With a stock market correction relatively common, how do you survive a correction? Here are a handful of tips for surviving a correction and coming out the other side with your nest egg intact at http://shareinvestormalaysia.com/survive-stock-market-correction/
I FORESEE MKT IS LOOKING FOR EXCUSE TO TAKE PROFITS, CORRECT ME IF WRONG. MOST DAYS NOW INDEX RED, MORE LOSERS THAN GAINERS, MKT VOL >3B BUT PRICES NOT MOVING MUCH......
Market closed at 5.1 million worth RM2.9 mil. Is it the big boys dumping? I think it is a record although many are penny stocks. Still volume is volume unless nowadays many are contra players.
Today some 6 counters can't trade using margin finance, or have to pay cash upfront $$. Understandable because the broker want to curb excessive speculation...haiz
speakup @ thanks. 20k for 20k is not margin is trading limit. Margin means xtimes of the capital u have in the broker. Mine give me 5x but I never use it too dangerous.
Ya ALLAH ya TUHAN ku. Aku sujud pada kudrat MU...Aku pohon agar xxxxxx kembali cergas moga modal aku dipulang..wow...praying to god now ....getting serious .......
With so many variables to look out for - co performances, competitors, economy, the mkt itself, ...and now local + world politics ......it amazing how ppl can trade and think they can make $$$ ...my 2 cents rambling...
fully agreed! When uncle just starting out, got less things to worried abt. Now today ...alamak ! That why uncle is investor 1st trader last .......kikikiiiiiiiiiiiiiiiiiiiiiiii
May I tell you how you can both survive & also prosper in a Market Downturn.
1) INVEST IN NON CYCLICAL SHARES
Cyclical Shares enter into boom and bust periods. Non cyclical shares are usually dull and stable like water (utility). No matter how bad times are - people still take bath, take a drink, wash clothes, cars and water the garden plants.
Others are basic survival food, basic clothes and health care.
2) INVEST IN COMPANIES WITH LITTLE GEARING BUT HAVE SURPLUS CASH
PM Corp has almost zero debt. Sitting on a Huge Pile of CASH. And If a Company has CASH in Bad Times. It can acquire other assets of distressed companies to capture even bigger market share.
3) SELL MORE SHARES INTO STRENGTH & BUY BONDS
In the Book "THE INTELLIGENT INVESTOR" Ben Graham advocate the method of selling shares during bull run and transfer them to bonds. He doesn't advocate buying bond over shares. He only gave an outlet for pent up desire during bull markets. "By buying bonds" the stock investor will still be able "TO DO SOMETHING".
It is really hard to resist buying shares during bull run. So Ben is actually telling people to buy bond as an avenue to release pent up emotion.
This is the direction. Buy shares when they are cheap. As share price rise - switch from high flying shares to bonds or shares with a bond nature like YTL or MRCB. Then when share prices weaken sell bonds and buy back more undervalued shares.
4) BUY LAGGARDS & UNDERVALUED STOCKS
For some bonds are no, no. So try to take profits from those which have gone above intrinsic value and switch to laggards.
CALVIN'S 3RD RULE
"HE THAT IS LOW NEEDS FEAR NO FALL"
If you are standing at Ground ZERO there is NO FEAR of Falling at All! If You Are At The Top Of PETRONAS TWIN TOWERS YOU BETTER BE VERY CAREFUL.
So Buying Laggards are VERY SAFE in comparison to Chasing BUBBLE PEAKS!
A share that has not run up with the Bulls will be quite safe. It won't fall much either. BJ Corp has dropped 71% during this bull run. BJ Corp subsidiary companies like MAGNI TECH, ATLAN, THE STORE, COSWAY, TMC LIFE, BJ AUTO, BJ FOOD & BJ ASSETS HAVE SHOT UP FROM a WHOPPING 88% to 400% GAIN.
BJ CORP, MP CORP, MULPHA, GSB, DIGISTAR, SUPER ENTERPRISE, XDL, SOUTHERN STEEL, HT PADU & MRCB are all laggards in this 5 Year Bull Run. So they won't fall much. In the Game of Rotational Plays their turn to rise might come soon.
Of course Chasing High Performance shares are very exciting. So is racing in F1 Circuit and gambling in Genting Casino. Why take so much risk?
This has been my Investment Guidelines.
And Yes! I Have Recommended these Before - When They Were LAGGARDS. I don't ask people to Chase Now As Prices Have Already Gone Up - Even I Still Some of Them
1) PM CORP was 15 cents (UP 100%) Ha! Some chased until 37 cents & later blame me!
2) UMW was RM2.40 (NOW A BLUE CHIP)
3) ASB at 14.5 cents (UP 88% in 2 week) Ha! I stopped recommending after price rose.
4) SILK at 40 cents (UP 200%) Ha! Calvin also stopped recommending after price rose.
5) IPMUDA at 76 cents (WENT LIMIT UP IN DAYS!) Calvin never tell people to chase!
6) OTHERS ARE JAKS, PPG, AZRB, MPHBCAPITAL, DUTALAND, EPMB, MUI BHD/PROP, KPSCB, RCECAP AND OTHERS. As you can see - After Prices Have Shot Up - I withdrew from recommending any more.
BY FOLLOWING THESE SET RULES CALVIN SELDOM MAKE ANY LOSSES, IF ANY.
CALVIN'S FIRST RULE : "NEVER TO LOSE MONEY"
AND THE GAINS RANGE FROM 20% to 100% or Even More.
STOCK MARKET INVESTING IS REALLY EASY IF YOU HAVE THE DISCIPLINE & WISDOM.
kim, ur right - one day gain is not a rebound - we need 3 consecutive days with the index (and general market) moving upwards with volume before we can say its a rebound !!
We are now more than half way through October month. 10 more days to go. There will still be turbulent ahead. Be very careful about short term punting. If you can buy & hold undervalue counters you should do well.
When times look bleakest FED Yellen will continue QE4.
So please invest in what you know for sure.
Regards,
Calvin Tan
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With a stock market correction relatively common, how do you survive a correction? Here are a handful of tips for surviving a correction and coming out the other side with your nest egg intact at http://shareinvestormalaysia.com/survive-stock-market-correction/