Novices please start from here

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candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Had opened an online trading account with Stanchart as alternative for buying penny stocks on small quantity since the commission is only 0.20% for Spore stocks.

Choosing a broker for trading Singapore stocks
Saturday, May 14, 2011

Latest update: This post has been obsoleted by a new kid on the block. Standard chartered online trading brokerage has stormed into the Singapore brokerage industry with a whole new pricing. Here is my update.

One of the favorite questions asked by newbies to the stock market in Singapore is "who should I use as my broker"?

This is what I did for myself. I use DBS cash-upfront account primarily for buying Singapore stocks. The price comparison is compelling. DBS cash-upfront charges 0.18% of invested amount or minimum SGD18. This is way cheaper than (0.275% or minimum SGD25) charged by the rest. DBS cash-upfront is 35% cheaper than all the other brokers.

Why so much cheaper? Where is the catch?The key lies in being CASH-UPFRONT. You have to deposit cash upfront into an account with DBS Vickers to buy stocks. DBS Vickers is able to charge lower commission rates because the risk of customer not paying up for his share purchases is zero.

Please note that you Cannot Buy on Contra (buy now, pay 3 days later. Uniquely Singapore) with cash-upfront. That is the catch.

However, I hardly think this is a disadvantage. So far, I have never seen a consistent winner in the Singapore stock market using contra. Conversely, I have encountered and read about several market participants getting burnt using contra. It is hard enough to be a market timer. To get your timing right to an accuracy of 3 days is even harder. It is possible to make good profits in one or two occasions using contra. Who doesn't have luck on his side sometimes?

But to be profitable consistently by playing contra? I think you will have better chance of getting rich by working hard at your day job.

After shares have been deposited into your CDP(Central Depository) account which occurs 3 days after purchase, they cannot be sold using the cash-upfront account (they can still be sold within 3 days using cash-upfront).

So, for the sale of shares, you are free to use other brokers but will have to incur the higher commission rates of 0.275%. If you are a big customer, you can pressure your existing broker to charge you cheaper rates by using the cheaper cash-upfront rates to bolster your bargaining position. Congratulations if you are successful. However, please be very careful when you are using one broker for buying and another broker for selling. It is easy to become confused during periods of active trading and you may accidentally do a naked short-sell. The penalties for naked short-selling in Singapore is hefty. In the worst case, it can be a minimum of SGD1000 or 5% of trading value.

I have accounts with several brokers. This is because of the bad experience with the inadequate reliability of the online trading platform of Singapore brokers, especially on days when trading volume is high. By having several brokers, if you cannot log in on one particular online account, you can still try the others.

Having said that, it is best to keep your trades to one broker, at most two. The buy/sell limits granted by the Singapore broker depends on the volume business he gets from you. If you need more firepower, you have to fire more shots using the same broker.

By using one broker exclusively, you can use that broker to track your portfolio accurately and keep good trading records. A good online platform should update the portfolio automatically. Trading records are vital to traders who want to become good traders. I doubt if any experienced traders reading this post will disagree with that.

http://help-your-money.blogspot.sg/2011 ... apore.html
http://www.dbs.com.sg/personal/investme ... fault.page

candy_chia wrote:For small quantity of shares purchased, this is a sweetener with NO MINIMUM COMMISSION of $18 to $25 that are generally charged for each trade transacted.

This implied that there is a flexibility to purchase shares in stagger lots and thus spread the risk, especially for those who want a huge selection of shares in their portfolio.

$1,000 worth of shares only incurs commission of $2.00 (0.20%) if trade is executed via standard chartered, compared to $25 minimum brokerage fee usually imposed.

Since shares are held by Stanchart through custodian account, so there is a risk that we will lose all $$$ if stanchart experiences financial difficulty.
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

UOBKayhian Utrade provides alternative for low brokerage fee of 0.18%, comparable to DBS cash-upfront with minimum commission of SGD18.

http://www.utrade.com.sg/page/site/publ ... hedge.html
http://www.utrade.com.sg/page/site/publ ... QFees.html
candy_chia wrote:Had opened an online trading account with Stanchart as alternative for buying penny stocks on small quantity since the commission is only 0.20% for Spore stocks.

Choosing a broker for trading Singapore stocks
Saturday, May 14, 2011

Latest update: This post has been obsoleted by a new kid on the block. Standard chartered online trading brokerage has stormed into the Singapore brokerage industry with a whole new pricing. Here is my update.

One of the favorite questions asked by newbies to the stock market in Singapore is "who should I use as my broker"?

This is what I did for myself. I use DBS cash-upfront account primarily for buying Singapore stocks. The price comparison is compelling. DBS cash-upfront charges 0.18% of invested amount or minimum SGD18. This is way cheaper than (0.275% or minimum SGD25) charged by the rest. DBS cash-upfront is 35% cheaper than all the other brokers.

Why so much cheaper? Where is the catch?The key lies in being CASH-UPFRONT. You have to deposit cash upfront into an account with DBS Vickers to buy stocks. DBS Vickers is able to charge lower commission rates because the risk of customer not paying up for his share purchases is zero.

Please note that you Cannot Buy on Contra (buy now, pay 3 days later. Uniquely Singapore) with cash-upfront. That is the catch.

However, I hardly think this is a disadvantage. So far, I have never seen a consistent winner in the Singapore stock market using contra. Conversely, I have encountered and read about several market participants getting burnt using contra. It is hard enough to be a market timer. To get your timing right to an accuracy of 3 days is even harder. It is possible to make good profits in one or two occasions using contra. Who doesn't have luck on his side sometimes?

But to be profitable consistently by playing contra? I think you will have better chance of getting rich by working hard at your day job.

After shares have been deposited into your CDP(Central Depository) account which occurs 3 days after purchase, they cannot be sold using the cash-upfront account (they can still be sold within 3 days using cash-upfront).

So, for the sale of shares, you are free to use other brokers but will have to incur the higher commission rates of 0.275%. If you are a big customer, you can pressure your existing broker to charge you cheaper rates by using the cheaper cash-upfront rates to bolster your bargaining position. Congratulations if you are successful. However, please be very careful when you are using one broker for buying and another broker for selling. It is easy to become confused during periods of active trading and you may accidentally do a naked short-sell. The penalties for naked short-selling in Singapore is hefty. In the worst case, it can be a minimum of SGD1000 or 5% of trading value.

I have accounts with several brokers. This is because of the bad experience with the inadequate reliability of the online trading platform of Singapore brokers, especially on days when trading volume is high. By having several brokers, if you cannot log in on one particular online account, you can still try the others.

Having said that, it is best to keep your trades to one broker, at most two. The buy/sell limits granted by the Singapore broker depends on the volume business he gets from you. If you need more firepower, you have to fire more shots using the same broker.

By using one broker exclusively, you can use that broker to track your portfolio accurately and keep good trading records. A good online platform should update the portfolio automatically. Trading records are vital to traders who want to become good traders. I doubt if any experienced traders reading this post will disagree with that.

http://help-your-money.blogspot.sg/2011 ... apore.html
http://www.dbs.com.sg/personal/investme ... fault.page
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

NOT advisable to open UOBKayhian Utrade account as there are too much hidden charges involved.

1st year free.


=> Subsequent years onwards, charges of S$16.05/Quarter (with holdings); S$2.14/Quarter (without holdings). Waived only if one executes 2 trades per quarter.

In addition, there are charges for corporate action: Dividend (min $1 to $25); Refund of unsuccessful Rights issue.
candy_chia wrote:[UOBKayhian Utrade provides alternative for low brokerage fee of 0.18%, comparable to DBS cash-upfront with minimum commission of SGD18.

http://www.utrade.com.sg/page/site/publ ... hedge.html
http://www.utrade.com.sg/page/site/publ ... QFees.html
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

$10.70 charges for Refund of unsuccessful Rights issue.

One hand distributes carrot (commission rebate of $7), while another side penalize the clients with stick (hidden charges which can be quite substantial, especially considering the quarterly dividends of REITS holding)

candy_chia wrote:NOT advisable to open UOBKayhian Utrade account as there are too much hidden charges involved.

1st year free.


=> Subsequent years onwards, charges of S$16.05/Quarter (with holdings); S$2.14/Quarter (without holdings). Waived only if one executes 2 trades per quarter.

In addition, there are charges for corporate action: Dividend (min $1 to $25); Refund of unsuccessful Rights issue.
candy_chia wrote:[UOBKayhian Utrade provides alternative for low brokerage fee of 0.18%, comparable to DBS cash-upfront with minimum commission of SGD18.

http://www.utrade.com.sg/page/site/publ ... hedge.html
http://www.utrade.com.sg/page/site/publ ... QFees.html
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Alvin explained definition of the various elements in 3 Financial Statements in his blog.

There are 3 important financial statements to the fundamental investors. They are:

1) Income Statement
2) Balance Sheet
3) Cash Flow Statement

3 Important Financial Statements for Investors.png
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Here are the brief descriptions of the components of the 3 financial statements. Each component contains several sub-components themselves.


Revenue – Amount of money earned by the company.

Expenses – Cost of running the company and business.

Profits –
Difference between revenue and expenses

Current assets
– Assets that the company can use up or liquidate within the year of assessment. Non-current assets are the opposite.

Current liabilities
Debts that the company needs to return within the year of assessment. Non-current liabilities are debts that the company takes more than the current assessment year to pay back.

Equity – Difference between total assets and total liabilities.

Paid in capital - The amount of money raised during the company’s Initial Public Offering.

Retained earnings – Cumulative profits earned by the company after subtraction of dividends payouts.

Cash flow from operation – Cash generated from company’s core business.

Cash flow from investment
– Cash spent on capital investment or other activities in investment vehicles.

Cash flow from financing – Record of activities involved in debts, loans and dividends.

http://www.bigfatpurse.com/2008/05/3-im ... investors/
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Below phrases are some teaching of dizigui 弟子规 (Standards for Being a Good Student and Child), under the category, 余力学文 which explains effective studying methods:

读书法 
There are methods to study correctly

有三到 心眼口 
They involve CONCENTRATION in three areas:
- Your Mind
- your Eyes and
- your Mouth

信皆要

To BELIEVE in what you read is equally important.

方读此 勿慕彼 
When you start to read a book, do not Think about another.

此未终 彼勿起
If you have not completed the book, do not Start another.

宽为限 紧用功 

Give yourself lots of time to study, and Study Hard

工夫到 滞塞通
Given Time and Effort, you will Thoroughly Understand.

心有疑 随札记 就人问 求确义

If you have a Question,
- Make a Note of it,
- Ask the person who has the Knowledge, for the Right Answer.


{ 基本的礼仪和爱心在小学的时候播种最为有效,让学生在记忆力最好的时候背诵《弟子规》,会对孩子一生的品行做出指导。}
Lifelong character development can be molded through Dizigui, 弟子规 (non-religious) teachings. The most appropriate time to teach Di Zi Gui will be pre-school to primary levels children.


Explanation of methods to study under 余力学文 can be viewed from 11.59 to 14:19
http://www.tudou.com/programs/view/P_EUAnYvRPM/

http://www.masteryourfinance.com/forum/ ... 6&start=45
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

patap wrote: What is the trend for the HDB and Private Properties? Are there any enbloc potential? With more retail investors buying commercial properties, what are some of the factors to consider when buying commercial properties.

In this coming Mentoring Session on 8 Oct 2012, our Investing Mentor/Trainer, Ui Wei Teck, who has over 10 years' experience in property investment, will be sharing with us in more details.
For details on the registration, pls click:
http://www.masteryourfinance.com/forum/ ... &start=180
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

We should always be prudence with our investment fund (makes sure this is opportunity fund we can afford to lose) even if the bull market has commenced.

Should not throw caution to wind as "Nothing is really new as HISTORY REPEATS ITSELF in one way or another. like Jim Rogers mentioned in his book, A Gift to My Children.

The World Tomorrow and How Jim Rogers Sees It
http://www.masteryourfinance.com/forum/ ... ory#p25213

CLOB saga
http://stocktaleslot.blogspot.sg/2006/03/clob-saga.html

Lehman notes saga
http://infopedia.nl.sg/articles/SIP_165 ... 03-19.html
http://www.lehmannotes.com/

http://www.singaporelawwatch.com/slw/he ... medium=rss
Dennis Ng wrote: yup, I did own some Clob shares, luckily at that time I didn't have much money, so I invested about S$10,000 and I think I probably lost 95% of the money there.

I once met one elderly man who got very emotional when I spoke about Stock Investing. He told me please don't talk about stock investing to him....later then I found out from him he retired with about S$1 million and lost over 90% of it in Clob shares...it was a mistake that he could NEVER recover from, since he's retired and has no income...
candy_chia wrote: One elderly who queue in front of me to fill in the lists of CLOB holdings, (all shares in CLOB accounts to be transferred to accounts in the MCD for eventual trading on the KLSE) during the CLOB saga (Malaysian shares via Singapore's Central Limit Order Book system were under suspension in trading in September 1998), invested with his life saving of about $500,000.

http://business.asiaone.com/Business/Ne ... 86890.html
http://www.masteryourfinance.com/forum/ ... 371#p25371
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Investing Mentoring is supposed to be organised on Monthly basis, on 2nd week (MONDAY) of each month.

Registration commences 1 week prior to the organised mentoring session (courtesy of Wealth Direction). For today session by Wei Teck, Patricia had already announced it on Mon Oct 01, 2012 3:47 pm.
monthly seminar.png
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Please Search under the following links :

Board index ‹ Discussing Specific Stocks < 12th Monthly Investing Mentoring Session on 8 Oct 2012 (under ANNOUNCEMENTS heading)

Board index ‹ Property Market (for Graduates)< 12th Monthly Investing Mentoring Session on 8 Oct 2012(under ANNOUNCEMENTS heading)

http://www.masteryourfinance.com/forum/ ... m.php?f=14

http://www.masteryourfinance.com/forum/ ... m.php?f=16
ui21cn
Investing Mentor
Posts: 93
Joined: Mon Jul 11, 2011 8:48 am

Re: Novices please start from here

Post by ui21cn »

In case those who missed yesterday session, pls refer to the following for the summary:-

http://www.masteryourfinance.com/forum/ ... =16&t=2767
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

A motivational book that could enable one to cultivate crucial values, marching towards path of success as shared by Dennis:

http://www.masteryourfinance.com/forum/ ... p?f=7&t=53

THE 7 Habits of Highly Effective People was the book for which Stephen Covey is most famous. The habits represent, he says, 'a complete framework of universal, timeless principles of character and human effectiveness'.

> Habit 1: Be PROACTIVE

This means more than just taking the initiative.

It means Taking RESPONSIBILITY; our behaviour is a function of our Decisions
, not our conditions.
Be Proactive.png
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All of us have a wide range of concerns - our work, our health, our children, the national debt, nuclear war, whatever they may be.

If you put them inside a circle you could call it your 'circle of concern'. Within that circle, there are some things over which you have no control. But there are others you can do something about. The latter group you can call your 'circle of influence'.

Being proactive means WIDENING your CIRCLE OF INFLUENCE - working on the concerns you CAN DO something about.


> Habit 2: Begin with the END in mind
Desire.png
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This is based on the principle that 'All things are Created TWICE': First in the MIND, and then in Reality. Before you construct a house, you have a clear image of what you want to build. Before you go on a trip, you determine your destination and plan the best route. Before you give a speech, you create it in your mind or on paper.

> Habit 3: Put FIRST Things first

This is the fulfilment of Habits 1 and 2.



> Habit 4: Think WIN-WIN


Seek to promote mutual benefit in your interactions.
win-win.png
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It's a superior outcome to win/lose ('I get my way, you don't get yours') or lose/win ('I lose, you win'') or lose/lose ('when two determined, stubborn, ego-invested individuals interact') or just 'win' ('it's irrelevant if anyone loses as long as I get what I want'). In some situations (like a football match) a desire for win/lose is appropriate.

However, most situations involve INTERDEPENDENCE and win/win is the only viable option.[/quote]
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

http://www.masteryourfinance.com/forum/ ... p?f=7&t=53

> Habit 5: Seek FIRST to UNDERSTAND, then to be Understood

The first part of this habit involves 'empathic listening' - the highest form of listening, in which you LISTEN with the Other Person's Frame of Reference, rather than your own.

UNDERSTOOD.png
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This provides you, as listener, the most accurate data to enable true understanding. Only then can you focus on influencing or problem-solving. It's like a doctor diagnosing accurately before prescribing.

The second part of Habit 5 - to 'be understood' - involves PRESENTING your own Ideas clearly, specifically, visually, and contextually, thereby enhancing their credibility.


> Habit 6: Synergise

The essence here is to constantly Try to Create New Alternatives, which were not there before through Creative COOPERATION.
Two pieces of wood together can hold much more than the total of the weight each can hold separately.

You achieve synergy by communicating synergistically and opening yourself to new possibilities and options. The key to achieving synergy lies in valuing the mental, emotional and psychological differences between people and recognising that people see the world not as it is, but as they are.
teamwork.png
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> Habit 7: Sharpen the saw

Ensure that you preserve, enhance and constantly renew your own personal assets - physical, social/emotional, mental and spiritual - which makes it possible for you to practise the first six habits.
The attachment renewal.png is no longer available
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candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Below phrases are some teaching of dizigui 弟子规 (Standards for Being a Good Student and Child), under the category, 余力学文 which explains effective studying methods:

读书法 
There are methods to study correctly
读书.png
读书.png (99.79 KiB) Viewed 43587 times
有三到 心眼口 
They involve CONCENTRATION in three areas:
- Your Mind
- your Eyes and
- your Mouth

信皆要

To BELIEVE in what you read is equally important.

方读此 勿慕彼 
When you start to read a book, do not Think about another.

此未终 彼勿起
If you have not completed the book, do not Start another.

宽为限 紧用功 

Give yourself lots of time to study, and Study Hard
勤读书.png
勤读书.png (129.34 KiB) Viewed 43587 times
工夫到 滞塞通
Given Time and Effort, you will Thoroughly Understand.

心有疑 随札记 就人问 求确义

If you have a Question,
- Make a Note of it,
- Ask the person who has the Knowledge, for the Right Answer.

[attachment=0]ask questions.png[/attachment

{ 基本的礼仪和爱心在小学的时候播种最为有效,让学生在记忆力最好的时候背诵《弟子规》,会对孩子一生的品行做出指导。}
Lifelong character development can be molded through Dizigui, 弟子规 (non-religious) teachings. The most appropriate time to teach Di Zi Gui will be pre-school to primary levels children.


Explanation of methods to study under 余力学文 can be viewed from 11.59 to 14:19
http://www.tudou.com/programs/view/P_EUAnYvRPM/

http://www.masteryourfinance.com/forum/ ... 6&start=45
Attachments
ask questions.png
ask questions.png (157.97 KiB) Viewed 43587 times
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Get a remarkable 1.88% p.a.* interest on your savings, from your first dollar up to a balance of S$25,000 from Stanchart.

=> As long as you charge a minimum of S$500 a month to your Bonus$aver World MasterCard Credit or Debit Card, this high interest rate is yours. It's as easy as that.

http://www.standardchartered.com.sg/pro ... index.html
candy_chia wrote:
Higher saving interest rate of 0.8% p.a. offered by CIMB StarSaver Account (with minimum deposit of $1,000 & monthly incremental deposit of $100), instead of miserable bank rate of 0.25%
http://www.cimbbank.com.sg/index.php?ch ... pt=cimb_sg
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re: Novices please start from here

Post by candy_chia »

Just cancelled my AIA Prime Life policy with $70k insured on critical illness due the following stringent terms & conditions stipulated in the life insurance policies:

(1) LENGTHY BENEFITS PAYMENT PERIOD

- TPD Benefit is payable in annual instalments over 5 years: 10% - 1st year; 10% - 2nd year; 10% -3rd year; 10% - 4th year & 60% - 5th year instead of payment in one lump sum

(2) Obligation of servicing Insurance Premium Way BEYOND Retirement Age

- AIA Prime Life needs to foot premium till 99 years old
- Great Eastern is until age 87.
debt.png
debt.png (25.28 KiB) Viewed 43496 times
(3) Stringent Definitions for CLAIM of Total Permanent Disability

(a) disability such that there is neither at the the time disability commences nor at any time thereafter, ay work, occupation, or profession that the Insured can ever be capable of doing or following to earn or obtain any wages, compensation or profit, provided however, that such disability must last for not less than six months in duration, or

(b) Total and irrecoverable loss of the Sight of BOTH EYES;
(c) Loss by Severance of TWO LIMBS AT or ABOVE WRIST OR ANKLE;
(d) Total and Irrecoverable Loss of the sight of ONE EYE And Loss by severance of ONE LIMB AT or ABOVE WRIST OR ANKLE.
pre-existing condition.png
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=> Reasons for switching to more cost effective life insurance are

~~ more lenient definition OF TPD (based on LOSS OF USE)
and
~~~ Payment in ONE LUMP SUM
in the event of TPD claim &
~~~~ Cost Saving of $52k for next 20 years.


Commission Structure of Insurance Agents REVEALED
http://www.masteryourfinance.com/forum/ ... f=3&t=2778
onemilliondiary.blogspot.sg/2012/10/commission-structure-of-insurance.html
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