Over an evening, 13 Aug 08 to be exact, a friend invited me along for a evening seminar conducted by Dr John Demartini, a renowned speaker I best associate with in the book ‘The Secret’.
Its held at Suntec Convention Hall Theatre and ticket to this event is purchased via Global 1 Event.
(Singapore)
The topic of the seminar happens to be the latest release of his book, The Riches Within, The Seven Secret Treasure.
Before I start, a few points to highlight is that views and opinions given are solely base on my personal thoughts and feel and no bias towards anything or anyone.
Over a short session of less then 2 hours, Dr Demartini outline the 7 areas that make up a balance complete life in general.
1. Mind development.
2. Spiritual Quest.
3. The Genius in us / Mental Development.
4. Financial Independence.
5. Our Family and Love
6. Physical Health.
7. Social responsibility, Contribution to Society.
1. Mind Development.
Each unique individual has a set of values important to themselves. The higher on the list the value is the greater priority and the more discipline we have to do follow through.
A lack of interest, disorder in doing particular task or procrastinations are common reactions related to one doing things low on the ‘value’ list. The lower it gets the more negative it is.
Such value dictates what we do and in return we are bias towards our environment. (Selective attention) Eg to say, a mum who place the child on the top list of value will look out for things associate with the child while in the shopping mall where as a business man will look out for things that is of business / investment element. (It’s a sub coconscious thing just like book reading. Some does other don’t.)
It is because of these values that when setting goals, we have to align it with our highest values.
Cause it be easier to achieve and we have the motivation to work towards it.
Likewise if we set goals on with values indicated by others, if the values of that individual don’t match us, we have a difficult time achieving it.
But by understanding this concept, we can shift our values to suits our specific goals cause when believes a line with goals, our self confidence increase and in eventually a boost of self worth.
Highest value allows an individual to give his maximum attention and retention to the subject matter as does the intention of learning it. Everyone wants to learn something that is able to enhance their highest value.
And thus, according to Dr Demartini, each and every one of us is yearning to express that genius in us. The genius refers to our top most value. It just if we have identify our highest value yet and is working and spending time on it.
‘We feel good when it’s done close to our values’
2.Relationship
Children express what the parents repress. Honours people value rather than projecting your values on others as that will result in conflict, disappointment in particular relationship.
To get the your other half to live and work with your values will only kills a relationship. After all its the difference that attracts, not the links.
Find value in your spouse, compliment their value to what you are doing. Create the link. Take for example her out spoken personality compliment your solitude personality. Learn what is important to them and work with it. It grows the relationship and make it meaningful.
*End of Part 1/3
Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts
Sunday, August 17, 2008
Sunday, August 3, 2008
Classification, classification, classification.
Everything around us is being segregated, sub divided label into classification for easy identification and the stock market is no different.
A recent evening investment seminar of a few hours shares some insight of stock selection. After all, there are hundreds of mine favourite to choose from compare to thousands of stock out there.
The area of focus on is call sector. Which sector is hot, which is not?
The first is to know what the market sentiment is. Is it bullish (up) or bearish (down) We don’t want to be cause buying a stock that look cheap when the sentiment is bearish or selling down a stock that is ‘overprice’ or seem expensive when the sentiment is bullish.
After which we move into which sector of the industry, just like GDP contribution making up of consumer, manufacturing, service and such. The more common one are Finance (Banks / Investment Firms), Property, (Developer / Hotels) to Transport , not to mention a hot sector call resources these days.
Next up, we identifying which sector is the leader (Sector that react strongly to market sentiment), we move on to identify which particular stock receive most attention. (The big capitalization company to the smaller one) Share price and daily trading volume and Company branding are a few common indicators.
Upon narrowing down our selection, the next thing we sniff around for in news indicating the sector we selected is still hot or is the sector changing. The term I was taught is call sector rotation which I’m relative green to it still. (Commonly used to describe deep pocket investors/ fund houses identify another sector of better return and shifting funds to that sector before retail investor does.)
In a more layman term is, look for the wave to ride on, get out before it crashes. This seminar shown me that stock buying is an art of screening and filtering. Not just buying evergreen stock that be around long and hold long for a small gain after all, inflation is in all time high again~
*I can only discuss basic as I only get the basic gist. Contact me if you like to help me out on the quest of understanding sector rotation.
A recent evening investment seminar of a few hours shares some insight of stock selection. After all, there are hundreds of mine favourite to choose from compare to thousands of stock out there.
The area of focus on is call sector. Which sector is hot, which is not?
The first is to know what the market sentiment is. Is it bullish (up) or bearish (down) We don’t want to be cause buying a stock that look cheap when the sentiment is bearish or selling down a stock that is ‘overprice’ or seem expensive when the sentiment is bullish.
After which we move into which sector of the industry, just like GDP contribution making up of consumer, manufacturing, service and such. The more common one are Finance (Banks / Investment Firms), Property, (Developer / Hotels) to Transport , not to mention a hot sector call resources these days.
Next up, we identifying which sector is the leader (Sector that react strongly to market sentiment), we move on to identify which particular stock receive most attention. (The big capitalization company to the smaller one) Share price and daily trading volume and Company branding are a few common indicators.
Upon narrowing down our selection, the next thing we sniff around for in news indicating the sector we selected is still hot or is the sector changing. The term I was taught is call sector rotation which I’m relative green to it still. (Commonly used to describe deep pocket investors/ fund houses identify another sector of better return and shifting funds to that sector before retail investor does.)
In a more layman term is, look for the wave to ride on, get out before it crashes. This seminar shown me that stock buying is an art of screening and filtering. Not just buying evergreen stock that be around long and hold long for a small gain after all, inflation is in all time high again~
*I can only discuss basic as I only get the basic gist. Contact me if you like to help me out on the quest of understanding sector rotation.
Thursday, January 10, 2008
General Guildlines To Start Investing In Stock Market.
So we got an online brokerage ac open. What the next step?
For a start, there's free news feeds we have access to on the market. Start reading it and creating watch list on the stock of your interest.
That's all. No Buy. No Sell. Yet.
Step 1:
We start of by defining the capital we want to set investing with. Preferably not your whole life saving. May be $100,000 or $20,000 depending on how much you have and your risk appetite.
If I have $100,000, 20% is $20,000. If I only have $20,000, 20% is only $2000. The amount of capital you can set aside will depend on what type of stock you can look at.
Step 2:
Understanding your risk profile. There are lots of investment risk profile test online. Just Google it. It will mainly classified us under 1 of the 3/4.
a.Highly Adventurous. ( 10% or more loss)
b.Adventurous. ( 7% max loss)
c.Cautious ( 3% max loss)
d.Peace finder ( 0% loss)
I only emphasise on loss this point of time because, who wants their profit be cap? we stop at 7% if there upside of 4% more?
But losses is some thing we all want to avoid, by determine the figure before we start, we are able to make rational decision and not emotion hope, pray for better price tomorrow investor.
Another simple method is of the capital you set aside. $50,000. What is the maximum lost of capital i can absorb before I will declare its the end of the world, the stock market is not meant for me feeling floods the mind. If its $2500. Your risk appetite would be $2500/ $50,000 giving you 5%
Step 3:
Though I'm not sure where this 7-8% stop loss come about. I believe it got to do with something about support and resistance and if the stock drop more then 7-8% a day. Its going to tank more.
There are some point of time we have to cut loss. Lose a leg to diabetes or I die keeping that leg with me. Don be fool into situation Long term investor because the stock that I purchase has drop 40% and I can't sell it now.
Step 4:
Stocks moves along various ranges. In Singapore context, a Bank share can move against / with
you on a spread of 0.1 to 0.5. ($100 - $500) where as a Telco Share range between 0.02 to 0.1 ($20-$100) in an intraday.
If I'm starting out with a capital of $10,000 with a risk tolerance of 5%. it works out to be $10,000 x 0.05= $500.
You identify a share with great potential upside after researching and monitoring.
Share X is price at $10.30 ($10,300) a lot and have a spread of 0.3 to 0.55 ($300-550)
I believe its 'cheap now' and I make a purchase on margin. ( making payment after 5 working day) the next day it drop to $9800. ( becaase other feels it should be cheaper )
Wat do you do?
The above trade itself have a few fundemental mistake.
a. If knowing the stop lost limit at 8%. I wold only need to sell at $9480 ( Rounded to the nearest 10s)
It has exceed my personal stop loss limit of 5% of $500.
b. Knowing that the spread on an intraday can go between 0.1 ot 0.55. The max loss of $550 has also
exceeded my personal risk margin of 5%.
c. Will be tempted to cough up another $300 to purchase the share at $10,300. In the hope to sell later at a higher price. Freezing our captial and preventing future trades.
To sum this up. before we make any purchase, we have to identify stocks with daily spread that don't exceed our highest risk amount of 5% , $500.
Even though the potential upside is $500, so is the down side. Instead of looking at stock of this spread. We look for stocks that move between 0.1 to 0.3 or 0.05 to 0.1 which every that suits you more. ( Industry sector, company reports appealing ..etc..etc.. ) To prevent being prematurely kick out of the market.
With the watch list created, we start monitoring.
Step 5: Armed with daily news and Technical analysis ( Support and resistance line ) of the stock graph. We wait for a time to entry, exit.
Buying only near support and exiting near resistance. As market is irrational more often then usual. News and global happening can easily tip the techincal aspect.
Step 6: How much to buy is next in line. Share Y cost $.1.95 My captial is $10,000. so it will be $10,000 / $1950 = 5 lots ( Rd to nearest 1000s)
But nope its not that simple. There's 1 more step. Theres a stop lost of 8% we mention earlier. $1.95 x 0.08 = $0.156
Exit price of the share would be $1.79. Taking $1.95 minus the 8% loss.
With an inital capital risk of $500 divided by $0156 we get to pruchase about $3205 share. which Rd to nearest 1000s would be 3 lots.
So with an Captial of $10,000 of a risk torelance of $500. I can purchase 3 lots of Share Y at $1.95 with an Exit price of $1.79 should it move against me. Using $5850 of my total captial and maximum lost of $480 when sold at $1.79.
The above 6 step are a general guild to make stock buy / sell a tiny bit managable. Each has its own preference, thus if theres step 7, 8 or 9 that you think should be included.
Do drop me a message at the Shout-out box or email me as I too am still learing.
For a start, there's free news feeds we have access to on the market. Start reading it and creating watch list on the stock of your interest.
That's all. No Buy. No Sell. Yet.
Step 1:
We start of by defining the capital we want to set investing with. Preferably not your whole life saving. May be $100,000 or $20,000 depending on how much you have and your risk appetite.
If I have $100,000, 20% is $20,000. If I only have $20,000, 20% is only $2000. The amount of capital you can set aside will depend on what type of stock you can look at.
Step 2:
Understanding your risk profile. There are lots of investment risk profile test online. Just Google it. It will mainly classified us under 1 of the 3/4.
a.Highly Adventurous. ( 10% or more loss)
b.Adventurous. ( 7% max loss)
c.Cautious ( 3% max loss)
d.Peace finder ( 0% loss)
I only emphasise on loss this point of time because, who wants their profit be cap? we stop at 7% if there upside of 4% more?
But losses is some thing we all want to avoid, by determine the figure before we start, we are able to make rational decision and not emotion hope, pray for better price tomorrow investor.
Another simple method is of the capital you set aside. $50,000. What is the maximum lost of capital i can absorb before I will declare its the end of the world, the stock market is not meant for me feeling floods the mind. If its $2500. Your risk appetite would be $2500/ $50,000 giving you 5%
Step 3:
Though I'm not sure where this 7-8% stop loss come about. I believe it got to do with something about support and resistance and if the stock drop more then 7-8% a day. Its going to tank more.
There are some point of time we have to cut loss. Lose a leg to diabetes or I die keeping that leg with me. Don be fool into situation Long term investor because the stock that I purchase has drop 40% and I can't sell it now.
Step 4:
Stocks moves along various ranges. In Singapore context, a Bank share can move against / with
you on a spread of 0.1 to 0.5. ($100 - $500) where as a Telco Share range between 0.02 to 0.1 ($20-$100) in an intraday.
If I'm starting out with a capital of $10,000 with a risk tolerance of 5%. it works out to be $10,000 x 0.05= $500.
You identify a share with great potential upside after researching and monitoring.
Share X is price at $10.30 ($10,300) a lot and have a spread of 0.3 to 0.55 ($300-550)
I believe its 'cheap now' and I make a purchase on margin. ( making payment after 5 working day) the next day it drop to $9800. ( becaase other feels it should be cheaper )
Wat do you do?
The above trade itself have a few fundemental mistake.
a. If knowing the stop lost limit at 8%. I wold only need to sell at $9480 ( Rounded to the nearest 10s)
It has exceed my personal stop loss limit of 5% of $500.
b. Knowing that the spread on an intraday can go between 0.1 ot 0.55. The max loss of $550 has also
exceeded my personal risk margin of 5%.
c. Will be tempted to cough up another $300 to purchase the share at $10,300. In the hope to sell later at a higher price. Freezing our captial and preventing future trades.
To sum this up. before we make any purchase, we have to identify stocks with daily spread that don't exceed our highest risk amount of 5% , $500.
Even though the potential upside is $500, so is the down side. Instead of looking at stock of this spread. We look for stocks that move between 0.1 to 0.3 or 0.05 to 0.1 which every that suits you more. ( Industry sector, company reports appealing ..etc..etc.. ) To prevent being prematurely kick out of the market.
With the watch list created, we start monitoring.
Step 5: Armed with daily news and Technical analysis ( Support and resistance line ) of the stock graph. We wait for a time to entry, exit.
Buying only near support and exiting near resistance. As market is irrational more often then usual. News and global happening can easily tip the techincal aspect.
Step 6: How much to buy is next in line. Share Y cost $.1.95 My captial is $10,000. so it will be $10,000 / $1950 = 5 lots ( Rd to nearest 1000s)
But nope its not that simple. There's 1 more step. Theres a stop lost of 8% we mention earlier. $1.95 x 0.08 = $0.156
Exit price of the share would be $1.79. Taking $1.95 minus the 8% loss.
With an inital capital risk of $500 divided by $0156 we get to pruchase about $3205 share. which Rd to nearest 1000s would be 3 lots.
So with an Captial of $10,000 of a risk torelance of $500. I can purchase 3 lots of Share Y at $1.95 with an Exit price of $1.79 should it move against me. Using $5850 of my total captial and maximum lost of $480 when sold at $1.79.
The above 6 step are a general guild to make stock buy / sell a tiny bit managable. Each has its own preference, thus if theres step 7, 8 or 9 that you think should be included.
Do drop me a message at the Shout-out box or email me as I too am still learing.
Sunday, January 6, 2008
Spending a windfall
A few days ago, a buddy of mine ask what would should he do if he won the Big Sweep aka Lottery in other countries.
The jackpot price is 2.2 mil and this is how I would use the money.
1. Spend the .2 mil $200k. It can buy pretty much alot of little wants in life.
2. Invest .5 mil into the stock market. ( Equity, unit trust, commodities )
3. Save up 1mil in a time deposit a/c
4. Set up a trust fund with the remaining .5mil for a good course. ( Fund the poor education, SME startup grants..etc.) The trust fund must be self substain and growing faster then the financing of the trust mission.)
Well, that if I have a windfall coming soon.
Life shouldn't change much, I would continue to do what i am doing.
A thought cross my mind as I wrote this. How would one define luxury life style? As each to its own. This is my analogy, While i'm showing at home. I off the tap when i need to soap or shampoo. When i'm on holiday, I enjoy myself in running shower to reading a book in tub fill with sented oil. That's a luxury to me. (Contentment is each to its own)
What is your luxury? How would you spend your windfall?
The jackpot price is 2.2 mil and this is how I would use the money.
1. Spend the .2 mil $200k. It can buy pretty much alot of little wants in life.
2. Invest .5 mil into the stock market. ( Equity, unit trust, commodities )
3. Save up 1mil in a time deposit a/c
4. Set up a trust fund with the remaining .5mil for a good course. ( Fund the poor education, SME startup grants..etc.) The trust fund must be self substain and growing faster then the financing of the trust mission.)
Well, that if I have a windfall coming soon.
Life shouldn't change much, I would continue to do what i am doing.
A thought cross my mind as I wrote this. How would one define luxury life style? As each to its own. This is my analogy, While i'm showing at home. I off the tap when i need to soap or shampoo. When i'm on holiday, I enjoy myself in running shower to reading a book in tub fill with sented oil. That's a luxury to me. (Contentment is each to its own)
What is your luxury? How would you spend your windfall?
Thursday, September 13, 2007
New Reads – Secrets of Millionaire Investors.
This is the book that I found some time to read. relative big and thick book, not briefcase friendly. :P
What got me started was how can I start investing, The safe and sure way if possible. Cause in Singapore, investment is more like a taboo, something meant for the rich and the wealthy to play with and investment through hear say is a no-no.
With bank interest hovering around the 1% mark and inflation near to 3%. I figured its time to find alternative to place my saving that won't shrink over time.
Through reading this book, I got to understand investing in simple terms. Where investing is like buying into a company and owning a part of it, so it’s important for us to know a few things before buying any stock.
1. The sector of the company. (finance, retail, property, etc)
2. The market share of the company.
3. The earning of this company.
4. The value of share price now. Is it over price or under value.
The meaning of compound interest comes into play where the longer we can have our money stay invested. (Money at work) the greater the gain will be.
Using US market as case studies. The theory of buy at a low price, selling at a high get explained in details. (not every stock works that way as it could ready be at the high when we decided to buy.)
But it’s not cheap to invest for long term in companies that are of value fundamentally. Cause all other investors has realize its value and have invested long time ago. Thus good companies are also call blue chips company.
However there are methods and ways in which we can dig for undiscovered gems and wait for them to be the next big thing but the time horizon need for value investing is relative long in term of years before any decent profit comes in.
For many of us like me who desired the way for ‘quick easy bucks’ the book introduced the method of momentum investing where we can identify stock that is ‘hot’ with high volume with lots of money pouring into a particular sector. Take for example Singapore, the ‘Hot sector’ would be Property and Constructions shares, where big jumps in stock price are experience.
But it always brings back to one problem, how much do we start with? A few hundreds, several thousands or? Well, its depends on what stock we intend to buy. A lot of DBS cost around $20,000 where as Genting International cost less then $2000 as of now.
The last method discussed in the book is the use of options for less capital and bigger gain. Reason being, option is a contact to buy a particular stock. (normally a blue chip, large cap stock that expensive to hold) and to sell of the contact after its exceed a certain pricing mark for a profit.
In a Bullish market, a CALL option allows me to buy a stock at $70 for a premium of $2, so only when the stock moves pass for example $72 then I will break ever and make a profit only if it’s exceed $72. If the stock doesn’t move over $72 within a period of time ( around 1 mth – 1 year ). I lose the premium of $2 that I paid.
Likewise in a Bearish market, a PUT option allows me to sell a stock at $50 for a premium of $3, so only when the stock drop pass for example $47 then I will break even and make a profit.
In the stock market, for the buyer to buy a PUT, CALL, there have to be a seller of PUT and CALL. The concept gets a bit gray as I read on for investment idiots like me, but after some checking up and asking around the realization will dawn in~
Overall, this book is like a introduction to investing which I feel is like a pre reading notes to the course taught in Adam Khoo Technologies Group.(www.akltg.com )
*Feel free to drop me a email should you like to know more about the various course.
What got me started was how can I start investing, The safe and sure way if possible. Cause in Singapore, investment is more like a taboo, something meant for the rich and the wealthy to play with and investment through hear say is a no-no.
With bank interest hovering around the 1% mark and inflation near to 3%. I figured its time to find alternative to place my saving that won't shrink over time.
Through reading this book, I got to understand investing in simple terms. Where investing is like buying into a company and owning a part of it, so it’s important for us to know a few things before buying any stock.
1. The sector of the company. (finance, retail, property, etc)
2. The market share of the company.
3. The earning of this company.
4. The value of share price now. Is it over price or under value.
The meaning of compound interest comes into play where the longer we can have our money stay invested. (Money at work) the greater the gain will be.
Using US market as case studies. The theory of buy at a low price, selling at a high get explained in details. (not every stock works that way as it could ready be at the high when we decided to buy.)
But it’s not cheap to invest for long term in companies that are of value fundamentally. Cause all other investors has realize its value and have invested long time ago. Thus good companies are also call blue chips company.
However there are methods and ways in which we can dig for undiscovered gems and wait for them to be the next big thing but the time horizon need for value investing is relative long in term of years before any decent profit comes in.
For many of us like me who desired the way for ‘quick easy bucks’ the book introduced the method of momentum investing where we can identify stock that is ‘hot’ with high volume with lots of money pouring into a particular sector. Take for example Singapore, the ‘Hot sector’ would be Property and Constructions shares, where big jumps in stock price are experience.
But it always brings back to one problem, how much do we start with? A few hundreds, several thousands or? Well, its depends on what stock we intend to buy. A lot of DBS cost around $20,000 where as Genting International cost less then $2000 as of now.
The last method discussed in the book is the use of options for less capital and bigger gain. Reason being, option is a contact to buy a particular stock. (normally a blue chip, large cap stock that expensive to hold) and to sell of the contact after its exceed a certain pricing mark for a profit.
In a Bullish market, a CALL option allows me to buy a stock at $70 for a premium of $2, so only when the stock moves pass for example $72 then I will break ever and make a profit only if it’s exceed $72. If the stock doesn’t move over $72 within a period of time ( around 1 mth – 1 year ). I lose the premium of $2 that I paid.
Likewise in a Bearish market, a PUT option allows me to sell a stock at $50 for a premium of $3, so only when the stock drop pass for example $47 then I will break even and make a profit.
In the stock market, for the buyer to buy a PUT, CALL, there have to be a seller of PUT and CALL. The concept gets a bit gray as I read on for investment idiots like me, but after some checking up and asking around the realization will dawn in~
Overall, this book is like a introduction to investing which I feel is like a pre reading notes to the course taught in Adam Khoo Technologies Group.(www.akltg.com )
*Feel free to drop me a email should you like to know more about the various course.
Thursday, August 23, 2007
Brainstorming for business ideas
Often, we are not happy with our exisitng environment, jobs, employer, partner and the list goes on. If only I have enough moeny, that would be much better. My personal quote would be "Money can't solve all my problems, but it allow me to handle it in style"
Heck its better to sit my worries out at chimes over a chill wine rather that in the public toliet. (just an example)
For most of us out, ideally its good to run a business where we don not need to manage much and is able to general a hefty income that allows us to seek our passion or take up a lower paying job in a much stress-less environment.
What is a good business idea? would it stand out from many others out there? To identify a niche market to work with., we can first identify the demographic tread of the country we want to work on. the age, the population, single vs married and so forth. that will allow us to indentify the habbits of spending of the population. Would that idea I have be of success? what is the % of audience can i reach in this current demographic?
Next step, we look at whats profitable in the country. Which industy is performing? Whats the top players in that field? Can I do better then them? (Example would be the food industy) where such improvement are seen. Serving a delicious chicken rice is no longer enough, my staff has to wear a set of uniform. if thats not enough, i have my food serve in a specially design set of cutlery and its goes on.
Its a continous process to be at the top. Its take effort to get there and even more effort to widen the gap. Bread with pork floss is never enough.. Look out for what works and what fails.
The other area where busienss ideas can be created are from problems and fustration. If i face it often, would other people be facing it? If i can solve it in an affortable, efficient way. Would any company like to market it? (Example, vcr to vcd to dvd. because there is a problem of needing more space to cater to higher quality videos, the media where we watch our movies keep changing.) Whats next after Blu-ray? 1TB storage in a waffer thin square plate like our sim card?
To generate nothing out of something is normally harder, its like reinventing the wheel. A set of guildline that can be use to build your business on.
Magnify/Minify. example of minify would be pc to laptop and magnify would be provision shop to mega mart.
Modify/Adapt.example would be chair. A wooden 4 legged chair, a wooden chair with backrest to full leather chair with roller wheels. its still a chair to begin with....
Mix/Combine.example would be wireless transmitter with ports for lan.no need for addition equipment. another example would be camera with phones. No one thought they need it together, now they want the best pixel with carls lens / auto focus.
Removal/Elimation.example would be bus ticket checker to auto tapping in/out. Land line phone to mobile phone. Such removal allows faster process & mobilibity thus its marketable.
Replacement.example like traditional green tea, process with peach and its sold as another favour or fills in buns and bread exchanging with something fresh and new to attract more buyers.
This are just a few ways to turn your passion into idea that are profitable and marketable.
Limiting belife are what stop us from take certain action, by identifying it we are able to overcome it and take the desire action.
Not all ideas has to be great ideas but one idea is enough to make a difference .
Heck its better to sit my worries out at chimes over a chill wine rather that in the public toliet. (just an example)
For most of us out, ideally its good to run a business where we don not need to manage much and is able to general a hefty income that allows us to seek our passion or take up a lower paying job in a much stress-less environment.
What is a good business idea? would it stand out from many others out there? To identify a niche market to work with., we can first identify the demographic tread of the country we want to work on. the age, the population, single vs married and so forth. that will allow us to indentify the habbits of spending of the population. Would that idea I have be of success? what is the % of audience can i reach in this current demographic?
Next step, we look at whats profitable in the country. Which industy is performing? Whats the top players in that field? Can I do better then them? (Example would be the food industy) where such improvement are seen. Serving a delicious chicken rice is no longer enough, my staff has to wear a set of uniform. if thats not enough, i have my food serve in a specially design set of cutlery and its goes on.
Its a continous process to be at the top. Its take effort to get there and even more effort to widen the gap. Bread with pork floss is never enough.. Look out for what works and what fails.
The other area where busienss ideas can be created are from problems and fustration. If i face it often, would other people be facing it? If i can solve it in an affortable, efficient way. Would any company like to market it? (Example, vcr to vcd to dvd. because there is a problem of needing more space to cater to higher quality videos, the media where we watch our movies keep changing.) Whats next after Blu-ray? 1TB storage in a waffer thin square plate like our sim card?
To generate nothing out of something is normally harder, its like reinventing the wheel. A set of guildline that can be use to build your business on.
Magnify/Minify. example of minify would be pc to laptop and magnify would be provision shop to mega mart.
Modify/Adapt.example would be chair. A wooden 4 legged chair, a wooden chair with backrest to full leather chair with roller wheels. its still a chair to begin with....
Mix/Combine.example would be wireless transmitter with ports for lan.no need for addition equipment. another example would be camera with phones. No one thought they need it together, now they want the best pixel with carls lens / auto focus.
Removal/Elimation.example would be bus ticket checker to auto tapping in/out. Land line phone to mobile phone. Such removal allows faster process & mobilibity thus its marketable.
Replacement.example like traditional green tea, process with peach and its sold as another favour or fills in buns and bread exchanging with something fresh and new to attract more buyers.
This are just a few ways to turn your passion into idea that are profitable and marketable.
Limiting belife are what stop us from take certain action, by identifying it we are able to overcome it and take the desire action.
Not all ideas has to be great ideas but one idea is enough to make a difference .
Tuesday, August 7, 2007
Financial Freedom 1.2.3
Its always know that to be financial free and rich, we have to have lots and lots of money that work harder then we work for them.
People have to go through the phrase of saving, insurance and investing. through proper planning and allocation of income & expenses. we all should be living happily if we are contented and living within our means. But that's not the case as always, thus we take up 2 job, upgrade our self for better career advancement and such.
On the other hand, there are a group that are contented with what they have and seek not to do any of the mention above.
There are always obstacles in the 3 areas mention above.
1. Accumulating through saving.
I spend as much as I earn. I don earn enough to save. The amount I save is not going to make a impact in my life in the future. ( Mindset tuning )
2.Insurance
It's a long term commitment. I don need it now. Its too expensive for me. ( Getting a insurance agent that's is experience, trustworthy and you enjoy working with to plan )
3.Investment.
Current, i feel this is the area that need more awareness. Many people start investing for the wrong reason or do it the wrong way. resulting in lost of hard earn saving.
Others have the mindset that investment is for the rich and its too risking for me.
I seek to provide a 2nd opinion that some investment is a must and necessary in long term financial planning. Primary reason is its historically it outpace inflation
thus preventing our wealth from shrinking. Its allows us to receive passive income through dividends payout and such.
But what to buy, when is right & how much do i need to start is always the first few asked questions.
But before starting, its important we know the difference of Investing as to Trading as to Gambling.
Take of example, if i don know what I'm buying. only through hear-say and hoping. That's gambling. ( Lack of knowledge and understanding always leads to disaster )
Trading is for the short term. normally a few months to less then a year.
Investment is for the long term. with 1 year being short and 3-5 years being medium and so on and so forth.
But where do gambling come it? whats the link? the link is the emotion part. what do you feel? excited when your stock make money? panic when your stock drop 20%? When investing & trading is involved, we have to hear the 'music' through all the 'noise'
We got to understand & believe what we are doing and stick to it. Which refers to your homework done on fundamental analysis and technical analysis. Its takes lots of hardwork and practise unlike gambling which is a game
of chance and luck.
If you are doing investing with a lot of emotion involved, getting a kick out of it. It would be good for you to learn how to manage your emotion before venturing into investment.
As I'm too is starting to move into part 3 of the financial freedom stool. The upcoming future post will be more technical.
There is 2 time when we should not gamble. 1 is when we don have the money, 2 is when we have the money.
People have to go through the phrase of saving, insurance and investing. through proper planning and allocation of income & expenses. we all should be living happily if we are contented and living within our means. But that's not the case as always, thus we take up 2 job, upgrade our self for better career advancement and such.
On the other hand, there are a group that are contented with what they have and seek not to do any of the mention above.
There are always obstacles in the 3 areas mention above.
1. Accumulating through saving.
I spend as much as I earn. I don earn enough to save. The amount I save is not going to make a impact in my life in the future. ( Mindset tuning )
2.Insurance
It's a long term commitment. I don need it now. Its too expensive for me. ( Getting a insurance agent that's is experience, trustworthy and you enjoy working with to plan )
3.Investment.
Current, i feel this is the area that need more awareness. Many people start investing for the wrong reason or do it the wrong way. resulting in lost of hard earn saving.
Others have the mindset that investment is for the rich and its too risking for me.
I seek to provide a 2nd opinion that some investment is a must and necessary in long term financial planning. Primary reason is its historically it outpace inflation
thus preventing our wealth from shrinking. Its allows us to receive passive income through dividends payout and such.
But what to buy, when is right & how much do i need to start is always the first few asked questions.
But before starting, its important we know the difference of Investing as to Trading as to Gambling.
Take of example, if i don know what I'm buying. only through hear-say and hoping. That's gambling. ( Lack of knowledge and understanding always leads to disaster )
Trading is for the short term. normally a few months to less then a year.
Investment is for the long term. with 1 year being short and 3-5 years being medium and so on and so forth.
But where do gambling come it? whats the link? the link is the emotion part. what do you feel? excited when your stock make money? panic when your stock drop 20%? When investing & trading is involved, we have to hear the 'music' through all the 'noise'
We got to understand & believe what we are doing and stick to it. Which refers to your homework done on fundamental analysis and technical analysis. Its takes lots of hardwork and practise unlike gambling which is a game
of chance and luck.
If you are doing investing with a lot of emotion involved, getting a kick out of it. It would be good for you to learn how to manage your emotion before venturing into investment.
As I'm too is starting to move into part 3 of the financial freedom stool. The upcoming future post will be more technical.
There is 2 time when we should not gamble. 1 is when we don have the money, 2 is when we have the money.
Wednesday, August 1, 2007
What's my worth?
I was often told that what you do daily will become a habit and habit done long enough will become part of your character which in turn will determine your own destiny.
Everyone at some point to a certain extend desire to be rich. I'm no different, but sometime all talk and no action bring one's to no where. It its thus important to have personal power. Personal power in the definition of great speaker Anthony Robbins is the ability to take action.
For the past 2 days we be covering on having a goal and how to remove our limiting believes. Planning for financial changes is a 1,2 day changes where your company will give us a leap in pay over night.
From ideas taught in Wealth Academy. We got to determine which income class we are currently under. For me, I been hovering around in middle class of earning (spending first with fluctuating surplus at the end of the month) a upgrade from the past where my earning = spending. But frankly speaking, its not every eye pleasing to me. Ideally, spending should be the last thing to do with our pay cheque.
Emphasizing on saving & investing before spending like the rich do, the first level to achieve is to ensure that we have about 3-6mths of our living expense in the bank and have sufficient Health & Life insurance to address events where we are unable to write a cheque to pay off for.
The next step is the position our continue surplus into places that can generate a passive income as it’s known that money saved with the bank always lose to inflation growth in the long term. Targeting to have a passive income to meet your basic life needs and slowly building it up to meet your wants.
A quick set of rules to follow would be.
1. Pay yourself first before anything.
2. Live below your means.
3. Invest surplus ( Year end bonus and such) in +ve cash flow assets ( branded goods are not assets)
4. Use ideas (Intellectual property) & time to generate positive cash flows.
The above mention might sound early and relative logical and simple to follow. But trust me, only trust constant reminder and practice would you get to see your desired results at the end of the day and I won’t hope or try to follow but instead will commit and demand it out of myself!
May all of us stretch ourselves everyday to expand our comfort zone and move towards the future we desire!
Everyone at some point to a certain extend desire to be rich. I'm no different, but sometime all talk and no action bring one's to no where. It its thus important to have personal power. Personal power in the definition of great speaker Anthony Robbins is the ability to take action.
For the past 2 days we be covering on having a goal and how to remove our limiting believes. Planning for financial changes is a 1,2 day changes where your company will give us a leap in pay over night.
From ideas taught in Wealth Academy. We got to determine which income class we are currently under. For me, I been hovering around in middle class of earning (spending first with fluctuating surplus at the end of the month) a upgrade from the past where my earning = spending. But frankly speaking, its not every eye pleasing to me. Ideally, spending should be the last thing to do with our pay cheque.
Emphasizing on saving & investing before spending like the rich do, the first level to achieve is to ensure that we have about 3-6mths of our living expense in the bank and have sufficient Health & Life insurance to address events where we are unable to write a cheque to pay off for.
The next step is the position our continue surplus into places that can generate a passive income as it’s known that money saved with the bank always lose to inflation growth in the long term. Targeting to have a passive income to meet your basic life needs and slowly building it up to meet your wants.
A quick set of rules to follow would be.
1. Pay yourself first before anything.
2. Live below your means.
3. Invest surplus ( Year end bonus and such) in +ve cash flow assets ( branded goods are not assets)
4. Use ideas (Intellectual property) & time to generate positive cash flows.
The above mention might sound early and relative logical and simple to follow. But trust me, only trust constant reminder and practice would you get to see your desired results at the end of the day and I won’t hope or try to follow but instead will commit and demand it out of myself!
May all of us stretch ourselves everyday to expand our comfort zone and move towards the future we desire!
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