Chart in Focus

USDCHF (H4) - The bearish pin bar setup formed along the significant resistance near 0.9600 came off nicely producing a risk-reward of 1:3. Earlier, we can see that there were two pin bars formed near this horizontal line and this recent setup was also confluent with the current momentum downtrend(8EMA is below the 21 EMA). We should have entered when the price break below this pin bar, with the stop-loss placed one pip above the high. This is a very good example of trading with price action strategy.

2# Set A Realistic Budget

This is considered by Mr Patrick Lim, an associate director of financial advisory firm PromiseLand, to be the most basic good money habit and tool to control your finances.

A realistic budget that is drawn up an adhered to will go a long way towards helping one live within one's means.

"By keeping track of where every dollar is spent, the budget shows where the money goes to and how much is left over," he said.

in fact, why not go a step further, raise the bar and pose a personal challenge to yourself to become debt-free within a reasonable time-frame, says Alpha Financial Advisers manager Cai Zhong Zhien.

Another tip is to review your budget every 12 months, or when your circumstances change, such as when you receive a windfall or inheritance, or when you have a new addition to your family.

Aricle from '10 Good Money Habits', Straits Times, January 4th 2009.

10 Good Money Habits

Squirreling away more cash, keep close track of expenses and rebalancing your risks are even more important in a downturn

Many of us are only too glad to bid farewell to 2008, a year marked by much fear and panic resulting from the financial meltdown. Across the globe, unemployment rose, petrol prices rocketed up (before easing slightly) and house prices plummeted.

Financial experts warn of another tough year ahead.

But just because the outlook is bleak, this is no time to bury your head in the sand and hope the sun is shining again when you pull it out.

The start of any new year, let alone a year such as this, is an oppourtune time to dust down some of our old, longstanding financial habits, priorities and assumptions and make new resolutions.

Here are 10 good money habits to help you do just that.

1. Take stock of your cash position
2. Set a realistic budget
3. Paying yourself first
4. Start a regular savings plan
5. Managing your debt
6. Adopt a long-term view for investments
7. Understand your risk appetite
8. Go for low-cost and resilient funds
9. Contribute to the Supplementary Retirement Scheme
10. Pick robust stocks.

1. TAKE STOCK OF YOUR CASH POSITION

The standard financial advice during ordinary times is to have sufficient cash set aside to coverat least six months of your monthly household expenses.

With the current economic downturn, having six months may not be enough, says Ms Anne Tay, OCBC Bank's vice-president of group wealth management. This is because we should cater for contingencies such as pay cuts, involuntary leave or an unexpected job loss.

Fundsupermart reserach management Mah Ching Cheng sufffests that a good rule of thumb is to save up to 12 months of your monthly expenditure, depending on how rish averse you are.

This means that if your monthly expenditure is $2,000, a buffer of up to $24,000 would be a good amonth to keep in a deposit account.

Aricle from '10 Good Money Habits', Straits Times, January 4th 2009.