Comments on: What’s The Problem with Taking Profit as a Short Term Trader? Understanding The Power of Value Investing

By: ahyap

ahyap — Fri, 14 Sep 2007 13:44:35 +0000

@Leong, not all investment adviser are good and not all are using value investing as their strategy. As a value investor, you need to buy a wonderful company at a discount price. Is Tranmile and Megan a good company? Most people who buy Tranmile don’t even know what this company do. As an ordinary person like me, I have avoided Tranmile for very simple reasons:-
1. With such a ‘good’ company on paper, they don’t even have a website.
2. Google doesn’t return a lot of search results for Tranmile before the SCAM.
I remember reading a about Tranmile on Newspaper and an investment adviser rate it a strong buy. What that means? That means most investment adviser don’t really know what they are doing? And most of use our money to buy mutual fund which are managed by these fund managers!

But of course, I definitely agree with waiting for a market plunge to buy a lot of fundamental stocks. This is called fire-sale. But Peter Lynch said that the best time to buy a stock is when you find a wonderful company at a discounted price. So you don’t really need to wait for a market crash. It is just that in market crash, there are more choices.

By: AdamSen

AdamSen — Fri, 14 Sep 2007 09:52:36 +0000

Risk come from not knowing what you’re doing! Many people lose money in stocks is bcos they don’t really study much in stocks. So, when they lose money, they will say investing in stocks is very-very risky. But, the fact is, if you’re well prepared, then, there’ll be very little risk!

By: leong

leong — Fri, 14 Sep 2007 05:58:15 +0000

Value investing might be good today and turn bad in the future. Look at cold storage,a blue chip favourite counter many years ago or the recent tranmile group, another hot stock amongst local and foreign fund managers for instance. Even the fund managers make bad decisions caused by false reports on the financial accounts, directors of companies misused of funds.government policies.global market,etc. .The best investment strategy is to hold on to your monies until there is a major plunge in the stock market. This is the time to shop around for fundamental stocks and of course with the advice from your investment adviser.

By: Giap Seng

Giap Seng — Mon, 03 Sep 2007 15:01:10 +0000

Hi Azlan Lee,

“Experience is the best teacher in the world , if someone is not prepared to lose money in trading then he will not have a start in learning anything about trading…the trick is not to lose more than you can afford.”

I still think the best way to learn is learning from others’ mistakes. I prefer people paid tuition fees, and we learn.

I do hope you can become a successful trader. As for me, I will just choose the value investing style, slowly and surely.

By: Azlan_Lee

Azlan_Lee — Mon, 20 Aug 2007 09:42:49 +0000

na I dont mean short as in short term’ , I mean short as to gain profit while selling currencies in behalf of our broker (its like borrowing their money first to be in selling position, ). When the market is up automatically our posiition are turn into profit. (this method does not apply to stock however)

it is however a long term trading (entry on one day and dont trade for several month ~ we just trail our position) .

yes I understood what you mean , alot of trader are scalper, some even dare enough to gain in high vilolity short position (while in multiple major news release!) , sacraficing your health for money is not the way of a real investor…

Long term trading ~ the way of the dragon

By: ahyap

ahyap — Sun, 19 Aug 2007 10:26:45 +0000

@chy, if you are a OSK brokerage or HLeBroking.com customer, you can get the info free form their platform. It is provided by KLSETracker.com. @Azlan_lee, a lot of people has forgotten that trading is a 2-way street. You can make money and you can lose money. The question is, what is the probability of you making money in the long run? Is trading profit sustainable and consistent for the long run? Do you need to lose sleep over it?

By: Azlan_Lee

Azlan_Lee — Sun, 19 Aug 2007 04:38:32 +0000

not just KLSE, most currencies in the world are having a downfall , such as AUD and NZD, however in currency trading, trader could also make a huge profit by going short (you have to pay interest of coz).

I think a couple of Malaysian trader have become a millionaire last month as the price plunge down like a roket!(unfortunatly I was facing Mei semester final exam last month…urgh!! )

By: chy

chy — Sat, 18 Aug 2007 05:55:27 +0000

Hi Ahyap, i agree with you on this value investing. Now that the stock market is down, there are a lot of stocks at bargain price. However, you mentioned about fund manager that practices value investing. Do you have any suggestions? And do you know where I can find information on the earnings per share? Thanks!

By: Ernest

Ernest — Fri, 17 Aug 2007 09:54:37 +0000

hehe, post more about the investing..very interesting topics but hard to apply..if you could digest the 4 books and try to break it down like “dummies” books, that would be great…lol..

I like Azlan_Lee commented that experience is the best teacher in the world but hopefully still manage to get up after the fallssss…KLSE is still in big sale and HKSE as well..

By: ahyap

ahyap — Thu, 16 Aug 2007 19:32:06 +0000

I think the best teaching of Confusius is still, “Don’t Get Confuse!”