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Showing posts from December, 2011

The different between Fundamental and Technical Analysis

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Just read one article, you know how the author describe Fundamental and Technical Analyst? In a shopping mall, a fundamental analyst would go to each store, study the product being sold and then decide whether to buy it or not. A technical analyst would sit on the bench in the mall and watch people go into stores, then he study the patterns or activities of people going into each store. So, we can actually combine both: 1. Fundamental analysis shows us What To Buy 2. Technical analysis shows us When To Buy . Below two eBook from CIMB, feel free to download: 1. Fundamental Analysis 2. Technical Analysis  .

Flipping the Stock

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My friend ask me, how to make money in stock market? Actually, making money in stock market is not so difficult, there are many tools available today. Investment is all about plan with goal, strategies and follow by action. One of the easy strategy use by many is Buy and Hold.  Some suggest to buy only when market crash. It's true, timing and opportunity! While waiting market to crash, sometimes, we may use small percenage of our money to trade the stock . All the business actually involve in trading, buy low and sell high. The manufacturer buy raw material, process and sell at higher price to make profit The agent buy from factory and sell to consumer with higher price to make profit. Sometimes we also call this method as Flipping Strategy -  buy the stock for short term, with intention to sell it quickly on same day or few days. The best time to trade is during the uptrend formation. We know something is hard to move, but once move, it's hard to stop! Yes, momentum, stock

Single Tier Dividend - Good or bad for retail investor?

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Two years ago, Malaysia government introduce the system of Single Tier Dividend. There will be a transition period of 6 years until 31 Dec 2013 for the existing company to comply with this system. Many are so excited, because they say, oh... nice... now dividend receive no need to pay tax and no need to declare as well. Few weeks back, when I discussed with my team here and I noticed that many still unaware that we, as individual investor will lose a bit, especially for retiree. Why? Let look first why government want to introduce this system? Many reasons given, the main one, save administration cost to refund tax to individual and individual no need to pay tax as the tax under company is a final tax. By doing that, Government can boost their tax income and save a lot of follow up work! Imputation System The current system for dividend pay out is call Imputation System. For example, when a company make a profit of $100, government will take $25 (25% of tax) so the profit after ta

What you have learnt from Stock Market?

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One of my friend told me, he dare not invest in stock market, because he feel that market is unstable at the moment. Some day up and follow by few days down, he was unable to sleep well when he involved in Stock Market last time. Why we invest in stock market? If a company's stock selling at one dollar today, tomorrow and one year later, what's the fun to invest in stock market? We know one thing, inflation always happen, today's asset worth 1 million, it can become 1.2 million one year latter. Yes, we want Capital Gain! This is true only for investment grade stocks! We need market up and down to make money. The second thing I like to invest in stock market is because of liquidity. You can sell the stock you buy and take the cash within 3 working days. Hence, you need to select the right stock to invest, avoid those stock with low liquidity, unless you are very rich and willing to wait for years. Stocks do pay dividend, if you know how to “save” high divid