2009 Inflation January Update

I mention the Real Inflation is the Infaltion that is happening to you, not the 'number' released by your goverment in an old post titled "Inflation vs BLR".   Below describe a quick summary how and what to do ...1. List down all your "daily routine" items and their costs2. Determine what quantity / amount of each item is consumpt over a fix period of time3. Sum up the total cost for that periodThen...

Calculate How Much is Worth buying a stock !

http://klsmihosting.com/pfp/stockValue.malpf.comI have just come up with a system that can calculate how much a stock is worth and therefore what is the suitable purchase price. It is based on the concept describe in this old post : when to buy at what price ?In short, it is using past history record to project future price. Then depends on your target return rate, today's worth can be calculated.EPS and PE are 2 critical data needed to use that...

090122 Bank Negara reduces interest rate

On 22 January 2009, Bank Negara zzzz (BNM) reduced the Overnight PolicyRate (OPR) by 75 basis points which resulted in banks reducing their moneymarket interest rates as well.For example in a private firm, 3% rate is reduced to 2% and 2.4% is reduced to 1.5%Its time to take your money out and increase your Chinese New Year gambling money .... just kidding ...

No More KLCI

In near future 6 July 2009, KLCI will NO longer be used as the index for KLSE.  It will be replaced by FTSE Busra zzzz - FBM KLCI, or FBM30 which consist of 30 stocks, instead of 100 in KLCI.Stock in FBM30 but not in KLCI in favor : Resorts, YTL, Parkson ...The drop outs may not in favor : Gamuda, SP Setia ...Bear in mind one of the fundamental fund manager portfolios is usually an index fund.  And they are benchmarking their fund performance...

All Stock Prices are NOT created Equal

Quite a few key information shared in this blog is actually so fundamental that they should be taught in school.  Until today I am still very puzzled that even the best financial consultant and market advisor do not share these with their highest paying client.  Anyway ... here comes another one ...Says I am using the lowest fee broker in town and I have RM 16,000 at hand as my Minimum Optimized...

Minimum Optimized Trading Size

I have already briefly covered this in a few older posts like Cheapest Brokerage May Cost You MoreMinimum Trading Size vs Lowest Brokerage FeeThis is just an official recap.When you invest in stock market through a broker, the broker will charge you a brokerage fee.  Its normally in percentage form with a minimum fee which ever is higher.  For example, 0.7% and RM 40.  If...

2009 01 19 KLSE:KNM worth RM 0.49

KLSE:KNM worths RM 0.49if you believe in this fundamental analysis methodData Used:1999 EPS 0.9 and 2004 EPS 1.7 for EPS growth rate2008 EPS 20 for Future EPS estimationPE 5.5Assumptions:Earn compound 15% for the next 10 yearsBuy at 50% discountCurrent price is already lower than RM 0.49 so you can buy anytime if you plan to keep for 5-10 years to come.  The next few days drop or rise wouldn't make much different.My roof and floor price...

Fundamentals are Noises ?

Very frequently investors who believe in Technical Analysis say that Fundamentals are useless and they treat them as noises !Actually they are refering to Published News which they think are fundamentals but actually NOT.Usually this group of people thought a good figure report should bring the price up but realized it did not and caused them to lose money.  Thats why they decided 'fundamentals'...

Earn in 1 Tick without That Much Money ?

Recently I shared about the cheapest brokerage fee I find for KLSE market - 0.05%.  But in order to effectively enjoy that low brokerage rate, each of your transaction should be more than $16,000 due to its minimum imposed $8 fee.  Basically 8 divided by 0.0005 is 16,000 !( you may sign up with this Jupiter account through me too )What if you don't have $16,000 in every transaction ?  Should...

The Rich, Poor and The Average

Everybody talks about getting Rich.  Most often people just categorize between the Rich and the Poor.  Sometimes if we hear too much of it, we may forget the majority are actually the Average.The gap between the Rich and Poor is also getting wider and bigger.  That is because more and more people become the Average everyday.The Poors think they have no money and therefore do not need...

Technical Analysis - Candle Stick

I brieftly mentioned Technical Analysis vs Fundamentals before, I also mention the #1 danger of using Technical Analysis, now lets look at one of the most common Technical Analysis -> Candle Stick and what you can get out of it ...First of all, lets take a look at candle stick definition !if the color of the bar is white, then the top of the bar refers to closing price.if the color of the bar is...

Get Cheapest Brokerage Fee here !

Coincident or not, soon after I wrote about brokerage fee and minimum trading size Jupiter sent me an email stating if I can introduce more people to join their lowest brokerage fee stock investment account, they will be paying me RM 30 for every successful applicant who make at least 1 trade within 30 days.These are some of the rules they share to me:1.  This offer is valid from 5 Jan to 31...

The 5th income category to RichPoorDad

I mentioned before that Rich Dad Poor Dad's income categorization is more of a concept and not finite categories.  It covers E as Employment, S as Self Employ, B as Business and I as Investor.Well, there is one type of income I was trying to match into those categories but without success.One of the examples I used in that old post is beggar.  I was showing how begging can be E, S and B....

Minimum Trading Size vs Lowest Brokerage Fee

In last post, it was shared that in order to enjoy the lowest brokerage fee, you will need to identify the minimum trading size !The Lower percentage of a brokerage fee, the Higher the minimum trading size becomes !  As a result, it seems like one should always pick an account type that matches his average trading size.Wrong again ... I cann't stress enough that we need to analyse the real numbers...

Cheapest brokerage fee will cost you MORE ?

The cheapest brokerage fee to trade a stock in KLSE (MY) I can find is from Jupiter, offering 0.05% with a minimum of RM 8.Normal online trade brokerage fee is 0.42% with a minimum of RM 12.orJupiter also offers 0.2% with RM 12 minimum for non cash up front account.click on image to view larger table full info from Jupiter web siteYou may think since 0.05% and RM 8 are both the lowest, then picking...

Apply Dollar Cost Averaging in Investment Link

Investment Link plans deduct your investment units in order to pay for insurance coverages.  It was mentioned in last post that this is not good for you because it goes against the concept of Dollar Cost Averaging.However, its actually NOT "ALL" bad.  As I mentioned before, one would really need to analyse with the real numbers and not just depend on a bare concept.  Lets look...

Real Life examples how Banks abuse Credit Card Holders

A is M-ban, one of the banks in zzzz and D is Daniel a citizen.D : I receive a SMS asking me to make payment but I don't have any M-ban credit cardA : Sure sir, may I know your name ?D : Daniel XXXA : Ok Daniel, I have to ask you a few questions for verification.D : Ok.( after some identity card, address info sharing ... )A : What is your Credit Card number ?D : I don't have one.A : Sir, without your...

One of those traps in Investment Link Insurance

You probably know investment link insurance has many elements in it.  One of the elements in it is ofcourse insurance coverage.  While you can buy the 'cheapest' insurance coverage through investment link, do you know that your 'investment' element is badly affected in order to pay for the 'cheapest' coverage ?  Investment Link is a type of products you should consider if you do not...

How to "REALLY" get a car FREE ?

http://tinyurl.com/ce32dmI always share that below picture can help me answer ALL kinds of financial planning questions.  Let's try it now ...First of all let me emphasize that I may not have free lunch here.  So if you are expecting magic here please wait a bit longer until I graduate from my magic classes :)Legally there are 2 ways you can get a car for FREE 1) by adopting the...