My money works harder for me (3)

Read? My money works harder for me (2)

How do I know my money is working harder for me?

One way to measure your portfolio value using CAGR.

CAGR measures the productivity of money. Productivity is the highest when it generates the most dollars in the least time or basically it is the financial returns over the investing time units that really counts.

Expected CAGR can be different during Building Wealth and Growing Income phase.

During building wealth phase, we may need more aggressive CAGR like at least 1X% and above but later slowing it down to high X% during Growing Income phase.

My money works harder for me (2)

Read? My money works harder for me

Why make my money works harder for me?

It is not to keep up with inflation; but to accumulate enough wealth so that I can reach Financial Independence stage.

When someone is financially free, they will have less to worry on money matters and then can experience life with less concern and pressure and can avoid participating in the Rat Race.  

Isn't that wonderful?
 

Biosensor - How nice!

Read? Biosensors founder allays fears over share sale

 18.2 per cent stake in Biosensors International at 88.88 cents apiece.  It means that I have found a new TouchStone at $0.655

Biosensors founder allays fears over share sale

Chinese investor has wide knowledge about pharma industry, he says


By LYNN KAN

YES, he and his affiliates have sold their 18.2 per cent stake in Biosensors International to Chinese private equity firm Hony Capital, but chairman Lu Yoh Chie tells BT that he has no intention of relinquishing his role in the stent-making company that he had built from scratch in 1990. And he also has his reasons for selling the shares at 88.88 cents apiece.

Mr Lu: 'When we did the calculations of the 45-day average price, it came up to 88.88 cents. So I said, 'Eight is a lucky number, let's do it'.'

'Maybe I don't think like how ordinary people think. I'm not driven by money and I didn't think that I was selling to lock in a profit,' said Mr Lu. 'I was driven by principle and the match was compatible.'

In fact, he's moving back to Singapore from the US to concentrate on the Asian market more intently. 'I'm going to be spending most of my time in Asia, and to do so I'm moving here, although I've never really left, because I'm a PR here.'

Mr Lu's divestment has created some jitters on the market. An announcement on the Singapore Exchange website after midnight on Monday made known that he and affiliates sold their more than 197 million shares to Autumn Eagle, Hony Capital's special purpose investment vehicle, at 88.88 cents apiece, against a market price then of about $1.00.

Though the announcement stated that Mr Lu would stay on as chairman of the company, the market reacted almost instantaneously on the news of Mr Lu's divestment.

In a reversal of Monday's gain of 8 per cent to $1.08, Biosensors' shares shed 4 cents on Tuesday to close at $1.04 on the uncertainty that Mr Lu's divestment created.

A Web conference was called yesterday at 5.30pm, and investment firms Nomura, DBS Vickers, OCBC, Credit Suisse and Lim & Tan Securities phoned in to gain reassurance from Mr Lu himself, who was in Singapore.

In an interview with BT yesterday, Mr Lu said that the deal was made in the best and long-term interests of the company.

'There are limitations to what I could do for Biosensors. The company has grown beyond my capabilities. Not that I am leaving or quitting in any way. I just decided that it's time for some new blood.

'For a biotechnology company, you not only need the right talent, the passion and great ideas,' he said. 'But you also need deep pockets, otherwise the funding for the idea will dry up.'

Hony Capital was Biosensors' most genuine and persistent pursuer. 'It followed the company for more than six months. It's a well-known private equity firm and it has extensive knowledge about the pharmaceutical industry. And most importantly, it was upfront and honest,' he said.

He also said that he didn't entertain other interested parties in the same way he did Hony, although there were such parties over the years. 'I think I didn't shop around in that sense. It wouldn't have been a respectful thing to do.'

As for why he sold his stocks at a discount to the market price, he said the price was committed out of fairness to Hony and also, out of superstition. 'When we began discussions more than six months ago, the price was in the 60 to 70 cent range, never more. But it was only recently that the share price shot up. I wanted to be reasonable and equitable so we tried to strike a good balance. I always like a win-win.

'So, when we did the calculations of the 45-day average price, it came up to 88.88 cents. My birthday is Aug 8 and I was married on the same day. So I said, 'Eight is a lucky number, let's do it.' They liked it too. It was meant to be.'

Hony Capital has had prior experience in aiding similar biotech companies and, according to a report by Nomura, has invested in at least three in China.

With Biosensors focusing on gaining a larger market share in China with its 50 per cent joint venture, JW Medical Systems, Hony Capital is coming on board at the right time to lend its financial strength and expertise.

Mr Lu says he will continue as chairman of Biosensors for as long as he can. 'Biosensors is like the son I never had. But Biosensors needs to seek new adventures, needs to continue to build. There are new opportunities to explore and I believe that it's the right time for Hony, myself, the management team and shareholders to address an exciting market.'

Biosensors shares recovered some lost ground yesterday, adding 2 cents to end at $1.06.

Seoul Homeowners Watch Prices Sink Even as Economy Soars

By Shinhye Kang and Bomi Lim

Yoon Jae Kwang sidestepped the global financial crisis by selling all of his mutual funds after 100 percent returns to buy an apartment outside Seoul in 2007. Three years later, the housing market has slumped and Yoon faces a loss on his investment.


The 112-square-meter (1,200-square-foot) home, which jumped as much as 16 percent from the purchase price of 320 million won ($280,000) in just a year, has dropped 22 percent in value from the peak. Yoon can’t find buyers for the apartment in Yongin, 49 kilometers (30 miles) south of the capital, to pay off the 80 million won he borrowed to help pay for it.

“I am stuck; you know the price will drop more for at least another couple of years, and yet you can’t do anything about it,” said Yoon, 34, who works at a software development company in southern Seoul. “What happens when the time comes for me to pay off my debt?”

Yoon’s difficulties reflect his government’s success in cooling the market, while property prices soar in Hong Kong, China and Singapore. In Korea, government efforts to forestall a property bubble and rein in record household debt have damped prices and sent consumer sentiment to a 14-month low in September.

Apartment prices in the Seoul metropolitan area have fallen 2.7 percent so far this year, the first decline in six years, according to data from Kookmin Bank, South Korea’s biggest lender. The number of unsold new apartments in Seoul has increased 16 percent, while existing apartment sales slumped 59 percent below their average of the past four years, according to the Ministry of Land, Transport and Maritime Affairs.

Hong Kong, Singapore

Home prices are up about 15 percent in Hong Kong in 2010 and jumped 38 percent in the 12 months to the end of June in Singapore. China’s property prices rose 9.3 percent in August from a year earlier, even as officials crack down on speculators and multiple home purchases.

In South Korea, the declines come even as the economy bounces back from the global financial crisis with forecast growth of 5.9 percent this year. The Bank of Korea raised its forecast in July from 5.2 percent predicted in April.

The central bank will closely monitor inflation, Governor Kim Choong Soo told reporters today after keeping the benchmark rate at 2.25 percent, which he said some board members opposed.

“People are saying the stock market is booming and companies are enjoying record earnings,” said Jeong Ai Nam, a local realtor in southern Seoul. “The housing market, it’s a totally different story. Demand has dried up.”

Debt-to-Income

Apartment prices in Seoul had increased 3.2 percent between January and September last year, according to Kookmin Bank, as a $52 billion stimulus package and record-low interest rates spurred demand. Bank lending to households expanded in June last year by the most in more than two years on demand for mortgages.

To stem the surging household borrowing, the Financial Supervisory Service in July 2009 said buyers of homes worth more than 600 million won could borrow only as much as 50 percent of the property’s value, down from 60 percent previously. Then in September, the government tightened debt-to-income rules, allowing banks to extend no more than 50 percent of a borrower’s annual income to purchase homes in Seoul and 60 percent in Incheon and Geyonggi provinces near the capital.

Apartment prices and sales then started their slump, prompting the government of President Lee Myung Bak to ease some of its curbs this year. On Aug. 29, Lee’s administration announced a seven-month exemption to the 50 percent debt-to- income rule in Seoul, while leaving it in force in three southern parts of the capital -- Gangnam, Seocho and Songpa -- that it deemed “speculative zones.”

Speculative Zones

The 60 percent limit imposed outside the capital has also been suspended until the end of March, and a nationwide waiver on taxes for home sales was extended until the end of 2012.

The changes have yet to spur property transactions because buyers are concerned prices may fall further, said Cho Min Yi, head of research at SpeedBank, a housing consulting company in Seoul.

“It’s all about sentiment,” said Cho. “You can’t expect the property market to recover soon while people stand pat.”

The government may not be able to take further action to boost the market as it remains concerned about overheating prices and household debt levels, Cho said.

South Korea’s household debt jumped 20 percent to a record of 754.9 trillion won at the end of June, from the end of 2007, according to the Bank of Korea. Home loans increased to 349 trillion won, up from 293 trillion won in 2007.

This makes South Korean consumers’ debt as a percentage of their income higher than that of the U.S. and Japan, according to Moody’s Investors Service.

‘Nightmare’

“The high indebtedness and vulnerability of households to a rise in interest rates are further increasing the downward pressure on housing prices,” Moody’s said Sept. 7.

Banker Lee Gi Do bought an apartment in southeastern Seoul for 450 million won last year and within a week his agent offered him 7 percent more to sell the property. A year later, the apartment’s value has dropped almost 10 percent below the purchase price and Lee can’t find a buyer.

“My dream’s become a nightmare,” said the 33-year-old. “Far from making money, I may struggle to pay my monthly interest bill if the central bank raises rates more.”

The stagnant property market also has forced South Korean builders to restructure debts after the construction industry shrank 0.9 percent over the three months through June, the third drop in four quarters, according to the Bank of Korea. The decline contrasts with 1.4 percent growth in South Korea’s gross domestic product in the period.

Bad Loans

Combined second-quarter profit at local lenders including Kookmin Bank dropped 34 percent from a year earlier after they set aside extra loan-loss reserves to help construction and shipbuilding companies restructure debts, the Financial Supervisory Service said on Aug. 3.

Moody’s expects a surge in credit losses from the construction industry, which will weigh on Korean bank earnings, the credit rating company said.

The household loan delinquency ratio for South Korean banks rose to 0.78 percent in August from 0.48 percent at the end of last year and soured mortgage loans almost doubled to 0.64 percent from 0.33 percent.

The average cost of leasing an apartment is on the rise in the Seoul metropolitan area as potential buyers are favoring renting for now amid concerns of further declines in home prices. Rents in the nation have jumped 4.4 percent so far this year, the biggest gain for the first three quarters since 2002, according to Kookmin Bank.

Household Income

“It’s a typical bottleneck as people are delaying buying a home and rushing into the leasing market,” said SpeedBank’s Cho.

Still, software developer Yoon says he will hold onto his Yongin apartment for now.

“You always hear about how real estate is where the big players invest their money in Korea; that you never go wrong with property,” Yoon said. “That may have been true for my parents’ generation, but not mine.”

-- With assistance from Saeromi Shin in Seoul. Editors: Brett Miller, Andreea Papuc

Many faces of Bull and Bear

Just For Laugh ....

• Bullish Bull:     Close to 100% in stocks
• Bearish Bear:  Close to 100% in cash
• Bearish Bull:   More stocks than cash
• Bullish Bear:   More cash than stocks
• Bo Pian Bull:  Too many losing stocks and can't sell
• Bo Chap Bull: More dividends are coming. Never mind the market

I am Bearish Bull!

How about you?

BIOSENSORS COMMENTS ON CHANGE IN EQUITY OWNERSHIP

Singapore 13 October 2010 - Biosensors International Group, Ltd. (“Biosensors” or the “Company”, Bloomberg: BIG SP) today commented on a recent announcement from Hony Capital and Mr. Yoh-Chie Lu, Biosensors Chairman.

On October 10, 2010, Hony Capital, through its wholly owned special purpose vehicle, Autumn Eagle Limited, entered into Sale and Purchase Agreements to purchase a total of 319,311,200 shares of Biosensors common stock, representing 29.47% of Biosensors outstanding shares. Included in the shares purchased by Autumn Eagle is the 18.2% ownership stake of Biosensors’ current largest shareholder, Chairman Mr. Yoh-Chie Lu and his affiliates. Mr. Lu will continue in his current role as Biosensors’ Chairman of the Board. The shares will be sold at a price of $0.8888 per share, after taking into consideration the average price of the shares of Biosensors traded on the Singapore Stock

Exchange for the 45-day period prior to the date of Sale and Purchase Agreements.

Mr. Jeffrey B. Jump, President and CEO commented, “We believe that these recent events position Biosensors for a very exciting future. We retain the experience, vision and leadership of Yoh-Chie Lu, who will remain our Chairman, and we have gained a new partner who will be instrumental in our future growth and development, particularly in the Asian markets, including China.”

Wilmar says no major impact from moratorium

SINGAPORE/KUALA LUMPUR - Wilmar International, the world's No 1 palm oil firm, expects Indonesia's proposed two-year ban on clearing forests to have a limited impact on its operations as land available for oil palm estates is ample.

Singapore-listed Wilmar's stand run counter to many palm oil and mining firms who fear the moratorium - part of a US$1 billion deal with Norway aimed at fighting deforestation and carbon emissions - will curb expansion and future earnings.

Wilmar's head of corporate social responsibility Jeremy Goon said oil palm concessions only cover 3.2 per cent of Indonesia's land mass but contribute 70 per cent of total agriculture activity in the Southeast Asian country.

'We understand there is sufficient non-forest degraded lands in Indonesia to accommodate and support the growth of the plantation businesses,' he told the Reuters Climate and Alternative Energy Summit.

Under the deal with Norway, the moratorium would apply from the start of next year but exactly which areas of forest will be covered remains unclear, unsettling investors.

Senior Indonesia officials have raised the idea of land swaps to help palm oil firms expand on land already degraded but the question of who pays for this remains unsettled.

Mr Goon said Wilmar would abide by any regulations that governed land swaps if such rules were drafted.

Indonesia is under international pressure to slow deforestation and the destruction of peatlands, which release vast amounts of planet-warming greenhouse gases when cleared or burned.

Wilmar also faces an uphill task in ensuring its palm oil supply comes from third-party estates that have not illegally cut down forests or drained peatlands to expand, he said.

'Not the palm oil police'

Less than half of the palm oil the firm trades comes from its own subsidiaries, Mr Goon said.

But unlike companies such as Malaysian-listed planter IOI Corp, which recently excluded an Indonesian supplier over concerns of deforestation, he said Wilmar usually engages with errant planters to help them become more eco-friendly.

'First of all, we are not the palm oil police,' Mr Goon said.

'If the Roundtable on Sustainable Palm Oil (RSPO) either suspends or terminates a member that would prompt us to review our relationship with the company,' he said, referring to industry-driven body tasked with certifying planters.

Mr Goon, an RSPO board member, said Wilmar planned to expand its investments in cutting carbon emissions and would spend between US$12 million and US$15 million in 2010/11 on projects around East Asia.

A total of 18 projects were at various stages of development.

The company already had six projects registered under a UN-backed clean energy scheme that rewards investors with tradeable carbon offsets and focused on capturing methane, a powerful greenhouse gas, by treating palm oil mill waste water.

He said projects developed or planned also included burning palm biomass and rice husk waste in boilers to generate power, cutting fuel bills and reducing emissions.

'There are quite a few in process now and we will be rolling out a number for the next five to 10 years,' he added.

He also said the industry was far different than it was a decade ago, with clear rules and standards under the RSPO and other bodies.

Green groups have targeted palm oil and logging firms for cutting down large areas of forest, destroying pristine rainforests brimming with plant and animal species.

But he said firms under the RSPO must complete detailed assessments of any pockets of forest with a high conservation value in plantation concessions. Social impact assessments were also crucial before development of any lands.

'The lands that are normally awarded by governments to palm oil companies are usually degraded, logged-over secondary forest. They usually only give pristine rainforest with commercially viable timber to logging companies and that's just the way it is,' he said. -- REUTERS

Is this worth my time and effort to trade? (3)

Read? Is this worth my time and effort to trade? (2)

Let me now look at newer touchstones that are meant for longer-term holding (i.e. investing)

CAGR

CAGR for the respective newer touchstones with their holding years are as follows:

As of last Yesterday closing price:

1. Noble: 79.8%, holding for 1.80 years
2. DBS:   37.1%, holding for 1.75 years
3. Olam:  36.4%, holding for 2.03 years
4. NOL:  34.0%, holding for 1.24 years
5. CPL:   27.6%, holding for 1.49 years
6. BSS:   25.5%, holding for 2.17 years
    

Let me normalize these touchstones at portfolio level and assuming the longest holding years i.e. 2.17 years,

CAGR (Investing) = 29.8%, holding for 2.17 years.


In conclusion

1. CAGR (Trading)    = 21.0%, holding for 2.07 years
2. CAGR (Investing)  = 29.8%, holding for 2.17 years

In conclusion,  my personal investing and trading performance result doesn't show me any significant differences in financial gains between short-term trading and long-term investing.

So how? Any suggestions?

Sembcorp Marine wins S$351 mln FPSO conversion job

SINGAPORE - Sembcorp Marine, the world's number two oil rig maker, said on Tuesday it has secured a contract worth around S$351 million (US$268.6 million) to convert a tanker into a floating production storage and offloading (FPSO) vessel.

Is this worth my time and effort to trade? (2)

Read? Is this worth my time and effort to trade?

Since Nov 08 after I have changed my trading strategy and assuming that I have rebuilt an entire new portfolio with the recovered capital. How am I doing?

Active Re-Cycling of Capital

1. Number of days since Nov 08: 756 or 2.07 years
2. CAGR: 21.0%

Time and market cycles matters. Let see at the next Bear.

Keppel Seghers secures S$341m contract in UK

SINGAPORE : Mainboard-listed Keppel Corp said its subsidiary Keppel Seghers has secured a S$341 million contract in the United Kingdom.


The engineering, procurement and construction contract is for the second phase of the Greater Manchester energy-from-waste project and was awarded by Viridor Waste Management.

Keppel said it will provide proprietary energy-from-waste technology to build a plant called Runcorn II.

Expected to be completed between 2014 and 2015, the plant will have the capacity to treat up to an additional 375,000 tonnes of solid recovered fuel per year derived from household waste.

The new plant will be integrated to an existing plant, Runcorn 1.

The combined plants will have a total capacity to treat 750,000 tonnes of waste per year, and generate 70 mega watts of electricity and 51 mega watts of heat.

Keppel said the contract is not expected to have an impact on the firm's earnings for the current financial year.

- CNA/al

Biosensors up 10% on Autumn Eagle's interest

By LYNN KAN


Stent maker Biosensors International Group announced that Autumn Eagle Limited bought just over 312 million shares, a 29.47 per cent stake in the company.

After the announcement, Biosensors shares started gaining and reached $1.10, an increase of 10 per cent from Friday by mid-day.

The investor in question is said to be a China-based private equity investment firm, and is said to be a strategic investor.

An analyst contacted by BT said that it is too early to say if Autumn Eagle is preying on Biosensors as an acquisition target. He said it was typical for private equity firms to first cultivate good working ties with the management team before proceeding further.

Though little is known about Autumn Eagle at this point, he noted that the investment bodes well for Biosensors. 'The investment's advantageous for Biosensors, since it has a presence in China.'

Is this worth my time and effort to trade?

$64K Question - Invest or Trade?

Is this worth my time and effort to trade?

Any answer?

From the above net ROC per Trade distribution chart, 

I only take profits at minimum of 3% net ROC or more; 

but half of them are between 6 - 10% net ROC.

So what is the performance rating like? Any ideas?

Eagle preys on Biosensor? Lau Ying lai liao!

On 10 October 2010, Autumn Eagle entered into various sale and purchase agreements (“SPAs”) with seven vendors in total whereby the vendors agreed to sell and Autumn Eagle agreed to purchase, on the terms and conditions set out in the SPAs, 319,312,200 issued ordinary shares in the capital of Biosensors (the “Sale Shares”), representing approximately 29.47 per cent. of the issued share capital of Biosensors. The consideration for the Sale Shares was arrived at after taking into account the average price of the shares of Biosensors traded for the 45-day period prior to the date of the SPAs.

Follow the right person?

Read?Your First $100K realized profit from the stock market? - (2)

Super Mum once mentioned that she has "Huat" (successful) in her investing journey because she follows the right person. The Right person? I didn't think so. What I did know that she didn't really follow anybody; but I think she probably did one thing that leads her to success i.e.

She CAME, HEARD IT, SAW IT and BELIEVE IT!

Similarly, Piggy came for an answer - HEARD IT and BELIEVE IT! she is now happily loading up lorry load of "lunchboxes".


Believe not?

There are still some who choose not to believe it. If you believe you can't. You can't! (not the same as the other way round hor)

I am not a trader!

I am not a trader!

I am a true investor who happened to do Capital Re-Cycling at a faster pace!

I don't own stocks. I lease them!

When do you own a stock?

When you paid for a stock with no intention to sell it for profit at the near future; then you can be thought of owning a stock.

When do you lease a stock?

When you paid for a stock with a definite intention to sell it for profit at the near future; then you can be thought of leasing a stock.

So I don't own stocks; I lease them.

Getting Married?

Someone said: "Getting married - the best part is that you will have the power of 2 in your saving endevours."

Hmm.. how about the expenses part? May be power of 0.X increase?

For guys, getting married could mean that you may have some "extra" expenses  (Red and White matters in Hokkien) coming in as you now have MORE relatives; and may also get into the other family costs sharing matters (e.g. parental care such as nursing home cost).

Why? Son-in-laws are expected to contribute to the costs sharing matters especially when your wives are very generous.

Guys, beware!

Credit card bad debt written off by banks up 59%

SINGAPORE: Bad debts written off by banks for credit and charge cards went up from about $115.4 million in 2008 to $183.9 million last year, a rise of nearly 60% in a country with only 1.2 million credit card holders.


The reason for this, observers say, is due to the financial crisis in 2008.

"As people's income get impacted, they lose their jobs...they start to draw down from their savings, and then their credit card limit, and then as a result, their debt will start to increase, before you know it, they get into trouble and they get into difficulty in paying, so you will see the spill over in 2009," said Kuo How Nam, president of Credit Counselling Singapore, a charity dedicated to credit counselling and debt management.

As the economy bounces back to health, the financial status for most of the credit card holders in Singapore have also improved, with statistics indicating that Singaporeans are paying back faster despite spending more this year.

The proportion of those who do not pay on time has also gone down.

"The delinquency rate has actually been dropping, so at this point in time, we are seeing a delinquency rate of 4.95%...so this is an improvement compared to previous years," said Ms. Lily Tay, business development manager with Credit Bureau Singapore.

While the number of people seeking help at Credit Counselling Singapore nearly doubled from 2008 to 2009, numbers have stabilised since, with about 745 people for the first eight months of this year compared to more than 1,200 people last year.

According to Credit Counselling Singapore, based on the current trend, the estimated number of people seeking help this year may be around 1,118 which is slightly lower than the total of 1,285 in 2009.

Credit Counselling Singapore says its records have also shown that as more younger consumers acquire credit cards, the roll over amount will continue to rise as the younger generation tends to spend rather than save.

Observers say there's still room for banks to exercise greater responsibility when educating consumers on the use of credit cards or managing their credit card debt. For example, being more transparent about charges or fees incurred.

-CNA/ac

Meeting Parents?

This young man bought his own fruits - his girl-friend's parents favourite fruits and have them wrapped up a gift for meeting her parents.

Learning it form Korean drama series? LOL

A cost-effective and healthy choice. Hopefully the gf's dad is not expecting two bottles of fine Red wines.

I want to be richer but .... (2)

Read? Self imposed limits: LP shares

Read? I want to be richer but ....

"I think for those who think they are not the privileged ones to save 500k, they should really scrutinize their limiting beliefs and break as many of them as possible. Test the limits of your boundary by taking small steps; you might find that these boundary cannot and will not restrict you if you do not wish them to do so." - LP

"The journey will definitely be accompanied by naysayers. People who say it cannot be done should not interrupt those who are doing it." - LP

Wise words. I think I should share it further ....  Concepts, Believe, and Goals

Future Saving - Get Real!

Unless you don't get married or get married but no kids or get married with only one kid; and besides that also don't get caught in between needy parents at the top and hungry kids at the bottom.

I know what I am talking as I was there before with a single income to support a penniless father and a wife with three growing kids. More saving is practically out! As parents, we may find it extremely difficult to squeeze out expenses on our growing kids to increase savings.

An alternative is to increase earning by:

Look for a better paying job?
Work harder like a Rat in the office to try to move up the corporate ladder?

These are the options until one day I fully understood the Concepts.

Understanding Concepts

Read? Money Mind and mindset (Re-visit)

Believe
 
Read? Your First $100K realized profit from the stock market? - (2)

Read? Earning More Than Your Boss?

Read? Freedom at 44

Read? Retire young, retire rich

Unlike some of you, every month or at least every year you still have fresh capitals coming in for investment but I don't. I really have little fresh capital incoming in other than those coming from CPF investment account. So my only hope is to compound my gains in the stock market.

Goals

Not much use even if you can fully understand the concepts and strongly believe it but without setting realistic Goals and track it; it may be harder to make it!

Read? Goals - Part 2

Read? Your Personal Investment Goals

Top 5 Tips to Build Wealth and Success

By Peter Gorenstein and Farnoosh Torabi

Warren Buffett is worth $45 billion. That wealth isn't only a factor of savvy investing and good business — the "Oracle of Omaha" is also known as a penny pincher. Buffett still lives in the same Omaha, Neb., home he bought in 1958 for $31,500.


Follow his frugal formula, and you too may wind up with a lot more money than you ever dreamed.

This week Financially Fit covers five tips to build wealth and success.

1. Live Below Your Means.

Being wealthy isn't just a product of your salary or investment prowess; it's learning how to save.

"We can make a lot of money, you can make a little bit of money, but the second you spend all the money is when people get into trouble. Saving is the key to preserving your wealth," says Ed Butowsky, managing partner of Chapwood Capital Investment Management, a firm that manages money for wealthy individuals.

As many Americans realized during the booming real estate market, just because you think you can afford something doesn't mean you should buy it. Keeping an eye on your bottom line will pay dividends over the long term.

2. Bounce Back From Defeat


With nearly 15 million workers unemployed right now in the U.S., it's easy to get discouraged. Don't! Most successful and wealthy people have overcome obstacles and failure along the way. Steve Jobs was ousted from Apple when he was 30. Today, he's a billionaire and a legend. Plus, after getting fired, he created another billion-dollar media company, Pixar.

"Bouncing back from defeat is something all great achievers have. They have this undying belief good things will happen and will continue to happen," says Butowsky.

Take Michael Jordan. "His airness" was cut from his high school basketball team. Motivated by the rejection, Jordan became a star the next season. The rest is history.

3. Self-Promote

Regardless of the profession, the rich and successful tend to have a strong sense of self-worth — key to skillfully navigating an upward career path. Mark Hurd, who was ousted as CEO of Hewlett-Packard in August, couldn't be kept down for long. Using his business skills and connections, in September, Hurd was named president of Oracle. (Hurd and Oracle founder Larry Ellison are known to be close friends.)

4. Have Street Smarts

Bernie Madoff lived the high life for decades, scamming unsuspecting clients, with a money-making formula that proved too good to be true. Only afterward did we learn that with a little due diligence, most clients could have easily uncovered the fraud.

But it's not only the swindlers and the con men you have to watch out for. Many times, friends and family take advantage of the rich. Whether it's a handout or an investment idea, Butowsky advises his high net worth clients that in most cases, it's wisest to just say "no." The best way to do that: have someone else do it for you.

"You need to really set up a wall between you and your family," he advises. "If you don't want to give them (family or friends) money ... saying no is probably a good idea."

5. Buy Cheap

The rich can afford to splurge, but that doesn't mean they do.

John Paulson, a billionaire hedge fund manager, bought his Hamptons "dream house at a bargain basement price," according to Greg Zuckerman, author of the Paulson-based book, "The Greatest Trade Ever." The story has it that Paulson eyed the home while it was in foreclosure. Finally, on a rain-soaked day, he purchased the home on the Southampton town hall steps. He was the only bidder.

On New York City's Upper East Side, Michael's— The Consignment Shop for Women— has been a bargain-hunting destination for more than 60 years. "We have a good percentage of women who can afford to shop on Madison Avenue but really like the idea of saving that money," says proprietor Tammy Gates.

From Chanel to Gucci and Louis Vuitton, the store specializes in high-end designer merchandise for a reasonable price. Speaking of her clientele, Gates says, "they're wealthy for a reason. They recognize that bargains keep people wealthy. Paying top dollar when you don't have to doesn't make sense."

My War Room (2)

Read? My War Room

Mission 2009 Completed . 100% Hits rate with no casualty.

Finally the last commando has returned to the base camp safely after spending 427 days trapped in the Property Jungle.

427 days is the worst holding days so far!

Mission 2010


Most of the Commandos sent in Mission 2010 have returned safely to the Base Camp except for the last one man still taking cover under Noble fire.

Missions Result

ROC: 3.1% - 34.3%

Holding days: 1 - 427

Mean ROC: 10.8%

Mean Holding days: 85

CPL - Sold ROC 11.0%

Round 16: ROC 11.0%, 427 days, B $3.78 S $4.22 (Bought back much higher)


Round 15: ROC 6.4%, 4 days, B $3.10 S $3.32
Round 14: ROC 9.5%, 266 days, B $3.00 S $3.30 (Bought back higher)
Round 13: ROC 21.9%, 17 days, B $2.01 S $2.46

Noble - Sold $1.98 ROC 5.4%

Hope to gather more feathers for a thin, foldable mattress soon ...


Round 12: ROC 5.4%, 190 days, B $1.87 S $1.98 (Price has been adjusted after XB)

Round 11: ROC 10.1%, 45 days, B $3.04 S $3.37
Round 10: ROC 6.5%, 20 days, B $3.07 S $3.29 (Bought back higher)
Round 9: ROC 5.7%, 74 days, B $1.71 S $1.82 (Bought back higher)
Round 8: ROC 34.3%, 100 days, B $0.96 S $1.30
Round 7: ROC 5.7%, 10 days, B $1.02 S $1.09
Round 6: ROC 3.8%, 1 day, B $1.01 S $1.06
Round 5: ROC 12%, 27 days, B $0.965 S $1.08, (2nd Half)
Round 4: ROC 14%, 8 days, B $0.965 S $1.11, (1st Half) - Bought back higher
Round 3: ROC 7.1%, 8 days, B $0.830 S $0.895
Round 2: ROC 31.6%, 20 days, B $0.800 S $1.05
Round 1: ROC 16.3%, 28 days, B $0.910 S $1.08

Sembcorp Marine wins US$364 mln contract

SINGAPORE - Sembcorp Marine, the world's second-biggest oil-rig builder, said on Tuesday its subsidiary secured two US$364 million contract to build two jack-up rigs with options for another 3 from Houston-based Atwood Oceanics Pacific Ltd. -- REUTERS

What if the next Great Bear come?

Are multi-baggers safe from the next Great Bear Raid? Of course not!

Let me share my observation of two guys who both have multi-bagger.

Guy A holds a multi-bagger - Kepland. He is happily holding it and takes no further actions to strengthen the holding position.

Guy B holds a multi-bagger - Midas. He is not just holding it; but whenever the market provides him opportunity he will trade some positions on Midas to build up realized profit against his holding position. Besides that he also have his capital reduction plan in place since he thinks that the market has already reached a high level.

Do you think who is more at risks of either losing part of his capital or seeing his paper profit disappeared when the next Great Bear returns? Guy A or Guy B?

I want to be richer but ....

I want to be richer but ...

• I also want to laze on weekends so the idea of earning more money by giving private tuitions and becoming part-time insurance and property agents are out.
• I also don't like to join the rat-race in the office

So how?

I did this: Work for money? Forget it. - Revisit

My money works harder for me.

Powered by Bulls and provided by the Bears.



Join me?

吸金大法 - 常賺不如大賺(胡立陽)

常賺不如大賺  = 股神 = Multi-bagger = Get a few multi-baggers are far better than winning here and there.

Retail investors set to make big comeback

ST, Monday, Oct 4, 2010

Some points to note ....

• One dealer said in the past few weeks, he had been hit by a flood of phone calls and e-mail messages from clients wanting to reactivate their trading account.
• The strategy they adopt is to buy shares each time there is market correction, and so far, it appears to be working.
• It is very short term. Buy on dips and sell on strength. But it is good income for dealers, as the market volume swells.

Party time! Welcome on board.

Read? The Bandwagon Theory: A Glimpse At How The Market Really Works?

See who jump off first?

Saving Interest Rate at 0.1%

For your extra cash not needed for the next 5 years, the option of more saving is out as inflation of up to 3% will definitely kill off your cash holding in the bank.

Now, you may be forced to take more risks to invest in either retail bonds to get lock up for X years in Return of Capital or invest in dividend yielding stocks but uncertain of Return of Capital or Returns on Capital.

Be extra careful of your friendly financial advisers or bank relationship managers offering you Capital Protected or Structured Products. During the era of low interests rate, it is their harvest time.

You may have to determine for yourself which is the least Evil of All.

Technical Indicators? (2)

Read? Technical Indicators?

Read? Who Moves My Market?

Read? Which Theory of Market Behaviours to believe?

Technical Indicators are Good?

The problem with most technical indicators is that they tend to have adjustable parameters. Some even have 2-3 parameters to adjust.

More often or more, we tend to keep adjusting these parameters and do some back-testing on our favourite stocks until we manage to "fool" ourselves that we got a "right" system.

But after a series of losing trades, you may begin to realize that the "right" system doesn't seem right anymore. You may then turn to the "Guru" who may have previously give you the ideas on these indicators for help.

The Gurus always will have some "useful" feedback or suggestions for you to re-adjust the parameters and to fine-tune the system and you are back to do more back-testing to get another "right" system.

Sound familiar, right? You like MACD and ADX. Me too. There are three parameters to adjust and have fun. But, I have stopped doing it for quite sometime.Good luck!

China to the Rescue! Wen Offers to Buy Greek Bonds

By: Reuters


China offered on Saturday to buy Greek government bonds in a show of support for the country whose debt burden triggered a crisis for the euro zone and required an international bailout.

Premier Wen Jiabao made the offer at the start of a two-day visit to the crisis-hit country where he says he expects to expand ties in all areas.

"With its foreign exchange reserve, China has already bought and is holding Greek bonds and will keep a positive stance in participating and buying bonds that Greece will issue," Wen said, speaking through an interpreter.

"China will undertake a great effort to support euro zone countries and Greece to overcome the crisis."

Greece needs foreign investment to help it fulfill the terms of a 110 billion euro (US$150 billion) bailout. This rescued it from bankruptcy in May but also imposed strict austerity measures, deepening its recession.

Greece, which has been raising only short-term loans in the debt market, has said it wants to return to markets some time next year to sell longer-term debt, although the EU/IMF package llows it to wait until 2012.

"I am convinced that with my visit to Greece our bilateral relations and cooperation in all spheres will be further developed," Wen told Greek Prime Minister George Papandreou earlier in the day.

Greece and China pledged to stimulate investment in a memorandum of understanding and private companies signed a dozen deals in areas like shipping, construction and tourism.

"Our two countries, both historical and modern, have to strengthen our relations in all sectors, to move on and overcome present difficulties," said Wen, speaking through an interpreter in televised comments.

The investment memorandum does not target specific investment volumes, an official close to Investment Minister Harris Pamboukis said ahead of Wen's visit.

"We want to build this strategic partnership with China," the investment ministry official said. "The purpose is not a signature on something big."

China has said it needs to diversify its foreign currency holdings and has bought Spanish government bonds. In January, Greece denied media reports it planned to sell up to 25 billion euros of bonds to China.

Wen will address the Greek parliament on Sunday and leave early on Monday for Brussels, where he will attend an EU-China summit before going on to Germany, Italy and Turkey.

Clinching business deals with countries such as China and Qatar would help boost confidence among Greek consumers and businesses, economic analysts said.

With the global economic crisis and competition with other Balkan countries increasing, foreign direct investment in Greece fell from 6.9 billion euros in 2006 to 4.5 billion in 2009, according to Investment Ministry figures.

Chinese investment represents a very small proportion of this, excluding a 35-year concession deal China's Cosco signed in 2008 to turn the port of Piraeus into a regional hub for a guaranteed amount of 3.4 billion euros, according to port authority figures.

Wen is also likely to deal with international pressure on China over its currency exchange policies during his tour.

Transfer savings from your Ordinary Account (OA) to the Special Account (SA)

I topped up my minimum sum when the scheme became available to take advantage of the risk-free 4% compounding rate. You may think that difference between 2.5% and 4% may not be big deal; but after 25 years the Maths shows that an initial $1,000 transferred from OA to SA will be 1.44 times more as illustrated below:

$1000 in CPF account after 25 years

OA 2.5%: $1,854
SA 4.0%: $2,666 (1.44 times more than the amount in OA)

Read? The Best Secret in Investment and Trading – Compound Interest

My War Room

"The general who wins a battle makes many calculations in his temple before the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory, and few calculations to defeat; how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose."  - Sun Tze

Read? Stock Market Is War - Part 4

This must NOT happen to me AGAIN!

Mission 2009

I am still waiting for the last Commando in Mission 2009 to return to Base Camp. He was sent to attack enemy in the Property Jungle but unfortunately he was frequently ambushed by Singapore and Chinese Government by dropping bombs at Property Jungle.  He has been trapped for 424 days.

Mission 2010

Most of the Commandos sent in Mission 2010 have safely returned to the Base Camp except for two of them stuck and taking cover under Noble fire.

Missions Result

ROC: 3.1% - 34.3%

Holding days: 1 - 329

Mean ROC: 11%

Mean Holding days: 71

Mission 2011

Time to do strategic planning for Mission 2011.

Not All Dividend Stocks Are Created Equal!

Read? High Dividend Yield Stocks? - Part 8

Seriously looking at their dividend payout ratios and their growth potential as not all dividend stocks are created equal.

1. Not all Dividend Stocks have high yields

Stock price appreciation and high yields are great for those who bought them cheaper from the past Big Bears, but it doesn't help you if you're buying now. If you want high yield, you must be able to wait patiently for the next Big Bear to give them to you.

2. Not all Dividend Stocks will see their stock prices appreciate quickly

It is a market myth that high tide will rise all boats. In reality, it will not.

3. Not all Dividend Stocks have healthy dividend payout ratios

The key to sustainable dividend growth is to keep dividends as a manageable percentage of net income. A low payout ratio will definitely make it easier for companies to increase dividends without exhausting profits.

Touchstone or Sardine?

Read? Me, No multi-baggers :-(

Read? Stupid! Son. It meant to be SOLD!

How to position now?

One way is by sorting out stocks into Touchstones and Sardines.

Touchstones

Holding on to Touchstones and hopefully they will be powered by the Bulls into Multi-baggers.

Sardines

Selling off sardines to stuff more feathers into pillows or getting ready more money to buy from coming Big Bears.

After a Hot September, Will the Markets Be Up in October?

By: Giovanny Moreano


Following the best September in 71 years for stocks, will the markets continue trending up?

Here is a look at how the major US averages performed after a positive September.

S&P 500 [.SPX 1146.24 5.04 (+0.44%) ]

In the past 30 years, the S&P closed up in September 14 times, or 47% of the time

Of the 14 instances that the S&P was positive in September, the index followed with a gain in October 9 times, or 64% of the time

The average gain in October when September was positive stands at 1.64%

The biggest gain in October following a positive September was recorded on 1982, when the index rose 11.04

In the past 61 years, the Dow closed up in September 24 times, or 39% of the time


Of the 24 instances that the Dow was positive in September, the index followed with a gain in October 13 times, or 54% of the time

The average gain in October when September was positive stands at 0.53%

The biggest gain in October following a positive September was recorded in 1998, when the index rose 9.56%

My money works harder for me.

I saw this ads at MRT station.

My money works harder for me.
Powered by Citi.

How about this version?


My money works harder for me.

 Powered by Bulls.

SIA triples size of retail bond offering

Createwealth8888: Looking at huge demand for 5-year SIA bond at 2.15% retail investors are more concerned on Return of Money than Return On Capital.

-----------------------------

This comes on heels of tepid response from institutional investors, some say


By SIOW LI SEN

(SINGAPORE) Singapore Airlines has increased its retail bond offering to $150 million - three times as high as the original allocation of $50 million. This has been done by reducing the amount initially allocated to institutional investors following a lukewarm reception from smart money, BT understands.

SIA's unrated $300 million of 2.15 per cent 5-year bonds with a retail tranche was launched last week to coincide with the Singapore Exchange's (SGX) strategy to offer bond trading to retail investors.

SIA said it will reallocate up to $100 million of the bonds from the placement to the public offer, to satisfy excess demand from that quarter.

This means the $300 million worth of SIA bonds have been sold in equal amounts of $150 million to both retail and institutional investors.

The original allocation was $50 million for retail investors who could apply in minimum lots of $10,000. The placement tranche allocation of $250 million was sold at $100,000 apiece.

'To maximise retail participation, the reallocation feature allowed $100 million of the placement tranche to be reallocated to the public offer.

'Demand on the placement tranche picked up very quickly and when orders crossed $200 million, the placement channels were informed that allocation on the placement tranche was likely to be only $150 million,' said the arrangers of the issue. DBS, OCBC Bank and United Overseas Bank handled the bond issue.

At the close of the public offer on Tuesday, SIA said it had received $346,282,000 in subscription. 'We are very pleased with the response from both retail and institutional investors to the offering,' said SIA spokesman Nicholas Ionides.

All retail investors who applied for the SIA bonds will be allocated all or a portion of their subscription.

Fund managers told BT yesterday that, unlike retail, institutional investors have alternatives, and the SIA bonds pricing was a little too rich.

'Despite the fine credit standing of SIA, I think its 5-year bond at 2.15 per cent is a bit too aggressive,' said Teng Ngiek Lian, chief executive, Target Asset Management Pte Ltd.

'As institutional investors are better informed and have the ability to access other issues, I am not surprised if their response is lukewarm,' he said.

Earlier, in June, SIA sold $500 million of 3.22 per cent 10-year bonds to institutional investors.

Its latest bond sale took place around the same time as Keppel Corp's $500 million of 3.1 per cent 10-year bonds. Keppel Corp did not offer a retail tranche.

'This offering was made in response to demand from institutions for such bond issues. We have no plans at the moment for a retail bond issue, and will review our plans according to market demands,' said Eva Ho, KepCorp assistant general manager, group corporate communications.

CapitaMall Trust in August sold $300 million of 4-year and 7-year bonds, also to institutional investors. They were priced at 2.85 per cent and 3.55 per cent respectively.

SIA's latest bonds were unrated and 'some of the US funds have certain restrictions on the amount they can invest on unrated bonds', said Yueh Ee Lee, Aberdeen Asset Management portfolio manager.

Ms Yueh said local retail investors know SIA well.

'From the retail side, it makes a lot of sense. SIA is a household name - and you know what deposit rates are,' she said.

DBS's savings rates range from 0.1 to 0.25 per cent.

Observers say while bonds have rallied a lot, the bond market remains bullish, given expectations that the current record low interest rates could persist for a while.

Trading of the SIA bonds on SGX starts today.

Married with kids or not?

Just look at your own parents and grandparents to find your own answer to these two questions?

1. Are your grandparents better off without your parents?

2. Are your parents better off without you and siblings?

5 Retirement Savings Ideas For Young People

by Amy E. Buttell

When you're just starting out in the workforce, retirement seems like a million years away. Besides, you likely have student loans to pay off and maybe a car loan. And odds are, you aren't making a great salary in your first job, if you've even got a job following graduation.

Still, compounding is your ally in retirement savings, so the earlier you start saving, the better. When you begin retirement planning in your 20s and 30s, those dollars have years to grow and are potentially much more valuable than dollars you save in your 50s and 60s -- though any savings helps.

It's important to establish good savings habits when you're young, even though you're likely on a tight budget, says Joe Jennings, investment director for PNC Wealth Management in Baltimore.

1. Budget Carefully When Looking For Work

It's not really possible to start a retirement savings fund when you're going out on interviews and looking for a job. But there are ways to cultivate a low-spending mindset to prepare for saving for retirement once you do get a job.

"Living with your parents while you look for a job, and even after you get one, can help you save money, more than if you were living on your own," says John Corn, CPA, a financial planner with Buckingham Asset Management in St. Louis. You can save up for a deposit on an apartment or begin to accumulate an emergency fund to see you through unexpected expenses like car repairs.

Even if living with your parents isn't an option, you can minimize your expenses by living with roommates, deferring any student loan payments for as long as possible and choosing inexpensive entertainment options.

2. New Jobs Bring Income, More Expenses

Once you've landed your first job, you may need to move, buy some new clothes for work and reorganize your finances. One key aspect of moving into this new phase of life is budgeting, Corn says.

"Every young person needs a budget," he says. "You need to understand what's coming in, net of taxes each month, and what's going out to pay your benefits. Then you have rent, utilities and all the other expenses, like student loan payments."

You can use free budget software at websites such as Mint.com to help you track your income and expenses and set goals. "Your first expense should be to pay yourself, especially to establish an emergency fund in case you lose your job," he says. "You can also save for short- or intermediate-term goals like a new car."

Retirement planning should also be a priority.

3. Invest in Company Retirement Plan

When you start your new job, you'll be given materials about your company's retirement plan, if it offers one. Most companies offer a 401(k) or 403(b) plan where you contribute a percentage of your earnings and, in many cases, the company matches a percentage of those earnings.

"Make sure you aren't just investing your money, that you are also investing your time," Jennings says. "Do some research on your investing options. If there is a match to the 401(k) plan, you want to invest enough so that you get the company match. It's free money; don't leave that on the table."

4. Family Life Brings Financial Opportunities, Challenges

When you get married, you need to reach some common ground with your new spouse about saving and spending. With more income, you have the opportunity to save more for retirement by contributing to two retirement plans.

You also need to know what financial issues and baggage you and your spouse may bring into the marriage. "You want to understand what that person's credit history has been like and what their credit score is," says Corn. "You want to get a picture of what each of your assets and debts are, too, so you know where you stand in terms of your ability as a couple to buy a new car or a house."

As your family grows with the addition of a child or two, the challenges increase. You need to balance the need to continue to save for retirement with establishing and building a college fund. No matter how important it is for you to help your child out with college, don't skimp on your retirement savings. You can't borrow to pay for your retirement, but your child can borrow to pay for college.

5. Boost Savings as Earnings Increase

As you move up the career ladder, it's important to continue to boost your retirement savings with your salary increases. "If you've maxed out your 401(k) plan, you can contribute to a Roth IRA or open a brokerage account and dollar cost average into a diversified mutual fund with $100 a month," Corn says.

And don't ignore that emergency fund. As your family grows and your expenses increase, you'll need to keep adding to your emergency fund. "Generally, we recommend that you keep six months of living expenses in an emergency fund, but with unemployment still pretty high, it makes sense to save from nine months to a year's (worth) of expenses," says Jennings.

9M FY 10 Quarterly Performance Report

Year Goal Hit Rate


Year Goal Hit Rate improved by +9.0% from 39.1% in 9M FY09 to 48.1% in 9M FY10.


(In 2003, I set some bullish progressive year goals from 2003 to 2011.
2010 Year Goal is 74.9% of 2009 Total Salary including all CPF contributions. Quite a big goal!)

Finding Back The Stolen Wealth By The 2008 Greater Bear

 

Thank to 2010 Bulls for pushing my portfolio value to just -10.8% away from 2007 Bulls while STI is -20.1% away from its Oct 2007 Peak.


More bulls please come and help to push STI up!

Keppel FELS wins US$101 mln contracts for drilling rigs

SINGAPORE : Keppel Corp on Thursday said its wholly-owned subsidiary Keppel FELS has secured new contracts worth S$134 million to complete and refurbish two semi-submersible drilling rigs.


The first contract was awarded by Italian oil and gas contractor Saipem for the commissioning of the technologically advanced semi-submersible rig called Scarabeo 9.

The work scope involves the commissioning of all marine and drilling sub-systems onboard the rig, which will be able to operate at a water depth of 3,600 metres.

Scarabeo 9 is slated to depart from a Chinese yard and arrive in Keppel FELS towards the end of October this year.

The second contract was awarded by a subsidiary of US oil and gas company, Ensco, for the upgrade, repair and refurbishment of its proprietary semi-submersible rig.

The major work scope includes significant life extension work, renewing steel and pipes, operational enhancements, overhauling machinery and expanding and updating the living quarters.

This rig has arrived at Keppel FELS, after fulfilling its drilling contract with Chevron in Perth, Western Australia.

The contracts are not expected to have a material impact on Keppel's earnings in the current financial year. - CNA/ms

Spot the Sucker – It Might Be You

Source: Jesse-Livermore.com

In his 1987 letter to shareholders, the masterfully quotable Warren Buffett said, “If you’ve been in the [poker] game 30 minutes and you don’t know who the patsy is, you’re the patsy.”


In the same letter, he said, “If you aren’t certain that you understand and can value your business far better than Mr. Market, you don’t belong in the game.”

Four Grades of Sucker

The equally masterful quote-smith, Jesse Livermore, categorized four grades of sucker:

The Beginning Sucker: has read little and knows little.

The Semi-Sucker: has read books about trading – usually written by higher-grade suckers. He can recite wise stock market sayings. He does not realize that reading books is not the same as trading experience. He loses money more slowly than the beginning sucker because he has learned some basic trading rules.

The Wall Street Fool: knows enough to make a profit if he sticks faithfully to his trading rules. The excitement of the market overpowers the fool; he trades more often than he should and loses his advantage over the market.

The Higher Grade Sucker: makes his money from selling trading books because he can’t make money in the markets.

Although Buffett and Livermore are at opposite ends of the financial spectrum in terms of buy and sell criteria, they wholeheartedly agree that if you don’t have some advantage over average market participants, you’ll lose money.

There are a lot of intelligent players in the markets and plenty of fools too. Unfortunately, too many stock market books try to persuade their readers that fools predominate, lulling the semi-sucker into a false sense of security. If only you will do what it says in the book (often with too little detail to put together a truly effective trading strategy) you’ll be successful.

Before you trade, you should have some idea of where your advantage is coming from. You should paper trade to verify your advantage.

Then you need to trade for real – this is hardest of all because once you have your own money in the markets, your emotional involvement increases. The emotions – greed and fear start kicking in – cause difficulties for many traders. Some find the advantage they thought they had evaporates.

So, do you call yourself a beginning sucker, a semi-sucker, a Wall Street fool, a higher-grade sucker or a successful trader? The best test is the direction of your trading account balance over several years

Cambridge- Sold $0.545, ROC 19.5%

Use the money to buy Cambridge Diet?

Round 1: ROC 19.5%, 362 days, B $0.455 S $0.545

Analysts say STI could hit record 4,000 points by end 2012

Createwealth8888: Do you believe it or not?
---------------------------------------------------
By Rachel Kelly

Posted: 28 September 2010 2249 hrs

SINGAPORE : The benchmark Straits Times Index (STI) could hit a record high of 4,000 points by the end of 2012.

Experts said that is because companies earnings in Asia are trending upward and this will propel markets higher.

Corporates within Asia are expected to report record earnings in the next two years on the back of economic growth.

Some experts expect earnings growth in Singapore to hit 8.9 per cent in 2011, and 9.8 per cent in 2012.

For the same period across Asia ex-Japan, earnings growth is expected to go up in the region of 11 per cent.

And experts said that this will give the market a boost.

Wong Sui Jau, GM of Fundsupermart.com said: "Within the next two years, several Asian markets will see record earnings growth by 2010, Singapore by 2012, and then other countries by 2011.

"The last time we had record earnings growth was in 2007, and... that was also the time that markets hit record highs. So the question will be, if in the next two years, we see (record) earnings again, then will we see Asian markets, Singapore markets hit an all-time high? We believe yes, this is what is going to happen."

In the last three months, the STI has climbed around 8 per cent, and reasonable valuations could contribute to the index moving even higher.

And during this period of earnings growth, experts said small cap companies, as well as sectors such as leisure and technology, offer potential.

Terence Wong, co-head of Research at DMG & Partners said: "If you look at the small cap space right now, a lot of them have risen considerably. I'd be a little bit cautious, but not too much because I think most of these small caps that have gone up over the last few months, a lot of them are fundamentally sound. It is very unlike 2007.

"So coming back to 2010, many of these stocks, despite them having risen quite a fair bit, I think the valuations still justify a buy position."

In the short term however, market watchers noted that investors continue to trade with caution under concerns of a double-dip recession in the US.

But some said that such dark clouds will eventually subside. - CNA /ls