Tuesday, October 7, 2008

What is the right time to buy in shares at Equity market?

In fact, nobody would know the support at which level. But these few days, I found that in the coffee shop and cyber chatting room, a lot of super analyst already given you some guide. Like, it would be supported at 960 or can slump down to 800 points. But in the beginning of this year, I remember was told by them, KLSE index hardly and impossible slumped down below 1,200 points.

So, I am here to advise if you are lucky to meet this type of analyst. Please trying your best immediately forget their prediction on KLSE index point. Because they are obviously and purposely bring you to wrong way of investment strategy.

As a responsible analyst, they should proof to you the supporting economic data for his estimated level. But in fact now, nobody could tell you what is the real condition in the global economic. The fundamental of economic has been destroyed by this 2 weeks heavy adjustment on commodity market as well as equity market. Everybody’s effort in this three or four years had burned in the air.

Is it really can’t define the lowest of index? For me, I have some idea maybe can help us or share with your are to identify the lowest: -

a) Refer to two coming quarter results for top 5 listed company for every sector. If turnover and profit adjusted more than 80% to 100%, the lowest is far to meet yet.
b) Refer to other country’s equity market, which they also export the same item to international market.
c) Ask yourself “ Would your fear to buying in at now or not?” If the answer is “No”. There is not the bottom yet.
d) While your received a message from one person who never playing shares in his life, nervously warn you “Do not buy share!” In this period, I can say that the equity market almost reaching the lowest.

The above is based on my own experience to define the future equity market trend. It would not a 100% accurate prediction but at least helping you minimise your risk on investment.

Monday, October 6, 2008

Apply Equity Investment strategy to understand you Lover

At present, if you are an investor. You should able to know this game is a tough game. In order to understand the basic of equity investment. You should had widen and well knowledge to build up your investment portfolio. Its consists of various strategy you should required and also required you had well knowledge on your normal life. These complex games attract a lot of people attention on it and also indirectly bring some common people involving although they hate this game. Why?

Recently, everybody know USA happen a Financial Crisis, the results of crisis hit the Wall Street giant company like AIG and Lehman Brothers fall into take over bid and bankruptcy respectively. Finally, USA FED compulsory implemented a Bailout proposal to restructure the fundamental of the Financial Institution’s assets base. It was incurred about USD700 billion from taxpayer money. Hence, as I mentioned above. Although you are personally not involving into equity market but government force you join into the party. Furthermore, if you are compulsory contributing certain percentage on you retirement funds. The said funds may also invest certain percentage into equity market. The above is the evident proof that you are being is the equity investor long time ago.
So, now I believed everybody would agree that equity investment is a high-class game. Can bring you step into trouble without your were informed.

Apart of the above, equity investment also is a good instrument to allow you to understand more on your lover’s real character. Like: -
a) If he/she had lose on equity investment. Although that is not you idea, but he/she is blaming on your never advice him/her in advance. It was indicated he/she is an irresponsible type of people
b) If he/she would like to blame you never assist him/her monitor the said investment. Means that he/she not eligible be a good leader.
c) If he/she listen outsource news to buying the investment, its mean that he/she does not have personal ideal plans for his/her future.
d) If he/she was lose on equity investment, but refuse to admit it. This indicated he/she very stubborn and always need people give priority attention on him/her.
That above prescribes on human being character just for you to understand more but will not 100% correct applying onto everybody. That is just suitable to apply it as an alert to remind you! Maybe, yours’ future partner is this type of human being.

Equity Display Screen

When any big adjustment into equity market, our local media would had a photo highlighted the people standing in front of big display screen to show their happiness or frustration. It made a lot of newbie (new bird) in doubt. Why be an investor must go equity firm to monitor the price? Hence, the newbie always worries if they spend the time to monitor the price, it may brings them lost a lot of enjoying time in their life.
The above query has mislead them do not simply involve any equity investment.

I do agree playing any game if never involve closely, it would not gave your good return. But honestly, I was being an investor so many years. Nor and neither sat in front of said display screen in the whole day. My experience was told me, if you spend a day to monitor your own investment, you will lose the direction. Because you would treat yourself can give some supporting on the said equity, if you stand it closely. But in fact, there is “Not”.

Your are not even know who is the equity market buyers and sellers display on the screen. How would you can easily assumed that or determined that, they are supporting or against the said prise. Therefore, those investors was standing in front of the display screen just only will mislead by own emotion. They would make some assumption, they would make some dreams, and they also would make some imagination. Will you want to follows them made such stupid reaction?

I am believed the youngest now love to play online cyber game. They can spend a day to meet the objective/target. But, I could say that 99% of them would not happy in the end of the game. Why?

Actually, the both games ultimate results were same. Everyone also aiming to be a winner but eventually the loser percentage always is higher.
I am not a good player in the online game. But, sometime I will spend one or two hour to release some tension of my life. Hence, be a good and smart investor, avoiding sit in front of display screen could bring you feel calm and steady. Just doing some record on your “bought share” daily moment like: - Highest/ lower price and volume done for analyst purpose. Use this data to match with the economic fundamental and overall markets moving trend. It would give you a good surprise.

Friday, October 3, 2008

Basic requirement to be a normal Equity Investor

In fact, a lot of young teenage want to be an equity investor, but they are worries: -

a) In hand capital/saving not enough
b) High risk
c) Bad return
d) Choose the wrong counter/company’s shares

Actually in my point of view, the above problems are “nothing”. Because: -

1) At present the minimum buying volume is 100 shares. Hence, the minimum capital for investment can be as low as RM100, if the market price for the said company is RM0.10 per share.
2) High risk is in life journey, because you and me do not know what is the last date of ours life. The equity investment, is one of the games in your life, if your investment is RM100, the maximum lose is limited to RM100.
3) In your life, bad return is happen in everyday. There is not such game providing you have guarantee good yield. People will claimed that Fixed Deposit is a guarantee return, but honestly the rate offering by bank is not enough to cover the yearly inflation. You just pick one of the food prices at 5 years ago compared with current price. You can fully understand what is bad return.
4) In the world, that is not any company can forever is survived. There is due to the technology and environment rapid changing in every minute. Today you may choose the right company but does not means that your are ultimate winner. (Example: - Lehman Brothers in USA and Transmil (stock code:7000) in Malaysia) Hence, regular make adjustment on you investment portfolio to fit the current environment situation is necessity.

No one can fully understand entire the business sector in this world. But the basic accounting theory and business law force the listed company fulfil certain condition. Base on this guide, you may obtain some important information to build up your investment portfolio.

The important on investment attitude is “You must always ask why?”

Thursday, October 2, 2008

Do you think US Senator is Stupid

I do not agree they are stupid. They holding the power to hammer out all lame proposal, it is to help USA population getting better benefit. They are also showing the power to allow the whole world equities market burn out trillion dollar in time of 24 hours.

Furthermore, i am 100% agreed they rejected the initial proposal. Why?

This is because of: -

a) we are cannot allow few fellow to take away the money but hold nil responsibility.
b) who started the game, he should be able to absorb it personally.

For KLSE, the overall market still weak, i believed IOI will challenge against the lower price. It would give heavy impact against to the index. So, recommend sell future index again in the next morning, and take profit again after adjustment at 25 points low from previous closed.