Please visit us at our New Website instead

Dear members,

Please visit our Club's new website at: http://www.sim-inc.org/

This www.siminvestors.blogspot will no longer be in use.

For further inquiries, please contact inc@clubs.sim.edu.sg

Smart Investment, Smart Investing Workshop(s)

Workshop 1: Investment Basics (13 March 2010)

Workshop 2: The Different Asset Classes (20 March 2010)

Special Price of SIM-INC Members - $10 per Workshop

Register for the workshop(s) now at:

http://spreadsheets.google.com/viewform?hl=en&formkey=dGFhWkh6UlJNSnZvcjh4U3FzUkZPTHc6MA

The Most Important Element in Investment

Research Article:
The Most Important Element in Investment

Section (1): The Question

What is the most important element in investment?

Section (2): Our Research Article’s Answer

Our answer is ‘Capital Preservation’.

Definition: ‘Capital preservation is a investment strategy characterized by a desire to avoid risk of loss.'

Section (3): Support for our answer

The wealthiest investor in the world Warren Buffet says it well:
“Rule No.1: Never lose money.
Rule No.2: Never forget rule No.1”.

George Soros (dubbed "the man who broke the Bank of England.") said:
“Survive first and make money afterwards.”

Gerarld Appel [ inventor of the popular technical indicator Moving Average Convergence-Divergence(MACD) ] said:
“It’s not how much you make that counts; it’s how much you manage not to lose”.

Larry Hite (Called by the daily Business Day an enormously successful investment manager of the 1980s. He is considered one of the top 100 traders of the 20th century.) said:
“If you don’t bet, you can’t win. If you lose all your chips, you can’t bet.”

Mark Tier [Author of “The Winning Investment Habits of Warren Buffet & George Soros” (international bestseller).] wrote:
“Preservation of capital isn’t just the first winning investment habit. It’s the foundation of all the other practices the master investor brings to the investment marketplace, the cornerstone of his entire investment strategy.”

Section (4): The Perils of Drawdown (making losses)

Drawdown refers to the percentage drop in your account size after one losing trade or consecutive losing trades.

For example, after a few losing trades, your $1,000 account is now left with $600; that would be a drawdown of 400/1000= 40%.

After losing 40%, the investor/trader now starts with a lower base, i.e., to undo the $400 loss, the return he needs to generate is 400/600= 60.66%.

The more severe the drawdown, the harder it becomes to undo the damage, as shown in the chart below:

Percentage Loss of Capital (Drawdown)	Required Return on Investment (ROI) to Undo Drawdown
10%	11.1%
20%	25%
30%	42.9%
40%	66.7%
50%	100%
60%	150%
70%	233%
80%	400%
90%	900%
100%	Infinite

Bear in mind that Warren Buffet, whom many people consider to be the world’s top investor, only makes a ROI of around 20%-30% per annum.

Section (5): Does a ‘Capital Preservation strategy’ restrict investors from making high returns?

Consider the traditional belief in the field of finance which states that “the higher the risk, the higher the returns”. If a trader/investor's primary aim is to make explosive profits (high returns) and not mainly to preserve his capital, his portfolio may be exposed to a much higher risk, which in turn increases the probability of his account suffering a drawdown.

Lessons are to be learnt from investors/organizations which do not make preservation of capital their primary aim. For example ‘Lehman Brothers’, ‘Long-Term Capital Management’, and Nick Leeson who singlehandedly incurred billions of dollars in trading losses, resulting in the collapse of Barrings Bank, these organizations went bankrupt because their primary aim is to make big profits at the expense of their underlying capital.

When a trader/investor's first priority is capital preservation he will refrain from trying to make returns from the market by speculations. He is likely to develop the good virtue of patience and discipline and will only buy or sell a new position when he spots what he considers to be a low risk and high probability trade.

Section (6): Tips/strategies to prevent Drawdowns

6.1) Always adhere to a strict money and risk management rule. Make sure that every trade is at most 2% of the
overall capital size. This will ensure that even if the trade turns sour, the losses incurred from that trade will
not create a big drawdown in the portfolio.

6.2) If you are a short term trader and not a long term investor, always set a stop loss whenever
you open a new long or short position. This will prevent you from making a severe loss if you are caught in
the wrong side of a trending market.

6.3) Educate Yourself: Be diligent to acquire the necessary knowledge that is required to make informed
investment decisions. Learn and try to master both fundamental and technical analysis.

Written by:
Liu Weimin
I.T. & Research Director (Academic Year 2009/2010)

~disclaimer:The information, statistical data and opinions contained herein are of the author’s own, and have been obtained from sources which he/she believes to be reliable, but it does not represent that they are accurate or complete, and they should not be relied upon as such. All opinions expressed and data provided herein are subject to change without notice. ALL investments involve different degrees of risk. You should be aware of your risk tolerance level and financial situations at all times. Read any and all prospectuses carefully before making any investment decisions. As you know, a recommendation, which you are free to accept or reject, is not a guarantee for the successful performance of an investment and we are expressly prohibited from guaranteeing accounts against losses arising from market conditions. SIM-INC and its members will not be held liable in any manner for any losses arising directly or indirectly from investment decisions undertaken based on the information/statistical data/opinions expressed.

Summary of Important Dates for Upcoming Events.

Please take note of the closing dates for registration of the following competitions:

Registration Closing Dates for Inter-University Competition:
1) The Nex Fund Manger Competition - 07th February 2010
2) FXUNI FOREX competition - 31th Janurary 2010.
3) OCBC Young Investors Stock challenge - 14th January 2010.

Registration Closing Date for Internal Competition:
1) FOREX Face-Off - 06th January 2010.

Please read the entries on this website for more information regarding the respective competitions, or contact us at inc@clubs.sim.edu.sg

Free Membership Registration

Hi friends,

You can register to become a member of Singapore Institute of Management(SIM)'s Investment & Networking Club (INC) at:

http://spreadsheets.google.com/viewform?formkey=clVLNDVzZGhsWWRyWmFxNks2Q2hNQnc6MA..

As an ordinary member, you will enjoy the following benefits:
• Attend various school, national and international events
• Meet industry professionals
• Learn to make informed decisions
• Develop your knowledge and abilities with like-minded people

For further inquiries, please contact inc@clubs.sim.edu.sg

SIM C.C.A Week

Dear Friends/members,

SIM C.C.A Week will be from 12th January to 14th January 2010, 12pm-4pm daily.

Please come down to visit/support our INC booth at the Atrium @ SIM HQ =)! and get free booklet/calendar/maganize (while stock last)

FXUNI FOREX Competition (Inter-Varsity)

Learn about the FOREX market, margin trading, strategies and best practices and put your skills to a test in an inter-university contest with SMU, NUS, NTU and SIM.

Attractive Prizes to be won!

Free FXUNI Seminar: 23rd January 2010,Saturday, 1.30PM at SMU - Lee Kong Chian School of Business Seminar Room 1.2.

Registration Dates: 13th January 2010 - 31th Janrary 2010
FOREX Programme: 1st February 2010 - 27th March 2010.

REGISTER NOW at:
(Please read and agree to the terms and conditions listed below before registering for this competition.)
http://spreadsheets.google.com/viewform?formkey=dFNkbWlFckFBeW1Meks2T29na3g5cnc6MA


This competition is organised by OANDA Asia Pacific Pte. Ltd (http://www.oanda.sg/) and co-organised by the Investment Clubs of SIM, SMU, NUS and NTU.

_______________________________________________________

OANDA FXUni

Terms and Conditions

Registration

In participating in the FXUni Education programme (the "Education Programme"), organised by OANDA ASIA PACIFIC PTE. LTD, assisted by Singapore universities1 ("OAP"), you are deemed to accept these terms and conditions. The Education Programme is open to all students of the said universities, regardless of age, nationality and country of residence. Corporate or other entities are not eligible to participate in this Education Programme. Each entry shall contain [details of contestants]. Multiple entries per participant are not permitted. All participants are to register through their universities and comply with the specifications for submissions stipulated or otherwise approved by OAP. OAP reserves the right to disqualify entries that do not comply with these specifications. OAP accepts no responsibility for late, lost, garbled or misdirected entries. All details and particulars submitted must be true, accurate and complete. Any incorrect or incomplete information submitted will result in the disqualification of the entry. By submitting your details and particulars, you consent to OAP using such information, and contacting you for the marketing efforts of OAP and/or its sponsor(s). You agree to participate in, at your own expense and all other publicity events in Singapore in relation to the Education Programme, without payment or compensation. You further consent to the public disclosure of any statement, comment or quotation that you may give, and the reproduction, adaptation and translation into any language and publication of the same by OAP.

Relevant dates

The education portion of the Education Programme commences on 1st Feb 2010 and closes on 26 Feb 2010. The contest portion of the Education Programme commences on 1st March 2010, 1300 hours and closes on 27 March 2010,1300 hours.

Prizes of Contest

Prizes to be given includes:

1st – Trip to Bali (4D3N accommodation + airfare for 2 person)

2nd – iPod Touch2 (8GB)

3rd – iPod Nano (8GB)

4th – Toni & Guy Voucher

5th – Executive Makeover

6th to 10th – Pair of GV movie tickets

1 Nanyang Technological University, National University of Singapore, Singapore Management University and Singapore Institute of Management.

2 iPod, iPod touch and iPod nano are trademarks belonging to Apple Inc. All other trademarks belong to their respective owners. This is not endorsed by, OANDA Asia Pacific Pte. Ltd. affiliated to or in any way associated with Apple Inc., Toni & Guy or Golden Village Cinemas

All participants will receive a participation gift. Prizes are not transferable, exchangeable or redeemable for cash, credit or other benefit in-kind. Prizes are also subject to the validity periods and any other terms and conditions as may be imposed by the prize sponsors. All prizes are not inclusive of any taxes and other expenses / costs, all of which are the sole responsibility of the winners. The winners of the contest will be announced on 31st March 2010. Winners will be notified by email or phone in accordance with the contact details provided with their entries. OAP may require proof of identity in relation to collection of the prize. Details of prize collection, transferability, acknowledgement of receipt will be communicated to the winners. Prizes not acknowledged within 48 hours of prize notification will be forfeited to backup winner(s). The winners’ names will also be published on the Website. The decisions of OAP on all matters relating to the Education Programme, including but not limited to the eligibility of participants, conduct of the Education Programme, the winners of the contest, and the determination or replacement or substitution of any winners or prizes, shall be final and no correspondence with participants will be entertained.

Internship

As part of the Education Programme, certain students may at OAP's sole discretion qualify for a period of internship with OAP. Qualifying students are subject to an assessment process by OAP. Student(s) selected for the internship will have to sign a separate Non-Disclosure Agreement with OAP.

Intellectual Property Rights

The entire right, title and interest (including intellectual property rights) in and to the entries (whether or not prize winning) and all materials submitted with your entry, and in and to all works based upon, derived from, or incorporating your entry or any part thereof shall vest exclusively in OAP, its successors and assigns. You shall do all things and sign and execute all documents as OAP may reasonably require to perfect, protect or enforce any intellectual property rights assigned to OAP under this terms and conditions. OAP shall be entitled, without further reference to you, to exercise all intellectual property rights in your entry, including

the use, adaptation, modification, reproduction, translation, exhibition, publication, display and archival of your entry or any part thereof in any context and with or without other material, in any medium now known or hereafter devised, whether or not for profit, for the full period of protection arising pursuant to the laws in force in any part of the world including all renewals reversions and extensions and to authorise others to do the same. In no event shall OAP be required to use any entry, whether in whole or in part. OAP, OAP’s representative offices, authorized agencies, contractors and sponsors, and the directors, officers, employees and assignees thereof shall not be liable for (a) any claim, damage, loss, injury or inconvenience arising out or in connection with the education programme or any prize, including the award thereof to or use thereof by any person; (b) any event of force majeure, including without limitation any calamity or conditions, acts of God, war or warlike hostilities, civil commotion, riots, blockades, embargoes, sabotages, strikes, fires, lockouts, shortages of material or labour, terrorist activity, epidemic, quarantine restrictions, health risk or any other occurrence beyond the reasonable control of OAP nor any of OAP.’s representative offices, authorized agencies, contractors and sponsors; (c) any entries or other communications that have been lost, late, illegible, incomplete, tampered with, corrupted, mutilated, misdirected or undelivered for any reason; or (d) any defect, failure, interruption, breakdown, malfunction, delay or unavailability of any postal services, machine, computer system, hardware, software, data processing system, email account, communications network or transmission link or other cause that in any way prevents or limits any person’s ability to submit a valid entry to the Contest or receive communications or that causes any damage to any person’s computer systems. You hereby release OAP, OAP’s representative offices, authorized agencies, contractors and sponsors, and the directors, officers, employees and assignees thereof, completely from any and all claims, demands, causes of action, expenses, damages, attorneys’ fees, obligations and suits, of any kind, in law, equity or otherwise, whether known or unknown, disclosed and undisclosed, now or hereafter arising out of or in connection with the contest, any prizes, your breach of any term or warranty of this terms and conditions and/or your acts or omissions in relation thereto. You further agree to indemnify and hold harmless OAP, OAP’s representative offices, authorized agencies, contractors and sponsors, and the directors, officers, employees and assignees thereof, from and against any and all such claims, demands, causes of action, expenses, damages, attorneys’ fees, obligations and suits.

No Liability

OAP shall not be held liable for any loss or damages suffered by the participants as a result of:-

• Any entries which are rendered void for whatever reasons, including any lost, late, misdirected, damaged, illegible or incomplete entries; or

• Any telephone, electronic, hardware or software program, network, Internet, or computer malfunctions, failures, errors, delays or difficulties of any kind; or

• Any condition caused by events beyond the control of OAP that may cause the Education Programme to be disrupted or corrupted; or

• Any injuries, losses, or damages of any kind arising in connection with or as a result of the prize, or acceptance, possession, or use of the prize, or from participation in the Education Programme; or

• Any printing or typographical errors in any materials associated with the Education Programme; or

• Failed, incomplete, garbled, or delayed computer transmissions.

_______________________________________________________

For further inquiries, please contact inc@clubs.sim.edu.sg

The Next Fund Manager Competition 2010

Prizes

1^st Prize - $1,500

2^nd Prize - $1,000

3^rd Prize - $500

Certificate of Participation (Top 10)

No experience? Want to learn more about what a fund manager does? Come attend the talk held by Fundsupermart on 21th January 2010 at LT1.11 (SIM HQ) at 3.15pm.

Admission to this talk is strictly by advance registration. However, students who are registering for the Next Fund Manager Competition will be given priority to attend this talk.
Please register for this talk/briefing (not the competition) by Fundsupermart at this link: http://spreadsheets.google.com/viewform?hl=en&formkey=dHRWRnUtXzU1UlJFN0pLelNHNnRsdUE6MA

(Please come early for registration)

"The Next Fund Manager" is an inter-university competition.

For more information/updates, please visit http://nextfundmanager-inc.blogspot.com/

REGISTER FOR THIS COMPETITION NOW AT:
http://spreadsheets.google.com/viewform?formkey=dHRaLVdESXdhRTJKbkY3Tm9zMHkxZmc6MA

Registration Closing Date: 07th February 2010.

Deadline for submission of Report: 07th February 2010.

For registered teams, please submit your written report to tnfm_inc@hotmail.com before 07th February 2010, 5.00pm.

For further inquiries, please contact inc@clubs.sim.edu.sg

OCBC Young Investors Stock Challenge 2010 has been launched !

Details:
Challenge Period: 18th Jan 2010 9.00am - 12th Feb 2010 5.00pm
Registration Closing Date: Extended to 14th January 2010.
Open to students only

REGISTER NOW at:
http://www.sias.org.sg/index.php?option=com_event&controller=show&task=show&id=57&Itemid=68

For inquiries, please contact inc@clubs.sim.edu.sg

Facebook Group

Hi friends,

Our FaceBook Group name is: "Investment & Networking Club (INC.)"

The link to our Facebook Group is:
http://www.facebook.com/group.php?gid=178272628922

Join our Facebook Group to get updates of our upcoming events, books review, links to website with excellent educational material, useful articles, group discussions and many other useful materials.


Best Regards.

Frequently Asked Questions

1. What is INC (Investment and Networking Club) ?
It's one of the clubs in SIM,established in August 2008. It's part of the SIAS (Security Investors Association of Siangapore) Youth Chapter.

2. What is our club's objective?
To promote financial literacy and interest among SIM's students, and to provide a networking platform for the students who shares the same interest in finance and investment.

4. How can I join ?
The membership is free. You can register through this linkhttp://spreadsheets.google.com/viewform?formkey=clVLNDVzZGhsWWRyWmFxNks2Q2hNQnc6MA..

5. What does the club offer ?
As an ordinary members, you will be included in opportunities to:
• Attend various school, national and international events
• Meet industry professionals
• Learn to make informed decisions
• Develop your knowledge and abilities with like-minded people

6. What's the distinctions between committee and ordinary member ?
By joining this club, you become an ordinary member. Committees organize event, run events together with the executive committee members.

7. How often do we hold activities ?
There're no fixed schedules for our activities. The activities (talk and competition) will be held with subject to the availability of the speaker.


For inquiries, please contact inc@clubs.sim.edu.sg

INC's Executive Committee AY2009/2010

Temporary use of .blogspot.com

Hi friends,

INC official website is www.simivestors.com.

However, due to some technical problems we are not able to update our website. Hence, this www.siminvestors.blogspot.com will be used temporary to update everyone about our club and all upcoming events.


Best Regards.

Investment & Networking Club (INC)

The Investment & Networking Club (INC) is a student-based
activity group of the Singapore Institute of Management (SIM), an
investment focused group dedicated to bringing institutional quality
research to individual investors.

Vision:
To be a student network of discerning, empowered individuals
who will continue to educate, learn and share.

Missionn:
To engage students in making informed and balanced investment
decisions.

Objective:
To promote the awareness and importance of investment in SIM.

Best Regards.

Happy New Year =).

Dear friends,

The Committee of Investment & Networking Club AY2009/2010 wishes every member a happy new year. May 2010 be a great and fruitful year for everyone of you :)!

We looking forward to networking with you at our events like talks, seminars, workshops and competition(internal and inter-university).

Best Regards,
INC.