Review of My Portfolio

The stock market is turned from bear to bull within 3 months time. The bear has brought down KLSE 270 points and last for almost 3 months. The recent bull has comes back for more than a month and bring back KLSE 140 points. 

I believe most of the people did not manage to buy at the bottom of 1,310-1350. It's unpredictable. Not only that, many people also make loss from the bear and afraid of 2nd dip. In fact, this is the best time to test your strategy whether it is working. For me, my existing strategy is definitely sucks and need a lot of improvement. I'm surrounded with fear and I did not discipline enough to do my cost dollar averaging.

Anyway, let's look at my portfolio compare the worst and the latest as below:

26-Sep-2011 (Worst day)

28-Oct-2011 (Latest Price)

My result is badly drag by MUDAJYA and MEGB. From the trading result above, we can tell the followings:

1) Blue chips have less impact during bear market. If you really don't like to see negative a lot and you don't dare to buy during dip, go for blue chips.

2) Dividend does help you to improve your return yield and they also have less impact during bear market. So go for high dividend yield stock, like REIT.

3) Don't invest in poor financial result or cocky boss stock, like MEGB. It has already dip to RM1.10+ before the bear comes. I'm too naive that I think I can sell at a better price. So it is still in my portfolio.

4) No matter how worst it is, if the fundamental is remains, it will bounce back. So do dare to do dollar cost averaging for your counter. Examples are construction stocks like MUDAJYA and UOADEV.

5) If you have limited bullet and not invest in blue chips, try to cut loss @ 10% to 12% so you have more capital to invest at a better price during dip market.
6) If you want to have an outstanding return, you must dare to buy in the bear market where the stocks are already undervalue. Be greedy when others are fear.

My annual target for this year is to achieve 20% with RM100k capital, which is now behind the schedule even though I have took some profits before this. I only have 2 months left and I got to buck up from now.