HWZ Forums

Login Register FAQ Mark Forums Read

*Official* Shiny Things club

Like Tree4650Likes
Closed Thread
 
LinkBack Thread Tools
Old 18-04-2018, 09:14 AM   #9991
Senior Member
 
sgdividends's Avatar
 
Join Date: Oct 2008
Posts: 2,245
My point is that it seems like you're trying to measure the risk of exercise. And if you want to do that, you might as well use delta as a proxy for the risk of exercise, because it is comparable across underlyings, and it's an industry standard risk measure.



I don't understand the question. If you get the direction 100% wrong, the option's going to go deep in the money whether it's a short-date or long-date option.



Yeah, it's not academic, and I say that with eight years running an options book under my belt. If you're going to take options trading seriously, instead of just selling puts and praying that you don't get assigned, you'll want to get a handle on how the greeks work.

IB calculates the greeks. You can implement the pricing algorithm yourself (the googlejuice you want is "equity option binomial tree"), but honestly it's too much work; just take IB's numbers.



Greeks aren't going to affect your execution; they're a measure of risk. Are you actually asking how to get better prices on your execution, or are you asking "how do I reduce the chance that I get assigned when I sell an option"?
Hi Shiny,

Thanks for the insightful reply.

Actually, both question is what i would like to ask.
1)How to get better prices on your execution?
2) How do I reduce the chance that I get assigned when I sell an option?

Do you know of any good websites written by people who actually trade these stuff something like a blog and not those generic ones like investopedia?
__________________
Take note that DBS and OCBC are sponsors of hwz and there are banks lurking SECRETLY esp. UOB
sgdividends is offline  
Old 18-04-2018, 11:29 AM   #9992
Master Member
 
swordsly's Avatar
 
Join Date: Jan 2008
Posts: 3,328
Hello.
Not sure if this question has been asked before but...

When it comes to setting up portfolio allocations, I know it is usually stocks X% and bonds Y%.
In this case, does the bonds portion also include cash-on-hand (e.g. savings account, emergency fund)?
If not, then does anyone actually include a 3rd portion in the allocation (stocks X%, bonds Y%, cash Z%)? If so, anyone has any guidelines on it that I can study on?

swordsly is offline  
Old 18-04-2018, 11:46 AM   #9993
Senior Member
 
Join Date: Dec 2016
Posts: 540
Hi ST and wealth farmer

ok. so when you say reduce the monthly subscription amount when I start off with the lump sum for that allocation, means each month I am actually topping up eg. using my savings from salary and take 200 - 500 for monthly top up? or I can just choose to leave it and come back for rebalancing after a year or so?
Yes, you set aside monthly (and consistently) the amount you can set aside for investment and you drip-feed it into your portfolio every month, come hell or high water. This is dollar cost averaging.

You can also choose to leave it and come back and rebalance after a year, but that would be an unusual wealth-building strategy. Unless you need to divert all your funds towards saving for a property perhaps? But even then, I'd still set aside a small amount for investment. This is because time is your friend.

so it is recommended that before I start my first investment, it is advise that I prepare 6 month of my monthly salary as saving first right?

My take home pay is only $2800, what is the amount u recommend I do investment every month? assuming I only use POSB investsaver


What is the minimum amount u recommend for doing investment using POSB investsaver? I understand that you mention $100 is a bit too low, and the there will be a fee of $10 per month
Not six months of your monthly salary, but six months of your monthly expenses. That's why I always recommend that serious savers track their expenses using an app. But otherwise, you should guesstimate and set six months aside in a liquid, capital-protected account. The purpose for these funds is not returns, so don't invest it. The main criteria is that it must maintain its value. So put it into a bank account, or SSBs.

Only you yourself can decide what amount you can set aside monthly for investments. Holding power is the key. Don't be too garang and set aside too high an amount. Don't deprive yourself just because you want to invest more. Everyone is different. Some need to provide more for parents, some people don't have girlfriend (yet), or don't have children (yet). Life circumstances change, and your investment amount will change as well. You must be honest with yourself. Try hard, but not too hard.

$100 for POSB-IS is not too low, and its not $10 commission per month. Flat 1% of investment amount for Nikko ETI ETF, and flat 0.5% of investment amount for ABF Bond ETF. So if you're gunning for STI ETF with $100, the commission is $1 per month.

Hi Shiny and the pros, I have been putting 300 into POSB invest saver every month for some time and it has around 7K inside now. I still have money to spare so thinking of opening a SCB account to buy IWDA and other international ETF,

Knowing that they charge fees differently so it's not wise to put in some every month like POSB, but a lump sum? What's the recommended frequency and amount say if I have 6K per year to spent on it? 1k per 2 months? 3k per half year? 6k at one go? Thanks all
You want to solve for optimal brokerage spent against reaping the benefits of the DCA process. Investing monthly would be truer to the DCA spirit, but will also entail more brokerage, which would not be optimal if your investment amount is not large. Based on previous conversations on this issue in this thread and for your amount, I think the consensus was every three months is fine. So in your case, that would be $1,500 every three months via SCB. This is, of course, subject to change if brokers' fee schedules change.

Hi all pros, anyone invest in Vanguard FTSE Global All Cap Index Fund? This is a accumulating fund that includes EM. This would be like VWRD but reinvested. Would this be better than IWDA? The only thing is higher TER. Also is VEU or VEA be a good holding instead of global ETFs if I already have 10% in Berkshire B stock and another 10% in US-related sectorial ETF? The TER on those are extremely low as well.
I think Vanguard FTSE Global All Cap Index Fund is only for institutional investors. I checked the website and the minimum initial investment amount is GBP 100k. Not sure if this is the same fund you're referring to?

VEU and VEA are domiciled in the US, and you will incur a 30% withholding tax on dividends. It's usually recommended for Singapore tax residents that we invest in ETFs or funds domiciled in Ireland and trading on LSE/Europe.

I want to know this also

Up for u, the IWDA thing like very interesting, everyone like buying it
Please don't think that this is "very interesting". Speaking from personal experience, the way of investing recommended here works, but the major downside is that it is very boring. You need to accept that, and don't get worked up about it. For e.g. you will never be able to go into your local kopitiam and brag to other people how satki your portfolio is. Banish that thought, and you will have a better chance of sticking to this strategy long-term, over the market upswings and downturns, and let all the other actively managed funds do the hard work for you.
Shiny Things likes this.
wealth_farmer is offline  
Old 18-04-2018, 12:16 PM   #9994
Senior Member
 
Join Date: Apr 2005
Posts: 1,842
Yes, you set aside monthly (and consistently) the amount you can set aside for investment and you drip-feed it into your portfolio every month, come hell or high water. This is dollar cost averaging.

You can also choose to leave it and come back and rebalance after a year, but that would be an unusual wealth-building strategy. Unless you need to divert all your funds towards saving for a property perhaps? But even then, I'd still set aside a small amount for investment. This is because time is your friend.



Not six months of your monthly salary, but six months of your monthly expenses. That's why I always recommend that serious savers track their expenses using an app. But otherwise, you should guesstimate and set six months aside in a liquid, capital-protected account. The purpose for these funds is not returns, so don't invest it. The main criteria is that it must maintain its value. So put it into a bank account, or SSBs.

Only you yourself can decide what amount you can set aside monthly for investments. Holding power is the key. Don't be too garang and set aside too high an amount. Don't deprive yourself just because you want to invest more. Everyone is different. Some need to provide more for parents, some people don't have girlfriend (yet), or don't have children (yet). Life circumstances change, and your investment amount will change as well. You must be honest with yourself. Try hard, but not too hard.

$100 for POSB-IS is not too low, and its not $10 commission per month. Flat 1% of investment amount for Nikko ETI ETF, and flat 0.5% of investment amount for ABF Bond ETF. So if you're gunning for STI ETF with $100, the commission is $1 per month.



You want to solve for optimal brokerage spent against reaping the benefits of the DCA process. Investing monthly would be truer to the DCA spirit, but will also entail more brokerage, which would not be optimal if your investment amount is not large. Based on previous conversations on this issue in this thread and for your amount, I think the consensus was every three months is fine. So in your case, that would be $1,500 every three months via SCB. This is, of course, subject to change if brokers' fee schedules change.



I think Vanguard FTSE Global All Cap Index Fund is only for institutional investors. I checked the website and the minimum initial investment amount is GBP 100k. Not sure if this is the same fund you're referring to?

VEU and VEA are domiciled in the US, and you will incur a 30% withholding tax on dividends. It's usually recommended for Singapore tax residents that we invest in ETFs or funds domiciled in Ireland and trading on LSE/Europe.



Please don't think that this is "very interesting". Speaking from personal experience, the way of investing recommended here works, but the major downside is that it is very boring. You need to accept that, and don't get worked up about it. For e.g. you will never be able to go into your local kopitiam and brag to other people how satki your portfolio is. Banish that thought, and you will have a better chance of sticking to this strategy long-term, over the market upswings and downturns, and let all the other actively managed funds do the hard work for you.
whats the optimal SGD to put in SCB IWDA at anyone time to maximise usage of fixed transaction.forex costs?
alexilaiho is offline  
Old 18-04-2018, 12:16 PM   #9995
Supremacy Member
 
Maeda_Toshiie's Avatar
 
Join Date: May 2007
Posts: 6,215
Hello.
Not sure if this question has been asked before but...

When it comes to setting up portfolio allocations, I know it is usually stocks X% and bonds Y%.
In this case, does the bonds portion also include cash-on-hand (e.g. savings account, emergency fund)?
If not, then does anyone actually include a 3rd portion in the allocation (stocks X%, bonds Y%, cash Z%)? If so, anyone has any guidelines on it that I can study on?

Emergency fund is separate from the portfolio. Do NOT mix.

The portfolio will only contain equities, fixed income securities, and any cash you intend to invest. If you can get an cash account that pays >2% interest rate for SGD, you can count that as part of your bond component. HOWEVER, the sum inside that you count as your bond component must NOT be anything other than investible cash. Otherwise, the investible cash in your portfolio is a bit of a drag on returns and should be a small percentage in the first place.
Shiny Things likes this.
__________________
イエッタイガー
Maeda_Toshiie is offline  
Old 18-04-2018, 12:49 PM   #9996
Master Member
 
swordsly's Avatar
 
Join Date: Jan 2008
Posts: 3,328
Emergency fund is separate from the portfolio. Do NOT mix.

The portfolio will only contain equities, fixed income securities, and any cash you intend to invest. If you can get an cash account that pays >2% interest rate for SGD, you can count that as part of your bond component. HOWEVER, the sum inside that you count as your bond component must NOT be anything other than investible cash. Otherwise, the investible cash in your portfolio is a bit of a drag on returns and should be a small percentage in the first place.
Ok. Understood. Thanks!
swordsly is offline  
Old 18-04-2018, 04:46 PM   #9997
Supremacy Member
 
soulblader_89's Avatar
 
Join Date: May 2016
Posts: 6,908
any good expense tracking app you guys used?

seedly app?

I used android phone
__________________
青山依旧在,几度夕阳红
soulblader_89 is offline  
Old 18-04-2018, 05:31 PM   #9998
Member
 
Join Date: Jan 2017
Posts: 117
any good expense tracking app you guys used?

seedly app?

I used android phone
I use Monefy because this app doesn't need alot of permissions.
buaytuckchek is offline  
Old 18-04-2018, 08:04 PM   #9999
Senior Member
 
Join Date: Dec 2016
Posts: 540
whats the optimal SGD to put in SCB IWDA at anyone time to maximise usage of fixed transaction.forex costs?
That depends on the individual's target brokerage expense ratio. I try to keep mine at or under 1% of invested amount. What's yours? Once you know your own acceptable cost benchmark, you will know what's your optimal SGD amount.

any good expense tracking app you guys used?

seedly app?

I used android phone
iXpenseit, Wally, Toshl are all viable. It's really not about the app though, it's having the determination and discipline to make expense entry second nature that's the key.
wealth_farmer is offline  
Old 18-04-2018, 09:23 PM   #10000
Member
 
tankahkee's Avatar
 
Join Date: Jul 2017
Posts: 140
#10000 Post!

Just had to. Sorry.
tankahkee is offline  
Old 18-04-2018, 09:25 PM   #10001
Junior Member
 
Join Date: Oct 2008
Posts: 39
China's imminent rise to power?

Hi Shiny,

With China's one belt one road initiative, all that crazy infrastructure growth, the fact that Chinese tend to save more (giving china banks more cash), their billion dollar investments in green energy, and Xi's presidency-for-life, should I consider investing/tilting towards China? Oh and the enormous Tencent and Alibaba which seems to be heavily affected by government.

It seems that according to the Fama-french 3 factor model, geography is not a factor that affects expected return. But still, I keep thinking that "THIS IS DIFFERENT". It's a global shift in power!

And don't get me started on how downhill America seems to be heading haha. Of course, there is Google, Facebook, Apple, Amazon holding the fort, but I'm beginning to get more and more worried about my vanguard ETFs invested in the US market. Is this fear justified?

Cheers!

Last edited by jacky817; 18-04-2018 at 09:33 PM..
jacky817 is offline  
Old 18-04-2018, 09:54 PM   #10002
Junior Member
 
Join Date: Oct 2017
Posts: 39
Emergency fund is separate from the portfolio. Do NOT mix.

The portfolio will only contain equities, fixed income securities, and any cash you intend to invest. If you can get an cash account that pays >2% interest rate for SGD, you can count that as part of your bond component. HOWEVER, the sum inside that you count as your bond component must NOT be anything other than investible cash. Otherwise, the investible cash in your portfolio is a bit of a drag on returns and should be a small percentage in the first place.
Thoughts about this article? https://www.betterment.com/resources/safety-net-funds-why-traditional-advice-is-wrong/

It states that one should jack up his emergency fund by 30% and then invest it into a 40/60 stocks bonds mix.
xyziop is offline  
Old 18-04-2018, 09:54 PM   #10003
Supremacy Member
 
hwzadmin's Avatar
 
Join Date: Apr 2005
Posts: 6,151
Dear members, please take note that this thread is now closed due to its huge size. A new thread has been automatically generated for your continued discussion here
__________________
[SIZE=1]Regards,
Administrator
[url]www.hardwarezone.com.sg[/url]
Connecting IT to You

Should you need to reach out to someone in charge, please PM the respective forum's moderator or start a discussion topic in the [url=http://forums.hardwarezone.com.sg/online-services-basic-membership-support-feedback-46/]Online Membership/Feedback Forum[/url].
[/SIZE]
hwzadmin is offline  
Closed Thread
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On