A Policy Holder Concern about Exlcusion.

After reading the facebook post by Raymond Ng​ below...

">15 years ago, when I bought AIA insurance with critical illness coverage, AIA asked me to go to their appointed medical clinic to check up. Upon clean bill, AIA accept my application.

Now, insurance pass the responsibility to consumers. If known illness not declare, it may end up not able to claim the insurance.

Why not insurance take up the responsibility to have their doctor conduct check up first before accept the insurance application? If there is exclusion per medical check up, stated it in the agreement up front.

In that way, both insurance company and consumer will have peace of mind."

https://www.facebook.com/raymond.ng.3538/posts/1161242603902535?comment_id=1161445150548947&ref=notif&notif_t=like

I approached my professional friend Christopher Tan​ and had a discussion.

It is true:

Under the life or general insurance policy, there is usually a non-dispute clause. This clause states that the insurance company cannot dispute a claim on grounds of non-disclosure after a lapse of one or two years from the issue of the policy, "except in the case of fraud". Some claim officers argue that non-disclosure is fraudulent. They are mistaken. If challenged in court, they are likely to fail.

What you need to do before purchase of any policy is to declare as true as possible your current health status and the above non-dispute clause will be valid.

Alternatively, you can now approach your insurance planner to check whether you have any exclusion status and/or whether the non-dispute clause is in your current policy.

You can also do a comparison of the policies you need at

https://www.facebook.com/diyinsurance.com.sg?fref=ts

Last but not least,

You can check out my old post on

In What Situation our claim might not be valid?

Insurance Yourself Safely Everyone!

Big Boys Don't Cry BUT They usually make people cries.

Big Boys Don't Cry BUT They usually make people cries.

Short term trade will depends on 3 group of people in the market. 1. The BBs (Accumulate/Distribute) 2. The Traders (Long/short) 3. The Investors (Buy and Hold "Most of the Time") Don't be the person who are made to cry. Trade and Invest Safely!

Let me share my views on TP or you can said Esc P (Escape Price) before I go run some errand.

Let me share my views on TP or you can said Esc P (Escape Price) before I go run some errand.

THIS IS  BASED ON TRADING.

TP is usually based on your open position/s or your projection of the counter.

1. You can choose to TP at the next historical resistance/simple moving average in the chart if you  feel the trend is still down trend (in a buy position) . Do the reversal in a short position.

Most retailer will see historical support or resistance as a guage.

2. You can choose to take partial TP if your plans and position allow.

This is especially so when you see momentum but you are not sure you are right a not.

3. You can ride your full position or partial position when you did homework and know there is a reason for more buyer to bring up the price.

This is especially so when you have a good margin of safety by buying at support instead of buying into resistance.

4. After you open your position and you see poor momentum or closing price is lower then opening price, you have to be mentally prepare to use ESC Price to lower the loss.

This is especially so when you buy with hope and you already see pump and dump in action.

Escape Price can range from the last low of the previous price action or your trailing stop criteria.

Escape Price could be the matching price if you fail to close your position at the price you set for yourself.

Point 4 is also applicable to all the above 3 points as a follow up.

Last but not least, you can check out my earlier post on Stop Loss which is also applicable for all the above 4 points.

http://kenichiwealthmanagement.blogspot.sg/2015/06/let-me-share-alternate-view-in-stop.html

Trade and Invest Safely Everyone!

Let me share an alternate view in Stop Loss before i go take a nap.

Stop Loss so you can Bounce Back.

Let me share an alternate view in Stop Loss before i go take a nap.

1. If the marco market is bearish,

2. The counter you hold does not seem to have interested party to buy.

3. The counter you hold have consistent selling.

Why wait for the stop loss to hit then cut?

If your stop loss is $800/- at 0.035 and the currently the Bid Price is 0.036 and the Ask Price is 0.037.

You can cut at 0.036 if you dun see people buying up at 0.037.

In the above example, you saved $200/- from cutting at $600 instead of the original $800 you intended to.

Alternatively, you can spend the $200/- on your family and know that the money do good the right way.

When you keep the loss small, is easier to earn back the money.

You can also bet that there will be a rebound after a shake up but if you already feel stress and start hoping, you know the result liao.

Oh, i never mention short because it takes skill and timing and/or sometime scrips to short so i won't even suggest it here.

In fx, a short is a good alternative to hedge the position.

Position control of hedging might even bring winners on both long and short.

Trade and Invest Safely Everyone!

The below shows an example of no buy up at 0.037 but a constant sell down to 0.036.

The 1% Rule

The 1% Rule

Let's Go Straight to the point.

If your Capital is $30 000 and you are applying the 1% rule.

This means the amount of money you are willing to pay and not receive is $300. 

Excluding Buy and Sell:
Brokerage Fee, Clearing Fee, Access Fee and GST(7%) Fee.

Let's be more conservative in an open position in Trading.

The below example excludes the above fee which indicate the amount paid will be more then $300.
By text book theory, any Stop Loss is usually 2 pip below the lowest low.

With that, 1 pip will be $150 since the maximum you are willing to pay is $300.

If Stock A Entry Price is $1.00 and the Stop Loss is $0.98 which is $0.02/pips.

$300/$0.02 = 15 000 shares

In order to keep to the 1% rule of your capital you can only purchase 15 000 shares.

There are other ways of reading the above material to suit your own risk reward.

The important thing is to mange your risk well and mange your money well.

Trade and Invest Safely Everyone.

Time to start my Golf Lesson. Nibble only.

Time to start my Golf Lesson.

Nibble only.

A Most Basic Investment Idea of mine.

A Most Basic Investment Idea.

I hope this Idea of mine can bring encouragements to investment.

One thing about investment is definitely TIME and with time comes UNCERTAINTY.

We only pick up "business" we know and we can be "quite" sure it wont close door.

The important thing is what price we buy into and whether you have a cushion to give you back your principal amount.

How much is 5% dividend from a $20k investment?

Ans: $1000/-

$1000 * 20 years = $20k when we never reinvest the dividend. Yes. We are not even compounding here.

Did you take back your investment capital after 20 years?

After 20 years, is it free money?

What are the chances 20 years later the position did not appreciate?

Is all in our mindset and approach.

I hope this will benefit everyone here.

Good Night.