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I have a decent Return On Capital (ROC) in Year 2012.
CHONG Kong Hui
Publish date: Fri, 12 Oct 2012, 10:28 PM
Year 2012 not ended yet but I think I can take a good rest for a while as I probably have achieve better than expected return.
For past 9 months and 11 days, I have learn a lot about BURSA and trading, done a lot of reading and analysing etc.... I found that what I have learnt earlier indeed useful (accountant by profession).
How Decent is Decent for you?
As at 1.1.2012, my capital (share value less share margin outstanding) is below RM50,000 (mainly due to low saving and low income)(who said accountant earn alot??) so I deemed my Capital is RM50,000
Along the year, I leverage with borrowed money (at low interest) and coupled with share margin facility (RM100,000 only)... my ROC is > 50% (paiseh to give actual number). My ROCE is also >50%.
What is ROCE? I regard ROCE (Return on Capital Employed) as Own Capital + Borrowed Money (exclude Share margin facility).
What I have earn may be too little as compared to many Master and Guru but I am happy about it. The best thing is beyond money, I acquire the experience and skill, to equip me to do better and better.
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3 people like this. Showing 17 of 18 comments
Good sharing of knowledge.
Thanks!
p/s: I'm taking a little rest for now as well. But not because I already achieved my target but for personal reason (I need liquidity for now).
Lets learn together! As a newbie, I feel great to see a lot of people trying to help and educate each other in this forum! :)
2012-10-12 23:20
I didn't touch JCY, AMEDIA, NICORP, MTRONIC... these counters can make me rich and can also make me poor "faster".
I didn't "buy and hold" because I am learning to trade and I don't have enough fund to hold.
I didn't do TA because I don't know how.
I didn't respond to tips and news.
2012-10-12 23:27
You are good to make money. Even using TA and FA, I still make losses!. What criteria do you use to be able to make profit. Care to share ?
2012-10-12 23:38
Nothing really special, just LUCK as
Learn. Learn. Learn. Learn. Learn.
Understand the Numbers. Understand the Company
Control emotion. Check My Mistakes.
Knowledge about the economy. Know your counter.
2012-10-13 00:10
High strategy in QUANTS = QA is the good answer to making money in this endless 'financial war'.
QA > = FA + TA.
Quants is highly demanding.
It requires current n deep knowledge n know-how on perfect timing n most importantly, taking action at Right Cycles of biz, economy,
niche products n services, industrial sectors n theme in play, to investment-clock cycle n cyclical acts in monetary n fiscal tricks n more...
It deals with lots of charting. All these will converge into multi dimensional charts that is best decided by the power of TA.
Of course, Good Luck is 1 big component of this equation.
& LUCK = OPPORTUNITY + ACTION.TAKEN
Every person has the same luck n opportunity in facing the mkt but not everyone takes the same Action.
So HOW ?
So many types of cycles listed above to master !
Unlearn n relearn. Stock investment is a 'financial jigsaw puzzle'. U need to collect n have all the pieces to finally fix n appreciate the full picture = money. I do present some nice pieces in my diary/forum on real-time.
2012-10-13 01:48
Well done young man. Your ROE is in fact more than 100%. Jiayu jiayu!
Just a thought here. Don't be deluded into a sense of infallibility of short-term success. Leverage is a double-edged sword. When it cuts, it hurts. Your leverage in my opinion is not low. Follow a good process of investing. I don't suggest trading, maybe a little bit for itchy fingers only. Why? The chance of making it is low because of the frictional costs. Apply what you have learned in financial accounting, and valuation if you have learned too, the chance of success for long-term investment is higher. Best of luck.
2012-10-13 07:41
Learnt during the year to let "Profit Run" a bit longer to increase profit of each trade by 50% or even 100% more (i.e. instead earning RM100, wait a bit longer patiently to earn RM200).
Patience is rewarding.
Still so much more to learn... from experience and from others experience. Great to have a forum like this with people willing to share their knowledge and experience.
Thanks to all with sincere advice, sharing and/or constructive criticism.
2012-10-13 11:22
Sound it's simple "understand the number, understand the company" but in fact it's depend on how well you understand it.. I'm learning it now and let's us "jia yu" together.
2012-10-13 16:36
Hi Tan, good that you noted me.
Both info are correct.
Portfolio in big (paper) loss = Current holding in paper loss
Total investment, still gain ROC >50% after taking into account the 'paper loss'.
If the current holding, especially KFIMA & GENTING back to GREEN, ROC may be closed to 80%~100%.
In accounting term, PL is profit (realised gain less unrealised loss) but balance sheet side, the carrying amount of investment is currently below cost.
2012-10-13 18:02
ROC > 50%, that's marvelous! Keep up the good work and before long you will be rich. Ha Ha, maybe you are rich already. Congrats!
2012-10-13 20:31
Wisdom to plan; knowledge to compete, discipline to implement and patience to wait are all you need to ensure success in the stock market.
2012-10-13 20:37
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rogerlim
yes,i am also a new investor and do a little profit but just like what you say satisfaction is the most thing that i enjoyed ... i earn some experience and skill through the mistaken that i make before...
2012-10-12 23:11