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Wednesday, July 13, 2011

What is Left For KLSE (Part 1)?

KLCI is going sideway early of this year, but the index is moving slowly towards 1,600 points. Did you manage to earn any money from the local stock market during these 7.5 months period?

To be honest, I did make some. I made some handsome profit from IPO and unrealized profit from all the stocks I bought end of last years.

Let's talk about IPO today, as it is 'used to be' my favorite making money vehicle. 


Since IPO is a vehicle which is almost proven to give huge return from the past records, a lot of traders and investors are targeting it right now. The chances to get it is really slim nowadays. Just look at MSM and ARMADA, the chance to get some lots is less than 10%, even you subscribed 100 lots. For small players and non-bumi like me, the chance is even lesser. 

Of course, IPO is about luck. If we got it, it is a bonus for us. On the other hand, IPO is not 100% can make profit, there is always exception, just like UOADEV. If this is the case, a bonus is a bonus. We cannot rely on it too much. We have to put our focus on our trading strategy.

The bull trend has rally for almost 2.5 years and the index is approaching 1,600. How much more to go up? We don't know. What I aware is, it is harder to gain profit from the stock market compare to 2009 and 2010. It is a challenging year. Strategy is one thing. Without hard work, it is even more challenging.

Perhaps some would comment that the easier way is to wait for the stock market to correct or slump. But are you able to wait for it, may be after 3 to 5 years from now while seeing other making handsome profit? Think about it.



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6 comments:

  • 十面埋伏 said...
     

    Do you manage to get ARMADA?

    please advise whether should keep it as long term investment (which I think so) or sell it when listing?

  • eKimkee said...
     

    Hey 南南, I have no luck and I did not get any. I doubt the chances to get is even lower than MSM this time. So you managed to get any? If yes, congratulations!

    O&G sector is the hot theme since the past 2 years. The duration for this cyclical industry is 6 to 11 years. If you want, you can keep it till 2015, by considering a mid-term investment.

    I don't think you need to sell it. Many long term investors will try to grab it in the first 2 days. Just like MSM, PCHEM & MHB, if you sell it when it is listing, you only can see others earn after that. Of course, it is up to you at your own risk.

    All the best.

  • 十面埋伏 said...
     

    Yes, I managed to get 20,000, consider very lucky after so many times failed to get those IPOs before it.

    As long as it won't like UOA, I think is safe to keep for mid - long term.

    Thanks for your advice.

  • Vincent said...
     

    20 lots? That's a fortune!

    ARMADA share price won't be performing like UOADEV. Shouldn't be a problem.

  • 十面埋伏 said...
     

    Yes, 20,000. My chance actually just 6%, so to me, it is consider very lucky.

    Thanks for your encouragement :)

  • eKimkee said...
     

    20 lots, you made an easy come fortune in few days time. Keep it up!

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