Saturday, January 25, 2014

Uptrend and down trend

I received inquiry from a client recently, who want to know if now is a good time to collect a stock call Zhulian. Well, if he understand what's up trend and down trend, then it's more easy to make a decision.

What is uptrend stock?
If you don't know, let see a sample stock, Zhulian, in the past few months, it's a clear up trend. If you let a small kid see the chart and ask them this is up or down, they will tell you immediately, this is up trend!

So, how about down trend stock?
See this chart, same stock Zhulian, now become down trend:

Some investor don't understand this and they like to catch the falling knife! Maybe they thought tomorrow this stock will up, so must buy it today! If you do so, see what will happen:

If I am a small kid, I will like this, all the way down. The kid will tell you, they are on the way down, is it possible to stop suddenly and turn up? It will only stop when reach the ground!

Those who buy a down trend stock, usually will see the price become lower and lower. The trend is what you see now, not what you think! If you want to buy the stock, why don't wait for it to become up trend again, or at least let the price stable first. Make the trend as your friend, it's that simple!

Monday, January 6, 2014

Do you control your money?

Many people working under employment always complaint about hectic life, office politic and salary “not enough”. That's why they try to build another source of income or multiple source of income. While having another source of income is important, don't forget we need to control what's coming in and manage it, else, you may fall into this situation: “I have 6 figure salary, but still in Financial trouble”. 
The biggest different between financial success and financial failure is how well one manage the money. People become poor or remain poor because they don't like to manage their money. The common reason given is they don't have money to manage. So, they say, “when I have plenty of money, I will manage it”. This is similar to an overweight person saying “I will start exercise and balance my diet when I lose 20 kg”. The money, you must start to handle it properly and you will have more money to handle.
How to manage your money? As per one of the program which I follow, first, create a habit by open a “Financial Freedom Account”. Put 10% of your monthly income into this account. The account is use to build “golden goose” that lays golden eggs, we call it “passive income”. Never spend the money in this account, it's for the purpose of building retirement income.
Then you create another account, call it “Play Account” and put another 10% from your income to this account. This account is to reward your hard work every month, you may spend all money in this account. It could be stay in hotel for one or two day, or buy a handbag or eat a good meal in expensive restaurant or buy a gift to yourself or someone you love! The idea is to have a balance to offset the first “Financial Freedom Account”.
For the remaining of 80%, you may assign according to your financial need such as X% to Education Account, Y% to Necessities Account, Z% into your Long Term Saving/ Spending Account. Don't think this is another “boring” program, many high income professionals (similar to the above story) are basically broke because they don't know how to do with with their income. They just know they earn a lot, then it's fine to spend and spend without the plan. I believe if you manage your money following this program, you may become financially free on a relatively small income. Remember, to control the money, you must manage it!


Sunday, January 5, 2014

Time to finalise earning for 2013 - Part 2

In the beginning of New Year, almost everyone talking about inflation, from increase of sugar price to electricity tariff hike and potentially increase of toll rates, all these have became hot topic right now. As per 7 habit practice, we should concentrate on what we can control and ignore what we couldn't, let's don't over focus with this small problem, as we are bigger than those problem.

For your reading pleasure, below are last few of pay cheque that I received for the month of Dec 2013:

One of the statement from AmanahRaya Reit went missing, with the sum of around $2k+. Thanks to convenience of eDividend, the money had credited into my saving account, if not I had to rush high and low again. All these 5 pieces gave me another handsome income of $6k+, thank you so much!
I always focus on the way to have more golden eggs and the only way is to have more golden goose. So, don't forget to invest into "golden goose" if you happen to know they are on "cheap sales".