Blog Sponsor

Sunday, July 24, 2011

What is Left For KLSE (Part 2)?

Right, whoever managed to grab ARMADA IPO has 37% unrealized profit in your hand right now, if you haven't sell it. If you listen to OSK with it's fair value and sell when the market opens, you should be hitting your heart with your hand right now. Anyway, congratulations to those lucky subscribers who managed to hit ARMADA IPO. 

As we know KLSE is hitting new high and index approaching 1,600 points, it is getting more challenging to make money from stock market. What is your strategy to continue to make profit from the market? 


There are many strategies out there available. For fundamental analysis, I'm not sure whether you heard of dividend yield gap, Theme-Value-Time (TVT), PER with 52 weeks price range, etc. They are all quite well-known locally. I'm sure they can make money if you adopt any of them appropriately in the local stock market. 

However, there is no free lunch in this world. All the fundamental strategies required you to do lots of homework. The mandatory condition beyond the strategies is to understand very well about the market and company you are investing. Without understanding, you are just like gambling. Your chances to make money is a lot better if you understand what you are doing. It's just like doing a business. 

Like what Sun Tzu, the Art of War quoted, "If you know the enemy and know yourself, you need not fear the result of a hundred battles." Enermy perhaps indicating other investors and the market in the stock market, where yourself is your own attitude and the company you are investing. 


Okay, I've enough bull shit. The rule of thumb is, get some good fundamental books and study it, apply one of the strategies, understand the market and your target company, reserve your capital, wait for the buy opportunity and invest. Of course, don't forget to adopt a good exit strategy, i.e. take profit at 30% or fundamental change, etc. I believe that's commonly how an investor making money from stock market.

To be frank, I'm getting less active in stock market for the past 3 months, mainly due to I'm too busy with my job. I have very limited time to do my homework weekly. So I rather choose not to invest for the time being unless I have done my full homework. That is why you don't see much stock recommendation in this blog since the past 3 months.

Good luck, folks.



Related Articles by Categories


1 comments:

  • beauty said...
     

    The blog contains informational and educational material. The post enhance my thoughts and experience. So nice!
    I've got to scramble to keep up with your prodigious output!

Grab this Widget ~ Blogger Accessories