“Do You Want to Know the Hidden Secret in “Think and Grow Rich” that can help you Tap Into The Millionaire Mindset YOU Need to Gain Financial Freedom?”
We have lots of graduates and professionals worked for many big MNC organisations and public listed companies till their retirement age 60 years old today. There are so many books and smart students graduated from top universities but we yet to see few RICH people in Malaysia. Why?
How many stock investment books and wealth motivation books have you read in a year? Do you really read, analyse and research the business of a listed company before you really invest money to the listed stock and to participate in the business for long term at least 3 years to 10 or 20 years?
Majority stock speculators or punters gamble or punt on the stocks in Bursa Malaysia and without understanding the fundamentals and financial position of the listed Companies. In short, they just buy based on hear and say or rumour news or read from stock pick in the media. Do they really know the skills and technicalities of value investing in a stock market?
Many stock investors use a unique blended approach consist purely of momentum stocks, volatility breakout and swing trade. Swing trading is a speculative-rumours-driven-activity in financial markets where a tradable asset is held for between three to ten days in an effort to profit from quick price changes.
A swing trading position is typically held longer than a day trading position, but much shorter than core trading or buy and hold investment strategies that can be held for months or years.
Profits can be sought by either buying an asset or short selling. Swing traders need relatively perfect timing and catalyst to buy at the intermediate bottom and sell at the intermdiate top of price oscillations to make a profit. Using a backtested technical models and strict money management rules, regular swing profits can compound returns over time.
Investment fund managers and Chief Investment Officers (CIO) of assets fund management firms ( like Phillip Capital Management ), institutions and foreign investors are long term valued investors invested in valued stocks and blue chips to hold for many years to reap their dividends and capital appreciation growth overtime. They do more study, research, analyse, interview directors and visits the listed companies to find out the performances of the stocks and the potential growth in their businesses and profitable results in future. In short, CIO invested in big pool funds to acquire valued stocks in volume and take longer period hold position and participate the businesses of the listed Company closely.
Unlike the swing traders or speculators ride on the short term game in the Bear and Bull markets based on market sentiments and emotions. Hence, they arbitrage and hedge the difference in stock prices rather than based on stock values. Swing traders hit on 100% speculative short term trading to generate more tax free capital gains than to wait for long term dividends.
The short term (swing) trader / speculator focus on short run below 1 year to 2 years stock holding period before selling for fast profits based on margin of safety, stop loss and differ in capital gains.
Below is a sample stock trades on short tem swing trading by a short term investor in IJM Company.
IJM is a construction stock traded from 4 Feb 2009 to 22 June 2009 after the US subprime financial crisis. In 4 Feb 2009, an investor bought 5,000 units in IJM Company for a purchase price at RM3.62 each ( as per CIMB contract note 1 below ) for total costs were RM18,124.43.
Short term investor in swing trade sold IJM stock at RM5.40 and RM5.45 each for RM26,968.94 (refer to CIMB contract note 2 picture below ) on 22 June 2009 after held for 4 months only and generated a capital gained RM8,844.51 or 48.80% returns on investment.
How many stock investment books and wealth motivation books have you read in a year? Do you really read, analyse and research the business of a listed company before you really invest money to the listed stock and to participate in the business for long term at least 3 years to 10 or 20 years?
Majority stock speculators or punters gamble or punt on the stocks in Bursa Malaysia and without understanding the fundamentals and financial position of the listed Companies. In short, they just buy based on hear and say or rumour news or read from stock pick in the media. Do they really know the skills and technicalities of value investing in a stock market?
Many stock investors use a unique blended approach consist purely of momentum stocks, volatility breakout and swing trade. Swing trading is a speculative-rumours-driven-activity in financial markets where a tradable asset is held for between three to ten days in an effort to profit from quick price changes.
A swing trading position is typically held longer than a day trading position, but much shorter than core trading or buy and hold investment strategies that can be held for months or years.
Profits can be sought by either buying an asset or short selling. Swing traders need relatively perfect timing and catalyst to buy at the intermediate bottom and sell at the intermdiate top of price oscillations to make a profit. Using a backtested technical models and strict money management rules, regular swing profits can compound returns over time.
Investment fund managers and Chief Investment Officers (CIO) of assets fund management firms ( like Phillip Capital Management ), institutions and foreign investors are long term valued investors invested in valued stocks and blue chips to hold for many years to reap their dividends and capital appreciation growth overtime. They do more study, research, analyse, interview directors and visits the listed companies to find out the performances of the stocks and the potential growth in their businesses and profitable results in future. In short, CIO invested in big pool funds to acquire valued stocks in volume and take longer period hold position and participate the businesses of the listed Company closely.
Unlike the swing traders or speculators ride on the short term game in the Bear and Bull markets based on market sentiments and emotions. Hence, they arbitrage and hedge the difference in stock prices rather than based on stock values. Swing traders hit on 100% speculative short term trading to generate more tax free capital gains than to wait for long term dividends.
The short term (swing) trader / speculator focus on short run below 1 year to 2 years stock holding period before selling for fast profits based on margin of safety, stop loss and differ in capital gains.
Below is a sample stock trades on short tem swing trading by a short term investor in IJM Company.
IJM is a construction stock traded from 4 Feb 2009 to 22 June 2009 after the US subprime financial crisis. In 4 Feb 2009, an investor bought 5,000 units in IJM Company for a purchase price at RM3.62 each ( as per CIMB contract note 1 below ) for total costs were RM18,124.43.
Short term investor in swing trade sold IJM stock at RM5.40 and RM5.45 each for RM26,968.94 (refer to CIMB contract note 2 picture below ) on 22 June 2009 after held for 4 months only and generated a capital gained RM8,844.51 or 48.80% returns on investment.
As at 28 February 2015, Investment manager and long term investor who continued to hold IJM stock for dividend yield at 2.11% with total dividend payout ratio of 28.24% and 5 year dividend growth at 33.26% and present stock price is RM7.18 per unit now. If the stock is sell at RM7.18 each x 5,000 units generated total RM35,500 (net proceeds), then the capital profit gain is RM17,375.57 or 191.74% since 4 Feb 2009 to 28 Feb 2015 *(i.e. 5 years) instead of 4 months above.
Majority RICH investors / retire rich pensioner / mutual fund managers and investment managers hold valued dividend stocks for long run to generate dividend yields, reinvestment, bonus issues and higher capital appreciation.
Majority RICH investors / retire rich pensioner / mutual fund managers and investment managers hold valued dividend stocks for long run to generate dividend yields, reinvestment, bonus issues and higher capital appreciation.
STOCK MARKET ABLE TO ENRICH YOUR RETIREMENT PLANNING WITH FREE HOLIDAYS, LUXURY CARS and BIG HOMES.
After you read Warren Buffett’s latest letter to shareholders, he’s got two other reading recommendations.“Where Are the Customers’ Yachts?” by Fred Schwed.
After you read Warren Buffett’s latest letter to shareholders, he’s got two other reading recommendations.“Where Are the Customers’ Yachts?” by Fred Schwed.
“Where Are the Customers’ Yachts?” by Fred Schwed. The rest of the title, which Buffett doesn’t mention is “Or A Good Hard Look at Wall Street.” In his letter published Saturday, Buffett highlights a cartoon of Adam and Eve and sums up the book this way: “Its wisdom and humor are truly priceless.” “The Little Book of Common Sense Investing” by John Bogle. Buffett says investors would be better off spending time with the books.
The moral of the story based on 4 rules of value investing:-
1. Don't listen to rumour and hearsay stock tips without doing own research and study on the listed companies recommended.
2. Do read more investment books and enhanced knowledge in value investing to find the right stocks.
3. Do hold on to long term valued dividend stocks investment for dividend yield, reinvestment and capital appreciation.
4. Don't gamble and bet in swing trading stocks at high risks than rewards.
5. Do focus on stock investment as participation in the long run business of listed companies.
Most important rules are HUMBLE and SHARING information with real good clients. Humble business person with sharing attitudes help build more wealth patiently over the years like Mr. Robert Kuok.
(Published : Monday 9 March 2015)
The moral of the story based on 4 rules of value investing:-
1. Don't listen to rumour and hearsay stock tips without doing own research and study on the listed companies recommended.
2. Do read more investment books and enhanced knowledge in value investing to find the right stocks.
3. Do hold on to long term valued dividend stocks investment for dividend yield, reinvestment and capital appreciation.
4. Don't gamble and bet in swing trading stocks at high risks than rewards.
5. Do focus on stock investment as participation in the long run business of listed companies.
Most important rules are HUMBLE and SHARING information with real good clients. Humble business person with sharing attitudes help build more wealth patiently over the years like Mr. Robert Kuok.
(Published : Monday 9 March 2015)