Author: Dr Wealth

Money, Wealth and You

I have heard from different sources about value creation brings about wealth. You get richer only if you increase the value that you give to others. Zig Ziglar said, “you will get what you want if you help enough people get what they want.” Initially, I am not sure about this principle even when teacher Dennis mentioned about providing value and not to aim for financial freedom as a goal. If I give something to others, wouldn’t it make me worse off? As I continue to learn and inquire about money, that I start to understand this principle. When you provide a...

Read More

Do not live below your means. Learn how to own it!

I am not sure if thrift is part and parcel of Chinese’s culture. What I know is that I was brought up with the thinking that there are alot of things in this world that my family cannot afford, and I should not compare my situation with other rich people. Failing which, I would make myself miserable. Thus, I must be contented with what I have, even though there’s a little unhappiness or a tinge of envy hidden somewhere. I must say my mindset is shaped in this way. Only when I was exposed to the concept of law of attraction, that I...

Read More

Correlation between Stock and Oil Prices

No. 1: If oil price goes up, stock prices will fall. This is because the cost of doing business will increase and stock prices must factor this to account for the drop in earnings. i.e. oil price and stock price are inversely related No. 2: During an economic downturn, business and production slowed, and hence the demand for oil drops. i.e. oil price and stock price rise and fall in tandem. Which is correct? 1 or 2? Or both are wrong? Ken Fisher did an analysis on the correlation between oil and stock (S&P 500). From 1982 to 2005, the...

Read More

A Gift to My Children by Jim Rogers

Jim Rogers wrote a book for his daughters, teaching them the way of life to achieve success and happiness. Here are the things I learned from the book: About Life Passion is key to happiness – “Try as many things as you can, then pursue one (or two, or three) about which you’re passionate. I became successful in investing because this is what I enjoyed most… The quickest way to success is to do what you like and give it your best. For me, my love for investing was linked to my fascination with researching amd learning in detail what...

Read More

Trading Report Card – May 10

Stocks A loss in stocks for a consecutive month and this month was worse than the last. Even though I cut down on my trades, I did not cut down on the position size. In an uncertain market during the Apr-May period, I should trade with a much smaller size so that I err on the safe side. But I did not because I was unsatisfied of the potential profits if I win. My trades were driven by greed and this is dangerous and definitely a wrong mentality. I should approach it in 180 degrees change in perspective – Market is...

Read More

How to buy Silver?

Silver ETF The most famous Silver ETF is the iShares Silver Trust (SLV) which is listed in the American Stock Exchange. Silver ETFs are supposed to pool the money from investors and buy an equivalent amount of silver to back the fund. Silver ETF is one of the easiest method to buy silver since the ETF is traded like stocks in the exchange. Currently, we have no silver ETFs listed in SGX and the closest is the Lyxor Commodities ETF, but the composition is very small compared to the entire fund. Thus, if you want to buy SLV, you would need...

Read More

Trading Report Card – Apr 10

This month’s trading result is bad and it is time to do some soul searching. Stock trades The trend has sort of slowed during the start of April and is not actually a good time to enter. I notice I have the tendency to add positions even when the trend is ending. The best time is the first breakout after the retracement. But as I made more money, I became more aggressive. This is not right. As the market continues to trend, the risk increases as the market can turn down any time. One good signal is that my...

Read More

Lessons Learnt as a Trader (so far) Part 2

Learning is a continual process, not only because knowledge is limitless, but the environment always changes. I think it is important to capture and consolidate what I have learnt as a trader. So I will be starting a series of “Lessons Learnt as a Trader (so far)” to do just that. Focus on potential loss, not potential gain It is easy to be influenced by greed. When we decide whether to do something, we evaluate based on the benefits we are potentially going to get. For e.g., we invest to get profits, if not why invest at all. In other...

Read More

One Account for Stocks and Forex?

I trade both stocks and forex. Currently, I have 2 separate trading accounts with different brokers. I use MFGlobal for stocks and CityIndex for forex. Both are Contract for Difference (CFD) brokers. It has come to a point to decide whether I should merge the accounts into one and fully utilise the capital. There are advantage and disadvantage with 2 separate trading accounts. Advantage: Simple Accounting Having separate accounts will aid accounting of profits and losses for stocks and forex. This includes the leverage, financing charges, data charges, commission charges etc. The more important advantage is that I will...

Read More

Higher chance for market to move in the same direction

As Sir Isaac Newton said in his First Law of Motion: An object in motion will stay in motion, unless an outside force acts upon it. That gave rise to the concept of momentum. In the financial markets, price has momentum too. Daryl Guppy, documented in his book about the characteristics of price movement of shares. He verified his obervations with actual results and here are the details: Sideway A stock trading within a band (price range) has a 70% chance to move sideways further. This leaves 50% chance to either move up or down. Hence, there is a 15%...

Read More

Trading Report Card – Mar 10

The opportunity has finally arrived in late Feb and early Mar 10. As you can see I have much more counters compared to the previous month. Hopefully the bull has more stamina. I still have 2 open positions carried forward to April. Adding this month’s profits, I need to earn S$23,002.63 to meet my trading goal for this year. Read...

Read More

Passion or Not?

I was preparing this post as a draft and before I got it ready to published, La Papillion beat me to it! But you should carry on reading this post before moving to his. If you don’t read this, you should at least read his (I’m serious). I have been told not to focus on making money, but to find what I am passionate about and do it. Chances are if you are passionate about something, you tend to do it better than most people and this puts you to the top of the field. Hence, money will come...

Read More

China Oil and Gas and IndoAgri – closed on 22 Mar 10

China Oil and Gas: After a few weeks of good run in the stock market, it finally pulled back today. I have 2 oil related stocks which could not withhold the drop, and broke below the support. The first is China Oil and Gas as shown in the chart above. I entered rather late, after the price broke above the resistance. As I was optimistic with oil stocks, I got in within 6% above the resistance. Commodities have not been doing well as compared to the other sectors recently. Even the run up was not significant for them to...

Read More

Who owns what? – Singapore Commercial and Retail Properties

http://thefinance.sg/wp-content/uploads/2009/11/Driving-The-Volvo.jpgI believe in the 20/80 rule, especially in the realm of wealth. 20% of the rich controls or owns 80% of the wealth (in fact I believe it is more skewed than this). Hence, I have a personal quest to discover who owns what in Singapore, and hope to present my findings in a series of posts. And I have a hunch that I could link most of the assets to the hands of a few rich owners. Let’s begin with the real estate since Singapore is land scarce and of high value. In particular, I am only going to...

Read More

Your investment capital looks like this

Everyone has seen how stock charts look like. But have you seen the chart for your investment capital – how your capital rise and fall with time? The way your investment capital moves depend on the type of investor. I have heavily generalised 3 kinds of charts for the Buy-and-Hold investor, Trader and the Clueless investor. This is important because all of us would always monitor our capital time to time to see if it has grown. By doing this, we subject our happiness to it’s rise and dejection to it’s fall. And whether we still have the tenacity to continue...

Read More

Like us on Facebook

Follow us on Twitter