that you won't get to see your money double in this lifetime.
Similarly, if there is an investment that promises 10% per year, you will get two times your money in approximately 7 years. But before you dump all your money into that unknown Ponzi scheme, please be assured that there is no investment that promise they won't lose any of your money. If you manage to find one, please leave a message cos I want to invest too.
Your writer is lousy in english. So he is trying to put things as simple as possible.
Last week, we discussed about the power of compounding, which of course, more is better and if the frequency of the compound is higher, the more money for you to put in the pocket.
Today, I will introduce a tool for you to compound your growth: The rule of 72.
Apparently, Albert Einstein is the owner of this rule and what it says is that by taking 72 divided by the interest rate, that will be the number of years needed for your money to double. Amazing, isn't it?
The effect of compounding can actually be represented by a mathematical function called e, the exponential function. People are always interested to find out how long it takes to double their money, so this is a useful tool to use.
Again, for illustration purposes:
Suppose the bank pays you 0.5% interest every year. Take 72 divide by 0.5 and you will know that you won't get to see your money double in this lifetime.
Similarly, if there is an investment that promises 10% per year, you will get two times your money in approximately 7 years. But before you dump all your money into that unknown Ponzi scheme, please be assured that there is no investment that promise they won't lose any of your money. If you manage to find one, please leave a message cos I want to invest too.
Your writer is lousy in english. So he is trying to put things as simple as possible.
Saturday, January 02, 2010
The Power of Compounding
Compounding is really a basic term that we encounter in our day to day life. It doesn't take a scientist or a financial expert to explain correctly what compounding means. This is what growing money means. Compounding will ensure that your $1 today will be worth more tomorrow and even more the day after.
A simple illustration:
You invest $100 in a financial instrument called bank deposits. It promises 1% interest every year and they pay at the end of each year.
End of the year we will all celebrate the welcome the new year, and at this time, the bank pays you $1 on your $100 (1% of $100 = $1), and they too, went on to celebrate their bonus for the year. So being somemore who haven't used a single cent in that account, you have $101.
One more year and the whole cycle repeats itself. You are still happy and nothing changes except for your account. The bank is sad cos they have to pay you $1.01 for interest this time. You have $102.01!
Of course, I am using this example to mock at you for leaving that $100 in the bank since he doesn't withdraw it to use. He can put it into a better purpose called investing.
Now suppose the returns (interest) is 10% instead of 1%. End of year 1 will be $110 instead of $101, and end of year 2 will be $121 instead of $101.10. You decide for yourself which one is more.
From today onwards, after celebrating the enterance of year 2010, I will be sharing something every week, be it investment knowledge, study advice or whatever nonsense. But I am good at none of these.
Compounding is really a basic term that we encounter in our day to day life. It doesn't take a scientist or a financial expert to explain correctly what compounding means. This is what growing money means. Compounding will ensure that your $1 today will be worth more tomorrow and even more the day after.
A simple illustration:
You invest $100 in a financial instrument called bank deposits. It promises 1% interest every year and they pay at the end of each year.
End of the year we will all celebrate the welcome the new year, and at this time, the bank pays you $1 on your $100 (1% of $100 = $1), and they too, went on to celebrate their bonus for the year. So being somemore who haven't used a single cent in that account, you have $101.
One more year and the whole cycle repeats itself. You are still happy and nothing changes except for your account. The bank is sad cos they have to pay you $1.01 for interest this time. You have $102.01!
Of course, I am using this example to mock at you for leaving that $100 in the bank since he doesn't withdraw it to use. He can put it into a better purpose called investing.
Now suppose the returns (interest) is 10% instead of 1%. End of year 1 will be $110 instead of $101, and end of year 2 will be $121 instead of $101.10. You decide for yourself which one is more.
From today onwards, after celebrating the enterance of year 2010, I will be sharing something every week, be it investment knowledge, study advice or whatever nonsense. But I am good at none of these.
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