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Sunday, 25 March 2018
Wednesday, 26 August 2015
I was thinking about writing this blog for 2 days but I am really busy.
As a financial blogger, I feel I should do my part in helping the public who does not have exposure with share consolidation.
Wait! Am I a financial blogger?
No matter what. Let's Begin.
Taking Yongnam as an example.
In order to see the price before the share consolidation on ChartNexus or Lim&Tan Station, you can go to setting and click on disable for "Stock Split".
Take note that your portfolio with your brokerage might not have your average buying price after consolidation because the stock code might change.
YOUR CDP ACCOUNT WILL ONLY UPDATE 3 WORKING DAYS LATER OR MORE ON THE NEW CONSOLIDATED UNITS AND NOT THE NEW CONSOLIDATION PRICE!
In this case, you either refer to the average price in your excel sheet of trade journal or you have to contact your broker to check your Contract Note for that counter to do the necessary calculation.
Let's start with the Scenario now.
If you have purchased Yongnam at 0.245 at 100000 shares, the purchased value will be $24500 less brokerage fee.
You can refer to this pdf on Yongnam consolidation
Yongnam is doing a share consolidation of 4 into 1.
In Yongnam case, shareholders are allowed to trade odd lot. The only way is through your broker and there is a demand and supply issue.
1. Some consolidation will round off and you will lose shares because of the round off. (tio jiak!)
2. Some consolidation will allow you to buy odd lots to make it whole. Yes. Through broker again. They are your life line.
You can refer to the image below.
Let's start with the calculation now.
Remember your purchased price is at $0.245 at 100000 shares, the purchased value will be $24500 less brokerage fee.
A share consolidation of 4 into 1 calculation will be:
Shares: 100000/4 = 25000 shares (this will be reflected in ur cdp account evenutally)
Price: $24500/25000shares = $0.98 (this you have to update your cdp account yourself)
The new price and new number of share is important because after the consolidation to $0.58 on 20th May 2015, you are actual in red and if you SELL 100000 SHARES AT $0.58 YOU HAVE JUST NAKE SHORT AND MIGHT BE PENALISED WITH A FINE WITHOUT COVERING BACK ON THE SAME DAY.
You can text me on Facebook if you don't understand the statement above.
Really need to rush to gym.
Even when the CDP have not update the new number of consolidated shares, you are suppose to sell the correct consolidated number of shares DURING THE SHARE CONSOLIDATED PERIOD.
Invest and Trade Safely Everyone!
Wednesday, 1 July 2015
After reading the facebook post by Raymond Ng below...
">15 years ago, when I bought AIA insurance with critical illness coverage, AIA asked me to go to their appointed medical clinic to check up. Upon clean bill, AIA accept my application.
Now, insurance pass the responsibility to consumers. If known illness not declare, it may end up not able to claim the insurance.
Why not insurance take up the responsibility to have their doctor conduct check up first before accept the insurance application? If there is exclusion per medical check up, stated it in the agreement up front.
In that way, both insurance company and consumer will have peace of mind."
I approached my professional friend Christopher Tan and had a discussion.
It is true:
Under the life or general insurance policy, there is usually a non-dispute clause. This clause states that the insurance company cannot dispute a claim on grounds of non-disclosure after a lapse of one or two years from the issue of the policy, "except in the case of fraud". Some claim officers argue that non-disclosure is fraudulent. They are mistaken. If challenged in court, they are likely to fail.
What you need to do before purchase of any policy is to declare as true as possible your current health status and the above non-dispute clause will be valid.
Alternatively, you can now approach your insurance planner to check whether you have any exclusion status and/or whether the non-dispute clause is in your current policy.
You can also do a comparison of the policies you need at
Last but not least,
You can check out my old post on
In What Situation our claim might not be valid?
Insurance Yourself Safely Everyone!
Monday, 29 June 2015
Big Boys Don't Cry BUT They usually make people cries.
Short term trade will depends on 3 group of people in the market. 1. The BBs (Accumulate/Distribute) 2. The Traders (Long/short) 3. The Investors (Buy and Hold "Most of the Time") Don't be the person who are made to cry. Trade and Invest Safely!
Let me share my views on TP or you can said Esc P (Escape Price) before I go run some errand.
THIS IS BASED ON TRADING.
TP is usually based on your open position/s or your projection of the counter.
1. You can choose to TP at the next historical resistance/simple moving average in the chart if you feel the trend is still down trend (in a buy position) . Do the reversal in a short position.
Most retailer will see historical support or resistance as a guage.
2. You can choose to take partial TP if your plans and position allow.
This is especially so when you see momentum but you are not sure you are right a not.
3. You can ride your full position or partial position when you did homework and know there is a reason for more buyer to bring up the price.
This is especially so when you have a good margin of safety by buying at support instead of buying into resistance.
4. After you open your position and you see poor momentum or closing price is lower then opening price, you have to be mentally prepare to use ESC Price to lower the loss.
This is especially so when you buy with hope and you already see pump and dump in action.
Escape Price can range from the last low of the previous price action or your trailing stop criteria.
Escape Price could be the matching price if you fail to close your position at the price you set for yourself.
Point 4 is also applicable to all the above 3 points as a follow up.
Last but not least, you can check out my earlier post on Stop Loss which is also applicable for all the above 4 points.
Trade and Invest Safely Everyone!
Stop Loss so you can Bounce Back.
Let me share an alternate view in Stop Loss before i go take a nap.
1. If the marco market is bearish,
2. The counter you hold does not seem to have interested party to buy.
3. The counter you hold have consistent selling.
Why wait for the stop loss to hit then cut?
If your stop loss is $800/- at 0.035 and the currently the Bid Price is 0.036 and the Ask Price is 0.037.
You can cut at 0.036 if you dun see people buying up at 0.037.
In the above example, you saved $200/- from cutting at $600 instead of the original $800 you intended to.
Alternatively, you can spend the $200/- on your family and know that the money do good the right way.
When you keep the loss small, is easier to earn back the money.
You can also bet that there will be a rebound after a shake up but if you already feel stress and start hoping, you know the result liao.
Oh, i never mention short because it takes skill and timing and/or sometime scrips to short so i won't even suggest it here.
In fx, a short is a good alternative to hedge the position.