Financialplanner8’s World

The world of achievement has always belonged to the optimist

Archive for August, 2008

Today Is A Gift,Thats Why It Is Called The PRESENT

Posted by financialplanner8 on August 29, 2008

Last night i have the opportunity to be the first to watch the latest movie originated from Singapore called ‘Money No enough 2′.Well being the long time admirer of the producer,i dragged myself to  watch this movie,after all it is hard to find good Hokkien movie nowadays.Not surprisingly,again the movie director managed to convey the necessary messages that are intended to be conveyed to the audiences.A lot of laughing and at the same time,tears flowed.I hope those who have the time,go and watch this movie and we will appreciate each other more especially the our loved one after that:)

I have another short story to share with you guys.This is a short story that are also very meaningful that are meant to remind us to share and appreciate whatever we have now.This story is not from the movie that i mentioned earlier,only some good short stories that maybe some of you have found on the internet itself.

The story goes like this…………

Two men,both seriously ill,occupied the same hospital room.

One man was allowed to sit up in his bed for an hour each afternoonto help drain the fluid from his lungs.

His bed was next the the room’s only window.

The other man on the other hand had to spend all his life flat on his back.This both talked for hours ranging from their families and wives,their involvement in military services and other topics as well.

Every afternoon,when the man near the window could sit up,he would pass the time by describing to his roommate all the things he could see outside the window.

The man in the other bed began to live for those one hour periods where his world would be broadenedand enlivened by all the activity and colour of the world outside.

The window overlooked a park with a lovely lake.

Ducks and swans played on the water while children sailed their model boats.Young lovers walked arm in arm amidst flower of every colour.As the man by the window described all this in exquisite details,the man on the other side of the room would close his eyes and imagine this scenery.

On warm afternoon,the man by the window described a parade passing by.Although the other man could not hear the band,he could see it in his mind’s eye as the gentleman by the window potrayed it with descriptive words.

Days ,weeks and months passed until one day the nurse found out the man on the window have passed away peacefully in his sleep.Everyone was very sad and arranged for a proper sending off ceremony.

As soon as it seemed appropriate ,the other man applied to be transferred next to window and his wish was granted by the management.After the switch was done ,the nurse left the man alone.

Slowly ,painfully he propped up himself on one elbow to look outside the window.It faced the blank WALL!

When the nurse returned,the man asked the nurse what could have propelled his deceased roommate to described such wonderful things outside .The man responded by saying the man was blind could not even see the wall.She said ‘Perhaps he just wanted to encouraged you’

There is tremendous happiness in making

others happy, despite our own situations.

If you want to feel rich, just count all the

things you have that money can’t buy.

Shared grief is half the sorrow, but

happiness when shared, is doubled.

I am sure many of you have heard this story but i guess it is good to read this again and again so we will grow up to be a useful and wonderful person not only to our family but to the nation as well.Happier minds and  souls after all  generate more incomes .Take care all:)

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I’m Impressed….Seriously …….

Posted by financialplanner8 on August 27, 2008

All the while i have always think we,Malaysians are in general are very ‘tidak apa’ and very laidback in getting our necessary tasks done.Normally in general,majority will wait til the very last minute before rushing to get what is supposed to be done completed.But for once, i am speechless when around +-1pm today i went to one of the legal betting number operator to buy my numbers and guess what???,majority of what i wanna buy have all sold out.I guess numbers that were taken from yesterday by election that have been won by Datuk Seri Anwar Ibrahim must be really hot yea!!!

I am not sure this is something that we should be proud of,but hey…at least this prove that Malaysian can be efficient if we are pushed to the maximum and been offered(legally) potentially good return especially in monetary rewards:)

p.s:- I m not promoting neither condoning gambling in any ways:)

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How To Make Our Investment Journey A Very Enjoyful One

Posted by financialplanner8 on August 26, 2008

Investment process,ideally should be at the end of the day,ends up with a very meaningful and joyous celebrations.However in reality not many,will have this kind of smooth sailing journey.A lot will have to follow a long miserable paths.Well,there are a few things that we need to equip ourselves in order to make the journey less bumpy and reaching the destination with big smile on our face.

Do equip ourselves to the maximum level.If we wanna build a very beautiful castle, we of coz need to have the right tools and equipments.Same goes to investment process.In any investment markets,we need a good information and at the same time tools such as technical charts and other quality software to make sure we can arrived to a better investment decision.

When we already have the right equipment to help us to make certain decision,the next thing to do is i would say,getting the right guide.Yes,some of you may ask since i already have the tolls myself,why do i need guidance from others??The answer is very simple.Markets very often can be treacherous.What we learn from the past data,from the past candlestick formation remains as it was.It was a past tense per say.Thats why if possible,do get a good guidance so we can be guided correctly.So look around and get someone that has been tested and have performed well over a period of time to guide you.It is wiser to pair up with someone who have been proven his/her quality in investment decision so that at least we can be half assured the decision has been arrived after taking care all the necessary considerations of all factors.

The next important criteria one should have is the ability to be firm once the desicion have been made.Trust your decisions even not many of your friends and analysts for that matter agree with it.Decisions should be made with full confidence.Be sure of what you wanna do and once you do step into that decisions,step firmly.And always be control at all times ,and if the decision is not as good as expected,be firm to get out as soon as possible. T

Hope this little explanations will help majority of you to improve the investment results tremendously. Good day to all,and happy trading :)

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Futures-Another Investment Vehicle

Posted by financialplanner8 on August 22, 2008

A futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The future date is called the delivery date or final settlement date. The pre-set price is called the futures price. The price of the underlying asset on the delivery date is called the settlement price.

A futures contract gives the holder the obligation to buy or sell, which differs from an options contract, which gives the holder the right, but not the obligation. In other words, the owner of an options contract may exercise the contract, but both parties of a “futures contract” must fulfill the contract on the settlement date. The seller delivers the commodity to the buyer, or, if it is a cash-settled future, then cash is transferred from the futures trader who sustained a loss to the one who made a profit. To exit the commitment prior to the settlement date, the holder of a futures position has to offset his/her position by either selling a long position or buying back a short position, effectively closing out the futures position and its contract obligations.

Futures contracts, or simply futures, are exchange traded derivatives. The exchange’s clearinghouse acts as counterparty on all contracts, sets margin requirements, and crucially also provides a mechanism for settlement.[1]

The two most famous futures products in Malaysia are shown below:-(source taken from:-www.bursamalaysia.com)

Derivatives

Crude Palm Oil (FCPO) Futures

Contract Code FCPO
Underlying Instrument Crude Palm Oil
Contract Size 25 metric tons
Minimum Price Fluctuation RM1 per metric ton
Daily Price Limits

With the exception of trades in the spot month, trades for future delivery of Crude Palm Oil in any month shall not be made, during any one Business Day, at prices varying more than 10% above or below the settlement prices of the preceding Business Day (“the 10% Limit”) except as provided below.

When at least 3 non-spot month contracts are trading at the 10% Limit, the Exchange shall announce a 10-minute cooling off period (“the Cooling Off Period”) for all contract months (except the spot month) during which trading shall only take place within the 10% Limit. Following the Cooling Off Period, all contract months shall be specified as interrupted for a period of 5 minutes, after which the prices traded for all contract months (except the spot month) shall not vary more than 15% above or below the settlement prices of the preceding Business Day (“the 15% Limit”).

If the 10% Limit is triggered less than 30 minutes before the end of the first trading session, the following shall apply:-

  1. the contract months shall not be specified as interrupted;
  2. the 10% Limit shall be applied to all contract months (except the spot month) for the rest of the first trading session; and
  3. the 15% Limit shall be applied for all contract months (except the spot month) during the second trading session.

If the 10% Limit is triggered less than 30 minutes before the end of the second trading session, the 10% Limit shall be applied to all contract months (except the spot month) for the rest of the Business Day.

Contract Months

Spot month and the next 5 succeeding months, and thereafter, alternate months up to 24 months ahead

Trading Hours

First trading session:

Malaysian time: 10:30 a.m. to 12:30 p.m.

Second trading session:

Malaysian time: 3:00 p.m. to 6:00 p.m.

Speculative Position Limits

500 contracts net long or net short for the spot month

5,000 contracts for any single delivery month except for the spot month

8,000 contracts for all contract months combined

Final Trading Day and Maturity Date

Contract expires at noon on the 15th day of the delivery month, or if the 15th is a non-market day, the preceding Business Day.

Tender Period

1st Business Day to the 20th Business Day of the delivery month, or if the 20th is a non-market day, the preceding Business Day.

Contract Grade and Delivery Points

Crude Palm Oil of good merchantable quality, in bulk, unbleached, in Port Tank Installations approved by the Exchange located at the option of the seller at Port Kelang, Penang/Butterworth and Pasir Gudang (Johor).

Free Fatty Acids (FFA) of palm oil delivered into Port Tank Installations shall not exceed 4% and from Port Tank Installations shall not exceed 5%.

Moisture and impurities shall not exceed 0.25%.

Deterioration of Bleachability Index (DOBI) value of palm oil delivered into Port Tank Installations shall be at a minimum of 2.5 and of palm oil delivered from Port Tank Installations shall be at a minimum of 2.31.

Deliverable Unit

25 metric tons, plus or minus not more than 2%.

Settlement of weight differences shall be based on the simple average of the daily Settlement Prices of the delivery month from:

  1. the 1st Business Day of the delivery month to the day of tender, if the tender is made before the last trading day of the delivery month; or
  2. the 1st Business Day of the delivery month to the Business Day immediately preceding the last day of trading, if the tender is made on the last trading day or thereafter.

Derivatives

KLCI (FKLI) Futures

Contract Code FKLI
Underlying Instrument Kuala Lumpur Composite Index (KLCI)
Contract Size KLCI multiplied by RM50
Minimum Price Fluctuation 0.5 index point valued at RM25
Daily Price Limits 20% per trading session for the respective contract months except the spot month contract. There shall be no price limits for the spot month contract. There will be no price limit for the second month contract for the final five Business Days before expiration.
Contract Months Spot month, the next month and the next two calendar quarterly months. The calendar quarterly months are March, June, September and December.
Trading Hours First trading session: Malaysian 8:45 a.m. to 12:45 p.m. Second trading session: Malaysian 2:30 p.m. to 5:15 p.m.
Final Trading Day The last Business Day of the contract month.
Final Settlement Cash Settlement based on the Final Settlement Value.
Final Settlement Value The Final Settlement Value shall be the average value, rounded to the nearest 0.5 of an index point (values of 0.25 or 0.75 and above being rounded upwards) of the KLCI for the last half hour of trading on the Exchange on the Final Trading Day excepting the highest and lowest value.
Speculative Position Limit 10,000 contracts, net gross open position.

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The Importance In Mixing With The Right People

Posted by financialplanner8 on August 21, 2008

I remembered when i was young,i have a very strong urged in alleviating my financial status.I constantly reminded myself,no matter how hard how challenging the ultimate goal is definately to reach that financial freedom level as soon as possible.Even up till now i have not reach that level as yet,but i am happy that people around me have been supportive yet helpful.Those that only do practice ’susah awak seorang,senang you call me’ have long been abandoned by me:). Be selective in making friends.Find those that can constantly move and motivate you-the right way,give inspiration or encourage desperation for you to further excel in your life.Our future depends on what we do RIGHT in the present. Word hard,start saving but do not forget to treasure every moment of life………..Good true friend(s) with right attitudes will make it easier for us to overcome any challenges in life!

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Nothing Is Impossible.Impossible Is Nothing!

Posted by financialplanner8 on August 19, 2008

“When someone says you can’t do something, it shows that anything
is possible. When you put your mind to a certain thing, it can
happen. The biggest thing is nothing is impossible. All it takes is
an imagination.”

-Michael Phelps

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Some Interesting Ways To Save Money

Posted by financialplanner8 on August 15, 2008

Here are few ways that i found very interesting that have been shared with me by few of my good friends.Some of the methods used are extremely simple and very straightforward.Enjoy the tips

Aspirin:-Aspirin can be used to revive dead car batteries.If when you get behind the wheel only to find out the battery has been ‘dead’ ,try to get it started by dropping 2 aspirin tablets into the battery itself.The aspirin’s acetylsalicytic acid will combine with the sulphuric acid to produce one last charge.Once you get the final charge make sure get to nearest car service centre to get a longer term solution on it.

Beer:-Polish Gold Jewellery.You can get the shine back in your solid gold rings and other jewellery by pouring a bit of beer onto a soft cloth and rubbiing it gently over the piece.But bear in mind this approach is not suitable for gemstones.

Butter:- Get Rid of a fishy smell.No matter how successful we are on the fishing trip,it will not count for anything if we fail to get rid of the smells.Just rub some butter on your hands.wash with warm water and soap,your hands will and shall be clean and smell.

Hope this will be an added knowledge to all.

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