Banker as a devil

As we know that Bank has provided numerous services, which make convenience  to our life such as saving account, fixed deposit, unit trust, credit card, gold investment and so on. Therefore, people have believed that banker as a protector to their capital and wealth.

In the past, people like to save their money in bank and believe that it is a good solution to preserve the value of money. For example, banker promises to give interest rate for savings that contributed by loyal customer.

Actually, banker is a devil to erode our wealth through their professional and genius team.  Banker employs higher qualification or professional people such as lawyer, accountant, economist, investor and so on. The team will set various games with a lot of condition, term, act and so on to protect the banker and assisted banker to snatch our money. I am calling these games as genius and stupid game, which created by banker. Stupid group represented by loyal customers who like saving their money in bank and genius group represented by evil banker. As we know that genius group will promote many games such as saving account, fixed deposit and so on to attract loyal customer in stupid group to fall into their designed game, and then take a chance to snatch the wealth from loyal customer.

I just show a simple example by using genius and stupid game here:

Genius and Stupid game:

Stupid group fascinated to evil banker, who promises give back less interest rate to money or wealth contributed by stupid group. People like to say that they are not expert on investment and just believe to professional banker, and believing them to escape the financial problem.

I am using fixed deposit as my example and assume saver A puts RM 30,000 in Bank B for 15 years. Besides that, Bank B promises give back interest rate with 3.0% each year to saver A of his/her saving. Based on the computing interest in the each of 15 years saver A would get the RM 46,739.02 . In the other hand, Banker who represents the genius will use their professional team to enhance the earning capacity of the capital obtained by saver (stupid group). Based on the compounding interest, Banker B able to generate 5 times of compounding interest (CI) in a year and generate 95 times (CI) through their genius employees in total. Finally, in the end of 15 years Banker will get RM497,344.82. As a result, genius and stupid game has shown that RM 46,736 .02 will generated by stupid group and RM 497,344.82 will generated by genius group.

Are you believe the banker? “RM46,736.02 versus RM497,344.82” is definitely a big gap here.  This big gap will continue to reveal the concept of “ 80 % people controlled by 20% people in the world”. The only one solution to escape from the 80% people (stupid group) is investment and try your best without depends on evil banker.

Peak Performance Share Trading

     Table: Trading Plan

            What knowledge I can share from this simple table? You might said it is simple and there are no knowledge that can emerge from it. Please remember the main concept for share trading market namely  the efficient is coming from simpler methods. Thus, let me introduce that knowledge and skills that you must be learn from here and make a step towards a disciplined and successful share trader. Before I start, u must obstinately remembers that there is no  any predictions for the share market and "share win" in your trade has been involved. The prediction only will make your judgment to be more complex and confusable and finally leads you  into a dangerous situation. Therefore, please do not be a victim of the useless prediction because  we are surrounded by uncertainty and what actually we should concern is the real and present trend of the market.

            Every time when you buy a share, I suggest u draw a similar table as above. By doing so, you can establish a limit line (stop loss) and it help you control your action without affected by any psychological factor. Another important element in the table is the first stop loss and take profit. Both of these elements you must set instantly after enter into the share market. 

From the candlestick chart above we can find three types of different prices which are entry price, target price and stop price. The stop price will send you a message to leave the market immediately when market price reached the stop price level. For instance: RM 2.70 as a stop price. Please follow the strategy that has been set initially and leave the market after market price dropped over the stop price. Thus, don’t be a naive trader to expect the price will recover and it will make u fail in the share trading. As an investor, we must try to minimize the loss but not always look of the profit because profit is built on a strong management for  your loss and capital preservation.

                 According to the figure 2, it shown a mistake make by an undisciplined trader when he/she hoping that the market will recover after it s sharply drop over the first stop loss  which set initially, that is the red colour line in the figure. Finally, she/he will obtain the unwilling and heavy loss. For instance, if you enter the market with RM2.90 per unit and u bought 1000 unit and the totally payment is RM 2900 without the broker fee. I assumed u is a disciplined trader and you  will close the market when reach the first stop price level with a totally loss of RM200. However, some of the trader will hope the trend or price will recover after the downward market trend. As a result, it is always contrast with what people expect the market price is continually dropping and it will make the trader afraid and regret for their mistake. For example, they stop the market below the stop market price with RM 2.50. Therefore, total loss will be RM400 and lost more RM200 than disciplined trader.

            Similarly, when the market price reached the take profit/ target price and u better sell and closed the market. As we know that exceeding greed and hope will erode our profit initially. As a result, we can persistently make the profit for share trading market.

            Finally, please establish a plan before enter into the share trading market and be patient and disciplined with your plan that set initially. Besides that, remember there are no prediction and doubt in share trading market. Therefore, the present market trend is the only one we can believe and just focus what the market doing now.

What lesson to be learned?

It was a “bad day” for me on 2/3/2011. I’m feeling so afraid and guilty as lost the money in share trading. What are the things that cause me lost?  Finally…I realized that I entered the share market without a complete and well- planned strategy, and it was made me should compensate on the fault I made in that trading. According to a book I read before, namely the << Master Day Trader>>, people need a plan before they enter into the share market, or more specifically speaking, a plan of stop loss (break) for the stocks have bought. I knew it, but I did not apply it in my trading this time.  What actually caused me distracted from the that makes me fell into the deep hole. I lacked discipline on my attitude when the stock price dropping as I hoped that it will go up again later on and bring some profit for me. Now, I felt really regret with the expectation I did that moment, frankly I shouldn’t predict the movement of stock price because the volatility and uncertainty of the stock price will maze our judgment. Therefore, I get a value of this incidence that is we need to stop and sell the holding stocks immediately. This is the best way to help us escaped from the dangerous and uncertainty I believed that there is nothing important than keeping the capital…. situation. basic theory I learn before? It must be a terrible thing

Share market seems like weather: it can be shiny, rainy, windy and foggy. We must set a clear strategy when enter into the share market with catch the mood of market and then only it will bring more pleasant for us. I must be learnt and be always aware from my fault and remember that without a clear strategic and plan, I wouldn’t leave my position and do any dangerous step.

People who believe that they are not been disciplined might better to have a six-foot-high boulder in their pathway. Therefore, we must believe the truth that disciplined person can collapse and let the pathway open again. For example, chip at that boulder by taking off one chuck at a time and moving it to the side. Next time I hope that when I ask myself a question: Do I change my attitude with firmly discipline? Then, I can answer with a resound: “I am”.

 Finally, I hope anything will be better off in my share trading pathway. ( Be A Disciplined Trader^^).

你的一切，离不开钱，而你有在保护你的钱吗？

  口袋皮包里的几百块，站在这个shopping center里，不知道它可以为我买到什么东西了，可能只可以买到几件衣服，但是吃的那方面可能要另外再想了，还是吸大口点得空气，填补一下肚子吧，可能有一天连我们吸着的空气都要付钱。生活在这都市里样样都离不开钱，所以人们每一天都要努力做工来换起金钱，再有得到的金钱来买要用的东西，还又摊还二十世纪最流行的卡债。到了最后辛苦赚回来的钱，只会带给你更多的债务，甚至指引你走入充满卡债的世界里。再加上这几年来世界个地不停的发生天灾，农作物失收，使到农作物暴涨，更加重我们的负担，这就好像<<富爸爸，穷爸爸>>里所提到的老鼠跑道，每天好像老鼠这样的一直跑，到你死都可能还要做，如果你不做，可能连你死时，你连一个小小的坟墓地都买不起。今时今日再也不像古时所说的：“人死留名，豹死留皮”了，人死最重要留钱，留不留名不打紧了。

  在接下来的日子里，可以确定的是，我们的生活费会一直的上升，而钱的面值会一直的贬值，就算你把钱放在银行里拿的到利息，就连钱的面值都会被贬值掉。以前的人会说：你把钱放在家是愚蠢的，要把它们放进银行才对。现在的世界把钱放进银行里就是愚蠢的人，把钱拿出来吧，进行你认为最好的投资，无论你放在那里一个投资里，都不用紧，最起码那些风险我们看得到的，可以自己控制，好过放在银行里被通货膨胀给贬值掉，我们不可以再怕风险了，我们要开始学习控制风险，这是为一可以让我们跑出老鼠跑道的办法。在<<短期交易>>这本书里有提到，人不可以怕风险，就算你做什么事都一定有它的风险，我们应该勇敢的面对，把它给控制，而不是好像老鼠这样的逃避。

  父母亲应该要更早的把投资的知识传达给你们的下一代，而不是每天要他们拿全A,把你们的头脑打开，A是不会给你们孩子带来什么大变化的，我可以肯定在未来会有更多的专业人生( 医生，律师，等等)都会加入这个投资的大家庭，因为这些专业人士已开始面对着金钱的问题了，所以把你们的孩子给叫醒吧，要不是的话，到了大学，他们还是那么爱着分数这玩意，可以为了一两分，和为了一拿不到A而不高兴这老师。。哈哈，好好笑，好像一个小学生那样，这是政策的错，所以做父母亲的千万不要错，把你们的孩子给带回真确的道路。要一个为知识而求学的小孩，而不是要一个为成绩而求学的小孩。

  你有在保护你的金钱吗？你有给予你下一代理财的知识吗？从今天起把你的时间放在，经济刊里，而不是娱乐刊里。保护和疼爱你的孩子，而不是给钱他们，是要给予他们真确的知识。保护我们的钱，保护我们的未来。 (Life is uncertainty)