Koon Yew Yin's Blog

Why do most equity investors lose money? Koon Yew Yin

Koon Yew Yin
Publish date: Sun, 27 Sep 2020, 10:00 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

I just Googled “What percentage of investors beat the market?” and I found the flowing answer:

Most experts regard the Standard & Poor's 500 Index SPX -0.41% as “the market.” Some studies indicate that only one-in-20 investors beat that bogey over long periods. That includes professionals.

No wonder I know so many people including expert chartists and Investment Banks lose money. The Covid 19 pandemic is affecting everyone’s movement and listed and non-listed companies. Investors especially Investment Banks and professional fund managers usually have many stocks in their portfolios. Due to Covid 19 pandemic, the share prices of all their holdings except glove stocks are dropping rapidly and they have to cut loss.  

Studies have shown that more than 90% of the investors including professional lose money in the stock market. Under such a discouraging investment climate, I would like to share with you my winning strategy.      

Covid 19 pandemic is affecting everyone’s movement, businesses and all listed and non-listed companies with the exception of medical glove stocks and medical products for the virus prevention. As a result, the demand for gloves far exceeds supply and all the glove manufacturers are continuously increasing their selling prices to make more and more profit. The additional selling price is pure profit because it does not involve production cost.  

That is why each of the glove stocks has shot up a few hundred percent in the last 6 months. Supermax has shot up the fastest because it has the best profit growth rate as you can see in its quarterly result announcements. Based on this fact, its next quarter, ending September should be phenomenal.

As long as the Covid 19 pandemic is still not under control, the demand for gloves will continue to exceeds supply and all the glove makers will continue to make more and more profit. Many scientists predicted that the pandemic will not be under control for at least 1 or more years despite the discovery of the vaccine.

Investors should read my previous articles namely “Chart can be misleading” and “Will Vaccine reduce glove usage? “.   

Best investment strategy

If you have not made a few hundred percent from your investment in the last 6 months, you must change your mindset, your method of stock selection, your timing for buying and selling stocks.

In fact, as long as the number of Covid 19 cases is still increasing, investors should just buy glove stocks and wait patiently to maximise profit.

You should only sell your glove stocks when the glove companies start to report reduced profit. You should not sell as long as the glove companies continue to report increasing profit in every quarter.       

 

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