Tuesday, December 31, 2013

Professional Trader

One of my friend ask me how easy to be a professional trader? (buy and sell stock to earn a living)

He want to find out how much a trader can earn per month and if he is suitable for this job. Well, I told him, become a trader is not easy, it require special skill, similar to lawyer or doctor. However, one can train to become "subject matter expert".

 I don't know how much a professional trader earn on average... As long as one can take some money from the market, it's good enough. I belief if one can continue doing the same thing every day, he / she will become an expert. If an expert repeat the same thing again and again, he / she will become a winner. In other words, practice make it perfect.

I don't trade every day, as some day we just know it's not suitable for trading. It's no point to trade if you can not make the money. If you ask me today (31 Dec 2013) suitable for trading or not? My answer is yes, if you want to know what I trade for today, just click on below:

 
.
One may not understand what I am doing if just look at the above print screen. Let explain further, I bought AmBank and Sold Ambank, with buy order more than sell order. I also bought YTL and sell YTL, with buy more than sell order. I collect more FGV and net sell for CIMB. With this, I am sure there are few hundred of contra gain for today, not bad in the situation where market index drop by 5 points! The report will come out on next working day.
.
Let see what's the yesterday's result from the report when the market index surged by more than 10 points:


 With total of 9 contra gain, from 2 figure to 3 figure, all add up with total of 4 figures! Seem very easy, but those involve in the trading will know it's not that simple. Last, this info is for your reading pleasure only, don't follow what the trader buy or sell, as trader may change the mind any time. Anything buy may sell in next minute or hold for few days. Don't forget, I have practice this skill for many years!

Happy New Year Eve of 2014! (功力又增加一年!)
.

Wednesday, December 25, 2013

Time to finalise earning for 2013

Ho Ho Ho, Merry Chrismas! Year end is approaching and it's time to count how much profit (or lose you made?) in this year. Today is holiday at Penang too but I don't feel the holiday mood... if one go to Singapore now, they can feel the holiday mood. However, there's one place I plan to go, shopping center... try to feel the holiday mood there. In fact, I just went shopping just now... if someone tell me economy is not so good, I am doubt. The reason was all those departmental stores and shop lots are crowded. I bought couple of things and the waiting queue for payment took me about 30 minutes.
.
May be Penang people are rich? Perhaps people afraid of, if they don't buy now, when the GST implement, the goods will expensive? I meet with a friend at a shopping centre, and I offer to treat him lunch. So, we went to a restaurant, we noticed of new menu. (indirectly increase the price) I told my friend I am not “working” for more than 4 years but don't worry, I can still treat him good lunch, I can do charity and continue with my daily life. He seem hard to believe, like people assume, one must work in order to earn a living. Well, bird no need to work and they also don't worry for tomorrow either. In the olden day, good hunter only hunt one or two days in a month, of course, they must good with certain “skill”, to kill the prey with one shoot.
.
One of the “skill” in modern day one must have in order not to “work” is call Passive Income. I used to build these for years and last few years it started to bear a meaningful fruit... The money is enough for my daily expenses, beside, I used to do many other things like charity, help those who need help and donate to those who need it... this make me more understood the important and meaning of life.
.
While I am still waiting for couple of pay cheque to come, I think it's good for me to share what's are those pay cheque I have received for the month of December till date: 




AmFirst, Axreit and Hektar contributed for $6k++ for this month. An aunty once ask me, what if tomorrow Market crash? Should I afraid of market crash, why should I bother if I continue receive it's dividend. Like some people call it, hold the stock, just forgot about the price but count on it's dividend! If fact, I do hope market will crash, so that I can buy more if the stock fall to attractive price!


Monday, December 16, 2013

Buying Stock for Dividend income will not afraid of market crash!

"OMG... market is down again..." that was the history happen on 2009, some day in month of March. The news start to spread from US to all over the world. I still remember that scary news, market index was continuously down for 8 days without rebound! Then it just rebound for a day, but continue to break lower record again on next day when the market open.

It's hardly for anyone today to imaging how terrible the feeling if one just invest few thousand into stock market on the time. The ten thousand invested will end up became five thousand in few weeks time. I still remember my favourite blue chip stock like Maybank and Tenaga, both gave the discount of more than 50% in 6 months time! No joke, in less than half year, your asset just reduce by half!

I have record down all these investment lessons in a note book, it serve as a purpose to remind me, market is unpredictable, the party could end any time even in a big bull run. That's why don't speculate too much, instead look for dividend income stock and build the passive income asset as early as possible. This is what I always advise all my client, but sadly, very few people actually take note of this.

Thanks God... it's December again, someone ask me what happen if market crash! My answer is, why should I afraid... even if market really crash tomorrow, I can still receive my dividend income! To my surprise, he did not believe invest in stock market can generate so much passive income! Stay tune for my next post on what are the dividend received in the month of December.
.





Saturday, November 23, 2013

It's a bull market, why investor lost money?

We all know, the stock market all over the world is currently in the bull run (up tread) for more than 3 years since 2009. However, still we found many investors not making money, some even lost the money during this period. What's the reason?
.
In the bull market, not all stock are in the same up tread. The reason is not all the business are making profit, some with good profit but some of them with profit decline, or even continue to make lost for few quarter. As an investor, don't forget when we buy a stock, we are actually buying part of the business. If you buy a business that was making loses, even the stock market continue to climb up, you may end up losing money.
.
Predict the market. Many investor think that they can predict the market, they buy when stock index near 1,000 point, sell when the stock index hit 1,300. That's was 30% profit and hope to wait it come down to 1,000 point again. But the market is not going down, it when all the way to 1,500 points! Then he try to find another stock. Looking for new opportunity, however, most of good stocks are breaking record high, the only left, the penny stocks. Then he try to buy some of them. Few months later, the stock index up till 1,800 points, but the penny stocks, came with mix result, some going up and some going down.

The bull market is only happen after maths... you may say, “if I know the stock index will up from 1,000 to 1800 points, I will not sell my blue chip stock”. I can tell you, not many have the will to hold it even for one year. For example, when I recommend my client to buy Maybank at 2012, some of them start to buy. (http://bursastory.blogspot.com/2012/05/some-snippets-about-maybank.html) When the stock move till $9.00, many start to sell it already.
.
Do you want know how long I hold my Maybank stock? Five years? Ten years? Let me tell you, it's longer than that, I started invest into Maybank since I was at Form Six, though I only have my small pocket money. Over the year, when the market went down, if I had extra cash, I will turn it into Maybank stock and never sell it, or sell very small % if the stock went up a lot. I don't remember how many times Maybank stock hit above $10 and went below $5... I also not remember how many times it gave bonus shares or how many times it gave Dividend and recently through Dividend Reinvestment Plan.

.
This is one of the secret how to make money in long run, let the good business appreciate in value over the year and you will notice their dividend keep on increasing. If you are patient investors and would like to invest over the year, do come out a plan and consistently buying a stock every month or every quarter no matter stock price up or down. Of course, you may buy more if the stock price going down on that year. Try not to sell it, as the good business will keep on growing, you will know what's the meaning of investing after 5 or 10 years later!
.

Thursday, November 7, 2013

Barakah - Can you make profit of 40% or more from this stock?

Barakah is RTO company just list on Bursa on 6 Nov 2013, for details of the company, just refer to below Maybank Research:

http://research.maybank-ib.com/pdf/document/Barakah_Petroleum_IC_20131101_MKE_5275.pdf


Right now, the share price is around RM1.00, in the best case scenario, as per above research, they give the target price as RM1.40. (I think RM1.20 is reasonable).

Since the stock already jump up from 60 cents to RM1.00, investor might have missed the boat. However, there's a RCULS (Barakah LA) which now trade at around 62 cents. This RCULS can convert into Barakah share at 1:1 after one year (next year 2014 Nov). If 2014 the stock price for Barakah remain at RM1.00, investor can convert RCULS to Barakah stock and make a profit of at least 40% for one year. If Barakah stock price trade at RM1.20, then investor can make profit of about 100% for one year.

The risk is, what happen if Barakah stock price drop by 40% next year? (This will only happen if their profit drop by 20% or more, which is very rare case) If really Barakah stock drop to 62 cents on 2014 Nov, then investor who invest the RCULS can just sell the Barakah stock and take back 62 cents. Investor will lost money if Barakah stock price fall below 62 cents, again, the percentage for this to happen is very slim)
.
p/s: On 22 Nov 2013, this Barakah-LA now close at $1.20, investor already make more than 40% in less than one month!

Monday, November 4, 2013

What happen to Insas?

In the stock market, sometime you may find something look "cheap" but yet to discover by others.

Due to some good news, stock X have been moving up by more than 100%, from the low of 31 cents to $1.30 recently. The question is, how can one take advantage of this, since you already miss the boat? One of the way is to find out who is their major share holder. Sometime, if you are lucky, you may noticed company A hold 30% of stock X, however, company's stock price is yet to pick up...

Don't need to think twice, one can just buy into company A stock and wait for the magic.

Recently, we have similar case happen in Bursa Malaysia again... this time, company X is Inari, whereas company A is Insas. The time when we spot Insas was 55 cents, and today it's share price give a big jump again close at 78 cents...



The question is can Insas go higher from this level? This stock is fundamentally strong, profit is increasing every year and no need for me to elaborate further. Buying at this level, need to have certain "Kung Fu" if not, better stay side line.

If you are the one who worry too much, then don't touch this stock! (not only this stock, in fact, don't involve in stock market at all if you tend to worry)  Stock market is the best place for us to learn the journey of life. Smart investor know the price fluctuation is part of their life, the point is to take advantage of it to make some money. Sometime, making money or not don't matter, but to enjoy the journey. Price movement will not affect their life. In case if the stock price move into direction different from what they anticipated, they know what to do next!

Monday, October 28, 2013

You can write your own wills!

Last Saturday I attended a Wills talk seminar. For those who have stocks, properties and other asset, it would be good for me to share here regarding the Wills matter according to Malaysia's law. As a famous quote, one will never know if the dead come first or tomorrow come first. It would be good to prepare the umbrella before it rain. I have group some of the important points:

Who can write the wills? Anyone above 18 years old, as long as your will is executable and you had name a beneficiary(s) and executor (can name up to 4 executors). What happen if you don't have a Will? If one demise without a will, the asset will be frozen, your family member will need to apply for Letter of Administration (LA, a court order vesting someone with right to administer the one who die without a will) The family member would have to cope some difficulties and finally the asset will be distributed as per Distribution Act 1958 (Amendment on 1997) as per below: 


Spouse Children Parents
1 All X X
2 ½ X ½
3 X All X
4 X X All
5 One third Two third X
6 X Two third One third
7 One forth ½ One forth
8 X X X

In situation (8), the asset will distribute to the following persons as per order:
a) siblings
b) grandparents
c) uncles and aunts
d) great grandparents
e) great grand uncles and aunts
f) government
Sample Wills
It's important to write a Wills so that you can decide whom to give, be it your spouse or your friends, if not, your asset might drop to someone whom not as per your intention.
Exception: for EPF and Insurance policy, the beneficiary will always follow the "name" which nominated in EPF and Insurance policy. Meaning, no point to include this in your will.

The advantage of having a wills, if one demise, it's faster, cheaper to extract Grand of Probate than LA and you don't need a guarantor. You may choose who is the administrator of estate, instead of someone whom you don't know.

Write down list of asset, including bank's account, properties, business, stocks and other investments and place all the supporting documents in one place, the better is put in a folder. Then choose someone you trust as a Executer(s), discuss with he/ she (you may choose up to 4 person) so that they are willing to do the job.

Then write down the Beneficiary(s), it can be your spouse, children or friend. Then, find a Witness to sign on will (one or two witness), the witness CAN NOT be the beneficiary or your spouse (or beneficiary's spouse).
.
One can write as many wills as he wish in case he would like to change his mind, in this case, only the final version will take effect. Hence, it's good to include a clause to revoke all former wills. Last remember to sign the wills and don't leave any empty line. Any clause appear after the signature is consider invalid. Finally, keep the Will in the safe place and let your family member or beneficiary know about it.

Points to think of: Should you appoint professional to have a will writing service? If your asset is less than $10k, then Amanah Raya is find to consider if you don't want to DIY (which charge 2% of the asset). If the asset are a lot, then find a Lawyer or Will witting professional if you want to save all those problems.


Wednesday, October 16, 2013

If you still buy a stock base on news paper...

Many investors read the financial news paper and hope to make some profit from the news. How nice if one can read tomorrow's news paper today! However, base on my experience, it's not easy to make money in stock market by just look for this kind of tips. Sometime, it could be a trap! I had friend who bought a stock base on news paper's recommendation and hold the stock for more than 10 years... guess what's his return? It's a negative 50%, no joke, if he were to sell the stock today, then only get back half of money compare to original cost! To me, this is really a trap, as they never tell you when to sell, or in the worst case scenario, which point should the investor cut lost?
.
The stock market basically is a game for trader! We can find very experience old bird and new bee without and knowledge. Beside, we have business owner and directors of company, all of them come to stock market with one purpose, making money! They may create different types of trick or pattern by involving the reporter to achieve this purpose. This is one of the way how the “old bird” distribute their stocks to retail investors. Since they had a lot of stocks on hand, they need someone to tell a story so that they can sell their stocks in big volume without causing the stock price to fall. This is one of the reason why they may push a stock price to go up!  (of course, we have small percentage of business owner, who is the good business man and they may not do this)
.
Let see from the reporter point of view, they are thinking day in and day out, how to attract reader and increase the reading rate? Yes, find out what most people want to read and just write or sometime create a story. Since most people looking for market tip, they may just give one or two stock everyday. Some reporter will find out which stock on the move now and write something about it. Or may be, tell which company give the most dividend last year or who is the most potential company in next few years. Again, who doesn't know your mother is a women, most investors already know but may be they forgot?
.
Of course, we do have some responsible reporter, who try their best interview the business owner and give the fare view on the company instead of the business owner ask them to write what they told. However, it's really hard to tell who is telling the truth and who is not.
.
It's nothing wrong to read the financial news paper. However, we need to upgrade our level, equip ourselves with financial knowledge, knowing how smart people playing the stock market game. Then we may play the game according to the rules. Stock market, capital market or what ever market, there's always a supply and demand, who drive the price up and down. When the supply is equal to demand, the price will stable as buyer and seller are balance. If something happen, the price will move to one side. This imbalance will need to find some point where buyer and seller agreed with, then only we will see the balance situation again.
.
Having the knowledge of knowing the trend of the market is the key to the millionaire road. Don't just buy or sell a stock base on news paper!
.



Tuesday, September 3, 2013

The Best Plantation Stock - UP

Many of us may use cooking oil, cosmetic and biofuel, shampoo, icecream, lipstick, chocolate, cereals, canned soup and baby formula... but not many know that all these product contain palm oil. Malaysia and Indonesia both combine generate 80% of palm oil in the world. We try to look who is the best manage plantation in this area. I think for the time being, United Plantation (UP) is one of the best managed estate recognize by Ministry of Plantation, and one of the best smallest company in the world as per Forbes.

Not long ago, I came across United Plantation's annual report and noticed there are a lot of information about plantation, especially about palm oil. I never know manage a plantation in fact need to take care of so many things... A lot of information can be found in their annual report and article in  http://www.businesscircle.com.my. (Business Circle)


Carl and Martin, are the 2 key person lead United Platation (UP) together with their management team. As a company, beside making money, they also care for environment and social issue, going extra miles to balance between people, profit and planet. UP is about 10 times smaller than Sime Darby, but it has the highest yield of palm oil per hectare. Two of their secret weapons:

With the company landbank of about 40,000 hectares, it spend about RM40 million annually on human capital development is consider quite big the amount compare to others. The company also build house for their staff. They also have their own clinic for staff and family member, free of charge.

UP have more than three hundred people doing research for breeding and other related issue faced by plantation, with the intention to be the most efficient palm oil producer in the world. UP generate their own power and water. All the solid waste and pulp are burn in the biomass boiler and converts water into steam that runs turbines to generate electricity. The semi waste is converted into fertilizer. Methane gas from liquid waste are captured at the biogas plant, turn into steam and electricity. That's the way how they provide water and electricity to staff quarters and refinery. This is how they turn waste into something valuable and preserve the environment.

One more interesting thing, they have more than 2,000 pairs of barn owls living in the owl boxes. Each owls eat about 800 rats per year. Beside, they have about 169,000 bushes of yellow flowers that line along the estate road that produce nectar that attract wasps to eat up harmful caterpillars.



One UP is not enough, as there are many poor people need help and community need to have a better life, we need more company to follow UP's as an example, especially take care of environment. Many research and international investors give good rating for UP and I believe as long as they continue with the good job, the stock price will tell the story.



Tuesday, August 20, 2013

3 Simple Steps to Maximize Profit - Part 2

Investor can also search a list of stocks by indicate certain criteria by using iTrade@CIMB.

Just sign on to iTrade, click on the Fundamental Screener (Capital IQ) to start the search:

At the Fundamental Screener page, select the criteria, such as Country, PE Ratio or Dividend Yield:

Key in the value for the Screening Criteria:

The Fundamental Screener will show all the stocks that matched the criteria:

Get the second opinion by follow the "3 Simple Step"!

Saturday, August 17, 2013

3 Simple Steps to Maximize Profit

Do you know what is 3 SS?

3SS in CIMB's term stand for 3 Simple Step, which use the iTrade@cimb to maximize profit in stock market. If you don't have any idea how to trade local stock market, Bursa Malaysia, perhaps below can give you some light:


Step 1: sign on to iTrade: http://secure8.itradecimb.com.my/
Click on Research, you can view local Malaysia Stock and Foreign Stock Research as well:


Step2: Get 2nd opinion from Fundamental (Capital IQ) 
For example, if the recommendation from Asia Pacific Research for "IRIS" look viable, get the 2nd opinion by using Fundamental (Capital IQ) to check the performance of "IRIS" based on quarterly and annual financial reports. Click on News tab, and select Fundamental (Capital IQ) tab.

Step 3: Get 3rd opinion from Technical Charting and Indicators:
Right click and select Analysis Chart tab. A technical chart will pop up together with technical indicators for you to use and analyse further. Check if the technical chart and technical indicators show the right price and "time" to buy for this stock.

You may select Candlestick Chart + Indicators (MACD + RSI)






Sunday, August 11, 2013

Become a millionaire by investing in stock market?


In many years working in banking industry, I meat with many clients, many of them are millionaire. One of them Ah Chong, is a self make millionaire by just investing in stock market, he hope I can share his story with all who have millionaire's dream.
Ah Chong is a typical employee who work nine to five daily. Not many know that he is a millionaire next door, not even his neighbour. He stay in a 800 square foot apartment with his wife and a daughter, drive a second hand car. To him, money is mean for future security, not for showing off. He know that, to be rich, it's not about how much you earn, but how much one can save. If you earn ten thousand and spend eleven thousand, you will never have chance to accumulate wealth.
.
His story begin at age 17, where he started his first investment in stock market. At time, he thought that invest in stock market need to chase for tips, rush to buy and be the first one to sell. In few days time, he made few thousand by using this method. He never know that big sharks was always waiting at the side line. They spread rumours and let young investor like Ah Chong fall into their trap! How can the young investor like him manage to escape? 
.
After being badly burn, he learn the lesson, luckily that was his first 15 thousand. He decided to stop investing for sometime and concentrate with his University study. He work part time to earn and save some money. Of course, he still follow closely all the stock market related news. After completed his University, he work with one accounting firm and did some part time job as well. Why he work so hard? The reason was to accumulate money and wait for opportunity, since he was not born with silver spoon. Two three years later, Asia financing crisis happened, that year was 1997. To him, this was a golder opportunity. After discussed with his wife, finally, they decided to take out all their cash, about two hundred over thousand and bought all blue chip stocks. He still remember, Tenaga was selling at around $2.50 and Maybank was selling around $3.00
.
Three years later, their stocks value jump two to three fold... of course, Ah Chong make his first million! He slowly switch his stock to high dividend stocks. In the recent financial crisis which happen in 2008, he duplicate his method again. Today his dividend income is easily 90k to 100k every 9 or 10 months and he start enjoy his fruit by going travel one or twice every year. Now he only work the 9 to 5 job, no more part time or week end job!
.
This is the story he shared with me how he became millionaire in 10 years time. To him, become rich is very simple, one just need to focus on making, saving and investing the money. Don't focus on spending the money when you have yet to build the dividend income. Stay alert with financial market, read all the investment books while waiting for golden opportunity to come. Be patient, invest in big way on the right time! Become a millionaire is just a few step away!
.

Tuesday, July 30, 2013

Genting Malaysia - one of international stock to play


The news came out, this time, Genting Malaysia plan to invest over RM400 million to build the world's first Twentieth Century Fox Theme Park to replace the current old one. (involve RM3 Billion in capex spread over next 5 years) What's so special with this Theme Park? Perhaps we need to wait till 2016 then go and experience it, first in the world? I have never see it anywhere! The programme will include the construction of additional 1,300 hotel room to cater for the increase of visitors.
.

The chairman, Tan Sri Lim Kok Thay is always think big. In the big river, back wave is always push the front wave, his dream is even bigger than his father. That is the reason I always think that Genting Malaysia is having potential to grow bigger especially you see how they expand their casino in US.
.
The current theme park was 25 years already, it's time to give it a new look. As in the region, we can see Legoland and Universal Studios Singapore attract many visitors currently. The story tell by Mr Chairman, that the latest project with Fox will double the number of visitors from 3 million people currently. (I doubt if the visitor really can maintain at 6 million say for the next 10 years!) Anyway, I think for the first and second year, it will do exceptional well because of the novelty effects. For Malaysian, if they were to look for somewhere cool for holiday, beside Cameron Highlands, Genting Highlands will be another good destination. This is big project, similar to Disney land for Malaysia, so think Big is alright! (Maybe someone will think as if the Chairman hint that the profit may double?)
.
Another interesting point I want to know is how much they intend to sell the ticket for new Theme park? The current ticket price is RM53 per person. The Legoland is RM120 and Universal Studious Singapore is SGD96. (RM245) Assume they price the new ticket at RM100 and manage to double visitors from current 3 million to 6 million, then the new theme park's revenue will increase to at least 4x compare to current old one!
.
The Chairman look like doing a good job, the company sure doing well in the coming years. Those who trade (not invest) in this company will continue to make good profit if they know how to trade the share according to market conditions. This may view as bad news for investors as well, as the company's dividend may be cut to reduce when their project start. The way I look at it, well, it's the wisdom of the chairman, plan for the worst case that could happen when you are doing well, or Chinese say, 居安思危. For Trader in the market, think of the worst case scenarios if you are in the midst of enjoying the party, good luck!
.

Thursday, June 27, 2013

If you don't know what to do when face with Negative News


 Recently, few of my clients call me. They wanted to know what should they do with their investment in stock market, especially when negative news from China about some banks having financial problem or US want to end the QE.. Most of them want to know, is it time to sell, or continue to hold the position...
.
I think if an investors use the correct approached for investment, they should not influence and feel panic by this kind of negative news. In fact, I am quite welcome this kind of news, without the news how can stock price go up or down and let the smart investors make the money?
.
Ask a question, are you an investor or are you a speculator who look for one night stand? If you are a speculator, then, yes, you should run because most of the stocks are bought base on trend. If down trend start, just run first. If not, the money will be tight down. They will wait for the next opportunity or when the clear trend to form before enter into the market.
.
However, if you are an investors, look at the stock from business perspective. As long as the company is making money and the profit is keep on increasing year after year, there' no need to sell the stock. In this case, sorry for Gold investment, I can't see any benefit from business point of view, that's why it keep on falling in price after making the record high of USD1900.
.
The combination of investors and speculator had make the market imbalance, hence create the movement of stock price. This is good news for experience investors, as they know, em... it's time to make money again. In the end of the day, only experience investors know when heavy rain come, it's time to take out the water containers and prepare the keep more water. Time will come when the weather turn hot, everybody is willing to pay high price in order to exchange for water!
.

Wednesday, May 1, 2013

Good Trader?

"The goal of a successful trader is to make the best trades. Money is secondary. If this surprises you, think how good professionals in any field operate. Good teachers, doctors, lawyers, farmers and others make money - but they do not count it while they work. If they do, the quality of their work suffers." Dr Alexander Elder.



You are the one who choose want to have immediate pleasure or future freedom or security or status!

You are the one who pick which stock to invest!

You are the one who decide your future!
.

Saturday, April 6, 2013

Find the right stock to trade?


I wonder how our future building might look like? Perhaps from outside, a building with 50 story is nothing great, but when one go inside, there’s another 50 floors under the ground, which make it total 100 floors. There may be 10 lifts inside the building, each lift with indicator to show now the lift is “moving up” or “moving down”.

For active trader in stock market who buy and sell frequently, or those who want to learn how to trade in stock market, the first thing to know is understand this logic. If you want to go up to 50 floor, which lift should you take? The lift that currently “moving up” or the lift that “moving down”? It’s no harm to take the lift which currently on the way “moving down”, the worst is it might go down another 50 floors under the group and sooner or later, it will move up again. The point is, if you do so, you are not only wasting the time but also losing the opportunity as well, what if the lift go down 40 floors and stuck there? Hence, the wise move is to select and jump into the “moving up” lift and ride with it.

Since trader is a fighter, when they go to "battleground", they must have the right attitude and can not afford to wasting time. To buy low and sell high, the very first step is to select those stocks that are currently on the move, or we call it strong counter. This is similar to select the lift that currently move toward the direction you intend to go. If the intention is to sell higher, then select the uptrend stocks which on the move is the right choice. The tendency for the moving stock to continue move on the same direction is greater than select any other stock which stand still.

At times, we might jump into wrong lift. If this happen, admit the mistake and jump out of the lift immediately. In the stock trading, admit the mistake means to pay fee, or we call it cut lost. Admit the mistake and act fast so that the lost will be minimum. Regret now is better than regret later. Admit the mistake done and find ways for solution. There's always many stocks “on the move” out there.
.

Thursday, March 28, 2013

Do you think buying stock is better or buying property?


Well, there’s no definate answer. If you ask a speculator, they will tell you, trading in stock market is similar to gambling. However, from business view of point, when you give it time to grow, 5 or 10 years later, it will bear fruit, provided you choose the right business.

The problem is, not many know how to choose the right business. That’s why almost 80% of investors losing money in stock market in the past because 80% of the stocks are weak stock. Usually weak stock will become weaker and weaker, of course, their share price will become weaker and weaker too in long run. Some so call investors hope that they can buy these “cheap” stocks and sell for higher price. (or i should not call them investors, as the real investors will not invest in these type of stocks)


How to tell if they are weak stocks? Weak stocks usually have lots of debt and poor balance sheet. Their earning is inconsistent, almost zero or negative. They may face the risk of going bankrupt any time the most is only 10% of chance it will survive. If you were to buy these weak stocks, what make you think that their stock price will go higher than your buying price?

If weak stock just give us slim chance to win, how about strong stock? Strong stocks are very rare types of companies you can find, they have a superior earnings, making money in all seasons. Over the years, their share price will go higher and higher. Just imaging if you invest in these stock stocks, how nice if you notice the share price double or triple in 4 to 5 years time?  



What’s that related to property investment? Well, if you buy a house, you can hope for capital appreciation and collect rental. If you buy the stock stocks, you can hope for capital appreciation and collect dividend as well. The rental or dividend will go up every year! Finally, one beauty about the stock market, some time you can exchange between the strong stocks if the opportunity come... this is how we call it, grow your portfolio!
.

Monday, February 18, 2013

The reason to invest in Stock Market!


In my last gathering with one of my friend, we discuss about what are the investment options available here. We talk about properties and stock market. To him, stock market is very high risk, hence, he almost put everything he had into properties. According to him, properties is better than stocks as for the last few years, he seem making a lot of money in properties.

Yes, stock market is high risk if you don't know the company and the management. While the question is not about investing in stock market or properties which one is better, it should be where you park the money and still can sleep well. There are many investment options available out there, one need to choose a most suitable for your personal needs and investment style.

Most people afraid to invest in stock market because they scare of losing money, as they think stock price will go down and they don't want to lost their hard earn money. It's high risk to invest in stock market if lack of proper planing and buy on tips (speculate).

After so many years of trading in stock market, I have learn and develop a better trading plan for investing in stock market. In the last 20 years, there were numbers of listed company went bankrupt, it does matter if you being cheat, the important thing is you pay for tuition fee, never forget the lesson learn. This is one of the reason why I like to write my investment experience and shares with all my clients. That's the way how I learn and overcome the weaknesses and develop a better plan to avoid the similar mistake in future.

If you ask me how much profit to achieve is consider a successful investment? There's no standard answer, my opinion is, set your own target base on your standard, don't raise the bar too high. Base on one's thinking, the risk willing to take, the feeling and the life style to develop your own plan. I don't like to fall into the trap of greed, fear and compare with others, as this will create unnecessary pressure for myself.

The journey for investment and stock market is to know more companies, I respect those successful company be it local or foreign. We can understand how these companies contribute to economy and the country. We can learn how those Billionaire move their asset and create more value, how they manage their company to make profit and increase in numbers and contribute to society. This is the way how we can learn from them and make us become the better person and shares with others!
.

Thursday, January 24, 2013

你愿意与什么样的人成为朋友?




从幼儿园开始,每个人就都已经有一些选择朋友的原则——尽管并不自知。事实上,资源分布的不均匀,必然造成人与人之间的某种依附关系。观察一下,就可以看到事实:幼儿园里玩具多的孩子更容易被其他孩子当作朋友。那么,玩具最多的孩子朋友最多么?答案并非肯定。
如果你像我一样有机会、也恰好愿意多花一点心思与那个玩具最多的孩子交谈的话,你也很快就会发现,在他的心目中,与所有成年人一样,朋友被划分为“真正的朋友”和“一般的朋友”。以下我们姑且把那个玩具最多的孩子叫做“小强”。
当时我很好奇。耐心等待小强告诉我谁是他“真正的朋友”。最终,他告诉我,真正的朋友只有两个。其中一个是男孩,另外一个是女孩。那我就问他,“为什么你认为那男孩是你真正的朋友?” 小强一秒钟都没犹豫,告诉我说,“他从来都不抢我的玩具,他跟我换。”我又问他,“那,为什么你认为那女孩是你真正的朋友?”这次小强犹豫了好一阵子,在确定我会给他保密之后,磕磕巴巴地说,“她好看。我把新玩具全都先给她……”我笑。过一会儿又问他,“她觉得你好看么?” 小强愣了一下,满眼的无辜,“不知道……”我又问,“那她现在手里的玩具是谁的?” 小强突然显得很紧张,“不是我的。”我决定不去问那小女孩什么问题了。

所以,可以想象,资源多的人更喜欢,也更可能,与另外一个资源数量同样多或者资源质量对等的人进行交换。因为,在这种情况下,“公平交易”更容易产生。事实上,生活里随处可见这样的例子。哪怕在校园里,“交换”本质没有体现的那么明显,但是,同样性质的行为并不鲜见。比如,某系公认的才子,会与另外一个系里公认的另外一个才子会“机缘巧合”地邂逅而后成为“死党”。俗话常说,“英雄所见略同”,可能就是他们一间如故的原因,所以,他们之间的谈话以及任何其他活动往往都会让他们觉得相互非常“投机”。
This article take from leinvest.com, To continue reading... 
.


Tuesday, January 8, 2013

Exchange Trade Bond and Sukuk (ETBS) – part 2


Last year, we were informed that Bursa Malaysia plan to launch it first ETBS in Malaysia and I write something about it. (click here) However, the plan was delayed until 2013. Last few days, only noticed they plan to launch ETBS on 8 Jan 2013. The proposed Exchange Trade Sukuk will be issued by Dana Infra (guarantee by Government of Malaysia) with profit rate of at least 3.70%, payable half yearly with 10 years of expiry date.

ETBS is a bond / Sukuk issued by Government of Malaysia or corporates to raise fund for their need. Sukuk is bond issued compliance with Shari'ah principles.

With ETBS, investors can now have a broader choice of product which yield stable returns with capital protection if held to maturity. Investor can expect steady flow of income knows as coupons / profit.
This is an asset class to hedge when markets are bearish, and means to develop stable income for many years.

Now the question is, should you invest this ipo, the first retail bonds in Malaysia through IPO? Some would say yes, if you look at the point, the bond is guarantee by Government of Malaysia. Also, if you have no idea where to park excess funds, no harm to enter this low risk product, balance your portfolio with 3.70% stable income every year.

For me, I will only try small portion of fund in this ETBS as I can still find other investment option which provide better return of more than 3.70% per year. Let the market force to decide the pricing for this bond, if anything unexpected happen and cause the yield return to be about 5% or more, then it's an opportunity!
.
p/s: As expected, the listing of ETBS on 8 Feb 2013 not really exciting, the price quote was RM101.30 compare to IPO price of RM100.00. (stock code: 0400GA)
.

Saturday, January 5, 2013

Why Investor lost money!


Many research report shows that only about 10% of investors are making money in stock market. Meaning to say, most of the investors are losing money in stock market! Few years back, I was not quite agreed with this statement. However, after I became a Dealer, from the record, seem it's true that almost 80% of “investors” are losing money.

Beside my personal experience, (listen to the rumours and buying the troublesome company), I think most of the “investors” have no idea if they are investing or speculating. For instant, rumours about ABC stock having some good news to be announced, people will rush in to buy ABC stock. However, ABC stock never go up, but XYZ stock going up. In this case, investor will change horse, by selling ABC stock and buy XYZ stock.

After buying, XYZ stock price become stagnant, but ABC stock price start to go up. In this case, should you change horse again or wait? This is the problem faced by most investors, what they buy never go up, but what never buy go up in price! In fact, if you keep on changing horse, this is not investing but speculating... nothing wrong with speculating. The problem is, the investor use the method of investing apply on speculating, that's the killing part, every goes wrong!

Investing is long term process, where one need to study the company's profit and agreed with company's management style then only put in the money to invest. After invest, if the stock price fall in price, investor dare to put more money to invest more shares at the low price. In this case, investors need few years to grow with the company. When the company start to bear fruit, the stock price will double or triple, and of course, follow by handsome dividend too!

However, speculating is the process of hit the right horse. If jump on a wrong horse, then change immediately and find another black horse. Once you find the right horse, stick to it until last drop of blood, jump down when the horse is tired. Meaning, for a speculator, he need choose the right stock, and let the profit run until momentum slow down, before decide to sell!

A friend of mine had brought a stock which went up nearly 200% recently. That day I meet him and I thought he earn a lot for this stock. But guess what? He sold the stock when it just move up 50%... the reason? He couldn't stand the “shaky horse” so he get out quickly. Oh boy! If you take a plane to US and weather is not so good, the plane will become shaky as well, do you jump down the plane before it reach the destination? Whether speculating or investing, as long as you know what you are doing, then it's fine. After all, they have the same goal, that is making money. “We don't care it's a black or white cat, as long as it's able to catch mouse, it's a good cat!”  
.