TENAGA SHARE PRICE - HITTING SUPPORT LINE AND OVERSOLD

The recent sold-off of Tenaga shares due to the US-China Trade War may have provided a buying opportunity.

Tenaga EMA50, 150 and 200 is still at an Uptrend.

It has hit a support line (hit 4 times).

It has also hit the support line at the EMA200.
RSI is oversold.
However, MACD is not yet bullish yet.

One of the way to earn income is by doing stock market trading.
This is what some people are doing.
In order to do this, you need to learn some basic trading skills.

Question: How do I know how much I need to earn?
It's good that you can start with an end in mind.
Example, your objective for trading is for you to replace your monthly expenses or salary income.

Example:
Monthly income: RM5000
Yearly income: RM5000 x 12 = RM60,000
In order to generate RM60,000 per year, with a 5% gain per month, or 60% per year, you need capital.

Calculate Capital needed:
RM60000/60% = RM100,000

It means that, you can start with RM100,000, use it to generate 5% per month through trading.
It means, every 10 days, you can try to generate 5%/3 = 1.67%.

Let's say you buy a share that cost RM1.50.
For it to gain 1.67%, it will become RM1.52, and you sell.

Let's say you start with about RM10000 capital as initial training.

This is how you start.

RM10,000 / RM1.50 = 6666 shares.
Since for Malaysia stock market, you can only buy in 100shares.
So you can buy 6600 shares.

Cost: 6600 x RM1.5 = RM9900.
Include also the cost of brokerage of buying and selling = RM12 x 2 = RM24

When the share market gain to RM1.52:
RM1.52 x 6600 = RM10,032

Therefore the gain is:

RM10,032 - RM9900 - RM24 = RM108

Gain = RM108 / (RM9900+RM24) = RM1.08%

Gain will reduce due to fees.
So, the lower the fees, the better.

Why Do I Watch Youtube Video

I think watching Youtube video aimlessly will waste a lot of precious time.
But watching videos that can help you to equip yourself in these areas could be good for you.

1. Improve your character
2. Improve you skills, particularly income skills
3. Improve your spirituality
4. Improve your relationship with others
5. Help you to solve problems in life
6. Improve your knowledge so that it can help your life and others as well

I think the key is to have a plan.
Having an objective is good.
It will gives you direction of what you need to watch and what not to watch.
Otherwise you might be spending too much of time just watching videos and not serving any purpose.

Watching videos and gaining knowledge might be good, but more importantly, you are taking massive and purposeful actions after you learn the skills.
Put down the lessons that you learn in writings, and share it with others.
By sharing, you are creating an accountability, whether directly or indirectly for yourself to take actions.

Retirement Planning

Example of Retirement Goal:
Cash assets that will generate dividends / cash flow monthly for RM10K per month.
To hit this goal at 45 years old.

Yearly requirement:
RM10K x 12 = RM120K.

Assume that dividend comes from ASD with dividend 6%.

Therefore I require at least RM2 million in cash capital.

If currently have RM500K at age 35 years old, then need to accumulate another RM1.5 million in 10 years.

So each year need need to accumulate RM150K in cash.

Meaning each month need to accumulate in saving account (almost no interest):
RM150,000 / 12 months = RM12,500.

But if you put a monthly saving in ASD that will return 6% p.a, you need lesser:
Based from Retirement Planning Calculator, you only need to save RM9220 per month.





Reference:
https://www.calculator.com.my/savings-calculator#.Wt2RjPluYdU 

Risk management and insurance

Need to manage the risk of assets.

Life Insurance
Medical Insurance
House Insurance (MRTA/MLTA)
Car Insurance
Travel Insurance

Need to consider:
Term Insurance
Wholelife Insurance
Investment linked

Reference:
https://www.imoney.my/medical-insurance
https://www.imoney.my/articles/the-essentials-of-life-insurance-in-malaysia
https://ringgitplus.com/en/term-life-insurance/

Investment Planning & Management

Identify Risk Tolerance
- Medium to High Risk.
- 40% Low Risk (ASB)
- 30% Medium Risk (UT/REITS)
- 30% High Risk (US/HK/MY Individual Stock/Property)

Emergency Fund Requirements
- Part of Low Risk Investment.
- 6 months of current salary

Short Term Goals
- Travel with Family
- Prepare for baby expenses
- Mum Medical Expenses

Long Term Goals
- For Retirement Expenses
- For Child Education

Review current investments
- Property
- Unit Trust (ASB/PRS/UT/Gold)
- Share (ESPP)

Money Optimization

In order to optimize the performance of our finance, we need to be balance in all areas of out finance.

Here are the suggested 8 areas that we need to take note.

1. Investment Planning & Management


Identify Risk Tolerance
Emergency fund requirements
Short and long-term goals
Review current investments.

A number of proven scientific investment methodologies can help to optimise returns while minimising risk.

·Asset allocation strategies
·Best of Breed investment selection
·Rebalancing
·Long-term investing
·Dollar cost averaging

2. Risk management and insurance

To start, analyse the risk factors you are exposed to, quantify your possible financial loss and identify the necessary insurance products for your needs. Secondly, review and summarise your current insurance policies and decide whether to maintain, amend or cancel them. 

3. Children’s tertiary education planning
Consider whether you opt for a local or international institution. Will your child aim for a scholarship or would you pay for the tuition?


4. Retirement planning
What is your investment risk tolerance and how much do you plan to live on? Also consider inflation. What’s the nest egg you need to retire?


5. Asset protection
Your assets carry various risks like fire, loan exposure, business, professional or personal liability. Find ways to protect these assets. Perhaps set up a trust.


6. Estate planning
When a person dies, his heirs must obtain either letters of administration (where the testator leaves no will) or a grant of probate (where there is a will). The process can be long and complicated. To smoothen the process, ensure that you have a will in place now. Go that extra mile by creating a trust for your children and nominate your beneficiaries in your insurance policy and EPF. If you need to appoint a trustee to look after the children’s welfare, check that the fee is reasonable. Trustees’ fees can vary by between 50% and 200%.


7. Debt and Loan management
Review all property loans, personal loans and credit card facilities.
Do you need to restructure them for better financing terms and interest rates?


8. Tax planning
Explore various ideas to reduce your tax payment legally.


9. Giving
Man becomes happier when he gives.


Reference:
https://www.thestar.com.my/business/business-news/2013/09/14/money-optimisation-is-beyond-investing/