And so with the end of the year, I have managed to achieve $190.90/mth in dividend income for the year 2014. It's way below my $500/mth I had aimed for at the start of the year.
However, I'm setting the ambitious target of $500/mth again for 2015! This despite my very significant AUM reduction :(
Hopefully this can be achieved and exceeded this year!
Wednesday 31 December 2014
Friday 26 December 2014
10 Reasons I'm Not Rich
So I've been in the doldrums for a while figuring out why I'm where I am today and why I've got so little money in the bank.
I came across this article which was a really good read! It basically pin-pointed all my faults, and then some!
Here's a recap of the 10 reasons I'm not rich. Yet.
#1 I Spend Money Like I'm Already Rich
Absolutely. I think I need to cut down on my credit cards, drink less, and throw money around less (whether its for alcohol, toys, food etc).
#2 I Don't Have A Plan
You know, at the start of 2014, I really thought I had something resembling a plan. Obviously that didn't work out looking back.
#3 I Don't Have An Emergency Fund
Fact. I have hardly one. Maybe too little in cold, hard cash. Need to work on that.
#4 I Started Late
Well, I guess when you start from zero at the start of each new year...
#5 You'd Rather Complain Than Commit
Ok this one I'm finally not guilty of. I don't think I'm much of a complainer at all.
#6 You Live For Today In Spite Of Tomorrow
This looks like a double count with #1. It's that whole carpe diem mentality that makes me wanna spend, spend and spend somemore many a time.
#7 You Are A One-Trick Investor
Nah, not me. I'm more like a 'Jack of all trades, master of none' - type of investor in fact. A total opposite. Plus I haven't made my one-trick investment big win yet even.
#8 I Don't Automate
I'm not sure how this helps, but it appears as if I really do not.
#9 I Have No Sense Of Urgency
Maybe...
#10 I Am Easily Influenced
Definitely. Some of my greatest investment pitfalls have been bad recommendations from too frequent trading chats.
Things need to change, and I hope it does in 2015.
I came across this article which was a really good read! It basically pin-pointed all my faults, and then some!
Here's a recap of the 10 reasons I'm not rich. Yet.
#1 I Spend Money Like I'm Already Rich
Absolutely. I think I need to cut down on my credit cards, drink less, and throw money around less (whether its for alcohol, toys, food etc).
#2 I Don't Have A Plan
You know, at the start of 2014, I really thought I had something resembling a plan. Obviously that didn't work out looking back.
#3 I Don't Have An Emergency Fund
Fact. I have hardly one. Maybe too little in cold, hard cash. Need to work on that.
#4 I Started Late
Well, I guess when you start from zero at the start of each new year...
#5 You'd Rather Complain Than Commit
Ok this one I'm finally not guilty of. I don't think I'm much of a complainer at all.
#6 You Live For Today In Spite Of Tomorrow
This looks like a double count with #1. It's that whole carpe diem mentality that makes me wanna spend, spend and spend somemore many a time.
#7 You Are A One-Trick Investor
Nah, not me. I'm more like a 'Jack of all trades, master of none' - type of investor in fact. A total opposite. Plus I haven't made my one-trick investment big win yet even.
#8 I Don't Automate
I'm not sure how this helps, but it appears as if I really do not.
#9 I Have No Sense Of Urgency
Maybe...
#10 I Am Easily Influenced
Definitely. Some of my greatest investment pitfalls have been bad recommendations from too frequent trading chats.
Things need to change, and I hope it does in 2015.
Monday 22 December 2014
Personal Financial Review 2014 - A Messed Up Year
What a messed up year this has been from a personal investment perspective.
I'm heading towards year end literally at square one.
My investment strategies require a huge overhaul and retooling and I have actually put some of that overhaul into effect already.
Things have to seriously change in 2015.
I guess I have some very serious rethinking to do over this festive period.
I'm heading towards year end literally at square one.
My investment strategies require a huge overhaul and retooling and I have actually put some of that overhaul into effect already.
Things have to seriously change in 2015.
I guess I have some very serious rethinking to do over this festive period.
Tuesday 16 December 2014
How Low Can The Ruble Go?
The whole world's talking about the weakening USDRUB right now.
How low can it go?
Here's Bloomberg's latest update today.
This is truly the currency pair of death. You will only profit, and profit ALOT, if you're in the right direction at the high, or at the low. Or you longed USDRUB way back in November. Anywhere else in the middle and you're basically fucked.
Russia looks like its gonna default soon.
Look at the chart below.
How low can it go?
Here's Bloomberg's latest update today.
This is truly the currency pair of death. You will only profit, and profit ALOT, if you're in the right direction at the high, or at the low. Or you longed USDRUB way back in November. Anywhere else in the middle and you're basically fucked.
Russia looks like its gonna default soon.
Look at the chart below.
Wednesday 10 December 2014
Worst Trading Day Ever
One day, I will blog about my worst single day trading loss ever.
But today will not be the day.
:(
But today will not be the day.
:(
Saturday 6 December 2014
FX Trading - A Gambler's Worst Nightmare
I've covered the Itchy Finger Syndrome some time ago.
Now I want to cover why FX trading is a compulsive gambler's worst nightmare.
Let us simply compare online FX trading with going to the casino and playing the lottery with Singapore Pools.
24hr Access, Anytime, Anywhere
Online trading allows a gambler 24hr access, 5 days a week (Mon - Fri). As long as you have internet access, an online brokerage account, then you are all set to make FX bets anytime, and anywhere. FX brokers these days tout extremely sophisticated mobile software platforms that allow traders to fund their account using credit cards, monitor their trade activities, order and trade placements, technical analysis, and deliver high-speed live pricing, all on your simple handphone! The only respite is on the weekends when the markets are closed. This means that at any time the gambler has an irrational yearn to place a trade of get into the markets, they can do so with the simple click and swipe of a few buttons.
Comparatively, the casinos in Singapore are open 24hrs a day, 7 days a week, but the fact that the gambler is required to go to the physical location (MBS or RWS), means that access is not so easy. Keep in mind also that there is a SGD$100 entry levy deterring Singaporeans from entering. So some gamblers might get lazy at home, choosing to pass on going to the casino instead, thereby preventing themselves from irrational gambling decisions.
The national lottery with Singapore Pools current allows bets to be placed via its Singapore Pools physical outlets, or for premium gamblers, the offer of phone betting. Bets range from football, other sports, Toto, 4D and the Singapore Sweep. Gamblers usually also have to physically go to the outlets to place bets. Bet placing is also tedious with the need to shade little boxes of their bet entries. Singapore Pools also does not conduct the lottery draws every day. There are specific days for the lotteries like Toto and 4D to be conducted. Usually 3 times a week.
Ease Of Funding
While the most conventional way of funding any account is using wire transfer, many online FX brokers now offer credit card funding. This is the simple step of inputting your credit card number on your computer, key in the expiry and CVV number, and BOOM! Your funds are credited into your account almost immediately, allowing you to trade while you owe money to your bank. This is ingenius because the risk of default on the broker is actually passed on to the retail banks issuing the credit cards. This is also why the NFA in the US is trying hard to ban credit card deposits for retail traders, although it seems like a longshot that this can be passed into law in the near future. Some even smaller brokers allow funding via Paypal, Moneybookers and many other online wallet types. That's how easy to get money into your account for trading.
Comparatively, for both the casino and Singapore Pools, once a gambler runs out of money, they have to run to the nearest ATM to get more money. This is good because it limits the access a gambler has to funds. Of course the higher premium gambling segment offers credit lines as well and that is also very dangerous access to funds, but not many normal retail gamblers can get access to this credit line. Singapore Pools also accepts NETS payments, a debit card funds transfer of sorts. But none of these beats the credit card in terms of easy access and ease of funding to fuel their gambling yearns.
Leverage
This is probably the worst killer for many compulsive gamblers getting into the FX space. Leverage is basically a magnification of the nominal value of the underlying product. In the case of FX, the standard broker leverage is 100X nominal value. This means that a gambler only requires $1,000 to trade $100,000 worth of a currency pair! This means that any profits or losses are also magnified 100X! There is currently regulation in many developed markets, where leverage is restricted to 50X, but there are many FX brokers out there domiciled in eastern European countries which offer 500X or even 1000X leverage!
Comparatively, betting with the casino and the lottery is entirely 1:1. Only the higher premium gambling segment in the casino gets those credit lines i mentioned above, which gives about 10X leverage. That's absolutely nothing compared to the high leverage space in the FX world!
Investment Vs Gambling
FX trading offers gamblers the excuse that they are investing/speculating using rational decisions rather than pure gambling like in the casino. With the myriad of financial websites and blogs offering endless commentaries about views on different currencies, it is no wonder that many a gambler thinks of FX trading as rational speculation. This is a big mistake for many compulsive gamblers.
In the casino and Singapore Pools, most gamblers already know they are betting whether it is in standard betting games or betting on the outcomes of sporting or lottery events.
This is actually the worst of the lot because this is the standard mindfuck of many compulsive gamblers. The talk-to-yourself self rationalization that what you're doing is different from the gambler types going into casinos. Emotionally, there is self comfort and indiscipline to trade like a gambler thinking it is less bad than walking into a casino. It is actually far worse.
____________________________________________
In conclusion, anyone venturing towards the online FX space should be well aware of what they're doing and rationalize whether the trades they're making are gambling or not. It is easy to rationalize, but to not be emotionally affected by the movements in the markets and to maintain a high level of discipline is actually much harder to do than what many think.
BE SAFE
Now I want to cover why FX trading is a compulsive gambler's worst nightmare.
Let us simply compare online FX trading with going to the casino and playing the lottery with Singapore Pools.
24hr Access, Anytime, Anywhere
Online trading allows a gambler 24hr access, 5 days a week (Mon - Fri). As long as you have internet access, an online brokerage account, then you are all set to make FX bets anytime, and anywhere. FX brokers these days tout extremely sophisticated mobile software platforms that allow traders to fund their account using credit cards, monitor their trade activities, order and trade placements, technical analysis, and deliver high-speed live pricing, all on your simple handphone! The only respite is on the weekends when the markets are closed. This means that at any time the gambler has an irrational yearn to place a trade of get into the markets, they can do so with the simple click and swipe of a few buttons.
Comparatively, the casinos in Singapore are open 24hrs a day, 7 days a week, but the fact that the gambler is required to go to the physical location (MBS or RWS), means that access is not so easy. Keep in mind also that there is a SGD$100 entry levy deterring Singaporeans from entering. So some gamblers might get lazy at home, choosing to pass on going to the casino instead, thereby preventing themselves from irrational gambling decisions.
The national lottery with Singapore Pools current allows bets to be placed via its Singapore Pools physical outlets, or for premium gamblers, the offer of phone betting. Bets range from football, other sports, Toto, 4D and the Singapore Sweep. Gamblers usually also have to physically go to the outlets to place bets. Bet placing is also tedious with the need to shade little boxes of their bet entries. Singapore Pools also does not conduct the lottery draws every day. There are specific days for the lotteries like Toto and 4D to be conducted. Usually 3 times a week.
Ease Of Funding
While the most conventional way of funding any account is using wire transfer, many online FX brokers now offer credit card funding. This is the simple step of inputting your credit card number on your computer, key in the expiry and CVV number, and BOOM! Your funds are credited into your account almost immediately, allowing you to trade while you owe money to your bank. This is ingenius because the risk of default on the broker is actually passed on to the retail banks issuing the credit cards. This is also why the NFA in the US is trying hard to ban credit card deposits for retail traders, although it seems like a longshot that this can be passed into law in the near future. Some even smaller brokers allow funding via Paypal, Moneybookers and many other online wallet types. That's how easy to get money into your account for trading.
Comparatively, for both the casino and Singapore Pools, once a gambler runs out of money, they have to run to the nearest ATM to get more money. This is good because it limits the access a gambler has to funds. Of course the higher premium gambling segment offers credit lines as well and that is also very dangerous access to funds, but not many normal retail gamblers can get access to this credit line. Singapore Pools also accepts NETS payments, a debit card funds transfer of sorts. But none of these beats the credit card in terms of easy access and ease of funding to fuel their gambling yearns.
Leverage
This is probably the worst killer for many compulsive gamblers getting into the FX space. Leverage is basically a magnification of the nominal value of the underlying product. In the case of FX, the standard broker leverage is 100X nominal value. This means that a gambler only requires $1,000 to trade $100,000 worth of a currency pair! This means that any profits or losses are also magnified 100X! There is currently regulation in many developed markets, where leverage is restricted to 50X, but there are many FX brokers out there domiciled in eastern European countries which offer 500X or even 1000X leverage!
Comparatively, betting with the casino and the lottery is entirely 1:1. Only the higher premium gambling segment in the casino gets those credit lines i mentioned above, which gives about 10X leverage. That's absolutely nothing compared to the high leverage space in the FX world!
Investment Vs Gambling
FX trading offers gamblers the excuse that they are investing/speculating using rational decisions rather than pure gambling like in the casino. With the myriad of financial websites and blogs offering endless commentaries about views on different currencies, it is no wonder that many a gambler thinks of FX trading as rational speculation. This is a big mistake for many compulsive gamblers.
In the casino and Singapore Pools, most gamblers already know they are betting whether it is in standard betting games or betting on the outcomes of sporting or lottery events.
This is actually the worst of the lot because this is the standard mindfuck of many compulsive gamblers. The talk-to-yourself self rationalization that what you're doing is different from the gambler types going into casinos. Emotionally, there is self comfort and indiscipline to trade like a gambler thinking it is less bad than walking into a casino. It is actually far worse.
____________________________________________
In conclusion, anyone venturing towards the online FX space should be well aware of what they're doing and rationalize whether the trades they're making are gambling or not. It is easy to rationalize, but to not be emotionally affected by the movements in the markets and to maintain a high level of discipline is actually much harder to do than what many think.
BE SAFE
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