Tuesday, December 31, 2013

Professional Trader

One of my friend ask me how easy to be a professional trader? (buy and sell stock to earn a living)

He want to find out how much a trader can earn per month and if he is suitable for this job. Well, I told him, become a trader is not easy, it require special skill, similar to lawyer or doctor. However, one can train to become "subject matter expert".

 I don't know how much a professional trader earn on average... As long as one can take some money from the market, it's good enough. I belief if one can continue doing the same thing every day, he / she will become an expert. If an expert repeat the same thing again and again, he / she will become a winner. In other words, practice make it perfect.

I don't trade every day, as some day we just know it's not suitable for trading. It's no point to trade if you can not make the money. If you ask me today (31 Dec 2013) suitable for trading or not? My answer is yes, if you want to know what I trade for today, just click on below:

One may not understand what I am doing if just look at the above print screen. Let explain further, I bought AmBank and Sold Ambank, with buy order more than sell order. I also bought YTL and sell YTL, with buy more than sell order. I collect more FGV and net sell for CIMB. With this, I am sure there are few hundred of contra gain for today, not bad in the situation where market index drop by 5 points! The report will come out on next working day.
Let see what's the yesterday's result from the report when the market index surged by more than 10 points:

 With total of 9 contra gain, from 2 figure to 3 figure, all add up with total of 4 figures! Seem very easy, but those involve in the trading will know it's not that simple. Last, this info is for your reading pleasure only, don't follow what the trader buy or sell, as trader may change the mind any time. Anything buy may sell in next minute or hold for few days. Don't forget, I have practice this skill for many years!

Happy New Year Eve of 2014! (功力又增加一年!)

Wednesday, December 25, 2013

Time to finalise earning for 2013

Ho Ho Ho, Merry Chrismas! Year end is approaching and it's time to count how much profit (or lose you made?) in this year. Today is holiday at Penang too but I don't feel the holiday mood... if one go to Singapore now, they can feel the holiday mood. However, there's one place I plan to go, shopping center... try to feel the holiday mood there. In fact, I just went shopping just now... if someone tell me economy is not so good, I am doubt. The reason was all those departmental stores and shop lots are crowded. I bought couple of things and the waiting queue for payment took me about 30 minutes.
May be Penang people are rich? Perhaps people afraid of, if they don't buy now, when the GST implement, the goods will expensive? I meet with a friend at a shopping centre, and I offer to treat him lunch. So, we went to a restaurant, we noticed of new menu. (indirectly increase the price) I told my friend I am not “working” for more than 4 years but don't worry, I can still treat him good lunch, I can do charity and continue with my daily life. He seem hard to believe, like people assume, one must work in order to earn a living. Well, bird no need to work and they also don't worry for tomorrow either. In the olden day, good hunter only hunt one or two days in a month, of course, they must good with certain “skill”, to kill the prey with one shoot.
One of the “skill” in modern day one must have in order not to “work” is call Passive Income. I used to build these for years and last few years it started to bear a meaningful fruit... The money is enough for my daily expenses, beside, I used to do many other things like charity, help those who need help and donate to those who need it... this make me more understood the important and meaning of life.
While I am still waiting for couple of pay cheque to come, I think it's good for me to share what's are those pay cheque I have received for the month of December till date: 

AmFirst, Axreit and Hektar contributed for $6k++ for this month. An aunty once ask me, what if tomorrow Market crash? Should I afraid of market crash, why should I bother if I continue receive it's dividend. Like some people call it, hold the stock, just forgot about the price but count on it's dividend! If fact, I do hope market will crash, so that I can buy more if the stock fall to attractive price!

Monday, December 16, 2013

Buying Stock for Dividend income will not afraid of market crash!

"OMG... market is down again..." that was the history happen on 2009, some day in month of March. The news start to spread from US to all over the world. I still remember that scary news, market index was continuously down for 8 days without rebound! Then it just rebound for a day, but continue to break lower record again on next day when the market open.

It's hardly for anyone today to imaging how terrible the feeling if one just invest few thousand into stock market on the time. The ten thousand invested will end up became five thousand in few weeks time. I still remember my favourite blue chip stock like Maybank and Tenaga, both gave the discount of more than 50% in 6 months time! No joke, in less than half year, your asset just reduce by half!

I have record down all these investment lessons in a note book, it serve as a purpose to remind me, market is unpredictable, the party could end any time even in a big bull run. That's why don't speculate too much, instead look for dividend income stock and build the passive income asset as early as possible. This is what I always advise all my client, but sadly, very few people actually take note of this.

Thanks God... it's December again, someone ask me what happen if market crash! My answer is, why should I afraid... even if market really crash tomorrow, I can still receive my dividend income! To my surprise, he did not believe invest in stock market can generate so much passive income! Stay tune for my next post on what are the dividend received in the month of December.