The Cheetah and How a Struggling Trader/Investor can Learn from It

 

Many people that traded and invested in the stock market (or any market, in this case) experienced great volatility for the past few weeks.

Some made a kill, nailing their yearly return goal in a week. For many, though, it was an overwhelming time filled with emotions and anxiousness.

You are (were) probably in the red. You are (were) probably underperforming. You are (were) probably beating up at yourself for this outcome.

The reality is, this is a path that every investor and trader MUST experience in his/her journey. The difference is how one handles this hurdle that makes up to an amateur and a consistent investor/trader.

 


 

How to Climb Back Up from a Slump?

To be clear, it is NOT EASY to recover from a slump. Mathematically, it is hard (eg. a 50% drawdown will take a 100% gain to breakeven). Emotionally, it is even tougher to get back on track.

In times like these, it is crucial for one to go back to the BASICS.

Stop looking around Facebook groups and investing/trading forums for tips for the NEXT big opportunity.

Quit those groups if needed – these are noises that hardly contribute to your recovery anyway.

The point is, stop making investing/trading so complicated and difficult.

 


 

Back to the Basics

What are the trades that work the best for you? Make a list and focus on only taking these trades for time being – with smaller size.

If you are a long-term investor that has just dumped your holdings due to panic and fear, look into your investing process – have you followed your entry & exit strategy? Do you have one? Work on them one by one.

The point is NOT to remake your losses immediately. Rather, it is for you to rebuild the mental confidence towards yourself FIRST.

 


 

The Cheetah

 

 

“The cheetah, while the fastest animal on the African plain and can outrun any of the prey it feasts upon, always chooses to go for the young, weak or sick.

Once identified, it attacks with laser-guided focus and effectiveness. It is only then that the kill is most likely. That is the epitome of a professional trader.”

This is one the of most resonating trading analogy that I’ve come across lately in an article by Mike Bellafiore of SMB Capital (one of my favorite role models in trading).

As extraordinary as a cheetah is, it still focuses on the most basic kills which are also the most effective ones.

Likewise, the goal for us as an investor/trader is not to try to be smart and predict whether the market is bottoming. Rather, it is to understand our strength and take the best opportunity with probability in our favor.

Know your strength. Go back to the basics. Be a cheetah.



3 Ideas to Maximize the Return of Your Angpau Money (Tried & Tested)

Gong Xi Fa Cai! Gong Hey Fat Choy!

Happy Chinese New Year everyone – may this new year showers you with health and wealth!

If you are like me, you know that growing up, we do not get to keep our angpau money. Instead, our angpaus are being kept and managed by our parents.

The good thing? It prevented us (the child) from spending on unnecessary stuff. On the flip side, it made a lot of us pretty bad angpau money ‘managers’ upon growing up.

 If that’s the case for you, here are some solid suggestions (which I personally do) on how to best make use of your angpau money!

 


 

#1 Invest them! (Starting from RM0)

Getting your angpau invested is definitely one of the best and most direct ways to start a prosperous new year!

If you are new to investing and/or have no extra time to manage your money, be sure to check out StashAway to help manage your investments, hassle-free!

Essentially, StashAway is a smart wealth management platform that helps you manage your investments via algorithms in accordance with your risk appetite and economic condition – think of it as an (often cheaper) alternative to mutual funds.

Personally, I have been using StashAway to manage my passive investment portfolio and have no problem recommending it to people due to its reliability (regulated by Securities Commission) & lower fees than typical mutual funds.

In terms of returns, StashAway managed to give a return of around 10% for my combined aggressive portfolios in 2019 – a very respectable return by all means. Check out StashAway’s 2-year performance in the photo below.

Alternatively, there are other similar wealth management services like Wahed (Promo Code to get FREE RM40  bonus when you deposit a min. of RM100: YIXCHI1) and MyTheo (Promo Code to get 3 months FREE management fee: CHINYXWD49) of which I will be covering in the future.

If you are keen to try out StashAway, be sure to click HERE to get an exclusive 50% OFF your StashAway fees – AND no worries on how much you get for your angpau as you can get started with any amount at all!   

 

StashAway’s Performance compared to same-risk benchmark. (Source: StashAway)

 

 


 

#2 Spend on Books for even Bigger Return!

Nothing pays more dividends than acquiring new skills and knowledge.

If there is one thing that I can comfortably recommend anyone to spend on, books will top the list without a doubt.

Now, if you’ve been following me on social media, you’ll know that I am a huge book lover.

I enjoy reading books on personal growth, habits and money & investment – and here are 3 books that you should not miss in 2020:

 

(a) Mindset by Carol Dweck (Personal Development)

Mindset by Carol Dweck is a great book on personal growth that I am personally reading at the moment.

This book emphasizes the importance of having a growth mindset in personal life, sustainable leadership and long-lasting relationship – and the approach that you can apply to build this mindset.

Definitely check out this book if you are looking to make a significant breakthrough in 2020.

 

“True self-confidence is “the courage to be open—to welcome change and new ideas regardless of their source.” Real self-confidence is not reflected in a title, an expensive suit, a fancy car, or a series of acquisitions. It is reflected in your mindset: your readiness to grow.”

― Carol S. Dweck, Mindset: The New Psychology Of Success

 

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(b) Atomic Habits by James Clear (Habit-Building)

Atomic Habits by James Clear is hands down, the best book on habits that I’ve read in 2019.

Essentially, this book rips off myths on conventional habit-building methods and introduces us to simple & scientifically proven hacks to build a good habit that lasts.

If you have problem building habits that last, this is THE book to go for.

 

“You should be far more concerned with your current trajectory than with your current results.”

― James Clear, Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones

 

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(c) The Personal MBA by Josh Kaufman (Money, Personal Finance & Business)

The Personal MBA by Josh Kaufman will be my next read after I am done with Mindset.

The reason I am excited to read this book is that it covers a comprehensive aspect of personal finance and business – which I think would contain a whole lot of golden nuggets for me to discover.

Plus, you can now get this book at 41% OFF – which is really a great deal that I do not want you to miss out on.

 

“You can’t make positive discoveries that make your life better if you never try anything new.”

― Josh Kaufman, The Personal MBA: Master the Art of Business

 

 


 

#3 Optimize Your Financial Goals with a Professional Personal Financial Planner (BONUS: Free Consultation Session using my link below)

If you are looking to have a prosperous new year in 2020, you will definitely need a solid money plan on how to grow your wealth (like seriously).

This is even more important especially if you have a goal in mind that would need a big sum of money to accomplish in this new decade:

Planning to get married? Buying your first house or car? Looking to retire soon?

How about the plan for a trip to Japan, or the idea of changing your 3-year old smartphone this year?

If you have all these big (and small) financial goals in mind, and are still clueless about how to achieve them, engaging a Personal Financial Planner is the way to go.

Personally, I have worked alongside my very first Personal Financial Planner to get my 2020 financials planned with effective action steps – and I’ve learned so much about my finances.

Now, I DO NOT want you to pay for a Personal Financial Planner if you do not find value in their services.

For that, I am throwing in a FREE financial consultation session for you to find out for yourself (Click HERE to register) – I promise that it will be a time well-spent with great insights!

 

Working alongside my personal financial planner

 


 

Verdict: The Best Return of Investment in Money Spent is When Your Grow Alongside Them.

One of my biggest satisfaction when it comes to money spent is to feel or know that I’ve learned something from the transaction.

As of the case for angpau money, it is even more meaningful to use them in ways that could elevate your wealth and/or growth to kickstart the year.

For me, that’s the best return ever.

Take care and have a great festive season! 🙂

Yi Xuan

 


Disclaimers:

(1) This post may contain affiliate links, which afford No Money Lah a commission if you make a purchase.

(2) Any investment related sharing in this article is purely my personal opinion and should not be taken as a buy/sell call. Please seek financial advice from a professional financial planner for this matter. 

 


Malaysians' Guide to Gold Investment

Gold is an asset that has been universally recognized as a store of wealth since ancient times. Despite not being a legal tender form of exchange (read: currency) these days, gold is still widely accumulated by the society and countries alike.

In this article, let’s look at some interesting (and lesser-known) facts about gold, WHY invest in them, and HOW to invest in gold as a Malaysian.

What Makes Gold So Attractive?

(1) Gold is uniquely beautiful

Gold is stunning on its own. As such, gold’s shinny and elegant nature make it an attractive choice for jewelry and life accessories alike.  

(2) Gold is scarce

Gold is a type of commodity. This means it is a rare metal and the amount of gold available to mankind is limited.

Not only that, the mining process of gold is also painstaking and expensive, making gold an even more valuable asset to own.

(3) Gold is durable and useful

Gold does not decay or rust – and it is almost indestructible. All the gold ever mined is still around in one form or another.

In addition, gold is a good reflector of light and an excellent electric conductor. This contributes to the extensive usage of gold in electronics such as circuits, dental fillings and more.

(4) Gold is homogeneous

One pure gram of gold is similar in value to the next gram. This makes it easy for people to ascertain gold’s value and utilizing it in trade and commerce.

Having understood the characteristics of gold, it is useful for us to understand WHERE gold is being supplied and HOW gold is being used in the world.

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Characteristics that make gold such a special commodity.

Supply & Demand of Gold

Have you ever wonder how is gold being supplied all around the world?

According to the World Gold Council (WGC), around 75% of the world’s gold demand is contributed by gold mining. Unlike paper money which can be printed with relative ease, the only known way to produced gold is to mine them.

That said, gold that is mined is usually not enough to meet the demand for gold. Hence, the remaining 25% of gold demand is met by the recycling of gold. These recycled gold supplies come mainly from jewelry (~90%) and gold extracted from technological hardware.

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Gold supplies all around the world

If that’s the case, WHO is buying gold around the world?

There has been 4 main use of gold worldwide.

The first use of gold, which takes up around 50% of the total demand, comes from (you’ve guessed it)jewelry.

This is followed by investment-related purposes (eg. Gold-backed ETFs), which contribute to around 25% of total gold demand. In addition, gold is also accumulated by central banks all around the world. This takes up around 13% of total gold demand.

Lastly, gold usage for industrial production takes up the rest of the demand.

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Gold demand around the world

Which country holds the most gold?

Now, as mentioned, gold is highly accumulated by the central banks of many countries. Gold is being held as part of a nation’s reserves, mainly due to gold’s nature as a safe haven asset and an effective diversification of their portfolio.

The role of gold to central banks (Source: World Gold Council)

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With that in mind, let’s make a smart guess before you proceed – which are the countries that hold the most gold?

As of October 2019, the United States holds the most gold in its national reserves (8133.5 tonnes!) – which takes up near to 78% of the total reserves. The far second is Germany with a total gold reserve of 3366.8 tonnes, making up 72.9% of the country’s total reserves.

Countries like China and India have a gold reserve of 1942.4 tonnes and 618.2 tonnes respectively, making up less than 8% of these countries’ total reserves.

Back in Malaysia, we are placed at 53rd (out of 100 countries) when it comes to our total gold holdings. This translates to a total gold holding of 38.9 tonnes – which is 1.8% of Malaysia’s total reserves.

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Malaysia is ranked #53 in global gold reserves.

Why invest in gold?

(a) Hedge against the drop in interest rate & geopolitical uncertainties

With global powerhouses like the US reducing its interest rate, it is inevitable that there will be a drop in return (or yield) of major bonds in the market. This will cause the return of bonds less attractive in the eyes of investors.

Adding on to various geopolitical uncertainties, this makes gold especially appealing as a safe-haven asset for institutions and retail investors alike in search of protection against uncertainties.

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(b) Portfolio Diversification 

Gold is also an effective instrument for you to diversify your investment portfolio. This is because, for the past 10 years, gold has almost no correlation (0.04) with the stock market movement.

In short, this means that gold price is generally not affected by the ups and downs in the stock market, making it a good wealth diversification vehicle.

Useful link: S&P 500 vs Gold price movement for the past 10 years

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There are many solid reasons to have gold as part of your portfolio

How can Malaysians Invest in Gold?

#1 Recommended – HelloGold 

HelloGold is a mobile app that allows you to buy and sell gold for as little as RM1. This is really a big plus point, considering that the other offerings in the market have a barrier of entry of a minimum of 1 gram of gold (~RM200). Some of the advantages of HelloGold are:

  • Low barrier of entry - Invest in gold starting at just RM1!
  • No-hassle account opening - The easiest way to get started in gold investing. Open your account via HelloGold's mobile app - no need to be physically present at counters to do so. 
  • Shariah-Compliant
  • Automated investment - If needed, you can automate your monthly gold investment via HelloGold’s SmartSaver plan.
  • Flexibility in managing your gold holdings - With HelloGold, you can buy and sell gold via the app anytime, and even send gold to your family and friends via the app.

This flexibility is a huge thumbs up considering that I used to have to visit the Maybank counter myself to withdraw my gold investment as a Maybank Gold Investment Account holder.

In terms of security, every gold bought is yours and is held at HelloGold’s vault provider in Singapore (which, you can redeem them if needed), and is well-insured by insurance company.

With that in mind, unless you really need to hold solid gold, I definitely recommend HelloGold to most people that are keen to invest in gold. 

 

#2 Physical Gold

Should you fancy physical gold bars and coins, you can also get them via sites like BuySilverMalaysia. That said, I personally feel that unless one has specific needs for physical gold, I do not recommend them due to safety and storage hassles. 

#3 Gold-backed Exchange Traded Fund (ETF)

TradePlus Shariah Gold Tracker (Code: 0828EA) is Malaysia’s first shariah-compliant commodity ETF that tracks the performance of gold. Essentially, think of it as investing in a fund that goes up and down with the price movement of gold.

With some fees, you can invest in gold without having to take care of physical gold. 

#4 Banks’ Gold Investment Accounts (GIA)

Alternatively, you can also purchase gold through banks’ gold investment account (eg. Maybank, CIMB). That said, GIAs usually charge a spread when you buy and sell gold.

Also, just a personal experience from using Maybank’s GIA: while I could purchase my gold online, I have to visit the counter should I wish to sell my gold holdings, which is a real hassle by today’s standard.

Note: (1) **Refer HERE (2) CIMB GIA has an annual fee of RM5 if year-end gold balance <5g (3) Details about Gold-backed ETF HERE

No Money Lah Verdict

With gold being an effective portfolio diversifier for your wealth, there is no doubt that one should accumulate gold as part of his or her portfolio.

However, the million-dollar question has yet to be answered: Is now a good time to buy gold?

In the next article, I will discuss about the price of gold and if it is a good time to invest in gold - Stay tuned!

Meanwhile if you like this article and would like to open a HelloGold account (and get RM5 off when you invest a min. of RM50, be sure to click HERE and use my referral code ‘CHIN012W’!)


Real Estate Investment Trusts (REITs) is one of my favorites to invest in, as they provide relatively stable dividends hence making them a great passive income source.

Click HERE to find out HOW you can pick and invest in quality REITs!


Disclaimer: This article is written based on my best research as of the time of writing, and should not be considered as a buy/sell recommendation. Please do your own due diligence and/or seek professional advice when making your investment decision.

 


Fundamental vs Technical Analysis (& How To Use BOTH of Them to Invest)

Disclaimer: I do not claim to be an expert in any of the methodologies mentioned in this article. This article is just my general opinion on FA and TA, and should not be treated as Buy/Sell call by any means.


One of the most interesting discussion, when I get to meet stock investors, is definitely one’s application of Fundamental Analysis (FA) or Technical Analysis (TA) in investing – and which is better.

While there is no right or wrong answer to this discussion (of which, sometimes turn into a debate), I thought that maybe I can share my 2 cents on this matter in this article:


First Thing First: What is Fundamental Analysis (FA), and What is Technical Analysis?

FA and TA are essentially 2 different schools of thoughts when it comes to investing. Simply put, they are two different approaches towards achieving the same financial goal in investing – to profit from our investments.

  • Fundamental Analysis (FA)

FA is an approach used by investors to identify the underlying intrinsic value (a.k.a. the real worth) of a company or stock via studies on industry and company’s data & financial statements, economic cycle and seasonality and more.

Ideally, investors that use FA aim to invest in a company while its shares are being sold at a price lower than its intrinsic value. As such, investors will then profit from the dividend returns and when the price of the shares increases down the line - a.k.a. Value Investing.

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Fundamental Analysis (FA) - the use of economic and financial data to study a company inside out.

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  • Technical Analysis (TA)

TA, on the other hand, is another approach towards investing via the analysis of price charts. Through price charts, investors are able to identify important details such as the price trend and the momentum of a company's price.

From that, investors will be able to gauge their ideal entry and exit price.

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Technical Analysis (TA) - the use of price charts to study trends and momentum.

So…Which Approach is Better?

Simply google for this topic and you will get a lot of heated debate between pure FA and TA investors criticizing the approach by the other party – and for good reasons.

  • The Problem with FA

For one, while FA takes into account of various data from financial statements, economic outlook and cycles and, heck, even project future growth with projection models, it CANNOT run away from making underlying assumptions (eg. Assuming X% growth annually, Assuming company X gets this government contract…).

Meaning, assumptions made MAY or MAY NOT come true – hence affecting the outcome of a particular investment decision.

In addition, buying into undervalued stocks with high intrinsic value DO NOT mean that your investment will increase in value the next day (psst..it may take years).

Reason being, the market (reaction between buyers & sellers) is not rational, and may not reflect the underlying intrinsic value of a stock’s price. As such, for certain investing decisions made purely on FA, it will take a lot of patience for things to work out in one’s favor.

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Do you have the patience to wait for your investment decision to reach its potential?
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  • The Problem with TA

On the other hand, the use of TA is widely subjective on 2 underlying elements: time horizon and techniques. Let me explain:

The time horizon of an investor when it comes to TA can affect one’s view on the market for a various degree. As an example, a long-term investor (5 – 10 years) may look into the below chart and have a bullish (a.k.a. positive) view on a particular stock, yet a shorter-term investor may have a bearish (a.k.a. negative) view on the stock.

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Another thing when it comes to TA is that there are so many different methodologies (Price Action, Turtle, Ichimoku, Elliot Wave, etc.) and indicators (MACD, RSI, Bollinger Band, etc.) out there, it is almost impossible for all TA investors to come into agreement for one particular set of price chart.


Why Do I Use Both FA and TA in Making My Investing Decision?

So far, it is not hard to see both the strengths and weaknesses of each approach when it comes to investing:

FA enables us to study a company inside out via financial data and economic/industry outlook, yet lack the precision needed for investors to enter the market.

On the flip side, TA allows us to look into price charts and time our entry into the market with the help of price action and indicators. However, TA methodologies could be different depending on who’s using them, hence making it very subjective.

But hey, WHY NOT leverage on the strength of both FA and TA to improve our overall investment decision?

As in, WHY NOT leverage on FA to help analyze a stock inside out and obtain its underlying intrinsic value (which TA lacks), and apply TA to assist us in our entry into the market (of which FA is weak in)?

Make (a lot of) sense?


Example

A very common way of identifying if a REIT’s intrinsic value is through comparing a REIT’s market place against its Net Asset Value Per Unit (NAVPU). Generally, a REIT that is sold at a market price less than the NAVPU is considered undervalued.

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Note: Market price is RM1.38 as of the time of writing. (Source: i3investor)

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Now, considering that due-diligence has been done and given that YTL REIT has a NAVPU of RM1.606 – meaning, rationally, this is where the market should price YTL REIT in an ideal scenario. Yet, on the price chart below, even at an obvious upward trend, market is still pricing YTL REIT (RM1.38) way below its NAVPU of RM1.606.

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NAVPU (RM1.606) > Market Price (RM1.38) - Undervalued.

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In general, as an investor that purely use FA in his/her investing decision, any price below intrinsic value would be a decent buy. However, one may find it challenging to identify a relatively better entry without the use of TA. (eg. While buying at an all-time high of RM1.38 is still a fundamentally lower price, yet wouldn’t it be better if you are able to enter at, say, RM1.20?)

Now, after using FA to identify undervalued stocks, I’ll normally apply one simple TA method call Moving Averages (MA) cross (refer to picture below). This method would help me identify trend changes on price charts:

Simply put, when the 50-Days MA (Green line) crosses above 150-Days MA (Yellow line) and both MAs are sloping upward, it would signify an uptrend movement and would be an ideal entry point for me.

Therefore, even when YTL REIT is valued below its intrinsic value (RM1.606), with a simple TA method, I can identify a relatively better entry. This is a better gauge for entry for sure, if you were to ask me.

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The use of Technical Analysis (TA) provide investors guidance on a relatively better entry and exit.

No Money Lah’s Verdict

So here you go! This week’s article goes a little more in-depth about investing methodologies and approaches, and I genuinely hope that you learn or gain something out of this!

With that in mind, if you find this article useful, do consider SHARING this article out, and be sure to subscribe for more value-adding content from No Money Lah!


 


Introduction: REITs and Why Invest in Them?

As a kid, two of my most visited shopping malls are Mid Valley and Sunway Pyramid. While both are without doubt huge malls, an experience stood out the most while I visited these malls every time as a kid: it was pretty damn hard to look for a parking space!

Wouldn’t it be amazing if you can own part of these crowd-magnet malls, or get a share out of their profit?

Well, in a way, you can!

Today, I would like to talk about Real Estate Investment Trust (REIT), a personal favorite subject of mine.

Can you guess how much is the monthly rental of a little kiosk like this in Mid Valley? (Source: Mid Valley)

(1) What are REITs?

Real Estate Investment Trusts (REITs) are companies that own and/or operate real estate. Publicly listed REITs are traded just like any stocks listed in the stock market, making it very easy to invest in REITs.

Some of the more well-known real estates that are part of Malaysia REITs portfolio include Sunway Pyramid (SunREIT), Mid Valley (IGB REIT), The Gardens (IGB REIT), KPJ Hospitals and Specialist Centers (Al-Aqar REIT), Pavilion (PavREIT), JW Marriott hotel (YTL REIT) and more.

In short, REITs are great investment instrument for those who wish to own or profit from popular and profitable real estates – where others spend and consume on these places, you profit from them.

Source: Sunway City

(2) How do REITs make money?

To recap, REITs are companies that own and/or operate real estate. When it comes to real estate, it is not hard to understand the underlying business model of REITs – a.k.a. How do REITs make money?

Mainly, REITs make money through rental income from the real estates that they own and/or operate.

As an example, IGB REIT’s income is derived from the rental collected from its tenants for both Mid Valley and The Gardens Mall.


(3) Why Invest in REITs? – the Pros of REIT Investment

REITs are especially well-received among people longing for long-term investment for some of the reasons below:

a. High proportion of Income Distribution

In order to be qualified as a REIT, companies are required to pay out at least 90% of its net income as dividend to their investors.

Which lead me to my second point…

b. Attractive Dividend Yield – making it a great passive income stream

Due to the dividend payout nature of REITs, dividend yield from REITs is generally better than typical stocks dividend in the market.

In general, Malaysian REITs yield a decent 5% – 7% dividend on a yearly basis. Aside from that, should investors time their entry point properly, they are also able to enjoy growth from capital appreciation as well. (eg. Buy at RM1.00/unit. A price rise to RM1.20 will make up to 20% capital growth for investors)

Yield Performance of REITs vs other instruments.
Sources: Respective instruments' official page, CEIC Data

c. Relatively less risky than typical stock investments

REIT investment is also relatively less risky compared to typical stock investments due to most REIT’s business model that lock in tenants for at least 1 – 3 years, ensuring a relatively stable income stream for REITs.

REITs volatility in comparison to the market. (Source: Investing.com)

(4) Cons & Risks of Investing in REITs

a. Less capital growth opportunity

Due to its nature of being more stable in relative to typical stock investments, REITs growth in revenue and profit is often predictable, making it less exciting for short-term speculators and traders to speculate the REIT sector.

In other words, REITs growth are more likely supported by its fundamental business growth – making REITs an answer for those who seek long-term investment opportunities, but not so much for short-term speculators and traders.

b. Exposure to Market Fluctuation

Unlike conventional real estate investment, publicly listed REITs are also constantly exposed to a certain degree of market fluctuation due to its nature of being listed in the stock market.

Meaning, regardless of the fundamental stability of a REIT business, REITs are still prone to a certain degree of price fluctuation in the market.

c. Change in Portfolios’ Fundamental

Similar to conventional real estate investment, REITs also have the risk of having a strong income-producing real estate turning otherwise due to changes in market demand or fundamentals.

As an example, Sungei Wang Plaza (CMMT) and Subang Parade (Hektar REIT) used to be the to-go malls in the 90s, yet the rise of more attractive malls eventually replaced their glory.

Subang Parade - once known as the longest shopping mall in Southeast Asia. (Source: Subang Parade Official Facebook Page)

(5) How to Invest in REITs?

There are both private (Alpha REIT) and public-listed REITs (eg. SunREIT, IGB REIT, Axis REIT, YTL REIT) in Malaysia.

Generally, the easiest and most common way for one to invest in REITs is through the stock market, as there is where one can find publicly-listed REITs to invest in.


No Money Lah’s Verdict

Personally, I find REIT investment relatively simple to understand and work around, due to its business model that is (most of the time) straightforward.

In a way, REITs allow retail investors to invest in a portfolio of income-generating real estates, while enjoying the convenience of participation of the stock market. (eg. Buy and sell as instantly as you please, unlike conventional real estate/property transactions)

With that in mind, I believe that there is no harm to have REITs in your investment portfolio.

In the coming posts, I will dive into the different type of REITs and an overview of REITs in Malaysia, so stay tuned!

Do you invest in REITs? If you do, what REITs have you been investing lately? Would love to hear from you!


p.s. REITs are my personal favorite when it comes to long-term investment due to its decent dividend and simple-to-understand business model.


How to Make your First Trade on Rakuten Trade?

From my previous article, I have shared about the important elements that you should consider when opening a stock trading account. I have also shared a step-by-step guide on how to open a Rakuten Trade stock trading account too.

That said, opening a stock trading account does not solve ONE key problem:

How to make your first trade?

Reason being, every stock trading account has a different interface and it could be overwhelming especially for someone new to the stock market to start making transactions if one does not understand how and what certain key functions mean and works.

In this article, I am going to share a simple step-by-step guide on how to execute a transaction on Rakuten Trade, and explain some key terminologies along the way (Don’t worry it is very straightforward once you get it!).

Before we move on, I am assuming you have read my article on How to Choose a Stock Broker and have opened a Rakuten Trade (Cash Upfront) account. If not, you can read it HERE.

With that in mind, buck up, and let’s go!


Step-by-Step guide to Buy a Stock on Rakuten Trade

 

Upon logging in to your Rakuten Trade account for the first time, you will have to first fund your trading account using the funding methods available. In short, the easiest method is to fund your account using your savings/current account.

 

Step 1: Search for the stock that you want to buy at the search bar.

 

Step 2: Click ‘Buy

Order Page

 

At the order page, there are a few key sections that you got to familiarize yourself with:

1 – Trading Limit: How much capital you have to invest.

2 – Market Price: The price where a share is traded most actively between buyers & sellers.

3 – Best Buy & Best Sell Table (Market Depth): This table shows us what is the price that the people are lining up to buy/sell and the volume.

The more volume it is for a price, it means that the faster you will be getting it once you execute an order. (eg. You will be able to buy at RM1.28 immediately compared to trying to buy at a lower price of RM1.27)

4a – Board Lot & Odd Lot:

Board lot means you buy in a minimum multiple of 100 units. (1 Board Lot=100 units of shares, RM1.28*100=RM128)

Odd Lot means you can buy in a multiple of 1 unit.

•Since more people will buy in Board Lot, your order will usually be filled easier compared to buying in odd lots.

4b – Quantity:

•If you buy in Board Lot, your quantity will be in the multiple of 100. (eg. Put 2 if you want to buy 200 units of shares)

•Odd lot means you are free to key in any number of units that you want. (eg. Key in 88 if you want to buy shares in 88 units)

5a – Order Type:

  • Limit Order: Queuing to Buy LOWER than market price. (if you are selling means you are queuing to Sell HIGHER than market price)
  • Market Order: Buying or selling at MARKET PRICE. (order will be fulfilled almost instantly)

5b – Limit Price (not available if ordering at market price):

  • The price you want to buy below market price. (eg. Queuing to buy cheaper at RM1.26 instead of the market price of RM1.28)
  • Note that buying below market price may not 100% guarantee that your order will be fulfilled.

6 – Validity (only available if buying/selling via Limit Order):

  • Day: Your order will be canceled if it is not fulfilled by day end (5pm). (eg. If you queued at RM1.26 but did not get fulfilled, then your order will be canceled by 5pm the same day)
  • Good-Till-Date (GTD): You can decide the validity of your order. (eg. You queue for the price of RM1.26 until X date)

7 – Trading Pin: Your numbered pin to approve your trade. (Set when you open your account.)

You have successfully made your first transaction!

Step 3: Fill in the details of your trade, your Trading Pin and click Confirm Order.

Note:

1. Decide if you are buying Board Lot or Odd Lot.

2. Decide your Quantity.

3. Decide your Order Type.

4.Key in your trading pin.

5. Confirm Order.

6. Wait for your order to be filled.

And we are done! This is how exactly you can buy your first stock via Rakuten Trade.


KLSE Market Operating Hours

The market is open from Monday to Friday, except for public holidays. Details on active market hours are as stated below:

Stock market operating hours

No Money Lah Verdict

With a good understanding of the terminologies and functions, hopefully, you will not be so overwhelmed with these stock trading platforms!

  • If you find this article useful, and would like to open your Rakuten Trade stock trading account, do consider using my referral link HERE to register for your account (or enter ‘NoMoneyLah’ under ‘Educator’ when you register). For that, you will gain 500 RT points from this registration. Otherwise, you can always google for Rakuten Trade and open your account too.

Open Your Rakuten Trade Account Today!


 
 

Check out: 5 BIGGEST MISTAKES that I Made In Stock Market Investing

 

 

 


What is Amanah Saham & How to Invest in it? (Part 1)

I have never paid much attention to Amanah Saham investment until a recent request from a reader to write about it sometime back in May.

In fact, my initial impression towards Amanah Saham was that most of its funds are for Bumiputras, and funds that are open to the public are very hard to buy – and that was everything I knew. But thanks to the request from that reader, I have found myself researching about arguably one of the most reliable investments that give a very solid return.

Without further ado, let’s find out more about Amanah Saham!

What is Amanah Saham?

Amanah Saham are funds that are managed by Amanah Saham National Berhad (ASNB), a subsidiary of Permodalan Nasional Berhad (PNB). ASNB was established on 22 May 1978. In short, ASNB is a government-supported unit trust management company.


Fixed Price Fund vs Variable Price Fund

As of the time of writing, there are a total of 14 Amanah Saham funds under the portfolio of ASNB, and of all, there are 6 Fixed Price Funds and 8 Variable Price Funds:

Funds open to all Malaysians are highlighted in yellow.

(A) What’s the difference between Fixed Price Funds and Variable Price Funds?

 

Fixed Priced Funds

Variable Priced Funds

Value Fixed @ RM1/unit. Varies according to the market.
Sales Fee 0% 3% - 5%
Performance Consistent (6%-7%) Fluctuating

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To give you a better picture, just take Variable Price Funds just like the conventional mutual funds in the market. As the name suggests, Variable Price Funds are funds that will fluctuate in value in accordance with the market movement. In terms of fees, Variable Price Funds also charge sales fees between 3% - 5%.

Simply put, for your Variable Price Fund investment to match the return of a 3% Fixed Deposit (FD) rate, your fund’s return will need to be at least 6% (assuming a sales fee of 3%) – which I wouldn’t recommend putting your hard-earned money in considering the inconsistent performance of all Variable Price Funds for the past 3 Financial Years.

On the other hand, ASNB’s Fixed Price Funds are the ones that everyone is talking about. The key strength of Fixed Price Funds (well, you have guessed it, didn’t you?) is the value of the fund will be fixed at RM1/unit no matter the market condition. Not only that, there is also no sales fees (yes, 0%) charged by all 6 Fixed Price Funds.

The best thing? All 6 Fixed Price Funds have been paying an average 6%-7% dividends consistently for many years, making them one of the most reliable investment vehicle in the market.

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Comparing 2 of ASNB's most established Fixed & Variable Price Funds

(B) All hail, Fixed Price Funds! (Benefits)

For all the reasons above, I will discuss specifically on Fixed Price Funds as these are what everyone is talking about when it comes to Amanah Saham investment.

Personally, I am genuinely happy to see that out of the 6 Fixed Price Funds, 3 (ASM, ASM 2, ASM 3) are actually open to all Malaysians, and I was delighted for good reasons:

#1 Unit value is fixed at RM1/unit:

Meaning, any market fluctuation will not affect the fundamental unit value of these funds. In other words, in the instances where the market is so bad that there is no dividend payout at all, at least the value of your fund will remain constant.

This makes Fixed Price Funds stand out as one of the best Unit Trust investment available in the market.

#2 Consistent Dividend:

Fixed Price Funds are famous for good reasons. One of them is because they are able to deliver a solid and consistent performance for a long period of time.

From my research, all 6 funds are able to deliver an average of 6% - 7% return on a consistent basis for the past 5 financial years (More about their performance on Part 2).

A consistent 6% dividend, when reinvested (which these funds do), will bring you a massive compounded return over a long period of time.

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RM10,000 compounded at 6%/year vs simple return

#3 Dividend Earned is not Taxable:

So you do not have to worry about tax filing.

#4 No Sales Charge:

Another highlight feature of Fixed Price Funds. Meaning, you do not have to pay any sales fee if you purchase any new units.

That said, Funds have full discretion to charge a 1% sales fee – just saying.

#5 On-The-Spot Redemption:

You can withdraw your investments and get your money immediately (either via cash/cheque/bank transfer).


(C) Risks & Cons of Amanah Saham investment (Fixed Price Funds)

One thing that we have to keep in mind is that there are no investments that are 100% risk-free. Here are some of the risks and cons of investing in the Fixed Price Funds of ASNB:

#1 Market Risks and Interest Rate Risk

All Fixed Price Funds’ performance and return are subject to the fluctuation of the market and interest rate.

While it is true that the unit value remains fixed at RM1/unit, dividend payout may fluctuate in accordance with funds’ exposure market and interest rate fluctuation.

#2 Capital not Protected

Your capital is not protected by Perbadanan Insurans Deposit Malaysia (PIDM) if ASNB goes bankrupt.

#3 Availability of Funds

As there is a quota capped to our race to these funds, when the quota is fully filled, you will have a hard time trying to get into these funds (unless suddenly someone let go of their units).

#4 Withdrawal Hassle

Any withdrawal of funds must be made over the counter at ASNB’s branches.


How to Register for an ASNB Account?

To register for an ASNB account, you must bring along your IC and the minimum cash needed for the initial subscription for the funds (RM10 for Fixed Price Funds), and apply at any ASNB branches or agents.


No Money Lah’s Verdict

In my opinion, I honestly think that if you can get your hands into any of ASNB’s Fixed Price Funds, it is no doubt one of the best money decisions that you will ever make, period.

For myself, I will go and open my ASNB account and start trying my luck to get my hands on any of these funds, and I will keep you all updated on my experience (so stay tuned and subscribe if you haven’t already!)

In Part 2, I will introduce and go through the performance of all 6 Fixed Funds with you, so you can decide which one to invest in after that! As for Part 3, I am going to share my personal view on Amanah Saham investment (plus my rants - you gotta check it out!).

Have a good read!


Disclaimer: The accuracy of this content is based on the best effort by myself and at the time of writing. I do not guarantee the validity of this content as details and performance of ASNB and its funds will change over time. This article is also not a buy/sell recommendation. Please seek professional financial planner's advice on this matter.

Credits to MyPF and MyFinTalk for their comprehensive writings on ASNB!


Note: For all my Bumiputera friends and readers that may be asking about to buy into Amanah Saham via cash or ASB Financing, definitely check out the articles by Crezki & KC Lau for more tips and info!


How I got into the verge of breakdown & self-rescued myself out of it.

Last month (March 2019) was a really challenging period for me. I was in the midst of preparing for my very first Breakthrough Your Wealth (BYW) – REIT Investing Workshop for 20 of my close friends and readers, and it was not easy by any means.

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Let me explain why:

First of all, since the workshop was (and still is) a one-man show, I got to handle everything from syllabus design, agenda planning, communication, marketing, logistics (food & venue) and printing on my own. Besides that, I also had to spend time to practice what I got to say during the full-day (9am – 6pm) workshop.

To add on to the challenges, the progress in designing the workshop syllabus was also slower than my initial expectation, and they were for obvious reasons: Instead of pouring everything that I know out into the PowerPoint slides (like any classic university tutorial presentation), I have to approach this process from the participants’ point of view:

“If I say X, would they understand?” “Would they be confused if I use Y jargon during the workshop?”.

As a result, the initial workflow of getting my syllabus design done during the Chinese New Year week became a month-long project (obviously, I underestimated the process).

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Stress Piled Up as Time Went By

As March came by, the need to get everything perfectly prepared for the day (the workshop was going to happen on the 30th of March) was overwhelming. Every day, I can literally feel the urge to fulfill every participant’s expectation piling up on my shoulder, and it almost drove me to the verge of breaking down.*

In short, I was way out of my comfort zone and was pretty damn stressed up.

(*Everything happened while I was also juggling between my full-time trading activities and producing content on No Money Lah)

Luckily for me, with some personal hacks and methods, I managed to brace through the stressful month and the workshop ended up pretty good – according to the participants. In this article, I want to share the 5 practices that I used to keep myself from screwing up while I was on the verge of breaking down:

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My very first REIT Investing Workshop successfully held on 30th of March 2019 - along with 20 of my close friends & readers. :)

(1) Whenever you feel overwhelmed, take 3 long, deep breaths.

The earliest symptom that you are experiencing a panic attack or about to breakdown is the feeling of being overwhelmed with the work in hand. Hence, whenever I felt overwhelmed (or the tension on my shoulders), I will go for 3 long, deep breaths.

As common as this hack is, taking long, deep breaths are extremely useful. As such, taking mindful, deep breaths help in activating part of the brain to release neurohormones that inhibit stress-producing hormones, thus triggering a relaxation response throughout the body.

In other words, long, deep breaths help to calm your nerves.


(2) Whenever you feel stuck, plan & write things down.

In my work with syllabus design for the workshop, I was often met with times where I got clueless and stuck on how to proceed with some sections.

Whenever I felt like hitting a wall and not sure what to do, I will take out a piece of paper and start writing. I will always start with my end goal and start working backward.

eg. In my case, my end goal always starts with the question of “What do I want my participants to learn from a particular section?”. Then, I will derive an approach to achieve my end goal on paper.

Identifying your end goals and planning them recalibrate your mind back to the mission/project, while writing things down on paper gives your mind a clearer picture of what you should do.

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When in doubt, plan & write things down.

(3) Whenever you feel as if your mind is messy & overloaded, focus on one thing at a time.

There will be times when you may feel like there are too many things to be done. In this case, try method (2) by listing down the tasks that you have to do.

In addition, use the Eisengrade Box to grade those tasks with 4 different priorities:

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The Eisenhower Box, courtesy of jamesclear.com.

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Then, focus on doing the one thing that is the most urgent and important to you, then only proceed to other tasks after you are done with them.

Another tip is to stay away from social media while you are overloaded – you will only distract yourself and wasting your time while not getting productive in your work.


(4) Whenever you feel unorganized, commit to at least one health-related routine.

When you are overstressed and overworked, chances are your life will start to go upside down. If this happens, you will start breaking down sooner than you expect.

For me, no matter how stressful the day or month might be, I will always organize my life around a set of morning and night routine – so regardless of how chaos my day is, I will always start and end my day in a positive note.

So if you are feeling unorganized in your life, try to pick up and commit to ONE health-related routine (eg. Exercising, meditation, yoga)

Surprisingly, my daily meditation practice (morning & night) has kept my life from falling apart many times, especially during the workshop preparation.

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No matter how stressful your life is, commit to at least ONE health-related routine.

(5) Whenever you feel that you cannot do this alone, get help.

I remembered fondly at the night before the workshop, I had to get all the printed notes hole-punched and filed properly. At the same time, I have to rehearse what I am going to say the next day during the workshop.

At that moment, I got really tight in time and resources. Hence, I got 2 of my best buddy – Eddie and Victor to help me out with the files.

No matter how good you think you are, there will be instances where you cannot get everything done on your own. So, put down that stupid ego (or ‘Asian Paiseh-ness’) of yours and go get help!

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My 2 best buddies for life - Victor (left) & Eddie (middle)!

BONUS: At any moment of time, always remind yourself on your purpose and goals

In the toughness of time, always remind yourself of your purpose and goal.

Why do you do what you do?

Keeping your purpose and goal intact will help you endure even the most challenging moments in your work and life. Just like how petrol fuels our cars, having a solid vision and purpose fuel our actions and keep us going at the lowest point and the steepest hill in life.

If these practices saved me at the verge of a breakdown, I am pretty sure it will help you too! All the best!


 


9 Simple Ways to Build Better Relationship with People (Part 2)

In Part 1 of this article, we've discussed 4 key people skills as outlined in the amazing personal development classic: How to Win Friends & Influence People by Dale Carnegie.

In Part 2, let's explore 5 more important (yet surprisingly simple) people skills mentioned in this book!

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(5) Admit your mistakes

We all understand how hard it is to put down our ego to admit our mistakes upon making them sometimes.

At times, although we realized that we've made a mistake, many of us tend to choose to be arrogant, stubborn and persistent in the same standpoint which may results in an endless argument.

Here's a good commercial example of admitting to mistakes:

A customer found a dead lizard in the Salted Egg Snacks sold by the Singapore-based food company Irvins. Rather than avoiding this incident or trying to cover it up, Irvins conducted their apology and offered refunds.

They chose to face it, learn from it and move on to provide a better experience to all customers. Learning from their integrity and honesty, let's practice the courage to admitting our mistakes and making it a habit.


(6) Make them say "Yes, Yes, Yes!"

As taught in the book, the moment you start to say "No", all your pride and ego demands that you remain consistent with your "No".

It takes a huge effort, facts and action for a person who've said "No" in the very beginning to turn into affirmative.

Hence, the next time when you need something, try to ask using questions like "Wouldn't you", "Don't you think" to get people to reply your questions with a "yes".

You will experience the differences as you have set the tone of the conversation to be a positive one.


(7) Make it a point to give credit to others

As mentioned above, people in general like the feeling of being important.

As such, we tend to take full credit to ourselves for all the achievements accomplished by saying things like "That was my idea" or "We succeeded because I did XXX in the process".

The irony is, no one enjoys the feeling of being sold something or asked to do something, unless it is something they have initiated or created.

Looking from a salesperson's perspective, instead of pushing hard to sell a product, why not let the potential customers use for free and get their feedback or ideas?

Doing so, the customer does not have to be sold and will buy it when he is credited by the salesman because of giving such insightful feedback and ideas to improve.

This principle is so easy to apply in different areas. As a start, you could try it with your team members, sincerely praise your partner in front of everyone etc.!


(8) Talk about our own mistakes first before pointing out others' mistakes

We often condemn, complain and criticize whoever that did something which made us unpleasant or uncomfortable.

However, let's take a step back and reflect on this.

Why do we do this?

Because it makes us feel great as if we have won over the person. Yes, you may have won the argument but not the person's heart.

To gain creditability for your words, you will need to talk about your own mistakes first. For instance, use sentences like "You have made a mistake, but it is not as bad as the one I made when I was at your age".

Bringing up your past mistakes can help change one's behavior, because it shows them the reasoning of your statement and it makes full sense to stop repeating your mistakes


(9) Ask questions instead of giving direct orders

"Do this and do that". "Do not do this and do not do that".

No one likes getting orders in this manner, because they do not have a say in the decision-making process.

However, using a different approach, in this case asking questions can help you to achieve the same objective of conveying instructions.

Imagine that you already have a plan in mind but to give people the sense of appreciation and help spur their creativity, you could ask questions like "what do you think", "what would you suggest", "Can anyone think of XXX".

That is the point when the team starts contributing ideas, which could lead to a better solution that is agreed among all the team members. Everyone wins.


Here you go! 5 more simple ways to build better relationships with people! If you have missed out on Part 1, definitely check it out HERE!

What you have learned from above are only 9 out of the 30 principles taught in How to Win Friends & Influence People by Dale Carnegie.

Meanwhile, if you want to discover all the essence of this book, definitely GRAB A COPY of this book at the link below! If you have read this book, do share your view in the comment section below! I cannot wait to hear from you!

Before we part ways, be a social butterfly and make 2019 your year, would you?

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How to Win Friends & Influence People by Dale Carnegie

About Guest Writer:

Xi Rong’s enthusiasm with books started back in 2016. It is hard to imagine someone who used to hate reading actually could find books as his best companion. If you believe in it, a book is the best teacher and a priceless commodity for every reader. He reads a huge spectrum of books, ranging from financial, management, self-help, business, marketing, communication and more! Check out his Instagram Stories Highlight here for his amazing collection of book reviews!

Also, you can also connect with Xi Rong via LinkedIn.


9 Simple Ways to Build Better Relationship with People (Part 1)

Andrew Carnegie, also known as the Steel King, is one of the richest man in history. Yet, don’t be surprised that he, in fact, had just very little understanding of steel manufacturing.

With that in mind, how did he actually build his legendary business empire? The key answer (which always seemed underrated): PEOPLE SKILL.

He knew how to handle people, and that is what made him rich.

The Carnegie Mellon Foundation & Stanford Research Institute International conducted research with Fortune 500 CEOs in 2015 and discovered that 75% long-term job success depends on people skills, while only 25% on technical knowledge.

Given that you are still reading this post shows how curious and eager you are to discover this skill even further. Well, people skill is not rocket science as you think it is and I’ve found you a quickest and effective way!

I’ve read over 30 books in 2018, but this one stands out among the rest: “How to Win Friends & Influence People”. An ever-classic self-help book written by Dale Carnegie in 1936. Here are the top 9 simple hacks about people-skill in the book that I find interesting:

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(1) Give honest & sincere appreciation

Deep inside, everyone desires the feeling of being important.

The feeling comes in different forms.

As an example, people like Warren Buffett and Bill Gates got their feeling of importance by contributing most of their wealth to philanthropic causes. On the other hand, an employee who worked super hard got the same feeling the moment he got promoted.

The next time someone makes a mistake, whether at work, school or home, you should never kill off their ambition or enthusiasm by criticizing the person.

Instead, try giving them appreciation and praise. They will cherish, treasure and repeat it.

This is how simple words can change one's life.


(2) Smile

To get someone to like you instantly, a smile is probably the easiest thing to do that requires minimal effort.

It is a magical force that will help you in building a positive first impression and shows others how easy-going you are as a person. Of course, it is impossible to fake a genuine, warm smile as it depends on our inner condition.

How do we think and control our thoughts will ultimately determine our level of happiness.

Next time, when you are afraid to network, nervous for a job interview or having a bad day, a smile is always something that you can do to help you overcome these hurdles.

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Something to do before you proceed to the next point...

(3) Remember the names

Have you ever experienced a conversation where you just got to know someone new, and proceed to forget his/her names the next moment after a good conversation?

Just like how people appreciate the feeling of importance, everyone likes their names to be remembered as well. The ability to remember names is as important in business and social contacts.

Starting from today, try saying "Hi John" instead of just "Hi bro". Even if you do not recall the new acquaintance’s name, just ask again (with no awkwardness) and write it down if necessary.

Want to start winning win friends? First, you would have to remember their names.


(4) Be genuinely interested in others

Being genuinely interested in the people around you are essential to develop long-lasting relationships!

Often, unless those who are important to us (eg. future wife, potential business partner), we tend to care about ourselves more than others.

Believe it or not, according to Dale Carnegie, you can make more friends in 2 months by being interested in other people than you can in 2 years by trying to get others to be interested in you.

Ask yourself these 2 questions, "Are you genuinely interested in ones' life story?" and "Do you care or curious about what they are struggling, enjoying or thinking?".


5 More Useful & Simple People Skills in Part 2!

What you have learned from above are only 4 out of the 30 principles taught in How to Win Friends and Influence People by Dale Carnegie. In the next post, you will learn 5 more useful and simple principles outlined in this amazing book.

Meanwhile, if you want to discover all the essence of this book, definitely GRAB A COPY of this book at the link below! If you have read this book, do share your view in the comment section below! I cannot wait to hear from you!

Stay tuned for Part 2! 

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How to Win Friends & Influence People by Dale Carnegie

About Guest Writer:

Xi Rong's enthusiasm with books started back in 2016. It is hard to imagine someone who used to hate reading actually could find books as his best companion. If you believe in it, a book is the best teacher and a priceless commodity for every reader. He reads a huge spectrum of books, ranging from financial, management, self-help, business, marketing, communication and more! Check out his Instagram Stories Highlight here for his amazing collection of book reviews!

Also, you can also connect with Xi Rong via LinkedIn.