Tuesday, December 28, 2010

Video Log 281210 - Killer Presentations

The thing i like about Youtube is the massive amount of content and information you can find just by typing the thing that you want and click "search". Tons of videos at your fingertips and you are practically spoilt for choice. This video which i personally liked is about how you make killer presentations to the general public. The tips which he gave are so true and we sometimes just did not notice that they could make such an impact to your presentation. Please spare around 8 mins of time and view this video, i guarantee you will not regret it! 

Monday, December 27, 2010

Quote of the day : 271210

"Action may not always bring happiness, but there is no happiness without action"

Benjamin Disraeli, former British Prime Minister

Its basically something which you ask yourself everyday. Should i do this or should i not do this. Where every step you take will result in another outcome and you are insecure about it. I call this the fear of uncertainty or in other words the fear of failing. But how do you know you will fail if you don't take the action in the first place, would you prefer to regret your non-actions in a later stage of your life? Even if the actions resulted in failure, are you gonna quit trying? Hmm, ponder upon this quote and judge for yourself...

Sunday, December 26, 2010

The Wonders of Risk Management Tools!

Over the span of 10 years, i have been trading my stocks based on fundamental and technical analysis tools (Do watch for these postings on how i trade using fundamental and technical analysis). Although the results were great, but they take up alot of my time as you are required to study the trends and company financials to understand or predict where the stock will go. I am not sure whether this is familiar to you but have you always constantly check the price of your stock during your office hours, lunch hours, toilet break hours?? If your answer is a 'YES', then you are not alone. But i gotta tell you this, its not good for the heart. Therefore, i decided to find another method to trade, a method that allows me to sleep soundly at night, concentrate on my work and toilet breaks and lastly one that there are no requirements for me to constantly track my stock trending AT ALL TIMES... Some useful trading techniques which i find very useful include:

Using Risk Managment tools
  • Stop loss
    • This is a strategy to prevent further losses if your stock goes opposite from your expected direction. By placing this order with a broker to sell a security when it reaches a certain price. Therefore a stop-loss order is designed to limit an investor's loss on a security position. I find this useful because it serves as a safety net.
    • For eg. Current stock price is $1, i predicted that it could rise up to $1.50. So i bought 10 lots for $10000. But i was wrong, stock drops to $0.50 on the third day, i loss $5000 ($10000 - (10 lots x $0.50)).
    • What if i put a stop loss at the same time when i bought the stock?Again, I bought the stock for $1, this time i put a stop loss for $0.70. Stock drops to $0.50, but i cut loss at $0.70. I only loss $3000($10000-(10 lots x $0.70)). One good thing about this is you don't even need to monitor your stock all day.
  • Trailing Stop loss
    • Similar to stop loss but with a twist. This order is set at a percentage below the market price and the trailing stop price will be adjusted as the price fluctuates. Eg. Price of stock which you bought is gaining momentum, but you want to hold on to it as you believe it will go even higher.  You are unable to monitor your stock all the time and you constantly fear the stock will slide to the opposite side due to unforeseen events. Therefore you set a trailing stop loss of 20%(This depends on your risk level, how much you are willing to lose), everytime a stock fluctuates, you are given the assurance that as long as the stock drops to your trailling stop loss of 20%, it will sell the stock for you. Therefore limiting you to a loss of only 20% at all times. 
Besides the abovementioned 2 methods, there are quite a few risk management tools to use. But to attract you to continue reading my blog, i will post the other methods at later periods. Hope you are excited about it. This blog is basically a sharing blog,if possible,  i would like to appeal to everyone to comment about the methods or contribute their own methods. By learning from each other, we will be better equipped to tackle the sophisticated world of trading!

All blogposts are strictly for information only and may not be suitable for your financial needs or goals. Please conduct your own research or consult a qualified financial advisor to assist you. The author will not be liable for any inaccuracy.

Thursday, December 23, 2010

Pornblocker - Protect your family

Although this product is not related to trading matters, and yet i am promoting it is because i am a parent concerned with the content that my child, nieces and nephews are watching. The world wide web has an abundance of information, although it comes as an advantage but there are always areas which us parents would have lapse in preventing unwanted content from being delivered to them. This product helps in:
  1. Keeping track and checks the content of every web-page your child browses through in the Internet.
  2. Finds some obscene content (characteristic of pornography, violence, religious sects, etc.), it will immediately block viewing such pages.
  3. Will filter the content of every visited and viewed page - EVERY TIME!
  4. For more information,  Click here to check out their site
Concerned parents out there, if you do not want your children to be exposed to unwanted content from the world wide web, you can visit their site to find out more. Before you make any purchases, ask the relavant questions and prompt if you are not sure.My advice would be to always remember this, " Move forward only if you can see what's infront of you". Happy browsing!

Protect your child, protect their childhood...

Monday, December 20, 2010

Atomic Blogging Theme

Although i am not a avid follower of atomic blogging, but i must say that their way of promoting their tool really packs a punch! Basically, their package comprises of step-by-step guide for bloggers who would like to learn and profit from their own blog. Some of the content includes:
  1. Powerful tips on blogging
  2. Things to avoid when blogging
  3. Importance of keyword research
  4. Optimizing your blog for peak performance and many more...
If you are serious into blogging, you can visit their site to find out more. Before you make any purchases, ask the relavant questions and prompt if you are not sure.My advice would be to always remember this, " Move forward only if you can see what's infront of you". Happy browsing!

Sunday, December 19, 2010

Video Log 191210 - The crisis of credit

Credit goes to Jonathan Jarvis for this wonderful video

Video log is basically postings of videos which i think is informational and great for watching. Since this a blog on trading and finanical know-how. My first video log will be on "The crisis of credit". This video basically explains how the financial crisis actually started in the US and  how it easily brought down the giants of financial world. Please enjoy!   

Saturday, December 18, 2010

Trading using CFDs

Stay tune on this page. My writeup on the wonders of CFD trading!!!

Friday, December 17, 2010

How to save for your future

We do not live forever, but we certainly would like to ensure that there would be abundance of money available when we reach the age of retirement. Plainly relying on your children to support you would be a selfish thought as i believe they would already have their own money matters to take care of. So how do we really need to go about saving for our future? Maybe you might wanna take a look at one of my suggestion.

1. Save a $100 a week (Or up to your preference)
  • A lot of people tell me thats ridiculous, $100 a week! That's equivalent to almost $400 a month!!Before you click the back button or divert from another webpage. What i want you to do now is think of the big picture. If you are able to practise a little bit of savings discipline, by continously withdrawing $100 a week and putting it somewhere in your piggy bank. Within a span of 6 months, you would have $2400 of savings!! And within a year, $4800!! You see what i mean?! Well if $100 is a little too much for you, i suggest you start small. A little can go a long way as long as you maintain the discipline. To make it even more enjoyable, rope in your spouse to do the same thing. If he or she is too lazy, offer to withdraw the money from them and help them to save. Thats what i did with my spouse. With our combined savings, we managed to save around $10000 within a span of one year. And with that extra savings, we were able to pay for our holiday trips without worrying about busting our bank accounts. Isn't that fantastic! What if you were able to save $200 a week or $300 a week, do the maths.
2. The power of coins saving
  • Once in a while or every day when you get back from work, put your hands in your pockets. Check for any coins left. Instead of using them for purchases, why not drop them into your piggy bank. I tried this method everyday without fail and although this may take some time, but with a little patience you will be surprised by the amount of coins you can save. Last count, i mananged to save $3000 and it is still increasing till now.