My Trading Adventure
Diversification
CP TEH
Publish date: Thu, 18 Aug 2016, 09:38 AM
CP TEH
0 2,918
All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
I have this quote as a reminder "Keep Moving". Today, I m down with allergy (to -OH group) and floored. Itchy rashes all over my body ... well, my wife put some Chinese wine-oil in her cooking and forgotten I m allergic to -OH ... even a little, I will be affected! So ... yup, I do not take beer due to allergy, not because I m a 'good' man (no gamble, no smoking, no drinking ... no womanise! haha) as many always say ...
Diversification
Never put ALL the eggs in a basket ... we all have heard that. But, do not over diversify, either. This is one of the wise words I have gathered from many ... and also read a lot about. We do not buy one stock at one price ... and put all our funds into her? UNLESS we are very very sure about our buying ... but, no one could be so so sure!!
So ... I will diversify 30-30-40 of my funds during crash ... 30% into the core of crash ... 30% for moderately high-risk leveraging instruments and 40% for the safe-blue-chips(with dividends).
This is my rough plan at the moment ... which I shared with few of those who met me over coffee ... I just put to them my plans of diversification of my funds during buying into crash (after hit the 'floor').
Over-diversifying has been identified as one of my weakness and need to focus. During 2008 crash, I did not learn how to cut-loss and stuck. By the time I cut-loss (finally), I was like 70% down ... but in 2009 mac/apr ... I was 'lucky' that I went into US and HKSE where the stocks recovered so so sharply. Also, the leveraging I used ... margin a/c and buying into warrants. Will elaborate on these during crash ...
... but today, I will want to write about 'diversification'. Should we diversify? If so, how?
Learning to manage RISK ... that is risk management.
AirAsia : Above RM3 ... and at RM3.20 now, we shall see RM3.50 next. Wow ... after TF said it is under-valued, now ... he could pay his debt buy selling part of his AirAsia's stocks!!
Time to go for classes again ... till 6pm today.
TEH
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sostupid
"Learning to manage RISK ... that is risk management." your quote Mr. Teh, is wrong and idiotic. You ripped people off by giving people wrong information in your tuition class. If you don't have to manage risk then you have risk management. If something has a risk it is not worth doing at all. You are so stupid and so many people are even more stupid than you by listening to you.
2016-08-18 10:55