Category Archives: Money!

Some posts related to money matters including banks and mutual funds, I created a separate category for this, hoping I can expand discussing the subject soon.

Currency Trading

Buy Low, Sell High.

I am placing orders at $1,000 (1 lot) to simulate the actual amount I can only afford.

Several weeks ago, I resumed my interest in currency trading. I am currently actively trading (albeit on demo account) and is contemplating to trade live before the end of this year. I have a $50,000 demo account though to simulate real money (that I can commit and afford to lose), I only trade 1 lot at $1,000 per session. My favorite currency pair is the US Dollar and Japanese Yen, and is trading at 100:1 leverage.

Currency trading is not suitable to those with weak heart, the risks and rewards are high. The first two weeks, I was able to grow my (demo) funds from $50,000 to $52,779 (the $2,779 is the realized gain). This week however, as of this posting I am losing about $900 (yet still unrealized loss — this may increase further or hopefully I can recover and still reflect profit).

Call me a nerd or a geek, but I find beauty on the ticks of the chart — and it is equally interesting wondering if the trend is upwards or downwards, thus you need feel the pulse to choose between buying (low) and selling (high), in order to gain profit. Unfortunately this is not an exact science and there is no single method of predicting the spikes, even sound indicators fail.

I must admit this is akin to gambling, where the risk is very high. You can earn huge amount on a short period of time or lose all your funds in a matter of hours.

That is why I keep on conditioning my self that I will trade only money that I can afford to lose. That once I fund a real live account, it is synonymous to the high possibility of losing it. Yet I want to have good fight in maintaining that amount and even earning profit from it.

Farming and Currency Trading

Farming and currency trading: a glimpse on what I may do during retirement.

It is said that only 90% of currency traders are succeeding in this kind ‘business’. I wish to belong to the successful 10%, ha ha — but I know it will take me a long way to learn the skill.

Currency trading is a huge business with more than $3 trillion average daily turnover volume. I will be glad to earn a tiny share of $100 per day out of it as a ‘day trader’ or even as a ‘tsupitero’.

I fancy myself being both a farmer and currency trader during retirement. And hopefully by that time, I have enough experience (and available “to lose” funds), as if I am simply playing a computer game. I would always want to win of course.

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UBS Islamic Global Equities Fund

Last week, I received a notice from our HR Department (Benefits and Compensation), informing that the UBS Islamic Global Equities Fund will be closed effective 17 October 2011.

Since 2009, I have volunteered to invest 10% of my basic salary (plus additional equal match as my employer’s contribution) to the following plans:

  • 30% – UBS Islamic Global Equities Fund
  • 40% – Vanguard Global Stock Index Fund
  • 30% – Vanguard U.S. Fundamental Value Fund
  • To date, below is the performance (rate of return) of my fund.

    Rate of return from September 2008 to September 2011

    With the closure of ‘Islamic Global Equities Fund’ I have reallotted the 30% share of the said fund to make both my ‘Global Stock Index Fund’ and ‘U.S. Fundamental Value Fund’ each at 50% with my monthly contribution.

    New Fund Subscription

    It is now 50/50

    With the trend still downwards in lieu of (another) global economic recession, particularly with Europe showing signs of slowdown — this mutual funds “game” is really risky.

    My First Credit Card

    Yesterday I received my first ever credit card. I am not really a ‘fan’ of credit card, as I do not subscribe to the idea of buying on credit. But out of necessity, I finally decided to have one. I find it useful (and required) for online purchases, bookings and reservations.

    Plastics

    Plastics

    Few months back for example, I searched for the best (and available) rate for an air ticket (Jeddah-Manila-Jeddah) for a short vacation. I am fortunate that my company is flexible to allow me go on vacation despite me being employed for only over four months.

    On my own, I was able to find SR 3,301 roundtrip ticket via Singapore Airlines. It is peak season (November-December) that time, and the same reservation I had from travel agents quoted me SR 4,775. Thus, upon seeing the rate posted on the internet, I immediately booked myself, to which luckily my officemate was quick to offer his credit card for payment. The thing is, I even haven’t submitted a leave of absence request yet (as I am still undecided if I will go on vacation pending booking availability and affordability of air ticket). I grabbed the opportunity of the found low fare, and submitted leave application later.

    Upon completing booking details and payment, the computer system required us (me and the credit card owner) to visit the airline’s office for validation and confirmation of travel. Should I fail perform this requirement, they will not allow me to board the plane.

    I was wondering, what if I borrowed credit card information from my sister in Manila, or a friend from Timbuktu, obviously they cannot accompany me to the airline’s ticketing office for validation. I even called the airline company to inquire on this and was told that is the procedure.

    Therefore, the afternoon of the following day, I asked my officemate to personally appear at the ticketing office for validation. It is fortunate that Singapore Airlines has their office here in Jeddah (which is another inconvenience, if it is located on another city).

    Going back to my credit card, this was issued by SABB (Saudi British Bank) with SR 12,000 credit limit for its Visa Classic. The first year fee is free with SR 250 annual fee thereafter.

    Perhaps I will use this card for my usual purchases (currently I am always using my ATM debit card) but will settle it accordingly in full to avoid adding-up interest and penalties.

    Equities and Stock Funds

    Today I decided to invest in equities and stock funds, and I chose:

    40% = Global Stock Index Fund
    30% = US Fundamental Value Fund
    30% = UBS Islamic Global Equities Fund

    The percentage is based on the automatic monthly contribution being participated by myself (10% of my basic salary) with corresponding 100% match (of that 10%) from my employer. High risk, high yield.

    Anyhow my employer is contributing for my pension plan (which is also 10% of my basic salary) and is kept aside.

    USD/JPY

    On 12 February I bought 10,000 lots of USD using JPY at 90.08 Yen per 1 US$. And since then (to-date) it moved 749 points (97.58 Yen per 1 US$), I should have already earned USD 767.57. However, the money I placed is just a virtual account.

    USDYEN

    Noting the trend, on 20 Feb I bought another lot at 94.16 Yen per 1 US$, yet this time it is a live account (using real money). However, I was able to afford only 100 lots from my live fund which is only US$ 5. To-date it moved 341 points with US$ 3.49 earnings.

    USDYEN Candlestick Graph

    I opened the practice account with US$ 10,000 virtual fund (and free US$ 5 live fund) at Marketiva ( http://www.marketiva.com ).