Jack Ma: If You're Poor At 35, You Deserve It.... An inspiring Jack Ma, now the richest man in China.

Just to share the write-up by Zach Ho as given below:-

You are poor because you have no ambition.

Jack Ma: Before I founded Alibaba, I invited 24 friends to my house to discuss the business opportunity. After discussing for a full two hours, they were still confused — I have to say that I may not have put myself across in a clear manner manner then. The verdict: 23 out of the 24 people in the room told me to drop the idea, for a multitude of reasons, such as: ‘you do not know anything about the internet, and more prominently, you do not have the start-up capital for this’ etc etc.

There was only one friend (who was working in a bank then) who told me, “If you want to do it, just try it. If things don’t work out the way you expected it to, you can always revert back to what you were doing before.” I pondered upon this for one night, and by the next morning, I decided I would do it anyway, even if all of the 24 people opposed the idea.

When I first started Alibaba, I was immediately met with strong opposition from family and friends. Looking back, I realised that the biggest driving force for me then was not my confidence in the Internet and the potential it held, but more of this:  “No matter what one does, regardless of failure or success, the experience is a form of success in itself.” You have got to keep trying, and if it doesn’t work, you always can revert back to what you were doing before. 

As with this quote by T.E. Lawrence – “All men dream: but not equally. Those who dream in the dark recesses of the night awake in the day to find all was vanity. But the dreamers of day are dangerous men, for they may act their dreams with open eyes, and make it possible.”

Jack Ma: People lose out in life because of these 4 reasons:

1. Being myopic to opportunity
2. Looking down on opportunities
3. Lacking understanding
4. Failing to act quickly enough

You are poor, because you have no ambition.

Ambition is living a life of great ideals; a magnificent goal in life that must be realised.

In this world, there are things that are deemed unfathomable, but there is nothing in this world that cannot be done. The depth of one’s ambition determines the potential of one’ future.

By way of example:

The Story of Juliet Wu Shihong – one of China’s first-generation professional managers, who gained success by working her way up the ranks from a cleaner, a nurse, a marketing executive, through self-education and learning on the job.

She had been the general manager for the world’s most famous multinational IT groups’ Chinese branches (Microsoft 1985-1998; IBM 1998-1999). She is also China’s first successful international corporate executive to join the executive team of a domestic private firm. Wu was seen as a symbol of the new generation of business executives that China has produced in its economic reform and opening-up.

When Wu started off in a big company working from the lowest ranks, her daily job was to pour tea and sweep floors. Once, because she forgot her staff pass, the company’s guard stopped her at the door and denied her entry. She explained to the guard that she was indeed one of the company’s employees, and that she had merely left the building for a short while to purchase office supplies.

Despite her pleas, the guard still did not allow to enter. As she stood at the gate, she watched as those of similar age to her, but smartly dressed in business attire walking through without having to show their passes.

She asked the guard, “Why are these people allowed through without producing a pass?” The guard dismissed her coldly nonetheless.

That was the turning point for Wu – she felt great shame, her self-esteem trampled on.

She looked at herself, dressed in shabby clothes and pushing a dirty push cart. Looking back at those dressed in smart attire, her heart felt a deep ache from the sudden realization of the sorrow and grief from being discriminated. From that moment, she vowed never to allow herself to be shamed like this again, and to become world-famous.

Since then, she used every opportunity to enrich herself. Every day, she was the first to arrive at work, and the last one to leave. She made every second count, spending her time learning the ropes. Her efforts soon paid off; she was made a sales representative, and quickly progressed to being the regional general manager of this multinational company in China. Wu did not possess strong academic qualifications, and was revered as the ‘Queen of Part-timers’. Subsequently, she assumed the position of GM of IBM China. This is the Wu Shihong, the heroine in China’s business circle.

If not for the incident, Wu Shihong would not have had the ambition to become rich, and her life would have taken a very different path then.

Moving Average Convergence/Divergence Indicator; MACD

"Moving Average Convergence/Divergence Indicator

This popular indicator was developed in the late 70s by Gerald Appel. It is a trend-following, momentum indicator that shows the relationship between two moving averages. Traders can use Signal line crossovers, centerline crossovers, and positive and negative divergences to generate signals and spot changes in trend direction, strength and momentum of a market.
The indicator consists of a MACD line, a Signal line, and a Histogram. The MACD line is typically calculated as a 12-day Exponential Moving Average (EMA) minus a 26-day Exponential Moving Average (EMA). The Signal line is typically calculated as a 9-day EMA of the MACD line. The difference between the MACD line and the Signal line is represented by the Histogram.

Signal Line Crossovers

Signal line crossovers are the most common usage of the MACD indicator. When the MACD line crosses above the Signal line, it could be viewed as a bullish crossover and suggests the trend has turned up. When the MACD line falls below the Signal line, it could be viewed as a bearish crossover and suggests the trend has turned down.
Since the Histogram shows the difference between the MACD line and the Signal line, a trader can see the crossover represented by zero on the Histogram. It can also help identify when the two lines are approaching a crossover. When the Histogram narrows, a crossover could be approaching and when the Histogram widens, the current trend could be gaining strength.

Centerline Crossovers

Centerline crossovers can indicate to traders that the direction of the trend has changed. When the MACD line moves above centerline (zero) and the values are positive, it could mean upside momentum is increasing. This happens when the 12-day EMA moves above the 26-day EMA. When the MACD line falls below centerline (zero) and the values are negative, it could mean downside momentum is increasing. This happens when the 12-day EMA moves below the 26-day EMA.

Positive and Negative Divergences

Divergences occur when the MACD diverges from the security’s price action and can signal the end of the current trend. A negative divergence takes place when the price of a security reaches a higher high in an uptrend, but the MACD weakens and records a lower high, suggesting less upside momentum. A positive divergence takes place when the price of a security reaches a lower low in a downtrend, but the MACD strengthens and records a higher low, suggesting less downside momentum."

The article above is a good lesson for me and the visual is found at the link below.

 http://www.ino.com/blog/how-to-use-macd/?ampm111513macd

Use Parabolic SAR generate buy/sell signal and to set stop loss points.

A technical indicator created by Welles Wilder, the Parabolic Stop and Reverse (SAR) is a simple enough buy/sell indicator that is a combination of price and time components to generate buy and sell signals. The Parabolic SAR is also effective as a tool to determine where to place stop loss orders.

In the chart below, the little blue circles form the Parabolic SAR.

• Buy Signal: When the price closes above the upper Parabolic SAR, this is a buy signal.
• Sell Signal: When the price closes below the lower Parabolic SAR, this is a sell signal.

The Parabolic Stop and Reverse (SAR) indicator combines price and time components to generate buy and sell signals. The Parabolic SAR is also effective as a tool to determine where to place stop loss orders.





This tool is useful for traders who want to prevent losses and protect profits with a stop loss order. A stop loss order is placed below the purchase price or above a selling price to minimize losses or protect profits should the price movement not turn out as expected/projected.

Once a position is entered, the preceding dot on the Parabolic SAR serves as the stop loss order.

Let’s take a look at how it’s used in the charts below:

Ichimoku Clouds or Ichimoku Kinko Hyo

(This article is adopted from StockCharts.com for my own reference only)
Introduction:-
The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. Ichimoku Kinko Hyo translates into "one look equilibrium chart". With one look, chartists can identify the trend and look for potential signals within that trend. The indicator was developed by Goichi Hosada, a journalist, and published in his 1969 book. Even though the Ichimoku Cloud may seem complicated when viewed on the price chart, it is really a straight forward indicator that is very usable. It was, after all, created by a journalist, not a rocket scientist! Moreover, the concepts are easy to understand and the signals are well-defined.

 Calculations:-
Four of the five plots within the Ichimoku Cloud are based on the average of the high and low over a given period of time. For example, the first plot is simply an average of the 9-day high and 9-day low. Before computers were widely available, it would have been easier to calculate this high-low average rather than a 9-day moving average. The Ichimoku Cloud consists of five plots: 

Tenkan-sen (Conversion Line): (9-period high + 9-period low)/2)) 
The default setting is 9 periods and can be adjusted. On a daily 
chart, this line is the mid point of the 9 day high-low range, 
which is almost two weeks.  

Kijun-sen (Base Line): (26-period high + 26-period low)/2)) 
The default setting is 26 periods and can be adjusted. On a daily 
chart, this line is the mid point of the 26 day high-low range, 
which is almost one month).  

Senkou Span A (Leading Span A): (Conversion Line + Base Line)/2)) 
This is the midpoint between the Conversion Line and the Base Line. 
The Leading Span A forms one of the two Cloud boundaries. It is 
referred to as "Leading" because it is plotted 26 periods in the future
and forms the faster Cloud boundary. 

Senkou Span B (Leading Span B): (52-period high + 52-period low)/2)) 
On the daily chart, this line is the mid point of the 52 day high-low range, 
which is a little less than 3 months. The default calculation setting is 
52 periods, but can be adjusted. This value is plotted 26 periods in the future 
and forms the slower Cloud boundary.

Chikou Span (Lagging Span): Close plotted 26 days in the past
The default setting is 26 periods, but can be adjusted. 

This tutorial will use the English equivalents when explaining the various plots. The chart below shows the Dow Industrials with the Ichimoku Cloud plots. The Conversion Line (blue) is the fastest and most sensitive line. Notice that it follows price action the closest. The Base Line (red) trails the faster Conversion Line, but follows price action pretty well. The relationship between the Conversion Line and Base Line is similar to the relationship between a 9-day moving average and 26-day moving average. The 9-day is faster and follows the price plot closer. The 26-day is slower and lags behind the 9-day. Incidentally, notice that 9 and 26 are the same periods used to calculate MACD.

Analyzing the Cloud

The Cloud (Kumo) is the most prominent feature of the Ichimoku Cloud plots. The Leading Span A (green) and Leading Span B (red) form the Cloud. The Leading Span A is the average of the Conversion Line and the Base Line. Because the Conversion Line and Base Line are calculated with 9 and 26 periods, respectively, the green Cloud boundary moves faster than the red Cloud boundary, which is the average of the 52-day high and the 52-day low. It is the same principle with moving averages. Shorter moving averages are more sensitive and faster than longer moving averages.
There are two ways to identify the overall trend using the Cloud. First, the trend is up when prices are above the Cloud, down when prices are below the Cloud and flat when prices are in the Cloud. Second, the uptrend is strengthened when the Leading Span A (green cloud line) is rising and above the Leading Span B (red cloud line). This situation produces a green Cloud. Conversely, a downtrend is reinforced when the Leading Span A (green cloud line) is falling and below the Leading Span B (red cloud line). This situation produces a red Cloud. Because the Cloud is shifted forward 26 days, it also provides a glimpse of future support or resistance.
Chart 2 shows IBM with a focus on the uptrend and the Cloud. First, notice that IBM was in an uptrend from June to January as it traded above the Cloud. Second, notice how the Cloud offered support in July, early October and early November. Third, notice how the Cloud provides a glimpse of future resistance. Remember, the entire Cloud is shifted forward 26 days. This means it is plotted 26 days ahead of the last price point to indicate future support or resistance.

Chart 3 shows Boeing (BA) with a focus on the downtrend and the cloud. The trend changed when Boeing broke below Cloud support in June. The Cloud changed from green to red when the Leading Span A (green) moved below the Leading Span B (red) in July. The cloud break represented the first trend change signal, while the color change represented the second trend change signal. Notice how the Cloud then acted as resistance in August and January.

Trend and Signals

Price, the Conversion Line and the Base Line are used to identify faster, and more frequent, signals. It is important to remember that bullish signals are reinforced when prices are above the cloud and the cloud is green. Bearish signals are reinforced when prices are below the cloud and the cloud is red. In other words, bullish signals are preferred when the bigger trend is up (prices above green cloud), while bearish signals are preferred when the bigger trend is down (prices are below red cloud). This is the essence of trading in the direction of the bigger trend. Signals that are counter to the existing trend are deemed weaker. Short-term bullish signals within a long-term downtrend trend and short-term bearish signals within a long-term uptrend are less robust.

Conversion-Base Line Signals

Chart 4 shows Kimberly Clark (KMB) producing two bullish signals within an uptrend. First, the trend was up because the stock was trading above the Cloud and the Cloud was green. The Conversion Line dipped below the Base Line for a few days in late June to enable the setup. A bullish crossover signal triggered when the Conversion Line moved back above the Base Line in July. The second signal occurred as the stock moved towards Cloud support. The Conversion Line moved below the Base Line in September to enable the setup. Another bullish crossover signal triggered when the Conversion Line moved back above the Base Line in October. Sometimes it is hard to determine exact Conversion Line and Base Line levels on the price chart. For reference, these numbers are displayed in the upper left hand corner of each Sharpchart. As of the January 8 close, the Conversion Line was 62.62 (blue) and the Base Line was 63.71 (red).

Chart 5 shows AT&T (T) producing a bearish signal within a downtrend. First, the trend was down as the stock was trading below the Cloud and the Cloud was red. After a sideways bounce in August, the Conversion Line moved above the Base Line to enable the setup. This did not last long as the Conversion Line moved back below the Base Line to trigger a bearish signal on September 15th.

Price-Base Line Signals

Chart 6 shows Disney producing two bullish signals within an uptrend. With the stock trading above the green cloud, prices moved below the Base Line (red) to enable the setup. This move represented a short-term oversold situation within a bigger uptrend. The pullback ended when prices moved back above the Base Line to trigger the bullish signal.

Chart 7 shows DR Horton (DHI) producing two bearish signals within a downtrend. With the stock trading below the red cloud, prices bounced above the Base Line (red) to enable the setup. This move created a short-term overbought situation within a bigger downtrend. The bounce ended when prices moved back below the Base Line to trigger the bearish signal.

Signal Summary

This article features four bullish and four bearish signals derived from the Ichimoku Cloud plots. The trend-following signals focus on the Cloud, while the momentum signals focus on the Turning and Base Lines. In general, movements above or below the cloud define the overall trend. Within that trend, the Cloud changes color as the trend ebbs and flows. Once the trend is identified, the Conversion Line and Base Line act similar to MACD for signal generation. And finally, simple price movements above or below the Base Line can be used to generate signals.
Bullish Signals:

• Price moves above Cloud (trend)
• Cloud turns from red to green (ebb-flow within trend)
• Price Moves above the Base Line (momentum)
• Conversion Line moves above Base Line (momentum)

Bearish Signals:

• Price moves below Cloud (trend)
• Cloud turns from green to red (ebb-flow within trend)
• Price Moves below Base Line (momentum)
• Conversion Line moves below Base Line (momentum)

Conclusions

The Ichimoku Cloud is a comprehensive indicator designed to produce clear signals. Chartists can first determine the trend by using the Cloud. Once the trend is established, appropriate signals can be determined using the price plot, Conversion Line and Base Line. The classic signal is to look for the Conversion Line to cross the Base Line. While this signal can be effective, it can also be rare in a strong trend. More signals can be found by looking for price to cross the Base Line (of even the Conversion Line).
It is important to look for signals in the direction of the bigger trend. With the Cloud offering support in an uptrend, traders should also be on alert for bullish signals when prices approach the Cloud on a pullback or consolidation. Conversely, in a bigger downtrend, traders should be on alert for bearish signals when prices approach the Cloud on an oversold bounce or consolidation.
The Ichimoku Cloud can also be used in conjunction with other indicators. Traders can identify the trend using the Cloud and then use classic momentum oscillators to identify overbought or oversold conditions. Click here for a live example using the Ichimoku Cloud.

Petronas Chemical == Just off the starting block

The chart above is for Petronas Chemical, which is just listed in BursaMalayisa on 26th November 2010.
This counter attracts institutional investors and has so far displayed great resilience when it is traded above the institutional IPO price of RM5.20. The weaker institutional investors would have sold off at least part of their holding and the resilience may be due to the stronger institutional investors still willing to accumulate on weakness. This counter is very liquid as it has eight (8) billion shares issued. coupled with the recent IPO there is ample free floating shares ready to find stronger hands.
From the chart above there is a possibility of a temporary double top at RM6.39 and a support at RM 5.93.
Also to be noted is that it is trading within an uptrend channel. Since it is now near the lower side of the uptrend channel and near to the support of RM5.93 it maybe good and possible to buy at below RM 6 so that a profit can be made if it goes up and away from the lower channel.It may move up to challenge the double top at RM6.39. If it fails to break through RM6.39 then it should be sold, otherwise if RM6.39 is successfully penetrated it can go higher and the wisdom is to let the profit run.
Another possibility is that it may go below the support line. If this happens a stop out will have to be executed say at RM5.80
The above is just my guess.

Phases of market

Market Phases
All markets, and certainly the share market go through phases that can be identified.
You will find the four central phases of the share market to be accumulation,
distribution, expansion and contraction. I have included an example of each below:
Accumulation
Accumulation generally takes place in a low sideways trending market and also
during an uptrend. Accumulation often develops when a stock has finished a down
trend and the market has found equilibrium (similar number of buyers an sellers) At
this point there are often institutional and long term value investors that have interest
in the stock as it would often be undervalued at this time based on fundamentals.
Distribution
Distribution generally takes place in a high sideways market and also during a
downtrend. And converse to accumulation, distribution occurs when a stock has
finished an uptrend and is beginning or is now perceived to be over valued by the
institutional and long term value investors based on its fundamentals.
Often distribution happens when the stock is still in favour with the general
public/media etc which means there are still plenty of willing buyers in the market.
However the distribution phase is the worst time to be buying a stock as a downtrend
often follows.
Note: Accumulation and expansion phases on Union Pacific weekly chart.
Expansion
Expansion occurs during an uptrend when there is disequilibrium in the market and
there are many more buyers than sellers. The share price often increases
dramatically and quickly. I have included below an example of a share during an
expansion phase. In order to profit from the expansion phase we use analysis and
theories like trend lines, Dow and Elliot wave theory.
Contraction
Contraction occurs during a downtrend when there is also disequilibrium in the
market and there are many more sellers than buyers. The share price often
decreases dramatically and quickly. I have included below an example of a share during a contraction phase

   

Kuala Lumpur Kepong (KLK) deserves a hard look, now

Crude palm oil (CPO) price is rising in tandem with Crude Oil price. Arising from there, KLK has a good revaluation by investors recently. KLK is well managed and is at the moment in the right sector of rubber and CPO, which both enjoy buoyant commodity price currently.
From the chart above, the initial climb is more gradual following the long term support line of S1S2.
Recently, it went over-drive to form a steeper uptrend channel C1C2, with a small hook down now.
With this chart formation, it will be an opportunity to enter a buy order around RM21.90, shown by the horizontal support line.

   

Bursa Malaysia looks good for an up turn

Bursa Malaysia Chart on 30th December 2011 

The chart shows that Bursa has a good chance to at least turn up in the short term fom here.

This counter is co-related to the volume of the market. As the market is having good volume lately there is a good chance for this counter to turn up at least for the short term.

The three (3) arrows show in the MACD, RSI and Stochastic chart seem to confirm that what I observe is true. MACD is about to form the golden cross and both RSI and Stochastic are in the lower area.

So it will be a good strategy to buy on weakness from now and sell it off when it hit the resistance shown by the upper parallel line.

Bullish Divergence... A lesson from hind sight with CBIP

This case study is based on the chart for CBIP, a counter listed on the Bursamalaysia.

The point of focus is bullish divergence.
This phenomenal of bullish divergence does not occur very frequently but once it appears it can be a good opportunity to act on it for profitable trade.

Look at the chart above, which is captured on 4th November 2010.
I have drawn two vertical lines to show the bullish divergence between price of CBIP and MACD
Bullish divergence here means that when the price of CBIP decline or make lower low the MACD forms higher low. Similarly there is also a bullish divergence between price of CBIP and its RSI.

Of  course, on 4th November 2010 it is already too late to use this information because from the occurrence of the divergence, which is around 22nd May 2010 , to the price level on 4th November 2010 there is a price increase of  about RM1.00. Just imagine you were looking at CBIP chart on 22nd May 2010 and a few days later you are convinced that bullish divergence has occurred and bought some CBIP shares and just hold on and wait,you would have made a handsome gain. Never mind we (including me) miss this opportunity but we should not miss the opportunity to learn the lesson of how to use the bullish divergence to trade profitably.


Any comment can be addressed to the writer, Lee Huong Sing

Lessons on balance sheet by investopedia

A balance sheet, also known as a "statement of financial position", reveals a company's assets, liabilities and owners' equity (net worth). The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company's financial statements. If you are a shareholder of a company, it is important that you understand how the balance sheet is structured, how to analyze it and how to read it.

The main formula behind balance sheets is: Assets = Liabilities + Shareholders' Equity
This means that assets, or the means used to operate the company, are balanced by a company's financial obligations along with the equity investment brought into the company and its retained earnings. The total assets must equal the liabilities plus the equity of the company.

Current assets have a life span of one year or less, meaning they can be converted easily into cash. Such assets classes include cash and cash equivalents, accounts receivable and inventory. Cash, the most fundamental of current assets, also includes non-restricted bank accounts and checks. Cash equivalents are very safe assets that can be readily converted into cash; U.S. Treasuries are one such example. Accounts receivables consist of the short-term obligations owed to the company by its clients. Companies often sell products or services to customers on credit; these obligations are held in the current assets account until they are paid off by the clientsAdd caption

Non-current assets are assets that are not turned into cash easily, are expected to be turned into cash within a year and/or have a life-span of more than a year. They can refer to tangible assets such as machinery, computers, buildings and land. Non-current assets also can be intangible assets, such as goodwill, patents or copyright. While these assets are not physical in nature, they are often the resources that can make or break a company - the value of a brand name, for instance, should not be underestimated. Depreciation is calculated and deducted from most of these assets, which represents the economic cost of the asset over its useful life 

On the other side of the balance sheet are the liabilities. These are the financial obligations a company owes to outside parties. Like assets, they can be both current and long-term. Long-term liabilities are debts and other non-debt financial obligations, which are due after a period of at least one year from the date of the balance sheet. Current liabilities are the company’s liabilities which will come due, or must be paid, within one year. This is includes both shorter term borrowings, such as accounts payables, along with the current portion of longer term borrowing, such as the latest interest payment on a 10-year loan

Shareholders' equity is the initial amount of money invested into a business. If, at the end of the fiscal year, a company decides to reinvest its net earnings into the company (after taxes), these retained earnings will be transferred from the income statement onto the balance sheet into the shareholder’s equity account. This account represents a company's total net worth. In order for the balance sheet to balance, total assets on one side have to equal total liabilities plus shareholders' equity on the other

Financial ratio analysis uses formulas to gain insight into the company and its operations. For the balance sheet, using financial ratios (like the debt-to-equity ratio) can show you a better idea of the company’s financial condition along with its operational efficiency. It is important to note that some ratios will need information from more than one financial statement, such as from the balance sheet and the income statement.