Posted by Brien Chia Zi Hao > 2012-11-23 22:09 | Report Abuse

Thanks! Investing is not for emotional people. :) because the thrills and spills can get very real.

www.investingmalaysia.blogspot.com

Posted by Fat Cat Tim Buddy > 2012-11-23 22:31 | Report Abuse

every human is emotional by nature , it just that how we handle it and overcome it define success and failure.

Posted by tonylim > 2012-11-23 22:43 | Report Abuse

Brien, how you do anything is how you do every thing

Posted by PureBULL . > 2012-11-24 13:01 | Report Abuse

http://www.bursabulltrader.blogspot.ca/2010/08/jesse-livermore-lessons-from-legendary_23.html

Posted by Brien Chia Zi Hao > 2012-11-24 13:19 | Report Abuse

@TonyLim,quite true...something i tell my students also. The state of your life will be the state of your business will be the state of your relationships will be the state of your investments...etc...

wait, does that mean i'm emotionless? O.O

Anyways thanks for the comments...I'm learning something from everything.

Posted by Pauline Yong > 2012-11-24 15:40 | Report Abuse

Brokerage fee does affect your portfolio return, why dont u consider other securities such as Jupiter, M&A and others whereby the brokerage is much lower.

Posted by Brien Chia Zi Hao > 2012-11-24 23:41 | Report Abuse

hmmm? haha...@pauline yong, good point.

At the moment, using Maybank2U.

My main experience the came from OSK investment challege. Although no where near the top, every time I play my ranking inside the top 1000 people, profit like 8-9% per month from my portfolio.

However, in the game, you have RM100 000. So fees are quite small amounts.

Now, using my own money, I have much less than that, so by using the same portfolio strategy, Even though my shares earned quite ok, cannot cover fees!

Eg: I bought Astro at 2.54, the floor, based on my analysis. recently hit 2.67, a gain of 4.78% in about 5 days. But I only bought 100 shares, so didn't even earn enough to cover my fees.

So for small trader like me, I'm going to take more risk and trust my analysis, and play only 1 stock.

Posted by drsre > 2012-11-25 00:22 | Report Abuse

Don’t get offended, your lack of experience is so obvious. Why are you throwing away your money? The fees are fixed hence you can easily calculate the charges well prior to buying any shares. Instead of buying 1 lot of share, might as well you accumulate your money and buy bigger amount.
Hi Brien, Spend some time at http://www.jesse-livermore.com/trading-rules.html.
You would learn more on stock trading. Cheers.

Posted by Brien Chia Zi Hao > 2012-11-25 00:35 | Report Abuse

Yup, definitely lack of experience when it comes to shares. Like the article mentions, lessons learnt. :)

Posted by kcchongnz > 2012-11-25 05:28 | Report Abuse

Brien, from reading what you have written, to be truthful, you are better than many people in investing.

Posted by winwinwin > 2012-11-25 10:21 | Report Abuse

learn how to calculate is part of the game...apart from reading(what's going on), judging(good or bad guys managing it), feeling(market sentiment) & assessing(good buy or good sell) a stock. Everything can start small but buying 1 lot of 100 shares is difficult to get the game going as "economy of scales" is tough to get as your break-even point is big. I suggest instead of buying 100 shares on a stock price of $2.00+, go buy a 1,000 shares of a stock value of $0.30+/$0.40+ such as NTPM, SKPRes..the good & cheap ones. Accumulate your profits & try 5,000 & 10,000 shares eventually where you will find breaking-even points is easily reachable.

Posted by Brien Chia Zi Hao > 2012-11-25 15:36 | Report Abuse

It was a big amateur error by me to forget to include the cost of fees. And yes, Breakeven point and breakeven periods are very important. I guess the skills acquired from the OSK investment challenge are not transferable at the moment due to the lack of capital.

Posted by littleshark > 2012-11-25 18:31 | Report Abuse

What winwinwin say is true Brien.Small cap player shd go for cheaper stock. Penny stock that is not much debt,low value&hv potential future growth is btr for small investor. Eg lk Luster which i hv bought @0.1 has now jump up to 0.12 due to news saying this co. is seeking for PN17 upliftment(though a bit risky buying PN17 but who knw if it really successful in upliftment that will bomb the price up). So just buying 1000shares@0.1 will hv a net paper gain of 200 aft deducting brokerage fee of 15. Hehe so Brien cm join me in penny stock.

Posted by littleshark > 2012-11-25 18:42 | Report Abuse

Opps is 1000 capital buying 10k shares@0.1 gaining 185 aft deduct brokerage fee of 15 @ current market price of 0.12. That is much more easy to achieve&u still hv balance capital of 9000 to buy more on oth penny stock

Posted by Brien Chia Zi Hao > 2012-11-25 19:19 | Report Abuse

hmmm...interesting strategy. I am no so keen on investing in stocks that I don't understand though. Also, I'm afraid of manipulation by big players on penny stocks. When my capital is bigger then i will try a bit. :)

BTW, how can brokerage just be RM15? even Jupiter has minimum 8, and if you double that to close the transaction, it's already RM16. if you're investing RM1k, you also have the RM2 contract fee and about 60 sen stamp duty. total fees almost RM20 at least.

Posted by littleshark > 2012-11-25 21:00 | Report Abuse

Hoho Brien u r right. Sorry juz wk up frm nap a bit blur. Roughly abt 20 for brokerage fee. My strategy is always buy low&sell when reach TP. Gd esp when thr is speculation so i can sell more higher. U wont get wrong buying ths penny stock but must always remember to cut loss if it drops 10-20%. Hehe im a bit risky trader here but right now im quite comfortable with my strategy. U r welcome to join when u r ready..

Posted by Brien Chia Zi Hao > 2012-11-26 01:26 | Report Abuse

Definitely will give it serious consideration!

Posted by carries > 2012-11-26 12:04 | Report Abuse

If you don't have much experience trading on the market, my advice would be to start by investing in the market instead.(Trading requires too much experience, time & effort for a beginner to master in a short space of time.)

Now that the Index is slowly dropping, pick a few strong counters (large cap, dividend paying)and monitor them.
Then when the price is right pick up just 1 lot (1000 shares) and hold it.
Don't worry too much if it continues to drop after you have purchased it. Just hold.
(Fundumentally good stocks have a way of recovering their value once the market stabilises.)

Since you are using disposable income, you can try and do this everytime you have sufficient cash.

And in no time at all ....... you should have a decent stable portfolio built up .....

I know alot of people here will disagree with me but this is just my personal opinion based on my own personal experience.

Posted by benjamin > 2012-11-26 13:03 | Report Abuse

I agree with your strategy absolutely . Trading is risky and much more difficult even for a seasoned player. As carries stated, safer to investing than trade. Main thing is not to have the attitude, like many people who are involve in the market, fantasizing making loads of money in the shortest possible time. In reality one should try not to lose money.That is the first rule and subsequent rules.Capital should be intact , as opportunities will arise in various forms.Also as carries mentioned, deal with fundamentally good stocks.More achievable to increase your fund gradually than to take risk in order to score big.

Posted by steadyinv > 2012-11-26 13:45 | Report Abuse

There is no famous 'trading' investor exists until today. (or they just hide themselves :D)Hopefully, Malaysia can 'create' one...hehehhe
For my investing strategy, 90% of my cash on long term; 10% for fun (speculating stock like tiger, knm and maybe hiap huat today)
Brien, my opinion to you is to save up to like 10k cash and only start to enter the market. You can invest from 1k; but by placing a counter and just walk away and look back at it 3 months later. Daily monitoring on the percentage up and down; doesn't help you to grow. Anyway,I am new to the market too. Enter when KLCI hit the highest 1680 region; and my net P&L at -5%(excluding dividend) now...hahhaha. But I won't feel pain on that; as lesson must PAY; and it just depends on the amount is high or low.

Posted by Brien Chia Zi Hao > 2012-11-26 14:59 | Report Abuse

I am at heart an investor not trader. There's a target profit I want to earn, without unnecessary risk. This approach has served me quite ok in the past 4 years.

Posted by PureBULL . > 2012-11-26 16:53 | Report Abuse

U will learn of course.
But chances r U will forget to act fast as the moving target changes even faster...

Posted by ruslimz > 2012-11-26 17:10 | Report Abuse

If there will be chinese new year rally in jan....clear all your positions and coming back after election. Historically market dont like
election...

Posted by Brien Chia Zi Hao > 2012-11-26 19:58 | Report Abuse

Ruslimz, do you have the data for that? That would be good to look at. :)

Posted by ruslimz > 2012-11-27 08:55 | Report Abuse

brian...please look at the chart and study the market reactions during pre election periods.....currently technically market is very bearish and I am afraid even no chinese new year rally for this year