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Showing posts from August, 2011

Investment Note Book

Do you have the habit to write a diary? I wrote investment diary, record down every trade done in stock market, buy or sell, in a note book. This keep remind me, every trade need proper planing start from research, monitor, set target price, list the Main Factors, execute the trading and sell strategy including if something went wrong. . Planing – Before buying a stock, have a plan, be it for short term trade (speculate) or invest for long term. List down the reasons why want to buy this stock. Invest in a stock is not as simple as buying 'kuih' at night market, you are not paying few dollars but thousand, hence need to be serious and careful. . If there is no reason of buying a stock, meaning you could have know nothing about the company or haven't done enough research. Usually I like to ask, “do you dare to buy more share if the stock price go down further tomorrow?” If the answer is “No” or “Not Sure”, then better think twice, maybe it's not good time to buy. Ano

Some snippets about TENAGA (TNB)

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TNB is the only electric power provider in Malaysia, the business is monopoly but they can not simply raise the price. My father was ex-worker from TNB, hence I know TNB since the first day of listing when I was studied at form six. Bursa market was so hot during 1992 bull run (that time know as KLSE), it came to record high of 1300+ points in one year. TNB IPO price was $4.50, it went to $7.20 on first day of listing. In few months time, TNB went to record high of $20. Then one day, out of sudden, it drop to RM15.50. One week later, TNB close at RM10. In the next one to two year, TNB ranging from $7 to $10. . One of my father's friend, Mr Lim, he bought some TNB share at $9. He added more when it drop to $8. When TNB drop to $7, he bought again but with more lots than before. That time, I don't understand the method, but later I noticed this is call Cost Average Down. In 1994 to 1995, people seem to forget about previous pain, TNB share price reached $12+ again and Mr Lim disp

Happy Investing

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Stock market is the great place!  But for some, it could be a pain, especially when people loss money. As the rules always come to say that losing money is 10 times more than winning. The feeling of losing one thousand is equal to earning ten thousand.  . With this volatile market which expect to continue in next few months, some people come out an idea of selling all your stocks and buy Gold. This has caused Gold price hitting highest record at $1854, when more people believed the story. Nobody can tell if Gold will continue to break higher record, but what we can tell is the trend is coming now. You can switch to Gold if you feel happy, the worst case if it's wrong, just switch it back, not a big deal. . The most important is your feeling, you need to feel happy when you invest. We feel happy when we are free from tensions and relax, love the way of living and love everything around us. . Happiness is a choice, every second of everyday, you make a choice. You can choose to

Learn How to Play the Money Game

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What is money? Everyone know the answer... but do you know money is one of the biggest pain in most people's life? Some will think how nice if I do not need to work every day. What's the key principal for lasting Wealth  ? The key to wealth is positive Cash Flow Anything reduce the amount of Cash is Expenses Anything that increase your Cash Flow is going to expend your level of Wealth.  Time can change for Money, but Money can not buy Time (Everyone is equal, 24 hours a day and will expiry if you don't use it) Cash can be generated from 2 main source, Passive and Passion . The aim is to build the Money Making Machine to generate Passive Income , let the money working for you. Money Making Machine need time to grow and generate income. Money management is to balance Expenses and Income (Expense = Income) The key to Financial Freedom: Income > Expenses In summary, learning how to play money game is important, it's involve certain skill and strateg