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Sunday 30 July 2017

Important rules for Investment

It is always important to remember certain important rules for all investors before trading in stock market,



1) Do not invest with borrow money

People always hope that the price will go even higher at the current price. So, they choose to borrow money to increase their stock portfolio.  This is not highly recommended, what if the stock price drop? No one can guarantee what will happen tomorrow, even on the market.

2) Diversify the portfolio

Everyone should diversify their stocks. Do not only 'ALL IN' in one single particular stock as the risk is way too high. Over diversify also quite difficult as too many stocks to monitor. Hence, please only select those stocks that you have done your detailed research on it.

3) Cut loss 

This is the most important rule, everyone should set a "Cut Loss" price for every stock. Many people loss a lot of money due to they do not perform a cut loss system. I will explain further on cut loss in the next blog as it involved Technical Analysis.

4) Invest as early as possible

Everyone learn from mistakes. By investing early, you could understand more about stocks and you might achieve the best returns after many years of investment. Always remember, stock investment is not a Rich Man's Game, anyone could be the stakeholders and gain profits throughout the years by dividends.

5) Avoid poor earning companies

Never invest into a company that have been losing money for the past few years. Normally, i will not invest in those companies that have negative earning (Not even a single year for the past 10 years).

6) Fundamental research

If you purchase stocks without a proper research, you are actually gambling money and you may lose money too. Hence, it is important to make sure that your selective stocks are not overpriced or no growing company. Fundamental research include PE, ROE, EPS, etc. I would be explaining it in details in the later part of the blog.

7) Do not over trading 

When a person over trading on the stock market, they will lose their conscious. They will slowly becoming a gambler and slowly they will lose track on their originally planned strategies. A good investor will only invest in a good fundamental stock and hold it for many years. For instance, the way that Warren Buffet invested in Coca-Cola.

Besides, I came across that Barclay Wall Street has set 10 Power Commandments rules for their employees, which it is quite interesting as it teaches people to respect their job as well as themselves while doing working in a investment banking.

Invest smart and don't lose money on the stock market.

Saturday 29 July 2017

Learn IPO Stocks Strategy Right now (Basic for Beginners)

What is IPO? Basically, it means Initial Public Offering (IPO). When a private company is planning to go on public listed, they will issued ordinary shares though an IPO. Most of the time, it is because of the private company wanted to obtain more fund for financing their operation costs.


There are many ways to obtain IPO, however different countries may have their different rules. For instance,

1) KLSE; Investors should obtain it through some paper works through banks or private institutions.
2) HSI; Investors could apply it through e-trading, which means that everything could be done through internet.
3) NASDAQ; Investors have to go through registered stockbrokers, they would request you to wiring funds to the firm before issuing the stock certificates.


What are the benefits from IPO? Generally, there are 2 types of IPO investors.

1) They have already fully understand and review about the company profile and financial report, so they would take an advantages of obtaining at the lower price (like Facebook, Airbnb, etc)

2) They hope to get profits of the price difference from the initial price on the first days. However, the prices may be lower than expected. Hence, it is not easy to gamble through IPO as there may not have enough information for investors to review.



Personal Advice for short term investors,
1) I would not suggest beginner investors to play with IPO as the information you found may be insufficient to analyze.
2) Try sell the stocks within 3 days, no matter Win or Loss.
3) Set a profit of 10%-15%, which is more than enough for most IPO (If only you don't have solid information to back up)
4) If the IPO initial price (before public listed) is lower than IPO price (Frist day on the market), try to sell on the same day.

Hope you guys could share and like the post. Thanks. :)