Taking a Good Break

I have been taking a break since April this year and this 8 months break was a well needed one. Come January 2017, I will start off the journey again to financial freedom. For those who are interested in knowing what has happened meanwhile, do read on.

To all of Investor Monkey’s visitors, thank you for all the support so far. As I am currently busy trying to do a major revamp of my website as well as kickstarting my web design business at the same time thus I had been very inactive since April 2016.

The website continued to serve you all news that is relevant to my portfolio and I am glad that I do see quite a number of you (through my Google Analytics) had returned to my website constantly to see if there are any updates.

Thank you.

You may have realised that there is a major change in the theme of my website. This is because I had to change to a new hosting server and I did not wish to move the theme over so as to constantly remind myself to quickly settle my business website and then create my own new theme for Investor Monkey.

What to expect from the next change?

I have not really given a serious thought on where I will be bringing Investor Monkey to. Maybe I should during the Christmas holidays. But one thing for sure, I will be doing a monthly update of my portfolio as what I had did in the past before I took the long break.

You will probably be expecting weekly articles on my personal view of the market.

For those who are always back to my old site for news update. Do you still want them? Do drop me a comment below if you prefer to have them back.

An Update to My Portfolio

Because of an upcoming commitment coming up, I was forced to cut some of my positions. It was a tough decision to make as I had absolute faith in all the companies that I had invested in.

However, I do need to cut around $500 worth of my investments and freeze new investments, at least till next year.

The cut in the investments is really a move that I did not anticipate. I truly believe in investing in money that I would not need in the longer future (at least 10 years) and thus by cutting it, it really broke this “rule”.

So what did I cut?

Well, after much research, I decide to go for Clorox Co. (NYSE:CO). Not because it is no longer a company worth holding but because the investment is in the red. It was the least strong investment in my portfolio and thus I had no choice but to reduce my investment in the company.

As mentioned, I would be freezing any new investments till at least next year, thus from now till at least next December, I will not be increasing my investment portfolio, except for the DRIP shares.

Till my next update in January. Happy Investing!

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Stock Investment in 7 Easy Steps

Stock investing is a fairly simple task. Many people who just could not get started may just be because they do not have the motivation to do so. Take a look at these 7 simple steps to stock investing.

Stock investing is a fairly simple task. Many people who have not started investing will usually say that either they do not know how to or that stock investing is very hard to start off. I had personally been through that phase and understand fully what it takes to start off in the journey of stock investing.

After being on this journey for a few years now, looking back, I see that stock investing is actually a simple task. It just needs 7 easy steps to start investing.

Know What to Invest

There are many stocks available for investing but what should you invest in?

Understanding your investment objective is important. Are you investing for your retirement or do you just want to earn more money? What is your investment period?

Stocks can be broadly be classified into two kinds: Growth and Dividends.

Growth stocks are company stocks that tends to grow in capital value than yield in dividend payouts. Dividend stocks on the other hand has better yields than the growth in capital value.

If you are currently young and have a good number of years before retirement, you can consider owning a portfolio with more growth stocks. However, as the years goes by, do readjust your portfolio accordingly to increase more dividend stocks in your portfolio.

Finding the Right Broker

There are many brokers available and choosing the right one to put your money with can be confusing. If the wrong choice have been chosen, changing a brokerage firm can be tedious and might even be a fee to transfer your current holdings between brokerage firms.

So how to know which brokerage firm is the right one?

First and most importantly, having a regulated brokerage firm is an assurance that your money is safer with them as compared to an unregulated one.

Fees and commissions are paid to the brokerage firms for the services they provide to you and these fees and commissions can shrink your profits.

Regulated and fees are not just the two things to note when finding the right brokerage firm to trade with. Do take some time to compare between various brokerage firms before deciding who you would want to trade with.

Opening an Account

After you find the right brokerage firm, naturally the next step will be to open an account with them. This is the most “difficult” step of the 7 steps.

Before I opened my first investing account, I had already done my research, know what I want to invest in, derived a strategy, etc. But what I was missing out is the action of going down to the brokerage firm that I had chosen to open my account. There was so much resistance until a friend of mine had to drag me down and opened my first account!

Understanding the Business

Investing is like buying a business. A business man would have already done his homework to understand the business well before parting their money in buying the business.

Likewise, as an investor, we should understand what the business does, what is its prospect, etc, before clicking on the “buy” button.

This step should be done no matter how big, or small, the investment is.

Selecting the Company

After going through the business of several companies, selecting the company to invest in is the next step.

This is the time when you will have to weigh the pros and cons between buying two companies. Reminding yourself your investment goals will be important especially if you are choosing between companies from different industries.

Once you understand what each and every company business is about, it should be easier to decide which company to invest in. To make things easier, just do a comparison between two companies at a time. Have a checklist on what is important to you.

Buying the Stock

The easiest step in the whole. Select the stock to buy, enter the quantity and price to buy and click on the “buy” button.

Reinvesting the Dividends

In the event the stocks in your portfolio do pay dividends, it would be better to reinvest your dividends to purchase more shares.

The benefits of reinvesting your dividends can be found in one of the previous post here.

The Bottom Line

Stock investing is not a task which is not achievable. In fact, stock investing can be relatively simple. Just follow the 7 simple steps and you will be on your way to invest for a better future.

Are there any other steps to be included? Do let me know by commenting below.

The 3 Best Resources for Forex Trading

Forex trading is a huge market with many resources, both free and paid, made available to the Forex traders. With so many resources to choose from, what is the best resources that other Forex traders are using?

There are many resources like forums, charting software, books and financial calendar blooming up online, each trying to outshine one another to attract more users to use their resource. While some of these resources are not useful, there are a handful of these resources that are well-liked by many traders.

The following resources are what I am using in my Forex trading and I think they are worth recommending.

BabyPips.com

BabyPips.com logoBabyPips.com is a wonderful place for Forex trading beginners. It has become the premium destination for learning how to trade the Forex market. Offering daily articles on trading news, strategies and market analysis on important Forex topics and events.

As the foundation of the website, the School of Pipsology offers the first and most comprehensive collection of lessons, starting with the basics like Forex brokers, fundamental and technical analysis, and many more.

I had personally learnt about forex trading through BabyPips.com and the lessons learnt are all important. Other important features of BabyPips.com is the helpful community within its forum and the blog section where the authors who are seasoned Forex traders will share their views on the market.

Forex Factory

Forex Factory logo | Investor MonkeyDesigned as a website to provide traders, beginners to professionals, with detailed and high-quality information in their pursue to profiting from the Forex market. Forex Factory has got various features that can help the traders of all experience to make a well-informed decision on which currency pairs and direction to trade.

Forex Factory is the most-viewed Forex-related website and the Forex Factory calendar literally changed the way that financial calendars are made. Prior to the launch of Forex Factory’s calendar in September 2005, financial calendars do not have impact rating, adjustable time zones and many other features.

One of the two important features that I personally liked about their calendar is the impact rating. Not all events or news have the same impact on the individual currency. Having an impact rating allows us, as traders, to have a feel on how much price movement can be expected from the event or news. The higher the impact of the event or news, the expected price movement can be higher.

The other important feature of the calendar is the adjustable time zones. The Forex market is a 24 hours market. Events or news occurs at different times of the day and depending on individual websites, the time of the event or news may be reported using a different time zone. Although converting the reported time zone to the reader’s time zone is easy, without the adjustable time zones in Forex Factory, the time may be converted wrongly especially when there is daylight savings or worse still, we do not know the time zone that the author is referring to.