The draft Water Services Industry Bill and Water Services Commision Bill (SPAN in Malay acronym) was publicly released last Monday.
In a rare show of transparency, the two drafts affecting water industry are open to public scrutinise before they undergo parliamentary reading to pass the Bill into law.
The Ministry has set up a website called 'My Water Voice' as a channel for the public to interact with the ministry.
Visitors to the website can also give their views through an online forum for each bill.
I remember at one point of time I read a biography written by Alfred J. Roach "Fire in My Belly". Alfred J. Roach, a self make entrepreneur and founder of TII Network Technologies in US. His company TII invested in Water treatment industry as well but fail..
The venture fail because of a number of reason. But one of the reason he stated in his book is his company providing water treatment services and sewerage and waste water services. He claim the public thought that the water supply to the public from the company are from the water from waste water or sewerage eventhough it is not. This is in US.
I do not know how Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik claim that the two service are provided by the same company in UK.
I really do not comfortable whether the same worker working for the sewerage plant in the morning and he will work in the water treatment plant in the afternoon. The pipe he used? Is it from the same store that storing the same water pipe and for sewerage and watse water pipe together.
In the event the company want to cut cost. This is highly possibly happen in Malaysia. Thus, I strongly against the same company provide water treatment and sewerage service. It has to be separated
TechnoratiTag:Business Commentary Economics Economy finance Malaysia News and politics Opinion Politik Shares Social Stock Market
Sunday, November 13, 2005
Avoiding Common Pitfalls ( Advertorial 7)
Most markets have predictable trends and repeated patterns. Why? Because most things that happen in the markets are a results of the motivations of the people in those markets.
Many people say that what drives most markets are greed and fear. Greed makes people buy, and fear makes them sell. Greed and fear actually benefit traders: Greed, or at least the desire to make money, is why we trade in the first place. Fear is a healthy response when we sense danger or disaster closing in, and it motivates us to get out of a bad situation.
But when they get out of control, greed and fear are two of the basic psychological pitfalls that make traders fail. Traders who consistently make mistakes usually do so for one or more of the following reasons.
Excessive Greed
Excessive Ego
Big egos cost thousands of people millions of dollars in the year 2000. An inability to admit a mistake causes many people to refuse to take small losses on a bad trade. Why do traders resist taking small losses so they can move on to better trades? It's because they don't want to admit that their decision to get into a position was unwise. They don't want to admit that they were wrong about the stock, bond, commodity, or currency.
Here’s an example: A trader buys 500 shares of a stock at $20 per share, investing $10,000. He believes that the concept behind the company’s innovative new software is going to be the extremely successful, and he's seen a lot of reliable information that backs up this idea. The price has recently moved up steadily, from 16 to 20, so it seems the market shares his belief.
For some reason, though, the new concept is slow to catch on. The trader holds the stock for three weeks and sees its share price remain essentially the same as where he bought it. It goes up a dollar, down a dollar, and so on — it's trading in a range and doesn't show any signs of movement. Then the market trends downward and all the tech stocks go down. His stock doesn't fall quickly, but over the next couple of weeks it gradually sinks back to $16 a share. There's no sustained volume, and it seems that no one is interested in the stock.
The trader insists that if he just keeps holding the stock it will not only recover but bring him a large profit once the rest of the market realizes its value. He holds the stock for the next five months, watching it move up and down between 15 and 16. Finally, after more than six months, the stock goes on a run — up to 22. The trader does the right thing and takes profits at this level. Now he can have the last word with all his friends, who were sure he would never make money on the stock. He gets to say to everyone, "I told you this stock would be hot."
But it doesn’t matter. The reality is that the trader has tied up $10,000 for six months for a 10% profit, when he could have made at least that much every week or so by moving on to better trades. There was no compelling reason to think the stock would go up soon, and the trader had no exit plan.
What should you do?
1)Take small losses.
2)Realize you don't need to win on every trade.
3)Don’t fall in love with the trades you make.
Buying What’s "Hot"
Many traders make trades because of public opinion, not because the trade itself makes sense. When a particular market trend seems popular, many investors rush in so they don’t feel they’ve missed an opportunity. The result is that many investors will buy at a price point where the trade can’t possibly work out favorably.
Avoid the emotion of what’s "hot." Successful traders notice when emotion affects trading, and create plans to take advantage of the emotional trades of others.
Here’s an example of what not to do: Let's say you've been following a particular stock which is in a "hot" sector, and it just announced a stock split. The stock is now at 18, and you calculate it could get to 25 or more by the time of the split. The market is currently bullish, and it looks like a great trade.
The problem is that the stock has been rising for the past four days. It started at 12, but you didn't notice it until it hit 18 — a 50 percent increase — and it's still rising. The stock split is a month away, and you know it's likely to fall in price somewhat between now and the split. Still, everyone is talking about this stock, and what if it just continues to rise and becomes the next blockbuster stock? You’re afraid if you don’t make a trade you’ll miss a great opportunity. (And besides, you want to be able to tell people that you hold a position in this stock, because it makes you seem smart.)
So you buy 1,000 shares at $18.50.
During the next two weeks, the stock goes to 19, then levels off, loses momentum, and drifts down to 17. Then a couple of leading NASDAQ companies give earnings warnings, the market drops, and the stock slides to 15, triggering the stop you'd set at 16 on half your holdings. The stock trades in that range for a week, and then begins to rise slightly going into the split. Your plan is to sell a day or two after the split. The stock rises a little beyond $20.50 by the second day after the split, and then the volume dries up and you sell it for a $2 profit. But since you stopped out of half your shares at 16, you lost $2.50 per share on that half, with a net loss of .50 on 500 shares.
What went wrong?
What went wrong was that you didn't let the stock come to you. Instead, you chased it as its price rose, knowing perfectly well that — following the stock split trend — it would probably pull back before running up again.
You knew that it was more likely to pull back than it was to continue on an uninterrupted run to 25, and you knew that if you bought at 18 or higher you were probably paying too much. You disregarded what you knew was more probable in favor of what might happen — even if there was only a very small chance of that unlikely thing happening. You should have given the stock a chance to come to you, at a price you felt was reasonable. If the stock had pulled a surprise and never gotten down to where you thought it would, that would be okay — there were many other stocks to trade, and some of them would have come down to your price. You didn't have to own this particular stock.
What was the right way to play this particular scenario?
When the market is bullish, it's very likely for a stock to rise when a split is announced, drift down after a few days' rally, and then begin to rise again a week or so before the split. If that's the trend and there's no solid reason to think the stock will rise immediately, wait a few days for the stock to drift down and stabilize before buying it. If you had done so in this case, you could have bought it at $16.50 and then sold it for $20.50 for a $4.00 profit on the entire 1,000 shares. If you had a solid reason to think the stock might continue to rally, you could have bought half the total number of shares you wanted at a price that might have turned out to be too high, and waited for a lower price to buy the other half. If it had turned out to be too high, it would only have reduced your profit. (No stock goes up or down in a straight line. Wait for a pullback before buying.)
Envying Others
Some traders spend a lot of energy focusing on what other traders do. They become concerned that everyone else is making 30% a week on their portfolio, that everybody else finds great trades that they miss, and that everybody else knows what they're doing while they don't. This leads traders to try to copy what others are doing, making those trades too late, and making trades that aren't good ideas in the first place. They get so confused trying to keep track of so many stocks that they don't understand what's going on with any of them.
Many traders don't realize that a lot of what people say is at the very least an exaggeration.
Similar to envy is competitiveness. Some traders want to show everyone that they're the best, the smartest, the most successful. The goal of trading isn’t to play a competitive game – it’s to make money. Your focus should be on making money. If you're in it for the competition, you should play some other game. The only reason to trade is to make money, and if your mind is on an imaginary competition that only you care about, you'll never make money.
Successful traders ignore hype, rumors, and boasting, and use their own knowledge and judgment to find trades that make sense and that they have confidence in. This doesn't ignoring the current public sentiment, because that sentiment can sometimes lead to good trading opportunities. Successful traders know what is reasonable to expect from trading, and how to achieve it without worrying about what everyone else is doing.
Victims of Success
Some traders become victims of their own successes. They have good “luck” with a certain type of commodity, for instance, that they overexpose their portfolio to one sector.
Sectors tend to move together, and often one sector will move down as another one moves up. Sectors are cyclical, which means that they go through hot and cold phases. No one commodity or type of commodity is hot all the time, and when a leading commodity in a sector gets into trouble, it tends to bring all the rest down with it.
Here’s an example: A trader bought gold futures just as a huge metals sector run was beginning. He bought silver and platinum as well, and to do so closed out all of his other positions, which had been in stocks and currencies.
The trouble was that, two days later, concerns about global terrorism lessened, and the metals sector fell sharply.
Diversification is important even for short-term traders. Some market moves can't be protected against, and if all your holdings are in one or a few sectors, you become vulnerable and exposed to excessive risk.
Laziness and Inattention
What should you do?
1)Know why a position is moving.
2)Know why you're buying into the position.
3)Check basic information on the position.
4)Once you're in the position, watch the market, check for news, and monitor the position’s behavior throughout the day.
5)Know what events are coming so you can anticipate changes in the position’s direction.
Emotional Stress
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HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
Many people say that what drives most markets are greed and fear. Greed makes people buy, and fear makes them sell. Greed and fear actually benefit traders: Greed, or at least the desire to make money, is why we trade in the first place. Fear is a healthy response when we sense danger or disaster closing in, and it motivates us to get out of a bad situation.
But when they get out of control, greed and fear are two of the basic psychological pitfalls that make traders fail. Traders who consistently make mistakes usually do so for one or more of the following reasons.
Excessive Greed
The desire to make money is what motivates us to become successful traders in the first place. But the desire to succeed is different from trying to get every possible profit from a trade. This kind of reckless greed makes traders hold on to their positions long after the downside has started to outweigh the upside and risk outweighs potential reward.
Here's an example: a trader sees that a particular stock is starting on a run; it's reported good news and is already up 20% for the day; the volume is still building; it's stable at the current price; the market is rallying strongly; and it looks like it will go higher. The trader buys 1,000 shares at $6 a share. By 12:15 P.M., the stock has raced up to $10 — a gain of over 66 percent for the day, and a profit of $4,000 on 1,000 shares.
The trader knows that round number price points, like 10, are psychological barriers for traders, and that if a stock is going to stop rising, it will probably be near a point like this. As it turns out, after momentarily shooting to $10.03, the price stops rising and starts to go down. The trader knows that he should sell now and re-buy later, but he keeps thinking, “What if it goes to 12 before it stops? What if it makes a 100% gain? How will I ever forgive myself for missing out on another $2,000 profit because I sold too soon?”
So, of course what ends up happening is that the stock drops down to $9.50 and then $8.75, ending the day at $8.90. The next day the market opens down and the trader is lucky to get out at $8.70, down $1,300 from the profit he could have had.
The way to get around the lure of excessive greed is to take profits consistently. It doesn't matter if the stock goes up another dollar or two after you're out of the position. The important thing is that you've made a clean profit and are ready to go on to the next trade with even more capital than you had before. And going on to the next trade is better than staying in the old one once it's gotten too risky, because the next trade will have an upside that outweighs the downside. (If it didn't, you wouldn't have any reason to get into the position in the first place.) The old trade's downside has begun to outweigh any further gains you're likely to make.
What should you do?
1)Lock in profits. You may miss a few highs, but you’ll stay consistently ahead.
2)Set your goals for solid gains, not the maximum possible gains.
Excessive Ego
Big egos cost thousands of people millions of dollars in the year 2000. An inability to admit a mistake causes many people to refuse to take small losses on a bad trade. Why do traders resist taking small losses so they can move on to better trades? It's because they don't want to admit that their decision to get into a position was unwise. They don't want to admit that they were wrong about the stock, bond, commodity, or currency.
Here’s an example: A trader buys 500 shares of a stock at $20 per share, investing $10,000. He believes that the concept behind the company’s innovative new software is going to be the extremely successful, and he's seen a lot of reliable information that backs up this idea. The price has recently moved up steadily, from 16 to 20, so it seems the market shares his belief.
For some reason, though, the new concept is slow to catch on. The trader holds the stock for three weeks and sees its share price remain essentially the same as where he bought it. It goes up a dollar, down a dollar, and so on — it's trading in a range and doesn't show any signs of movement. Then the market trends downward and all the tech stocks go down. His stock doesn't fall quickly, but over the next couple of weeks it gradually sinks back to $16 a share. There's no sustained volume, and it seems that no one is interested in the stock.
The trader insists that if he just keeps holding the stock it will not only recover but bring him a large profit once the rest of the market realizes its value. He holds the stock for the next five months, watching it move up and down between 15 and 16. Finally, after more than six months, the stock goes on a run — up to 22. The trader does the right thing and takes profits at this level. Now he can have the last word with all his friends, who were sure he would never make money on the stock. He gets to say to everyone, "I told you this stock would be hot."
But it doesn’t matter. The reality is that the trader has tied up $10,000 for six months for a 10% profit, when he could have made at least that much every week or so by moving on to better trades. There was no compelling reason to think the stock would go up soon, and the trader had no exit plan.
What should you do?
1)Take small losses.
2)Realize you don't need to win on every trade.
3)Don’t fall in love with the trades you make.
Buying What’s "Hot"
Many traders make trades because of public opinion, not because the trade itself makes sense. When a particular market trend seems popular, many investors rush in so they don’t feel they’ve missed an opportunity. The result is that many investors will buy at a price point where the trade can’t possibly work out favorably.
Avoid the emotion of what’s "hot." Successful traders notice when emotion affects trading, and create plans to take advantage of the emotional trades of others.
Here’s an example of what not to do: Let's say you've been following a particular stock which is in a "hot" sector, and it just announced a stock split. The stock is now at 18, and you calculate it could get to 25 or more by the time of the split. The market is currently bullish, and it looks like a great trade.
The problem is that the stock has been rising for the past four days. It started at 12, but you didn't notice it until it hit 18 — a 50 percent increase — and it's still rising. The stock split is a month away, and you know it's likely to fall in price somewhat between now and the split. Still, everyone is talking about this stock, and what if it just continues to rise and becomes the next blockbuster stock? You’re afraid if you don’t make a trade you’ll miss a great opportunity. (And besides, you want to be able to tell people that you hold a position in this stock, because it makes you seem smart.)
So you buy 1,000 shares at $18.50.
During the next two weeks, the stock goes to 19, then levels off, loses momentum, and drifts down to 17. Then a couple of leading NASDAQ companies give earnings warnings, the market drops, and the stock slides to 15, triggering the stop you'd set at 16 on half your holdings. The stock trades in that range for a week, and then begins to rise slightly going into the split. Your plan is to sell a day or two after the split. The stock rises a little beyond $20.50 by the second day after the split, and then the volume dries up and you sell it for a $2 profit. But since you stopped out of half your shares at 16, you lost $2.50 per share on that half, with a net loss of .50 on 500 shares.
What went wrong?
What went wrong was that you didn't let the stock come to you. Instead, you chased it as its price rose, knowing perfectly well that — following the stock split trend — it would probably pull back before running up again.
You knew that it was more likely to pull back than it was to continue on an uninterrupted run to 25, and you knew that if you bought at 18 or higher you were probably paying too much. You disregarded what you knew was more probable in favor of what might happen — even if there was only a very small chance of that unlikely thing happening. You should have given the stock a chance to come to you, at a price you felt was reasonable. If the stock had pulled a surprise and never gotten down to where you thought it would, that would be okay — there were many other stocks to trade, and some of them would have come down to your price. You didn't have to own this particular stock.
What was the right way to play this particular scenario?
When the market is bullish, it's very likely for a stock to rise when a split is announced, drift down after a few days' rally, and then begin to rise again a week or so before the split. If that's the trend and there's no solid reason to think the stock will rise immediately, wait a few days for the stock to drift down and stabilize before buying it. If you had done so in this case, you could have bought it at $16.50 and then sold it for $20.50 for a $4.00 profit on the entire 1,000 shares. If you had a solid reason to think the stock might continue to rally, you could have bought half the total number of shares you wanted at a price that might have turned out to be too high, and waited for a lower price to buy the other half. If it had turned out to be too high, it would only have reduced your profit. (No stock goes up or down in a straight line. Wait for a pullback before buying.)
Envying Others
Some traders spend a lot of energy focusing on what other traders do. They become concerned that everyone else is making 30% a week on their portfolio, that everybody else finds great trades that they miss, and that everybody else knows what they're doing while they don't. This leads traders to try to copy what others are doing, making those trades too late, and making trades that aren't good ideas in the first place. They get so confused trying to keep track of so many stocks that they don't understand what's going on with any of them.
Many traders don't realize that a lot of what people say is at the very least an exaggeration.
Similar to envy is competitiveness. Some traders want to show everyone that they're the best, the smartest, the most successful. The goal of trading isn’t to play a competitive game – it’s to make money. Your focus should be on making money. If you're in it for the competition, you should play some other game. The only reason to trade is to make money, and if your mind is on an imaginary competition that only you care about, you'll never make money.
Successful traders ignore hype, rumors, and boasting, and use their own knowledge and judgment to find trades that make sense and that they have confidence in. This doesn't ignoring the current public sentiment, because that sentiment can sometimes lead to good trading opportunities. Successful traders know what is reasonable to expect from trading, and how to achieve it without worrying about what everyone else is doing.
Victims of Success
Some traders become victims of their own successes. They have good “luck” with a certain type of commodity, for instance, that they overexpose their portfolio to one sector.
Sectors tend to move together, and often one sector will move down as another one moves up. Sectors are cyclical, which means that they go through hot and cold phases. No one commodity or type of commodity is hot all the time, and when a leading commodity in a sector gets into trouble, it tends to bring all the rest down with it.
Here’s an example: A trader bought gold futures just as a huge metals sector run was beginning. He bought silver and platinum as well, and to do so closed out all of his other positions, which had been in stocks and currencies.
The trouble was that, two days later, concerns about global terrorism lessened, and the metals sector fell sharply.
Diversification is important even for short-term traders. Some market moves can't be protected against, and if all your holdings are in one or a few sectors, you become vulnerable and exposed to excessive risk.
Laziness and Inattention
Lazy traders are certain to become losing traders. Inattentive traders neglect to research and monitor their positions and markets, so they don’t have a good sense of what strategy to employ. Lazy traders don’t have a concrete plan, and trading without a plan is one of the surest ways to lose in any market.
The lazy trader might buy a stock because he sees that it's been going up steadily for a week and a half. He doesn't know why, but he does know the experts say it’s a "strong" stock. He buys it in the morning, it goes up a few percentage points, and he assumes he’s made a winning trade.
To his surprise, the stock does a falls in the afternoon and starts going down as steadily as it went up in the morning. The lazy trader can't figure out what went wrong. Why did it fall? If he'd simply bothered to check the earnings calendar, he'd have seen that the company was scheduled to report earnings that day after the market closed. The steady run-up was in anticipation of the earnings announcement, and now traders were taking profits and getting out of the stock in case of a negative reaction to the earnings results.What should you do?
1)Know why a position is moving.
2)Know why you're buying into the position.
3)Check basic information on the position.
4)Once you're in the position, watch the market, check for news, and monitor the position’s behavior throughout the day.
5)Know what events are coming so you can anticipate changes in the position’s direction.
Emotional Stress
Here, the rule is simple: If you're sick, emotional, or can’t properly focus due to outside events, don't trade. Take a break.
The reason is simple. If you trade when you're not feeling well, physically or emotionally, you won't trade well. You'll just lose money. At the very least, you'll be too distracted to trade successfully.
Knowing when not to trade is an important form of discipline you must learn. This discipline is also necessary on days when the market is so directionless and choppy that no trade is going to go anywhere. But the main point here is to be in good enough touch with your emotions that you can recognize when you’ll be unable to focus properly. In any case, it's healthy to get away from the market for a day or two, or even a few weeks, from time to time. The time away will help you regain perspective about what things in life really matter. And if you need to trade every day, it may be a sign of an unhealthy addiction.
Which Pitfalls Are Hindering Your Success?
If you want to improve as a trader, you must identify the mistakes you make consistently so that you can recognize your own pitfalls. To do this, look back at ten losing trades you've made in the last few weeks. Can you find similarities? Look closely and be completely honest with yourself. Part of being a good trader is being able to look at things with a clear eye and seeing what's really there, not what you wish was there.
Now here's the harder part: Look back at your recent successful trades and find the ones that succeeded only by luck. How would they have turned out if you hadn't been lucky? What were your mistakes with those trades?
Identify the two most common mistakes you make. Identify your most disastrous trades and identify the mistakes you made with them.
From now on, you must keep your psychological and emotional soft spots in mind at all times while you're trading.
Your goal as a trader should not be to trade perfectly all the time, to win on every trade, or to be perfect in any other way. Putting too much pressure on your self to be perfect is one of the best ways to make lots of mistakes. Besides the fact that no one can be perfect, there's also the fact that you don't need to be perfect. You can make amazing amounts of money in the markets by being a good, consistent trader.
As a trader, you'll be richly rewarded if you do your job consistently and well. You'll be doing far better than 99 percent of the other people trading stocks in the market, not to mention money managers, analysts, and other so-called "experts."
Instead of perfection, your goal should be to control the emotional barriers to your success.
Long-term trading success is achieved through consistency: consistently taking small losses and larger profits, consistently rejecting trades that are too risky or that aren't based on good reasoning, and consistently doing what you know is right instead of acting against your better judgment. Consistency is a discipline, and it will serve you well in life as well as in trading.
The purpose of identifying your psychological soft spots is not to make you feel like you're a poor trader. All traders, even the best, have weaknesses — they just recognize and control those weaknesses. Instead, the purpose of getting to know your personal pitfalls is to develop a realistic sense of your strengths and weaknesses so that you can recognize mistakes before they happen. Being realistic — about yourself and about the market and the trades you make — is the way to succeed as a trader.
"What Takes Some Successful Traders A Lifetime To Achieve Could Take You Just A Few Days... Or Less!"
Get these reports for free
HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
Saturday, November 12, 2005
Political hot potatoes cloud market?
Today, a commentator at The Star Errol Oh write on recent political influence on listing of TH Plantations Bhd and deal of Pantai Holdings Bhd. He stated that:
SHARE investment doesn't work very well if we lack belief in the benefits of floating a company, or if corporate exercises transform into political hot potatoes. Such things can short-circuit the stock market because they create uncertainty and uneasiness.
That is why we better hope that a couple of recent developments are merely blips, and that they do not reflect the country's overall attitude towards the workings of the stock market.
Full article can be read here.
Although I agree with his view point on TH Plantations Bhd. I feel the Member of Parliament who raise such issue totally do not understand economic and finance at all. They can hide their weakness by remaining silent. But they choose to show their poor understanding and knowledge to the public.
However, on the issue Singapore's Parkway Holdings Ltd's purchase of a 31% stake in healthcare services provider Pantai Holdings Bhd in September. The article fail to highlight Fomena Sdn Bhd has fall in the hand of foreigner. I feel that Pantai Holdings Bhd new shareholder should dispose off Fomena Sdn Bhd and Pantai Medivest Sdn Bhd if the deal go through, other than Avenue and Pos Malaysia Bhd.
He further stated that:
Driven by hopes and promises, the stock market can arouse a gamut of emotions. But should suspicion and fear of the unknown be part of the mix?
They shouldn't. Such sentiments often cloud our judgment and hold us back. They nullify what the stock market has to offer – a platform for businesses to be transparently and efficiently compared with others. More often than not, good performances and decisions are suitably rewarded.
Sure, the stock market has its share of risks and hazards, but it doesn't have to be a scary place. ........
.....We need to have faith in the stock market's ability to both absorb and reflect the realities of business. For example, the forces of globalisation and deregulation cannot be turned back. Companies that ignore this are likely to suffer. They cannot be protected indefinitely.
In another business news. The Star reported that the trading volumes on Bursa Malaysia these days are said to be miserable.
Many blame the lack of retail participation, others have their own reasons but something needs seriously be done to improve trading volumes.
....the average volume of shares traded for 527 counters did not even hit 100,000 shares in a single day.
TechnoratiTag:Business Commentary competitive Economics Economy Malaysia News and politics Opinion Politik finance Shares Stock Market
SHARE investment doesn't work very well if we lack belief in the benefits of floating a company, or if corporate exercises transform into political hot potatoes. Such things can short-circuit the stock market because they create uncertainty and uneasiness.
That is why we better hope that a couple of recent developments are merely blips, and that they do not reflect the country's overall attitude towards the workings of the stock market.
Full article can be read here.
Although I agree with his view point on TH Plantations Bhd. I feel the Member of Parliament who raise such issue totally do not understand economic and finance at all. They can hide their weakness by remaining silent. But they choose to show their poor understanding and knowledge to the public.
However, on the issue Singapore's Parkway Holdings Ltd's purchase of a 31% stake in healthcare services provider Pantai Holdings Bhd in September. The article fail to highlight Fomena Sdn Bhd has fall in the hand of foreigner. I feel that Pantai Holdings Bhd new shareholder should dispose off Fomena Sdn Bhd and Pantai Medivest Sdn Bhd if the deal go through, other than Avenue and Pos Malaysia Bhd.
He further stated that:
Driven by hopes and promises, the stock market can arouse a gamut of emotions. But should suspicion and fear of the unknown be part of the mix?
They shouldn't. Such sentiments often cloud our judgment and hold us back. They nullify what the stock market has to offer – a platform for businesses to be transparently and efficiently compared with others. More often than not, good performances and decisions are suitably rewarded.
Sure, the stock market has its share of risks and hazards, but it doesn't have to be a scary place. ........
.....We need to have faith in the stock market's ability to both absorb and reflect the realities of business. For example, the forces of globalisation and deregulation cannot be turned back. Companies that ignore this are likely to suffer. They cannot be protected indefinitely.
In another business news. The Star reported that the trading volumes on Bursa Malaysia these days are said to be miserable.
Many blame the lack of retail participation, others have their own reasons but something needs seriously be done to improve trading volumes.
....the average volume of shares traded for 527 counters did not even hit 100,000 shares in a single day.
But Bursa is working towards installing a new trading system by mid-2006. Currently, it has some issues with the vendors that it expects to resolve soon. Once the new system is installed, Bursa Malaysia chief executive officer Yusli Mohamed Yusoff believes there can be a better monitoring system of daily volumes.
“There are features where we can monitor a particular stock during certain periods of the day, and even hour, to see how concentrated the activities are for each stock.
“The new system will allow us to introduce new features such as special trading sessions for low liquidity stocks.This will encourage concentrated market focus on such stocks during these special sessions,’’ he said.
I feel that the lack of participation among retailer are cause by limit down of certain counter at the first half of the year. Many retailer get burn on the few counter and they yet torecoverrfrom thee wound.
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Thursday, November 10, 2005
University Sains Malaysia should benchmark against National Chiao Tung University in Taiwan
In the recent Times Higher Education Supplement (THES) World University Rankings.
university MalayaÂ’s (UM)overall position in the World University Rankings dropped from 89 in 2004 to 169 this year, whileuniversityi Sains Malaysia(USM), which placed 111 last year did not make it to the top 200.
Most of the comment target on UM while our 33 years old CEO and founder of Sesdaq listed company Cyber Village, Tony Pua choose to comment on USM in his blog.
I intend to do the same to comment on USM but from different point of view. While the ranking is important to UM as it is inherent from our Britishcoloniall education system and act as a benchmark against Nationaluniversityy of Singapore which demerge from UM.
I feel USM should have different mission. USM located in Penang, Silicon Valley of Malaysia. USM mission should benchmark against National Chiao Tung University in Taiwan. As Taiwan view as Silicon Valley in Asia.
Nasional Chiao Tung University in Taiwan produced many techpreneur in Taiwan including Acer's founder Stan Shih. Mitac's President and Vice Chairman Francis Tsai, Mitac's Vice President Stone Chen. Co-founder and Vice Chairman of Taiwan Semiconductor Manufacturing Limited (TSMC) Dr. F.C. Tseng. ASUSTek Computer's Chairman. Founder and Chairman of Winbond Electronics Corporation, Chairman of Leo Systems Inc, Chaiman of Quanta Computer.................and the list go on.......................................
Number of research paper from Nasianal Chiao Tung University published on professional journal IEEE areconsistentlyy higher than MIT, Stanford, UCLA and Berkeley every year yet the University in not on the THES ranking. I think this might cause by the University teach in Mandarin rather than English. This cause the University has limited foreign student.
USM has been ranking as one of the top IT user in Malaysia and in Asia. The University also winnumerouss award in the country during the year.
Founder of e-Business Sdn Bhd Mr Chan Hong Saik said majority of their staff are hire from University Sains Malaysia of Penang. The company's product are used by a lot of multinational bank. This proved that graduate from USM is competitive.
University Sains Malaysia(USM) has a incubator and commercial arm USAINS Holding Sdn Bhd that help to incubate andcommercialesee scientific research.
I feel that USM should benchmark against Nasional Chiao Tung University in Taiwan rather than try to be reincluded in THES ranking
TechnoratiTag:Business Commentary competitive Computers Malaysia Opinion Tech News Technology
Tuesday, November 08, 2005
Fomena control fall to Singapore public listed company
On 5 November 2005, Fomena made the headline of The Star. The Star reported that Fomema has suspended more than 100 clinics on its panel since the start of this year under a nationwide clean-up exercise to curb irregularities in the examination of foreign workers.
Fomena is an independent agency responsible for monitoring and coordinating the medical examination of foreign workers, a requirement for the renewal of work permits by the Immigration Department.
On 6 November 2005, The Star further reported that Health Minister Datuk Dr Chua Soi Lek advises Fomema to report errant doctors to the Malaysian Medical Council (MMC)
Few of us realize that Femona will be acquired by Singapore’s Parkway Holdings Ltd, a company listed on Singapore Exchange Ltd (SGX).
On 13 September 2005, Parkway announced it acquisition of 31% of Pantai Holdings Bhd for a total of RM311.58 million. Femona, a subsidiary of Pantai, would be in the hand of Parkmay, a Singapore company if the deal completed.
Fenoma Sdn Bhd and Pantai Medivest Bhd. Both company that hold government concessions contribute more than 44% of turnover of Pantai Holdings Bhd.
Mainstream media in Malaysia has reported that some parties in Malaysia opposed the Parkway-Pantai dealt because one of the largest private hospital chain in Malaysia will fall in the hand of a Singapore company.
Actually, we did not opposed the hospital fall into the hand of Singapore company as this is a private hospital. However, an the government let the concessions (Fomena and Pantai Medivest ) fall into the hand of a foreign company?
Pantai Holdings Bhd other non-core business included Avenue and Pos Malaysia Bhd.
Updated: Jeff Ooi's Sensitive database: In foreign hands we trust? December 20, 2005
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Fomena is an independent agency responsible for monitoring and coordinating the medical examination of foreign workers, a requirement for the renewal of work permits by the Immigration Department.
On 6 November 2005, The Star further reported that Health Minister Datuk Dr Chua Soi Lek advises Fomema to report errant doctors to the Malaysian Medical Council (MMC)
Few of us realize that Femona will be acquired by Singapore’s Parkway Holdings Ltd, a company listed on Singapore Exchange Ltd (SGX).
On 13 September 2005, Parkway announced it acquisition of 31% of Pantai Holdings Bhd for a total of RM311.58 million. Femona, a subsidiary of Pantai, would be in the hand of Parkmay, a Singapore company if the deal completed.
Fenoma Sdn Bhd and Pantai Medivest Bhd. Both company that hold government concessions contribute more than 44% of turnover of Pantai Holdings Bhd.
Mainstream media in Malaysia has reported that some parties in Malaysia opposed the Parkway-Pantai dealt because one of the largest private hospital chain in Malaysia will fall in the hand of a Singapore company.
Actually, we did not opposed the hospital fall into the hand of Singapore company as this is a private hospital. However, an the government let the concessions (Fomena and Pantai Medivest ) fall into the hand of a foreign company?
Pantai Holdings Bhd other non-core business included Avenue and Pos Malaysia Bhd.
Updated: Jeff Ooi's Sensitive database: In foreign hands we trust? December 20, 2005
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MISC best performing GLC
MISC was the first company that feature on this blog: Malaysia's Mitsubishi in the making .
MISC has become the second largest market capitalization company in Kuala Lumpur stock exchange after Maybank as at 30 October 2005. Overtake Telekom Malaysia Berhad and Tenaga Nasional Bhd.
On 5 November 2005, the star reported that MISC shares to climb further
Earlier, on the 16 October 2005 issue of Malaysian Business. MISC was rank the highest net profit public listed company in Malaysia, rank 2nd in highest Return on Turnover after Plus Expressways Bhd, No 6 on highest Return on Equity (Top 5 is non GLC), No 7 on Return on Assets (top 6 is non GLC)
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Monday, November 07, 2005
Outdated of knowledge and new IFRS -1
When our economy transform from production economy to new economy or knowledge economy. Knowledge become obsolete faster than expected.
I have stated before in my blog that I take a long period of time to studies my professional accounting qualification. However, Our first Prime Minister Tunku Abdul Rahman and third Prime Minister Tun Hussein Onn also take longer than 4 years to get their law degree. But those take 4 years or shorter to obtain their law degree unable to become Prime Minister of Malaysia but a person take longer than 4 years to obtain a degree eventually become a Prime Minister.
Similarly, one of our opposition leader Kapal Singh took 8 years to complete his law degree. However, I doubt any litigation lawyer would mentioned that they are more skillful than Kapal Singh.
While our country transform from production to knowledge economy. The long period of time I took to study my accounting qualification make me have more advantage than those who complete faster than myself. I have study a lot of changes in technology which my coursemate never has a chance to studies.
In economic, those who pass earlier never study Reganism and Thatcherism or Supply Side Economy.
In management, they study management theory while I study application of management theory. They never study strategic management, Internal appraisal, external appraisal ,PEST Analysis, Michael Porter's Competitive Strategy of a company
, Balanced Scorecard and Michael Porter's Competitive Strategy of a country.
In accounting and finance. Traditional method of value a company using Net Tangible Assets (NTA) has been outdated. World richest person Bill Gates's Microsoft doesn't own any factory nor his company own many real estate or other form of tangible assets. How his company market capitalization enable him to become richest man in the world. His company assets are in intangible form ....... Copyright of software and human capital.
Thus, how valuation of company in new economy become a challenge of accounting profession.
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I have stated before in my blog that I take a long period of time to studies my professional accounting qualification. However, Our first Prime Minister Tunku Abdul Rahman and third Prime Minister Tun Hussein Onn also take longer than 4 years to get their law degree. But those take 4 years or shorter to obtain their law degree unable to become Prime Minister of Malaysia but a person take longer than 4 years to obtain a degree eventually become a Prime Minister.
Similarly, one of our opposition leader Kapal Singh took 8 years to complete his law degree. However, I doubt any litigation lawyer would mentioned that they are more skillful than Kapal Singh.
While our country transform from production to knowledge economy. The long period of time I took to study my accounting qualification make me have more advantage than those who complete faster than myself. I have study a lot of changes in technology which my coursemate never has a chance to studies.
In economic, those who pass earlier never study Reganism and Thatcherism or Supply Side Economy.
In management, they study management theory while I study application of management theory. They never study strategic management, Internal appraisal, external appraisal ,PEST Analysis, Michael Porter's Competitive Strategy of a company
, Balanced Scorecard and Michael Porter's Competitive Strategy of a country.In accounting and finance. Traditional method of value a company using Net Tangible Assets (NTA) has been outdated. World richest person Bill Gates's Microsoft doesn't own any factory nor his company own many real estate or other form of tangible assets. How his company market capitalization enable him to become richest man in the world. His company assets are in intangible form ....... Copyright of software and human capital.
Thus, how valuation of company in new economy become a challenge of accounting profession.
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Winning Psychology – What Separates Winning Traders from Losing Traders (Advertorial 6)
When trading goes well, you feel great. When trading goes poorly, it feels like a disaster. Most traders who are successfully initially end up losing all their gains – and more. To be successful, you have to acknowledge this pattern… and then break it.
The following are key ways successful traders differ from losing traders:
1)Losing traders lack proper preparation and a solid game plan. Most losing traders are short-term and day traders. Their lack of success is due less to the time frame they trade within, and more to their lack of preparation and discipline.
2)Losing traders tend to be under-capitalized. There are two reasons for this. The first is that traders who take excessive risks while operating with small amounts of capital are more likely to lose their stake more quickly, and also to react emotionally to any loss. The second is that all traders will experience loss; the greater the capital reserves, the more likely a trader can accept small losses and capitalize on winning trades.
3)Losing traders use complex systems or rely on outside recommendations. Winning traders tend to use simple techniques; techniques that they have developed on their own, from experience, that fit their own style and personality. Successful traders understand that the only important outcome is to make money – the complexity of the system used is irrelevant. What matters is what works.
4)Losing traders often rely heavily on computer-generated trading systems. Software tools can be extremely useful, but only if you understand the way data is analyzed and how conclusions are reached by the software. Successful traders use any tools that are helpful, but they also understand precisely how and why those tools work.
5)Losing traders try to forecast market trends. Successful traders follow the market in real-time, and create appropriate strategies. By responding to irrational buying or selling with a rational and disciplined strategy, winning traders increase their chances of success. Losing traders try to predict the market; successful traders follow the market wherever it goes.
6)Losing traders focus on winning trades, and maintaining a high percentage of winning to losing trades. One losing trade can wipe out a number of winning trades. Successful traders focus on minimizing the loss from losing trades, from getting solid returns from winning trades, and maintaining good risk to reward ratios. Successful traders track returns and profits, not “wins” and “losses.”
7)Losing traders sometimes execute trades based on emotion alone. Winning traders accept their emotions, put them aside, and assess current market conditions.
8)Losing traders want to be “right.” Successful traders see trading as a business, and focus on making money. Losing traders enjoy the feeling that a good trade can create; successful traders enjoy growth in equity.
9)Losing traders constantly adopt new or “hot” strategies, especially after bad trades. Successful traders evaluate bad trades, attempt to learn from them, and adjust their current strategies and trading styles accordingly. The most successful traders use a consistent system they have learned to rely on and they fully understand.
10)Successful traders assess all aspects of profitability. Losing traders ignore costs like commissions, systems, or data acquisition. Successful traders seek to maximize profits by increasing their gains and reducing their costs. Successful traders focus on profit.
"What Takes Some Successful Traders A Lifetime To Achieve Could Take You Just A Few Days... Or Less!"
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HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
The following are key ways successful traders differ from losing traders:
1)Losing traders lack proper preparation and a solid game plan. Most losing traders are short-term and day traders. Their lack of success is due less to the time frame they trade within, and more to their lack of preparation and discipline.
2)Losing traders tend to be under-capitalized. There are two reasons for this. The first is that traders who take excessive risks while operating with small amounts of capital are more likely to lose their stake more quickly, and also to react emotionally to any loss. The second is that all traders will experience loss; the greater the capital reserves, the more likely a trader can accept small losses and capitalize on winning trades.
3)Losing traders use complex systems or rely on outside recommendations. Winning traders tend to use simple techniques; techniques that they have developed on their own, from experience, that fit their own style and personality. Successful traders understand that the only important outcome is to make money – the complexity of the system used is irrelevant. What matters is what works.
4)Losing traders often rely heavily on computer-generated trading systems. Software tools can be extremely useful, but only if you understand the way data is analyzed and how conclusions are reached by the software. Successful traders use any tools that are helpful, but they also understand precisely how and why those tools work.
5)Losing traders try to forecast market trends. Successful traders follow the market in real-time, and create appropriate strategies. By responding to irrational buying or selling with a rational and disciplined strategy, winning traders increase their chances of success. Losing traders try to predict the market; successful traders follow the market wherever it goes.
6)Losing traders focus on winning trades, and maintaining a high percentage of winning to losing trades. One losing trade can wipe out a number of winning trades. Successful traders focus on minimizing the loss from losing trades, from getting solid returns from winning trades, and maintaining good risk to reward ratios. Successful traders track returns and profits, not “wins” and “losses.”
7)Losing traders sometimes execute trades based on emotion alone. Winning traders accept their emotions, put them aside, and assess current market conditions.
8)Losing traders want to be “right.” Successful traders see trading as a business, and focus on making money. Losing traders enjoy the feeling that a good trade can create; successful traders enjoy growth in equity.
9)Losing traders constantly adopt new or “hot” strategies, especially after bad trades. Successful traders evaluate bad trades, attempt to learn from them, and adjust their current strategies and trading styles accordingly. The most successful traders use a consistent system they have learned to rely on and they fully understand.
10)Successful traders assess all aspects of profitability. Losing traders ignore costs like commissions, systems, or data acquisition. Successful traders seek to maximize profits by increasing their gains and reducing their costs. Successful traders focus on profit.
"What Takes Some Successful Traders A Lifetime To Achieve Could Take You Just A Few Days... Or Less!"
Get these reports for free
HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
Sunday, November 06, 2005
A Kadir Jasin opposed Johor Corp take over KFC
Editor-In-Chief of Malaysian Business, Datuk A Kadir Jasin, in his column "Other Thots" on latest issue of Malaysian Business (1 November 2005 issue) stated that:
The purchase of the majority control of QSR Brands by Kulim effectively removed the Bumiputra ownership of the company. Kulim is a government-link company ( GLC ) by virtue of its 60% ownership by Johor Corporation Bhd, the investment arm of the Johor Government. ................................
.........QSR Brands, which was previously controlled and managed by Bumiputra individuals, is now own by a GLC ..................... GLCs, though largely managed by Bumiputras, are not stricly Bumiputra companies. They are state-owned companies.They belong to all Malaysian. ..........
......Kulim's Purchase of QSR Brands' shares came only months after the Prime Minister was quoted in the Press advising the GLC not to compete with Bumiputras. The Berita Harian newspaper on July 30 reported:" GLCs cannot make profits by taking over successful Bumiputra companies or set up subsidiary companies to compete with them,said Datuk Seri Abdullah Ahmad Badawi ).
The sale of the QSR Brands shares to Kulim at a time when Umno is pressing for the reinstatement of the NEP or some elements of it worth greater exemination and understanding.
...........The QSR-Kulim type deal will further erode Bumiputra ownership of the corporate sector.
...............if the GLCs are allowed to freely prey on Bumiputra-owned corporate entities, there is a danger that in due course there may not be many Bumiputra-conntrolled companies left.
The above has coincidentally same view point with my post on KFC fall under Johor state government , KFC fall under Johor state government 2 and GLC classified as Non-bumiputra.
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The purchase of the majority control of QSR Brands by Kulim effectively removed the Bumiputra ownership of the company. Kulim is a government-link company ( GLC ) by virtue of its 60% ownership by Johor Corporation Bhd, the investment arm of the Johor Government. ................................
.........QSR Brands, which was previously controlled and managed by Bumiputra individuals, is now own by a GLC ..................... GLCs, though largely managed by Bumiputras, are not stricly Bumiputra companies. They are state-owned companies.They belong to all Malaysian. ..........
......Kulim's Purchase of QSR Brands' shares came only months after the Prime Minister was quoted in the Press advising the GLC not to compete with Bumiputras. The Berita Harian newspaper on July 30 reported:" GLCs cannot make profits by taking over successful Bumiputra companies or set up subsidiary companies to compete with them,said Datuk Seri Abdullah Ahmad Badawi ).
The sale of the QSR Brands shares to Kulim at a time when Umno is pressing for the reinstatement of the NEP or some elements of it worth greater exemination and understanding.
...........The QSR-Kulim type deal will further erode Bumiputra ownership of the corporate sector.
...............if the GLCs are allowed to freely prey on Bumiputra-owned corporate entities, there is a danger that in due course there may not be many Bumiputra-conntrolled companies left.
The above has coincidentally same view point with my post on KFC fall under Johor state government , KFC fall under Johor state government 2 and GLC classified as Non-bumiputra.
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Thursday, November 03, 2005
" The Apprentice "Vs Local reality show " The Music Executive "2
Last week " The Music Executive " is better than the previous week. Judges do comment on performance of the contestant. But it still difficult to compare with Donald Trump's The Apprentice.
One of the team " Music Monkey " lose again and one of it teammate get fired. This cause Music Monkey left with one team member only. There would be a corporte restructuring this week to balance the number of team member between the two team.
Pleae remember to give your support to local reality show by watching The Music Executive at this Friday 9.30pm.
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TechnoratiTag:Business Commentary Economics Economy finance Malaysia Opinion competitive Social
One of the team " Music Monkey " lose again and one of it teammate get fired. This cause Music Monkey left with one team member only. There would be a corporte restructuring this week to balance the number of team member between the two team.
Pleae remember to give your support to local reality show by watching The Music Executive at this Friday 9.30pm.
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TechnoratiTag:Business Commentary Economics Economy finance Malaysia Opinion competitive Social
Charles Raj on Indian equity shares
Editor of Malaysian Business Charles Raj comment on Indian equity shares issue on the 1 November 2005 issue of Malaysian Business.
Charles Raj, an Indian, stated that " For the record, when Samy took over as MIC President in 1981, the equity share of of the Indians was close to 3%. Now even with tycoon T Ananda Krishnan's RM12.23billion, it has dropped to 1.5%. Who is to be blamed?"
His view point are coincidentally similar to my view point posted on 10 June 2005.
He also comment the performance of Maika Holdings Bhd.
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Charles Raj, an Indian, stated that " For the record, when Samy took over as MIC President in 1981, the equity share of of the Indians was close to 3%. Now even with tycoon T Ananda Krishnan's RM12.23billion, it has dropped to 1.5%. Who is to be blamed?"
His view point are coincidentally similar to my view point posted on 10 June 2005.
He also comment the performance of Maika Holdings Bhd.
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Wednesday, November 02, 2005
Malaysian Business feature on Mobile Money
Imagine next time you have dinner with a group of your friend. When payment time, everybody want to settle the bill. They all rush to take out ......not their wallet nor credit card but their mobile phone and shout " I pay, I pay"
This might be one of the scene in the future if Mobile Money able to accept by the public in Malaysia.
When this blog write about Mobile Money on 31 July 2005 3 months ago. Non of the mainstream media report on this. Even when signing ceremony with Hong Leong Bank. Mainstream media only published the photo after one week without any report on it.
However, the newest issue of Malaysian Business have a feature on Mobile Money eventually. Malaysian Business however, stated that this is not first in the world but already happen in Japan and Korea now.
Malaysian Business stated that it success however, is depend on acceptance and confidence by the public on this payment method like ATM and credit card.
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TechnoratiTag:Asia Business Commentary competitive Computers Economics Economy finance Malaysia Opinion Shares Social Stock Market Tech News Technology World Computers and internet
This might be one of the scene in the future if Mobile Money able to accept by the public in Malaysia.
When this blog write about Mobile Money on 31 July 2005 3 months ago. Non of the mainstream media report on this. Even when signing ceremony with Hong Leong Bank. Mainstream media only published the photo after one week without any report on it.
However, the newest issue of Malaysian Business have a feature on Mobile Money eventually. Malaysian Business however, stated that this is not first in the world but already happen in Japan and Korea now.
Malaysian Business stated that it success however, is depend on acceptance and confidence by the public on this payment method like ATM and credit card.
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TechnoratiTag:Asia Business Commentary competitive Computers Economics Economy finance Malaysia Opinion Shares Social Stock Market Tech News Technology World Computers and internet
Playing to Your Strengths, Overcoming Your Weaknesses (Advertorial 5)
If you understand your strengths and your weaknesses, and learn how to work within them, you have a much greater chance of trading successfully. Every individual has different behavior patterns that make them unique. By understanding your own habits and behaviors, you can greatly improve your trading abilities and your ability to accumulate wealth. Successful traders learn to recognize their behavioral patterns that cause them to be unfocused or undisciplined.
Some poor trading behaviors are due to emotional reactions, but others are simply the result of bad habits. Your goal is to make your trading systematic and logical. Socrates said, "We are what we repeatedly do. Excellence, then, is a habit."
Successful traders also persevere. They learn from experience and from their mistakes, and more importantly they learn what behavioral patterns cause them to be successful. By eliminating behaviors that cause mistakes, successful traders maximize winning trades and minimize the number of and the effect of losing trades.
Ways to Play to Your Strengths
1)Pay close attention to your trading behaviors. Take responsibility for your trades, and analyze what mistakes you might have made. Don’t blame the market; look to yourself for answers and accountability. Learn from your mistakes.
2)Identify the conditions that may have caused a mistake. No one is perfect, and all of us are affected by things in our personal or professional lives. You may have been distracted due to outside events, or have gotten emotional because of a particularly successful trade. If you can recognize patterns before they affect your trading, you can stay focused and disciplined.
3)Follow a trading plan. Avoid spontaneous trades. By looking closely at the market to determine the current trends, a successful trader prepares the appropriate strategy for the following day, and is less likely to be influence by emotion.
4)Create routines and structure. Keeping good records, logging your trades, consistently analyzing market indicators, and staying focused on your short-term goals will help you stay focused and on track.
5)Set small goals for each day. Make sure they’re measurable and attainable. Create a plan that helps you overcome your weaknesses or bad habits.
6)Recognize unforced errors. Sometimes your trading style is not suited to short-term market conditions; adapt quickly, and if necessary, don’t trade. Always look for errors you have made, and analyze them to determine a better course of action to take the next time.
"What Takes Some Successful Traders A Lifetime To Achieve Could Take You Just A Few Days... Or Less!"
Some poor trading behaviors are due to emotional reactions, but others are simply the result of bad habits. Your goal is to make your trading systematic and logical. Socrates said, "We are what we repeatedly do. Excellence, then, is a habit."
Successful traders also persevere. They learn from experience and from their mistakes, and more importantly they learn what behavioral patterns cause them to be successful. By eliminating behaviors that cause mistakes, successful traders maximize winning trades and minimize the number of and the effect of losing trades.
Ways to Play to Your Strengths
1)Pay close attention to your trading behaviors. Take responsibility for your trades, and analyze what mistakes you might have made. Don’t blame the market; look to yourself for answers and accountability. Learn from your mistakes.
2)Identify the conditions that may have caused a mistake. No one is perfect, and all of us are affected by things in our personal or professional lives. You may have been distracted due to outside events, or have gotten emotional because of a particularly successful trade. If you can recognize patterns before they affect your trading, you can stay focused and disciplined.
3)Follow a trading plan. Avoid spontaneous trades. By looking closely at the market to determine the current trends, a successful trader prepares the appropriate strategy for the following day, and is less likely to be influence by emotion.
4)Create routines and structure. Keeping good records, logging your trades, consistently analyzing market indicators, and staying focused on your short-term goals will help you stay focused and on track.
5)Set small goals for each day. Make sure they’re measurable and attainable. Create a plan that helps you overcome your weaknesses or bad habits.
6)Recognize unforced errors. Sometimes your trading style is not suited to short-term market conditions; adapt quickly, and if necessary, don’t trade. Always look for errors you have made, and analyze them to determine a better course of action to take the next time.
"What Takes Some Successful Traders A Lifetime To Achieve Could Take You Just A Few Days... Or Less!"
HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
Monday, October 31, 2005
Competitiveness of civil servant in Malaysia
In 1987, one day before Black Monday (21 October 1987) and police is going to mass arrests of politician under Operation Lalang.
When the whole Malaysia is in tension. Some one shooting with M-16 in Chow Kit Road in Kuala Lumpur occur. I remember I watch on the TV that the then Inspector-General of Police ( IGP )appear on the crime scene himself alone to observe the situation himself. He really brave and willing to risk his life. He can delegate this to his subordinate in such dangerous situation but he didn't.
One week ago. The ex-IGP write an article on The Star. It demonstrated what call competitive. I feel all civil servant should have read such article.
Ex-IGP is a former British train civil servant. However, after so many years of independent. Our civil service has deteriorated.
If you read Tun Hanif Omar article, it is difficult to imagine how Malaysia crime rate has come to this level if police force is lead by such highly competitive person. However, after Tun Hanif Omar retired. There is at least two more person heading the police force. Who should be responsible to the deterioration?
Today is second anniversary of Abdullah become our Prime Minister. When Abdullah become Prime Minister, he make a surprise visit to government department. Everybody hope he would bring reform to civil services.
Then, a victory in general election show support of people to him. Unfortunately, a large number of his team has lost in UMNO election, which slow down the reform process. Present IGP's son arrest by Anti-Corruption agency also affect the spirit of Abdullah's team. Clearly, reform is not an easy task. Hope the present IGP would continue what suppose to be do.
On the 2nd anniversary of Abdullah become Prime Minister. It is a real test of Abdullah on how to reshuffle the cabinet and move on.
Related link: Lim Kit siang
TechnoratiTag:Commentary Malaysia News and politics Opinion Politik
When the whole Malaysia is in tension. Some one shooting with M-16 in Chow Kit Road in Kuala Lumpur occur. I remember I watch on the TV that the then Inspector-General of Police ( IGP )appear on the crime scene himself alone to observe the situation himself. He really brave and willing to risk his life. He can delegate this to his subordinate in such dangerous situation but he didn't.
One week ago. The ex-IGP write an article on The Star. It demonstrated what call competitive. I feel all civil servant should have read such article.
Ex-IGP is a former British train civil servant. However, after so many years of independent. Our civil service has deteriorated.
If you read Tun Hanif Omar article, it is difficult to imagine how Malaysia crime rate has come to this level if police force is lead by such highly competitive person. However, after Tun Hanif Omar retired. There is at least two more person heading the police force. Who should be responsible to the deterioration?
Today is second anniversary of Abdullah become our Prime Minister. When Abdullah become Prime Minister, he make a surprise visit to government department. Everybody hope he would bring reform to civil services.
Then, a victory in general election show support of people to him. Unfortunately, a large number of his team has lost in UMNO election, which slow down the reform process. Present IGP's son arrest by Anti-Corruption agency also affect the spirit of Abdullah's team. Clearly, reform is not an easy task. Hope the present IGP would continue what suppose to be do.
On the 2nd anniversary of Abdullah become Prime Minister. It is a real test of Abdullah on how to reshuffle the cabinet and move on.
Related link: Lim Kit siang
TechnoratiTag:Commentary Malaysia News and politics Opinion Politik
Characteristics of Successful Traders (Advertorial 4)
Many investors take actions that aren’t in their best self-interest. They make irrational trades; they trade based on emotion, rather than logic; they hold on to a losing position due to their unwillingness to admit they made a bad trade; they trade based on greed or panic… the list is endless.
Successful traders, on the other hand, all have a few things in common. Developing these characteristics and habits will help make you a successful trader.
Successful Traders Set Goals
Successful traders tend to be incredibly goal-oriented. Why? Most people perform at their best when they’re reaching for a clear goal. And there are three basic qualities that make up a clear goal:
1)The goal must be realistic. If your goal is to double your money every day, it sounds great – but it’s not realistic.
2)The goal must be attainable. Just like with a realistic goal, an attainable goal must be within your current capabilities. The best goals are short-term goals; make your first goal a small one, and then continue to increase your goals as you experience success. World-class sprinters don’t start by thinking of winning the Olympics.
3)The goal must be measurable. Goals that aren’t precise, and can’t be quantified or measured, aren’t really goals at all. If your goal is to be wealthy, that’s great… but what does “wealthy” mean? Our guess is that your definition of “wealth” will change as your net worth increases. If you can’t define your goal, and measure your progress towards it, then you have no way of assessing your progress or of making changes to your techniques and strategies that allow you to reach your goal.
Successful traders set goals, and they also are confident they can reach their goals. Confidence is a key to staying rational, logical, and disciplined. Starting with small, realistic goals will help build your confidence in yourself and your abilities.
Success Can Come at Any Level
Whether you’re a beginning trader, a trader with some experience, or someone who makes his or her living strictly from trading, you can be successful. Many people think they have to have significant capital, or years of experience, to trade successfully. That’s not true. (It’s also true that if you don’t stay disciplined, focused, and rational, you’ll end up as a losing trader, regardless of your level of "expertise.") All successful traders started as small investors; they didn’t trade more than they could safely risk, they learned from their mistakes, and they developed systems that worked for them and that fit their personal styles. We have not defined different strategies for different "levels" of traders in this e-course because the principles are the same: logical, focused, disciplined trading creates success.
Successful Traders Specialize
It’s simply not possible to understand and stay in touch with everything that occurs in all the types of investment vehicles and markets across the world. While some traders have developed systems that allow them to trade in multiple venues (for instance, in different stock markets around the world), most traders specialize in a particular type of investment, and in a particular market. You may enjoy trading in commodities futures; that enjoyment will help you focus and stay in touch with market events. If you aren’t interested in currency trading, for example, don’t trade in it – your lack of knowledge and motivation will cause you to lose focus and make mistakes.
Successful traders tend to specialize; they pick an area to gain in-depth knowledge of, and they follow it closely, learning from past trends and patterns, and from their own trades. If you’re a beginning trader, we recommend focusing narrowly on a particular investment vehicle and market; learn all you can, about the market and about yourself, before you move into other investment types.
Successful Traders Take Losses in Stride
No one likes to lose. But losing is a fact of life for traders; they key is to limit your losses and maximize your successes.
A losing trade is not a failure. It isn’t a reflection of you or of your overall judgment. (If it was possible to be right every time, we’d all be rich.) The only way a losing trade is truly a failure is if you aren’t willing to take the loss, without hesitation, and move on to find winning trades. By accepting that they’ve made a losing trade, and getting out of the position, successful traders focus on making money – not on being right all the time.
Many traders feel they don’t want to “lose” money on any trade, and they stay in losing positions in the hopes that it will recover to at least the break-even point. There are three problems with this approach:
1. The position may never recover to the break-even point.
2. Holding on to a losing position ties up capital that could be placed into winning trades.
3. Holding on to a losing position is an example of unfocused trading and a lack of discipline.
Successful traders are willing to take small losses. If you aren’t willing to take small losses, or don’t have the discipline to take small losses, don’t trade.
Successful Traders Stay Focused During Rapid Swings
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HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
Successful traders, on the other hand, all have a few things in common. Developing these characteristics and habits will help make you a successful trader.
Successful Traders Set Goals
Successful traders tend to be incredibly goal-oriented. Why? Most people perform at their best when they’re reaching for a clear goal. And there are three basic qualities that make up a clear goal:
1)The goal must be realistic. If your goal is to double your money every day, it sounds great – but it’s not realistic.
2)The goal must be attainable. Just like with a realistic goal, an attainable goal must be within your current capabilities. The best goals are short-term goals; make your first goal a small one, and then continue to increase your goals as you experience success. World-class sprinters don’t start by thinking of winning the Olympics.
3)The goal must be measurable. Goals that aren’t precise, and can’t be quantified or measured, aren’t really goals at all. If your goal is to be wealthy, that’s great… but what does “wealthy” mean? Our guess is that your definition of “wealth” will change as your net worth increases. If you can’t define your goal, and measure your progress towards it, then you have no way of assessing your progress or of making changes to your techniques and strategies that allow you to reach your goal.
Successful traders set goals, and they also are confident they can reach their goals. Confidence is a key to staying rational, logical, and disciplined. Starting with small, realistic goals will help build your confidence in yourself and your abilities.
Success Can Come at Any Level
Whether you’re a beginning trader, a trader with some experience, or someone who makes his or her living strictly from trading, you can be successful. Many people think they have to have significant capital, or years of experience, to trade successfully. That’s not true. (It’s also true that if you don’t stay disciplined, focused, and rational, you’ll end up as a losing trader, regardless of your level of "expertise.") All successful traders started as small investors; they didn’t trade more than they could safely risk, they learned from their mistakes, and they developed systems that worked for them and that fit their personal styles. We have not defined different strategies for different "levels" of traders in this e-course because the principles are the same: logical, focused, disciplined trading creates success.
Successful Traders Specialize
It’s simply not possible to understand and stay in touch with everything that occurs in all the types of investment vehicles and markets across the world. While some traders have developed systems that allow them to trade in multiple venues (for instance, in different stock markets around the world), most traders specialize in a particular type of investment, and in a particular market. You may enjoy trading in commodities futures; that enjoyment will help you focus and stay in touch with market events. If you aren’t interested in currency trading, for example, don’t trade in it – your lack of knowledge and motivation will cause you to lose focus and make mistakes.
Successful traders tend to specialize; they pick an area to gain in-depth knowledge of, and they follow it closely, learning from past trends and patterns, and from their own trades. If you’re a beginning trader, we recommend focusing narrowly on a particular investment vehicle and market; learn all you can, about the market and about yourself, before you move into other investment types.
Successful Traders Take Losses in Stride
No one likes to lose. But losing is a fact of life for traders; they key is to limit your losses and maximize your successes.
A losing trade is not a failure. It isn’t a reflection of you or of your overall judgment. (If it was possible to be right every time, we’d all be rich.) The only way a losing trade is truly a failure is if you aren’t willing to take the loss, without hesitation, and move on to find winning trades. By accepting that they’ve made a losing trade, and getting out of the position, successful traders focus on making money – not on being right all the time.
Many traders feel they don’t want to “lose” money on any trade, and they stay in losing positions in the hopes that it will recover to at least the break-even point. There are three problems with this approach:
1. The position may never recover to the break-even point.
2. Holding on to a losing position ties up capital that could be placed into winning trades.
3. Holding on to a losing position is an example of unfocused trading and a lack of discipline.
Successful traders are willing to take small losses. If you aren’t willing to take small losses, or don’t have the discipline to take small losses, don’t trade.
Successful Traders Stay Focused During Rapid Swings
Most of us were raised to think that it takes years of hard work to acquire wealth. That viewpoint doesn’t apply to trading in the markets; you can make thousands of dollars in minutes under the right circumstances. Successful traders understand that money can be made or lost extremely quickly, and they stay calm and rational.
Why is that attitude important? Let’s say you’ve made several thousand dollars over the course of an hour trading futures contracts. You’re thrilled and excited, and you may lose your composure and start making irrational trades. You may stay in the position longer than you should, for one of two reasons:
1)You think the market will keep going up, and you don’t want to limit your gains.
2)The market falls, and you don’t want to give up all the gains you’ve made, so you hold on in hopes your position will rally.
If you accept and understand that huge amounts of money can be made in a short period of time, you are less likely to become undisciplined in your trading. Successful traders take their gains in stride, no matter how large. They quickly move to protect their positions by setting stops, or covering a percentage of a short position. Successful traders stay rational and disciplined in the face of rapid gains or losses because they understand the nature of trading.
Successful Traders Stay Flexible
Staying flexible requires that you stay detached and unemotional about your trades. No matter how strongly you feel about your analysis of a position or a trade, you have to be willing to change that opinion and act quickly if necessary.
Successful traders realize that bad trades reduce the gains made from past trades and potential gains from future trades. Successful traders change their minds quickly and easily, and are not concerned about whether they were "right" or "wrong." They’re concerned with maximizing their gains and minimizing their losses – and to minimize losses, they have to be willing to quickly change their minds.
Remember: the more flexible you are, the more successful you will be.
Successful Traders Don’t Leap Before They Look
One of the most common mistakes inexperienced traders make is to trade when they see an opportunity they think might be too good to miss. Jumping into a position based on a hunch, or on the belief that you may be missing an opportunity, is no different than gambling. Almost every investor at one time or another has felt a rush of greed or enthusiasm for a trade – based solely on the desire not to miss out on a great opportunity that might be available.
Successful traders practice self-discipline, and apply skill and logic to their trading. They learn every day, and they use what they know to make intelligent decisions on every trade. Successful traders don’t worry about missing out – they focus on making intelligent decisions.
Successful Traders Don’t Passively Follow "Expert" Advice
Blindly following the investment advice of a broker or analyst is foolish and self-destructive. Oftentimes, the broker’s self-interest is completely different from yours, because the broker gets paid when you make a trade, whether it’s a good trade or not. He or she wants you to trade. Analysts may have inside knowledge or years worth of experience, but in the end their opinions on the markets are just that – opinions.
Successful traders take responsibility for their trades and therefore their money. They learn, they stay focused and disciplined, and they make their own judgments about their trades.
Successful Traders Aren’t Affected by Mood Swings
Many traders get excited when their positions are making money, and they increase their stake in the position. Then, when the price goes down, they panic and sell. Emotional traders are affected by the highs and lows of gains and losses, and fail to stick to their plans and their strategies.
Successful traders understand how the markets work, what to expect, and how to capitalize on trends and events. They aren’t affected by the excitement or the disappointment that can come from good or bad trades.
"What Takes Some Successful Traders A Lifetime To Achieve Could Take You Just A Few Days... Or Less!"
Get these reports for free
HOME
Advertorial 1 - Introduction
Advertorial 2 - The Basics of Analusis and Rational Trading
Advertorial 3 - Basic Principles
Advertorial 4 - Characteristics of Successful Traders
Advertorial 5 - Playing to Your Strenghts, Overcoming Your Weaknesses
Advertorial 6 - Winning Psychology
Advertorial 7 - Avoiding Common Pitfalls
Advertorial 8 - Sound Money Management
Advertorial 9 - Trading Systems
Advertorial 10 - Final Words
TechnoratiTag:finance Malaysia Shares Stock Market
Friday, October 28, 2005
National Automotive Policy legitimate Naza
Ex-Prime Minister Tun Dr Mahathir has stated that a Minister has deceived him and cabinet to approve Naza Kia to have national car status.
Naza, being unlisted company has been silent on this. Maybe it work behind the scene .
National Automotive Policy ( NAP ) announced last week which make local assembly enjoy similar incentive enjoy by national car like R&D grant on a case by case basis.
This effectively make national car status a non issue as they able to enjoy similar incentive. This has legitimate Naza indirectly.
Apparently Naza is not involve in deceiving ex-Prime Minister or if involved, government has pardon him base on his contribution to our country automotive industry.
TechnoratiTag:Business Commentary Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
Naza, being unlisted company has been silent on this. Maybe it work behind the scene .
National Automotive Policy ( NAP ) announced last week which make local assembly enjoy similar incentive enjoy by national car like R&D grant on a case by case basis.
This effectively make national car status a non issue as they able to enjoy similar incentive. This has legitimate Naza indirectly.
Apparently Naza is not involve in deceiving ex-Prime Minister or if involved, government has pardon him base on his contribution to our country automotive industry.
TechnoratiTag:Business Commentary Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
" The Apprentice "Vs Local reality show " The Music Executive "
I rarely watch TV. Last Friday, I accidentally found out a local TV reality show model on " The Apprentice " call " The Music Executive " has air on 8TV.
The winner will be employed by...... EMI if not mistaken.
I really enjoy watching " The Apprentice " hosted by Donald Trump. Business skill and competitiveness of Tana and Kendra show on the show.
It is glad that we have our own business TV reality show.
However, I feel that our show is too brief. I cannot see the performance of each contestant.
The most attractive part on " The Apprentice " is board room. Where the loser team leader has to hand pick his team mate that responsible who he think should get fire.
However, on our " The Music Executive " There is no such procedure where contestant have to defend themselves why he or she should not be fire or who should be fire.
Last week, I do not understand why such contestant is fire. No proposal from team mate. No defense. Actually, on the show, I see the losing team which remain 3 person, out of the 3, 2 dislike each other and they accuse each other respectively on TV. The 3rd is being diplomatic by mentioning that the other 2 team mate is good.
When the team lose out. The host want to change the rule that they do not want to follow the previous rule to let the whole team to vote out one of their team mate. Instead, the judges like to select and decide themselves and ........ they choose the diplomatic one!!!!!!
Reason. Unable to fit inside to the whole team!!!! I though the other two dislike each other?
I think there is still much to be improve on our local reality show.
Remember to watch " The Music Executive " tonight 9.30pm on 8TV
TechnoratiTag:Business Commentary Economics Economy finance Malaysia Opinion competitive Social
Thursday, October 27, 2005
Mahathir economic theory
I take a long time to study my accounting qualifiation. When I study Economy. Initially I study traditional economic theory like Adam Smith's "Invisible Hand" theory, David Ricardo's "comparative advantage" theory, which is the basis of free trade and globalisation today and keynesian theory.
The world and technology has change so fast that. Later, I have to study Reaganism and Thatcherism theory.
What is Reaganism and Thatherism? It is the economic theory implement by the then US president Donald Reagan and British Prime Minister Margaret Thatcher. Both theory are similar to each other call Supply Side Economy.
What is Supply Side Economic theory. Actually, it is implemented by our ex-Finance Minister Tun Daim Zainuddin. Part of it is Privatisation.
Privatisation in Malaysia, initially has successfully reduce our Income tax rate from 40% to now 28%. However, tax rate remain unchange at 28% for many years whereas privatised company like PLUS keep on increasing it toll rate. TNB increase it tariff and even Post Malaysia Bhd also inrease it postage but no reduction in income tax then.
Indah Water also fail to redue local government rates and assessment.
Thus, we can say that privatisation in Malaysia successs initially but fail eventually.
Ex-Prime Minister Tun Dr Mahathir used currency peg to help Malaysia to come out from Asia financial crisis, unlike it neighbour Thailand and Indonesia and even South Korea, Malaysia reover from Asia finanial crisis without the help from International Monetary Fund ( IMF ).
The recent de-peg of Ringgit and USD fail to lifted Malaysia stock market. Thus, it prove that currency peg is not the main cause of weak performance of our stock market. Further, Hong Kong currency peg has longer history than Malaysia and until today after China and Malaysia has de-peg it currency. Hong Kong urreny is still remain peg with US currency. But Hong Kong status does not affected by the peg and it still remain a financial centre like Singapore and is yet to be challange by Shanghai. However, nobody critise Hong Kong policies!
In history, we do not lack of Doctor turn Economist, like William Petty 1623-1687 etc.
However, the basis of Mahathir theory like:
1) Opposed traditional economic theory especially Anti-Free Trade.
2) Different country in different development stage should have different economy policy. The centre of this theory is that we should protect certain industries via prtectionist policies.
The above theory sound familier, always stress by our ex-Prime Minister Tun Dr Mahathir. However, the above theory is theory from German Economist Friedrich List 1789-1846.
Thus, like Ronald Reagan and Margaret Thather is the implementor of Supply Side Eonomy. Mahathir is Implementor of Friedrih List economic theory.
TechnoratiTag:Business Commentary Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
The world and technology has change so fast that. Later, I have to study Reaganism and Thatcherism theory.
What is Reaganism and Thatherism? It is the economic theory implement by the then US president Donald Reagan and British Prime Minister Margaret Thatcher. Both theory are similar to each other call Supply Side Economy.
What is Supply Side Economic theory. Actually, it is implemented by our ex-Finance Minister Tun Daim Zainuddin. Part of it is Privatisation.
Privatisation in Malaysia, initially has successfully reduce our Income tax rate from 40% to now 28%. However, tax rate remain unchange at 28% for many years whereas privatised company like PLUS keep on increasing it toll rate. TNB increase it tariff and even Post Malaysia Bhd also inrease it postage but no reduction in income tax then.
Indah Water also fail to redue local government rates and assessment.
Thus, we can say that privatisation in Malaysia successs initially but fail eventually.
Ex-Prime Minister Tun Dr Mahathir used currency peg to help Malaysia to come out from Asia financial crisis, unlike it neighbour Thailand and Indonesia and even South Korea, Malaysia reover from Asia finanial crisis without the help from International Monetary Fund ( IMF ).
The recent de-peg of Ringgit and USD fail to lifted Malaysia stock market. Thus, it prove that currency peg is not the main cause of weak performance of our stock market. Further, Hong Kong currency peg has longer history than Malaysia and until today after China and Malaysia has de-peg it currency. Hong Kong urreny is still remain peg with US currency. But Hong Kong status does not affected by the peg and it still remain a financial centre like Singapore and is yet to be challange by Shanghai. However, nobody critise Hong Kong policies!
In history, we do not lack of Doctor turn Economist, like William Petty 1623-1687 etc.
However, the basis of Mahathir theory like:
1) Opposed traditional economic theory especially Anti-Free Trade.
2) Different country in different development stage should have different economy policy. The centre of this theory is that we should protect certain industries via prtectionist policies.
The above theory sound familier, always stress by our ex-Prime Minister Tun Dr Mahathir. However, the above theory is theory from German Economist Friedrich List 1789-1846.
Thus, like Ronald Reagan and Margaret Thather is the implementor of Supply Side Eonomy. Mahathir is Implementor of Friedrih List economic theory.
TechnoratiTag:Business Commentary Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
Tuesday, October 25, 2005
Alan Greenspan successor nominated
Alan Greenspan, second most influence person in the world after US President George W. Bush is due for retirement. Everybody in the financial world is guessing who would be his successor.
The guessing game ended yesterday when US President George W. Bush nominated his top economic advisor Dr Ben Bernanke as chairman of Federal Reserve Board to succeed Alan Greenspan.
The appointment is subject to Senate confirmation.
Dr. Bernanke was born on December 13, 1953, in Augusta, Georgia. He received a B.A. in economics in 1975 from Harvard University (summa cum laude) and a Ph.D. in economics in 1979 from the Massachusetts Institute of Technology.
Updated: Dr Bernanke is a co-author of a book " Inflation Targeting: Lessons from the International Experience "
TechnoratiTag:Business Commentary Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
Sunday, October 23, 2005
Japan rise again
At the beginning of October 2005, Asia Wall Street Journal (AWSJ)reported that Japan's investment fund invested aggressively in India. AWSJ, however, view that Japan might be joinning the game when the music is going to stop.
On 14 October 2005, Oriental Daily reported that Japan economy is booming again after 15 years of recession. After Japan Prime Minister win in his recent Parliament election. Japan stock market has increase more than 2,000 point in less than 2 months.
Japan Toyota bring back Lexus brand to it home country after successfully market in North America. Toyota sold 4,600 units of it GS model in less than a month,3.8 times over it target.
Isetan cosmetic counter able to make a lot of sale on male cosmetic. Which is not a necessity for male.
Foreign capital rushing to Japan stock market after recent Prime Minister victory in election. The rise in stock market has increase wealth on people on the street. On 30 September 2005 issue of The Economist magazine. It published an article : The sun eventually rise.
Japan corporate world have wait for government help or bail out after recession. However, after a long period of waiting. They recognized that government ability to give them a helping hand is very slim. Thus, they have to restructure and stand up on their own feet. However, the process take 15 years, that is the period for Japanese to take.
How long Malaysia GLC and bumiputra entrepreneur especially contractor would take?
On 18 October 2005. Oriental daily again reported that Japan consumer have start to spend money. Which create a demand on economic. Japanese confidence is back as they more willing to spend money and not save everything they earn.
Last week, a Singapore base economist published an analysis on The Edge regarding beneficiaries of Japan revive economy and Japan intention to shift it sole reliance on China economy.He view that Singapore is the most beneficiaries country.
Second beneficiaries is Indonesia as a large portion of FDI would flow from Japan to Indonesia as Japan want to shift it focus of FDI from China.
The third is India. Japan investment in India is more on capital market while Indonesia is more on production economy.
If his prediction is correct. Malaysia,being neighbor of the above country, would benefit too.
Japan investment in Indonesia also make a shift from BRIC to IRIC come true.
In Malaysia, the direct beneficiary of revive Japan economy is timber industry.
TechnoratiTag:Business Commentary competitive Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
On 14 October 2005, Oriental Daily reported that Japan economy is booming again after 15 years of recession. After Japan Prime Minister win in his recent Parliament election. Japan stock market has increase more than 2,000 point in less than 2 months.
Japan Toyota bring back Lexus brand to it home country after successfully market in North America. Toyota sold 4,600 units of it GS model in less than a month,3.8 times over it target.
Isetan cosmetic counter able to make a lot of sale on male cosmetic. Which is not a necessity for male.
Foreign capital rushing to Japan stock market after recent Prime Minister victory in election. The rise in stock market has increase wealth on people on the street. On 30 September 2005 issue of The Economist magazine. It published an article : The sun eventually rise.
Japan corporate world have wait for government help or bail out after recession. However, after a long period of waiting. They recognized that government ability to give them a helping hand is very slim. Thus, they have to restructure and stand up on their own feet. However, the process take 15 years, that is the period for Japanese to take.
How long Malaysia GLC and bumiputra entrepreneur especially contractor would take?
On 18 October 2005. Oriental daily again reported that Japan consumer have start to spend money. Which create a demand on economic. Japanese confidence is back as they more willing to spend money and not save everything they earn.
Last week, a Singapore base economist published an analysis on The Edge regarding beneficiaries of Japan revive economy and Japan intention to shift it sole reliance on China economy.He view that Singapore is the most beneficiaries country.
Second beneficiaries is Indonesia as a large portion of FDI would flow from Japan to Indonesia as Japan want to shift it focus of FDI from China.
The third is India. Japan investment in India is more on capital market while Indonesia is more on production economy.
If his prediction is correct. Malaysia,being neighbor of the above country, would benefit too.
Japan investment in Indonesia also make a shift from BRIC to IRIC come true.
In Malaysia, the direct beneficiary of revive Japan economy is timber industry.
TechnoratiTag:Business Commentary competitive Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
Friday, October 21, 2005
Downgraded of Malaysia stock market
Malaysian Business reported that after one week of investment mission lead by Prime Minister to UK and US on 12 September 2005. Merrill Lynch downgraded Malaysia's stock market to 'underweight' while upgrading that of South Korea.
"Merrill's regional strategy report dated Sept 20 was essentially a plug for the Korean exchange. But in overweighting Korea, the Malaysian bourse got downgraded to underweight, owing to a relatively limited upside."Write A Kadir Jasin on Malaysian Business..
On Sept 30 - the day that the Prime Minister presented the 2006 Budget. Credit Swisse First Boston, another US-based international investment bank,revised the Malaysian equities downward.
This was followed on October 3 by the Hong Kong brokerage unit of UBN Amro Holding NV, which downgraded the Kuala Lumpur bourse from overweight to neutral.
Those associated with the London-New York investment mission own us, Malaysian investor an explanation.
TechnoratiTag:Business Commentary competitive Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
"Merrill's regional strategy report dated Sept 20 was essentially a plug for the Korean exchange. But in overweighting Korea, the Malaysian bourse got downgraded to underweight, owing to a relatively limited upside."Write A Kadir Jasin on Malaysian Business..
On Sept 30 - the day that the Prime Minister presented the 2006 Budget. Credit Swisse First Boston, another US-based international investment bank,revised the Malaysian equities downward.
This was followed on October 3 by the Hong Kong brokerage unit of UBN Amro Holding NV, which downgraded the Kuala Lumpur bourse from overweight to neutral.
Those associated with the London-New York investment mission own us, Malaysian investor an explanation.
TechnoratiTag:Business Commentary competitive Economics Economy finance Malaysia News and politics Opinion Politik Shares Stock Market
Tuesday, October 18, 2005
GST and Income Tax
What is the difference between GST and Income Tax?The main different is Income tax is a tax impose on your income whereas GST is tax when you spend.
Example:
Income Tax
Government will send you Form B for you to report your income to the government. Base on what you report, government will tax you on your income. How much you pay tax is generally determine by how much income you received in a particular period. Regardsless of whether you spend it or not. Often, it is better you spend it and if you able to prove that your spending is wholly and exclusively generating your income, you might able to deduct against your income.
GST
On the other hand, GST would not tax you on your income. You would not be tax when you received your income. As long as you never spend it. You would be tax when you decide to buy something ...... Like, you want to buy cigarette, you would pay "sin" tax to government indirectly. If you decide to buy a car, you might have to pay 200% tax to government on amount you spend, indirectly, included in the purchase price.
Thus, GST is call indirect tax as you pay tax indirectly included in the purchase price. Income tax is call Direct Tax as you pay directly to the government.
Which one is fair?
As you can see above, income tax is a tax base on your income. How much tax you pay depend on how much your income is regardsless of how much you spend.
Under GST system, you would not pay government tax no matter how high your income is if you never spend it. You would be tax if you try to buy something.
Now, which one is fair? Especially to poor people.
They is no definite answer. In UK, some services like healthcare does not impose GST or they call VAT, thus, poor people can enjoy such service without paying tax. In Malaysia, if you buy luxury car, you have to pay as high as 200% on amount you spend. Thus ,is depend on execution.
Are we ready?
In order for us to start implement GST from year 2007. Everybody have to get use to it now. Government has reduce the 10% Service tax to RM150,000 per year few years ago. Divide by 12 month. Thus, a coffee shop with monthly sales RM12,500 is subject to Sales Tax. Thus, unlike previously, only you go to high class restaurant only you pay plus 10% Service tax (or fast food). Under current legislation. Even if you go to coffee shop is subject to Service tax.
If every coffee shop register to custom and obtain a Service tax license now. By 2007, majority of the coffee shop has register to custom and they might have a system to collect the service tax and pay the tax to custom.
However, now, majority of the coffee shop owner is yet to implement this system. With current inflation cause by high oil price. Government also face difficulty in control inflation if they want to force those coffee shop owner to register.
It look like by 2007, custom and tax department would have difficulties in implement it. Custom and tax department would unable to process large volume of registration and license application. Small business owner also do not have a system to monitor the money collected on behalf and summit to government every two months.
We see how Finance Minister solve this problem then?
Technorati Tag: Business Commentary Economics Economy finance Malaysia News and politics Opinion
Example:
Income Tax
Government will send you Form B for you to report your income to the government. Base on what you report, government will tax you on your income. How much you pay tax is generally determine by how much income you received in a particular period. Regardsless of whether you spend it or not. Often, it is better you spend it and if you able to prove that your spending is wholly and exclusively generating your income, you might able to deduct against your income.
GST
On the other hand, GST would not tax you on your income. You would not be tax when you received your income. As long as you never spend it. You would be tax when you decide to buy something ...... Like, you want to buy cigarette, you would pay "sin" tax to government indirectly. If you decide to buy a car, you might have to pay 200% tax to government on amount you spend, indirectly, included in the purchase price.
Thus, GST is call indirect tax as you pay tax indirectly included in the purchase price. Income tax is call Direct Tax as you pay directly to the government.
Which one is fair?
As you can see above, income tax is a tax base on your income. How much tax you pay depend on how much your income is regardsless of how much you spend.
Under GST system, you would not pay government tax no matter how high your income is if you never spend it. You would be tax if you try to buy something.
Now, which one is fair? Especially to poor people.
They is no definite answer. In UK, some services like healthcare does not impose GST or they call VAT, thus, poor people can enjoy such service without paying tax. In Malaysia, if you buy luxury car, you have to pay as high as 200% on amount you spend. Thus ,is depend on execution.
Are we ready?
In order for us to start implement GST from year 2007. Everybody have to get use to it now. Government has reduce the 10% Service tax to RM150,000 per year few years ago. Divide by 12 month. Thus, a coffee shop with monthly sales RM12,500 is subject to Sales Tax. Thus, unlike previously, only you go to high class restaurant only you pay plus 10% Service tax (or fast food). Under current legislation. Even if you go to coffee shop is subject to Service tax.
If every coffee shop register to custom and obtain a Service tax license now. By 2007, majority of the coffee shop has register to custom and they might have a system to collect the service tax and pay the tax to custom.
However, now, majority of the coffee shop owner is yet to implement this system. With current inflation cause by high oil price. Government also face difficulty in control inflation if they want to force those coffee shop owner to register.
It look like by 2007, custom and tax department would have difficulties in implement it. Custom and tax department would unable to process large volume of registration and license application. Small business owner also do not have a system to monitor the money collected on behalf and summit to government every two months.
We see how Finance Minister solve this problem then?
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