Posted by gohku > 2016-12-31 13:01 | Report Abuse

Mr Stockmammy, you must be joking. My uncle a financial director told me not to use margin when invest.

He says margin make alot of people lose alot.

Posted by stockmanmy > 2016-12-31 13:02 | Report Abuse

the authors of foreign books play in the largest ocean, have unlimited capital , patience and hundreds of stocks.
We play in a small lake with limited capital and only few stocks in portfolio.




Posted by gohku > Dec 31, 2016 12:52 PM | Report Abuse
Please explain so that i can learn.

Posted by stockmanmy > 2016-12-31 13:04 | Report Abuse

the dictum always applies, risk = reward.
Your uncle is prevention focused. My uncle Koon is Promotion focused.

gohku > Dec 31, 2016 01:01 PM | Report Abuse

Mr Stockmammy, you must be joking. My uncle a financial director told me not to use margin when invest.

Posted by Icon8888 > 2016-12-31 13:14 | Report Abuse

Margin of safety and KYY Rule does not contradict each other. They can co exist. KYY's Rule forces you to focus on two things : (i) timing of approximately 6 months to one year. That reduces the risk of bad visibility (ii) Earning. He is saying that great emphasis should be put on future EPS instead of all kind of other things.

You can follow his rule, and then add on your own Margin of Safety cretirias to make your investment even more safe, if that is what you want.

gohku Posted by Icon8888 > Dec 30, 2016 10:02 AM | Report Abuse

I have always been using KYY Golden Rule. It is just that I am not disciplined to do it 100% of the time. Sometime I buy sell without following that rule (for fun). Now I am saying that I should reduce or limit my NON KYY Golden Rule activities

Mr Icon, you mean non KYY Golden Rule investment method does not work ?

All this while, i am reading investment books and i find the best is margin of safety method of investment .

Please explain so that i can learn.
31/12/2016 12:52
31/12/2016 13:13

Posted by gohku > 2016-12-31 13:14 | Report Abuse

My uncle, told me that he had seen many of his well very to do businessman friends, bankrupt because use margin to invest.

Stockmarket is not a place to gamble with margin.

Posted by gohku > 2016-12-31 13:17 | Report Abuse

Margin of safety and KYY Rule does not contradict each other. They can co exist. KYY's Rule forces you to focus on two things : (i) timing of approximately 6 months to one year. That reduces the risk of bad visibility (ii) Earning. He is saying that great emphasis should be put on future EPS instead of all kind of other things.

You can follow his rule, and then add on your own Margin of Safety cretirias to make your investment even more safe, if that is what you want.

Thank you Mr Icon, that mean margin of safety and Golden Rule is not mutually exclusive, we can do both.
That is Great.

Posted by stockmanmy > 2016-12-31 13:27 | Report Abuse

icon is ever the diplomat.

but in my dictionary, the margin of safety is illusionary, a sleeping pill.

Posted by Icon8888 > 2016-12-31 13:29 | Report Abuse

Gohku, margin is nothing as evil as what your Uncle told you. I have been using it for more than 20 years. Never kena margin call. It enhances your ROE. Good stuff.

You should learn to use it, but maybe at a later stage. You sound very new to the market, I think you might not be ready for margin.

Posted by gohku > Dec 31, 2016 01:14 PM | Report Abuse

My uncle, told me that he had seen many of his well very to do businessman friends, bankrupt because use margin to invest.

Stockmarket is not a place to gamble with margin.

Posted by Icon8888 > 2016-12-31 13:31 | Report Abuse

your uncle's friends who went bankrupt were either gamblers or sochais, that is all I can say

Posted by CharlesT > 2016-12-31 13:46 | Report Abuse

Margin is risky....stock mkt is risky...if they r not yr cup of tea buy property or keep money in yr piggy bank

Posted by CharlesT > 2016-12-31 13:47 | Report Abuse

Driving is also risky...many killed in road accidents...take bus safer or stay at home

Posted by stockmanmy > 2016-12-31 13:47 | Report Abuse

agreed
KYY got margin call earlier this year, but the margin calls only forced him to realise some unrealised profits.

Icon8888 > Dec 31, 2016 01:31 PM | Report Abuse

your uncle's friends who went bankrupt were either gamblers or sochais, that is all I can say

Posted by Icon8888 > 2016-12-31 13:51 | Report Abuse

errr... Disagree with KYY as example

As a matter of fact, he is horrible the way he uses margin. I think he geared up super super high until when price drop 20 sen, he need to force sell

My margin is different. At most, my margin is 30% to 50% of my own equity. And everytime I geared up, I make sure there are liquid stocks for me to exit just in case of emergency

Posted by Icon8888 > 2016-12-31 13:53 | Report Abuse

I never got margin call. Not only that, I am not once CLOSED to being margin call. I am always very very far away from the red line. I managed my margin facility very carefully.

Posted by CharlesT > 2016-12-31 13:56 | Report Abuse

If margin call deposit some money or sell some shares...not the end of the world..

Posted by Icon8888 > 2016-12-31 13:58 | Report Abuse

Ya, just make sure you have liquid stocks in your portfolio to facilitate emergency evacuation.

Once you take care of that, there is nothing to fear about margin

Posted by Icon8888 > 2016-12-31 13:59 | Report Abuse

Of course, it is understood that if you use margin to load up sumatec, Asdion, etc , you are seeking death

Posted by VenFx > 2016-12-31 14:00 | Report Abuse

(Posted by Icon8888)
My margin is different. At most, my margin is 30% to 50% of my own equity. And everytime I geared up, I make sure there are liquid stocks for me to exit just in case of emergency

ME: That's interesting to check for the impact by entry differrent margin weight.

Posted by CharlesT > 2016-12-31 14:00 | Report Abuse

If u use margin to buy xinquan at rm1.6+ sure die lah

Posted by Icon8888 > 2016-12-31 14:01 | Report Abuse

Sure die

Posted by CharlesT > 2016-12-31 14:01 | Report Abuse

Buy lousy stock n never cut loss somemore wanna give it to grandchildren....

Posted by Icon8888 > 2016-12-31 14:02 | Report Abuse

You will end up mopping table for murali at mamak store

Posted by Icon8888 > 2016-12-31 14:03 | Report Abuse

Venfx happy 2017

Posted by CharlesT > 2016-12-31 14:03 | Report Abuse

Too bad murali left us oredi...mayb can try luck at steven corner..

Posted by Icon8888 > 2016-12-31 14:04 | Report Abuse

may I know what is murali and your relationship ? Teacher ?

Posted by Icon8888 > 2016-12-31 14:04 | Report Abuse

He sounds like an Add Maths teacher

Posted by CharlesT > 2016-12-31 14:09 | Report Abuse

Cpteh sounds more like add maths teacher...murali was my schoolmate..however he passed away few months ago....

Posted by VenFx > 2016-12-31 14:10 | Report Abuse

Icon8888 & Charles T bros, Happy New Year 2017.

Posted by CharlesT > 2016-12-31 14:11 | Report Abuse

Happy new year bro

Posted by Ricky Kiat > 2016-12-31 14:12 | Report Abuse

Agree with bro icon888 & bro charlest.

Posted by VenFx > 2016-12-31 14:16 | Report Abuse

icon8888 bro, has u been following VIS.
Or u might have any materials to share about VIS ?

I find very limited news disclosed despite they are making very impressively results.

Posted by stockmanmy > 2016-12-31 14:22 | Report Abuse

KYY uses unrealised profits to buy other shares.
In theory, there is no limit to his margin account as long as his shares keep going up.

Posted by CharlesT > 2016-12-31 14:25 | Report Abuse

Anyway many lost badly in 1998 due to their heavy position of second board counters which were highly illiquid. Saw many second board co limit down all the way from rm10+ to penny stocks within days n then eventually suspended n delisted. Saw few uncles went broke...

Posted by stockmanmy > 2016-12-31 14:27 | Report Abuse

other than Xing Quan, there is no evidence KYY ever buys speculative shares with no substance.
His selections are liquid, best in its class ( sector ). Liquidity is very important.

Icon8888 > Dec 31, 2016 01:59 PM | Report Abuse

Of course, it is understood that if you use margin to load up sumatec, Asdion, etc , you are seeking death

Posted by IBanker > 2016-12-31 15:22 | Report Abuse

Hi icon, i intend to get a margin acc as well. May i know what brokering firm r u using? Some of the platforms r confusing on $ n margin.

Posted by malaysiaku > 2017-01-01 00:20 | Report Abuse

margin of safety...100% ikut.....margin account- no way nak ikut kyy...cun cun nak mati cepat kalau ikut kyy...kalau ikut kaedah kyy yang semakin nyanyuk boleh menempah maut dan mengalami kerugian besar...bila-bila masa saham boleh jatuh macam xinquan dan jaya tiasa kalau terlampau yakin...kaedah yan lebih selamat dan konservatif ikut cara warren buffetts...ada jaminan sebab ikut "margin of safety method".....setiap tahun dapat gaji dari saham dividen dan peningkatan nilai saham...."Selamat menyambut tahun baru 2017"......

Posted by gohku > 2017-01-01 00:24 | Report Abuse

margin of safety...100% ikut.....margin account- no way nak ikut kyy...cun cun nak mati cepat kalau ikut kyy...kalau ikut kaedah kyy yang semakin nyanyuk boleh menempah maut dan mengalami kerugian besar...bila-bila masa saham boleh jatuh macam xinquan dan jaya tiasa kalau terlampau yakin...kaedah yan lebih selamat dan konservatif ikut cara warren buffetts...ada jaminan sebab ikut "margin of safety method".....setiap tahun dapat gaji dari saham dividen dan peningkatan nilai saham...."Selamat menyambut tahun baru 2017"...

I like to clarify Xinguan and Jaya Tiasa, KYY had not discover Golden Rule yet.

Posted by xyxy8 > 2017-01-01 00:49 | Report Abuse

I would like to wish kyy a successful new year. May you and your family be well and happy always.

Posted by Dolly_Chai > 2017-01-06 15:52 | Report Abuse

haha... is this a war declared against KC Chong?

Posted by Dolly_Chai > 2017-01-06 15:53 | Report Abuse

of course, no doubt that investors like earning growth, but it must be coupled with good fundamentals too... in case the growth did not turn out as expected, the share price will not be affected much too