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Showing posts from 2013

Professional Trader

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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,

Time to finalise earning for 2013

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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

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, i

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

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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 poin

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

What happen to Insas?

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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 f

You can write your own wills!

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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

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 o

The Best Plantation Stock - UP

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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 comp

3 Simple Steps to Maximize Profit - Part 2

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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"!

3 Simple Steps to Maximize Profit

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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. Ch

Become a millionaire by investing in stock market?

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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

Genting Malaysia - one of international stock to play

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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 cu

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

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 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 ar

Good Trader?

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"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! .

Find the right stock to trade?

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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

Do you think buying stock is better or buying property?

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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 th

The reason to invest in Stock Market!

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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 pl

你愿意与什么样的人成为朋友?

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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. ..  .

Exchange Trade Bond and Sukuk (ETBS) – part 2

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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

Why Investor lost money!

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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 wh