Investment vault wishing all readers Happy Chinese New Year. May the Bull wake up from its hibernation for past one year and live up the spirit to chase the Bear Nian away.
Friday, January 23, 2009
Happy Chinese New Year
Investment vault wishing all readers Happy Chinese New Year. May the Bull wake up from its hibernation for past one year and live up the spirit to chase the Bear Nian away.
Thursday, January 8, 2009
Trading results after a week
As promised, i will post my trading records here. From the table, as you can see, i have started with a higher volatile equity product - warrant. As the market is expected to be volatile for Q1 2009. We should ride with the wave of the volatility.
Bought 25k of Ramunia-WA and sold all at different day. profit RM257, return 8.8% in a week, not to bad ah.
Ok good news is told, now is the bad one. On 6 Jan, 50k Resorts-CH was bought at RM0.85. Currently, i am sitting with paper loss of RM700 just for this counter. that translates to 16% loss. Do you find any error in in writing??
Actual the purchase price is RM0.085 not RM0.85 (first line third para). i was supposed to queque for RM0.085 (it was traded at RM0.09 at that time), unfortunately i have keyed in RM0.85. As a result, the system will match the best price at RM0.085 instead of what i keyed in.
Lessons learn:
1. any derivatives products are highly volatile, it surges fast, slump quciker, for starter dont start with this prodcut;
2. start your paper trade, learn or season yourself with the trades of trading first.
3. start as early as you can, as you are probably aware, its darker before dawn, all bad news has been looming around the world, but market has reduce to go down further, probably in 6 to 9 months time, we will have switch strategy to investing instead of speculating.
Happy trading.
Thursday, January 1, 2009
Start My Trading Adventure
Today is the first day in 2009. Wish to take this opportunity to express my greeting to all of you Happy New Year 2009. Have you completed your New Year Resolutions and wish list or to do list?
Well, for me i have finally decided to start my virtual trading starting from tomorrow 2 Jan 2009, the first trading day in 2009. I have been educating myself for the past two years in stock trading and investment through reading lots of books, blogs, research reports, reading about technical analysis, fundamental analysis and so on. As rightly pointed out CPTEH, education is a critical factor to have edge in stock trading.
For the past two years, I have enjoyed the education journey and it has really expanded my knowledge on various aspects of world and local economy. I have also learned that we should have our independent view of the state of economy of the country rather than relying on the news from the local politically controlled news paper. I do not need to name it, you should know. I have decided to discontinue the subscription of the local English paper instead subscribed for the Edge.
Besides, learning about the co-relation between the state of world economy and the local economy also enhance my understanding as to why movement in DOW has an impact on other stock market worldwide. As you probably hear before that “When the USA sneeze, the world will catch a cold”. It shows that the state of health of the USA economy is a barometer of the state of economy world wide. However, opposing to this belief, there is also a group of economists strongly suggest that the economy of Asian countries is slowly de-couple from the US due to the relentless growth from the countries like China, India, Vietnam and some of the countries from South America.
The idea I wish to highlight here is economy is a very complex subject. Various economists equipped with different school of thoughts will continue to bring forward their argument on certain economic topic. It is rather confusing to all beginners who have problems in understanding the topic discussed. DON’T WORRY, I was one of them before this. After two years of bombarding myself with all kinds of investment books and readings, my advise to you is sum up as that all economy has a cycle to follow ie peak and trough. Whatever predicted and argued by the economist is NOT crucial from the stock trading point of view, as the stock market is a voting machine in short term and a weighing machine in long term, all information should have been discounted into the price of individual securities.
Stock trading is a zero sum game, ie someone need to pay for your profit you made. There is general belief that only 20% of the market participants make money from stock market while 80% of them continue to loss. Hence, before your start your stock trading journey, I suggest you do the same as me spend a year or two to re-educate yourself in finance as I wish you will in the 20% category. Please take note that by virtue of you reading my blog, you are already in the right track marching to 20% category. After all, it only makes sense to be in market if you are able to beat 4 participants at any point of time as occasionally we will be beaten by the insides who are deemed to be privy to the certain information that is not flows to market. Stock trading is a high risk game, so get yourself prepared before you enter.
I will try to post my stock portfolio starting tomorrow, if possible. Let see how many participants I can beat. Once again, happy new year.
Wishing you and your Family
Happiness, Success & Good health
Well, for me i have finally decided to start my virtual trading starting from tomorrow 2 Jan 2009, the first trading day in 2009. I have been educating myself for the past two years in stock trading and investment through reading lots of books, blogs, research reports, reading about technical analysis, fundamental analysis and so on. As rightly pointed out CPTEH, education is a critical factor to have edge in stock trading.
For the past two years, I have enjoyed the education journey and it has really expanded my knowledge on various aspects of world and local economy. I have also learned that we should have our independent view of the state of economy of the country rather than relying on the news from the local politically controlled news paper. I do not need to name it, you should know. I have decided to discontinue the subscription of the local English paper instead subscribed for the Edge.
Besides, learning about the co-relation between the state of world economy and the local economy also enhance my understanding as to why movement in DOW has an impact on other stock market worldwide. As you probably hear before that “When the USA sneeze, the world will catch a cold”. It shows that the state of health of the USA economy is a barometer of the state of economy world wide. However, opposing to this belief, there is also a group of economists strongly suggest that the economy of Asian countries is slowly de-couple from the US due to the relentless growth from the countries like China, India, Vietnam and some of the countries from South America.
The idea I wish to highlight here is economy is a very complex subject. Various economists equipped with different school of thoughts will continue to bring forward their argument on certain economic topic. It is rather confusing to all beginners who have problems in understanding the topic discussed. DON’T WORRY, I was one of them before this. After two years of bombarding myself with all kinds of investment books and readings, my advise to you is sum up as that all economy has a cycle to follow ie peak and trough. Whatever predicted and argued by the economist is NOT crucial from the stock trading point of view, as the stock market is a voting machine in short term and a weighing machine in long term, all information should have been discounted into the price of individual securities.
Stock trading is a zero sum game, ie someone need to pay for your profit you made. There is general belief that only 20% of the market participants make money from stock market while 80% of them continue to loss. Hence, before your start your stock trading journey, I suggest you do the same as me spend a year or two to re-educate yourself in finance as I wish you will in the 20% category. Please take note that by virtue of you reading my blog, you are already in the right track marching to 20% category. After all, it only makes sense to be in market if you are able to beat 4 participants at any point of time as occasionally we will be beaten by the insides who are deemed to be privy to the certain information that is not flows to market. Stock trading is a high risk game, so get yourself prepared before you enter.
I will try to post my stock portfolio starting tomorrow, if possible. Let see how many participants I can beat. Once again, happy new year.
Wishing you and your Family
Happiness, Success & Good health
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