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Saturday, November 30, 2013

Top Ten Trading Books


by Steve Burns

I am a big fan of trading books. How big? I have read over 300 books related to the market, investing, and trading and reviewed almost all of them on Amazon.com. Some trading books have the ability to lay out the principles that lead to profitable trading while others are not written by traders, but instead only about trading by writers who never traded an option or future contract in their life and contain little value beyond basic facts.

Here are the top trading books that really changed my trading process from haphazard to the clear focus of profitability. These books could change everything for you as a trader. Some are classics and some are more modern but I believe they all stand the test of time in helping a trader on their path to profitability.

Let me save new traders the task of reading hundreds of trading books looking for the pearls of wisdom and just direct you to where the gold actually is.

I did a survey on social media to see what books helped traders make the most money in the markets and these ten books were the result of hundreds of votes.

Here are ten of the top trading books ever written summarized in one sentence: 



#1 How to Make Money in Stocks: A Winning System in Good Times and Bad by William O'Neil: Buy only the best innovative growth stocks at the proper buy point out of price bases and let them run as far as they will go.

#2 Reminiscences of a Stock Operator by Edwin Lefevre: It’s a bull market you know and the big money is made in holding good positions over the long term and not trying to trade inside the day to day noise.

#3 Market Wizards, Interviews With Top Traders by Jack D. Schwager: Here are how the best money managers in the world make money, will you listen to them?

#4 How I Made $2,000,000 in the Stock Market by Nicolas Darvas: Find the best stocks that are being accumulated in high volume near their all time highs once you find them add to the winners and cut the losers short and let them run as far as they will go.

#5 Trend Following: Learn to Make Millions in Up or Down Markets by Michael Covel: Give up your opinions, forecasts, and fundamentals and use a robust system to trade the market trends by following the actual price action.



#6: How to Trade In Stocks by Jesse Livermore: Trade the pure price action of the leading stocks as they go higher and higher understand that they do have normal pull back reactions but learn how to not be stopped out until they have ran their full course.

#7 Trade Your Way to Financial Freedom by Van Tharp: Quit looking for the Holy Grail of trading and instead focus on developing a trading system that fits you and trade it while managing risk.

#8 Trading for a Living: Psychology, Trading Tactics, Money Management by Alexander Elder: You must manage the three M’s of trading to be successful: manage the money, the mind, and the trading method to be profitable.

#9 Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude by Mark Douglas: Trading is more of a mental game than a mathematical one and it takes faith in your system and yourself to give you the confidence to trade with discipline and mental control.

#10 The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires by Michael Covel : Richard Dennis showed some everyday people how to become millionaires by trading his firm’s capital with a simple trend following methodology based on breakouts with a few filters while using risk management.

What's your favorite trading book? Leave a comment below.

Note : I do have many trading-investment books due to my 'liking' of books and trading. Of the ten books listed above, I do have #1 and #6. Some others, I do have the softcopy but I still prefer the books ... so, when I have the time one day, I will like to purchase all the books above, to be collected in my mini home library.

Happy weekend ahead ...

TEH

Friday, November 29, 2013

How rich people think (I)



http://teremity.wordpress.com/2013/10/02/21-ways-rich-people-think-differently/


World’s richest woman Gina Rinehart is enduring a media firestorm over an article in which she takes the “jealous” middle class to task for ‘drinking or smoking and socializing’ rather than working to earn their own fortune.

What if she has a point?

Steve Siebold, author of ‘How Rich People Think’ spent nearly three decades interviewing millionaires around the world to find out what separates them from everyone else.

It had little to do with money itself, he told Business Insider.

It was about their mentality. 

“[The middle class] tells people to be happy with what they have,” he said. “And on the whole, most people are steeped in fear when it comes to money.”


#1 : Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

TEH : Yes, I was a total opposite ... was an extreme when it comes to money. I do really believe money is the root of all evil ... and have been financially poor, always in debt or not-enough. I decided to change my mindset. I need to help myself before I could speak of helping others, right? So, PROVERTY is the root of all evil ... it is a fact.

#2 : Average people think selfishness is a vice. Rich people think selfishness is a virtue.

TEH : This point I am not so sure ... I am not a selfish person, perhaps I should ... to be rich? Hmm ... how?

#3 : Average people have a lottery mentality. Rich people have an action mentality.

TEH : Totally agree ... as I do not like gambling. There is a fine-line between trading and gambling, as at times ... we took a punt. That is lottery-mentality. Yes ... I must take more actions on my plans and work on it. Focus on actions.

#4 : Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

TEH : I was brought up believing that we should get a degree and work. So, it is not a surprise that I achieved that. But, what I really need is to develop knowledge-skill ... that is what I am doing at the moment, knowledge about investing-trading.

#5 : Average people long for the good old days. Rich people dream of the future.

TEH : Past mistakes should be taken as lessons, stepping stones. I made many mistakes and big blunders. I need to take that as a spring to look forward .. into next year or another 3 years to come. I will certainly be a better trader.

#6 : Average people see money through the eyes of emotion. Rich people think about money logically.

TEH : This is easier said than done ... do not get our emotions in play while trading-investing. In fact, we should do the opposite ... fear = buy. Greed = sell.

#7 : Average people earn money doing things they don’t love. Rich people follow their passion.

TEH : Great ... I do have the advantage here as I am still so passionate about my stock-tradings, watching markets in daily basis for almost 6 years now. I even used to blog here in daily basis, stating what I observed etc etc ... will be back into blogging as that is my passion.

to be continued(may be)

TEH

Wednesday, November 27, 2013

Benalec and CScenic




Benalec : Broken RM1 ... failed to rebound and now, closed at 94 cents. Do not touch yet till seeing reversal. One needs to read more on WHY a counter diving sharply.


CScenic : Closed 1.10 ... similar candle-stick shown. Reversal in sight?


Monday, November 25, 2013

Bull Day : KLCI above 1800

It is Monday ... KLCI is bullish, up more than 10points.

PChem : Sold at opening, 6.75.

Kulim : Sold at RM3.86, it shot up last Friday. Now at RM3.76, watching to grab back at support. Wait.

http://en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets

I wanted to write about the Sat's talk ... but my mind is not organised. But, basically ... it is about buying into under-valued good fundamental companies during market crash!!



He mentioned about Black-Swan. Those newbies, one may google the word and find the meaning.

Lunch time.

TEH


Sunday, November 24, 2013

Stock Analysis : Karyon



Karyon : This stock was asked by a good friend of mine. I am not sure if she bought into it(most likely, otherwise why would anyone ask?).

Resistance at 39cents ... breaking this level, we shall see breakout. Profits been down over recent 3-quarters. It is an ACE market, proposing to be transferred into main market. Well, perhaps that explain why it is uptrending and many retailers talking about it? That reminds me of AMedia ... with similar story.

HIstorical PER, averagely around 7.76 but it is trading around 16.7 PER ... so, I deemed that as over-valued, using PER.

Note : I do understand that we should not use PER as the only valuation indicator for a listed company.

Trade at your own risk. I prefer bigger market-cap counters.

TEH

Sunday Post

Good morning ... was too tired to jog today, slept after Arsenal's game ... they won 2-0, and firmly at the top. Gunner is the team to beat this year, not MU or Chelsea. Liverpool needs to maintain their consistency and pace. We shall watch ... Southampton is overbought and time for correction.


Books : This is for my new readers ... the book by William J. O'Neil is very good and comprehensive. I recommended that for my tratles-group. The new book by Adam is good too ... but if u need to buy only one, the orange-cover one is good enough. Do get both, if u could.

I will show more books that I am having, which I think will be good for novices ... FA and for TA.

In my previous post, I mentioned that we need to get some books ... regarding MINDSET.

Actually, it is more than mindset ... we need POSITIVE-ness in us to do well in anything, we need to be open-minded enough to learn, and must learn from basic ... good foundation placed. Those newbies SHOULD consider getting this first level(entry) right ... without being open-minded, being positive ... motivated, passionate to learn ... and experiences in trading, one could give-up too easily. Then, trading(or anything difficult in lives) will not be suitable. Share-market is not for everyone, those who like to make noises ... those who blame on others, making mockery of learning to improve and such ... there are plenty such individuals out there. Do choose the right mindset ... as entry-level.

Getting that motivation right might take months ... changing our habits or mindset will take TIME. Give yourself that time to change ... if you are into punting due to your gambling habit, stop that ... stop gambling(mahjong, cards, football games etc etc) before you go into markets as we will then to gamble in stock-markets if we have that gambling habits. Even stop the 4D ... clearing gambling-instinct from our systems is easier said than done. That takes discipline.

Understand the statistics ... 80% of them are losing money in markets. Find out WHY. List out those of good investors/traders. We can't be them ... but we can take our time to learn those good habits. Believe me, it is easier said than done ... we will fail a few times ... we may thought we learnt from them ... but, somehow, as humans, we might de-rail from our goals, our learning purposes .... it is only fair.

Getting a right trading group(s) is very important. Be selective of whom we are talking to ... is the group constructive, giving good sharings of infomation ... sharing of learning the skills, helping each other to be better. Do not expect much from others ... but they could give some morale support we needed. Trading is a 'lonely' game ... if we are doing things by ourselves. I was all alone when I was still back in KK(2008-2009) and just back to KL(2010-2011). Now, I am glad to form my own trading-group. I do gather information and learning from many of them. Great platform to learn too.

So, newbies should be starting to get their mindset right ... read some books about markets. Hey, if possible ... do not be in market yet. Market is topping ... at high valuations. It will be coming sharply in some years to come ... and make your journey into markets when market crashing down, and you have the bullets, knowledge ...prepared to act. Great.

Learn as much at current level, will ya?

Great Sunday ahead ... I do still have 2 classes today(as I postponed yesterday's classes due to the talk).

TEH

Saturday, November 23, 2013

Post #2704 : It is a draw

As I do not have Astro at home ... I watched the game at mamak-stall outside my apt ... what a derby it was!!

Liverpool 3 Everton 3.

I went to a talk today above value-investing by Ken Chee with some of my tratles(8 of us today). None of us sign-up for the course, worth RM49k ... well, discounted to RM15k ... but for today only, it will be RM5k.

I will write above the talk ... and those investors who wish to learn Fundamental Analysis, might consider their courses. I might want to consider equity-tracker as I heard it was cheaper.

Need to rest as we have an whole day talk ... and after a pulsing match, i need my sleep!!

Night.

TEH

New Year resolutions : Part I




DOW closed higher ... 16,065. That is a record high ... as economic data pointing to improving of US economies, and they are talking about possibilities of QE tapering again ... that will bring volatility in our market.

KLCI has been down for three days ... perhaps a short profit-taking correction after a huge surge the other day.

Good morning ... I am back in my blog. It is around 5.40am now ... the nearby surau sembayang-Fajar. This is my normal time I am awake, checking on markets. Then, I will take a short while to jog. Yes, I have not been exercising as I should have for years since I came back to KL ... busy-busy-busy has been the main excuse. I am slowly getting back into jogging .. hope to be able to run a 10k-run in coming months, and complete it. I could not finish a 200 meter jog at the moment. Haha.

While I do read many books to learn since I was involved in trading markets, I will encourage newbies-novices to read some books, to grab some concepts in trading. I think the MINDSET related books are good ... for the start. Understanding that market is emotionally driven(rather than FA or TA) ... controlling our decisions(of buying and selling). Those books that will keep us motivated, keep us in up-mood even tho when we are being in challenging positions ... and showing us few ways where we could maintain our positivism!! We do need to be able to push ourselves further when we are learning to trade as it is THAT challenging.



I do like a book by Jerome Tan "From bankruptcy to multi-million". Simple thin book to bring along, easy reading kinda book ... where we could be reminded of many things we are doing ... may need some changes.

Another good book to change our financial mindset is by late Dennis Ng. It is sad that such a nice man passed away at age 43. RIP. Well, in page 47, Dennis written that 'Stocks without dividends are liabilities'.

Yes, I am motivated again to change ... with 2014 nearing, new year resolutions time, yet again. I do not believe much about those year-end resolutions making, as majority of us could not maintain the pace for a year. Planning for monthly basis, quarterly basis .. half-yearly basis is more practical. Many of us do plan in weekly basis ... or in daily basis.



I bought myself a new 'organiser planner'. 2014. Haha ... not that have a nice organiser will make me be more organised, but well ... we all 'lied' to ourselves many of times. One of the way to motivate us to some of work we needed to. That is my wireless mouse, first time using such a device. 

So, now ... I am back in my own blog ... doing what I do like to do. Blogging. Haha ... 

I have been blogging in daily basis since 2008 Aug, but then as I got myself busier, so much more things to cope ... I could not find the time to do what I like to do, or supposed to do ... to make myself HAPPIER. It is new-year resolution in a way, that I will want to find time to do what I think I should be doing ... blogging, instead of hanging too much of my time in facebook. I prefer to hide here in my own cyber-space, sharing words or thoughts with some readers(I recognised that I do have followers now ... and I still prefer back in 2008-2009 when I have only 30-50 unique readers). 

Anyway ... what are my resolutions so far?

1. To run and finish a 10k-run
2. To be back to blogging
3. To be organised.
4. To form a charity-fund

The third one ... hmm ... it has been my yearly newyear resolution. I am so disorganised with so piles of papers, books stacking everywhere ... so, I m thinking of getting myself a new electronice organizer, instead. Being such an uncle, IT-illiterate ... err ... it is a challenge for me to use it. Haha. I dont know how to use my smart-phone(outsmart me, obvoiusly) ... so, buying a Samsung Note(two) will be ... a waste? But, I do know I need to learn to use these devices. It could help me in a long way ... and perhaps ... in 2015, I do not need to write the point 3 again as my years resolution? Hmm ... ok. Note-2, then. Anyone good enough to help me?



Charity : This is something I have been doing with my tratles-group. But, recently ... I found a new charity organisation where they do help many charity homes. They have donation drives etc etc ... great. This is a must, at least once a month for me ... where I could contribute a little money and energy into helping them. I am still adopting the Rawang's orphanage ... and that will stay, till I could highlight their plights to those larger organisations. 

I admire KYY as he is donating large portion of his wealth to charity ... great man, indeed. 



I am attending another talk today : Value-growth Investing. Yes, this is for FA-kaki. I do still believe in buying good fundamental stocks. Looking into longer time frame, learning to invest wisely. Will write about it ... and this is the 'closest' to the chapter, a book I bought some time ago.

Well ... I have used my one hour to blog ... and that should be ok, as I enjoy it. 

Time to jog before the sun is out.

Have a nice weekend. 

TEH


Friday, November 22, 2013

KLCI at support


KLCI : At 50MA support for the third time. Wonder if it could hold?


TEH

Recent warrants-trading


These are currently my few good trading in warrants.

PJdev-wc : Bought 2-3 days ago 0.33-0.335 levels, asking the group to sell 0.355-0.36. Good reports out today, 0.36 is resistance. Sell?

Kulim-wc : One of the good plantation counter with warrants. When it broken RM3.70, many in my stock-watch group followed to buy. I bought at 0.78, but sold 0.84 .. it went down to 0.805 but I was waiting at 0.78 again ... it shot back up ... and I grabbed 0.85 this morning. At 0.86-0.87 now, I think I will whole a while and check if mommy clearing RM3.80 today. It is at 3.83 now, I grabbed mommy at RM3.73 this morning.

IJMPlant-wa : Well ... this is not liquid ... so, not for trading but the warrant is in discount. Take a look. Even the mommy IJMPlant showing ZERO volume ... after it shot up very high that day. I bought at 0.71 .... sold her of at 0.80 ... and now buying back ... cannot trade as no sellers.

HapSeng-wa : In money too ... HapSeng mommy supported by share buyback, been one of my good warrant to trade. Sold partial of it yesterday at 0.85-0.86 but someone in my group sold higher than me today.

Hibicus-wa : A one day trade ... bought 1.47 and lucky to sell her next day at 1.59(the AUZ news out? sell la ... 1.59 is the resistance). It came back down to 1.45, but I missed her as I was focusing in plantation counters ... it shoots up to 1.52 now.

YTLPower-wb : A good warrant, in money(low premium) with expiry 2018? wow ... riding on the recovery of YTLPower, the mommy ... the mommy above RM1.90 now ... and the share buyback continues. YTL-group really going to privatise YTLPower meh?

Of all the warrants given, Hibiscus-wa is the most volatile and risky one. But ... it is in money too.

Note : Trading warrants carry HIGH RISK. Do ask those who know-how.

TEH

How Tengku Razaleigh saved the construction industry: Practicing the 10 Golden Political Principles



Koon Yew Yin

21st Nov. 2013

The Perak Academy has invited Tengku Razaleigh to give a talk in Ipoh on the 23rd Nov. 2013 and he wishes to talk about ‘The economic reality in Malaysia today’. Many of you will remember that Tengku was here about a year ago to launch my book ‘Malaysia: A Road Map For Achieving Vision 2020’. Previous to this occasion, the Perak Academy also invited him and he talked about his 10 golden political principles on which I wrote and published an article.

Although I am not a politician, I have long been an admirer of Tengku Razaleigh. In the last two years I have tried to draw the attention of the public on several occasions to his stand in Malaysian politics which I believe contains values and principles that are superior to the manifestos and principles of other leading politicians in the country.

Key amongst what are Tengku's “Ten Golden Political Principles” to ensure the survival and progress of the nation in the difficult years ahead is the need for all political parties to include in their constitutional objectives the equality of citizenship as provided for in the Federal Constitution. He has also emphasized that political parties must not propagate economic or political policies that discriminate against any citizen and called on all parties to include and uphold constitutional democracy and the separation of powers as a fundamental principle.

He has also insisted that it shall be the duty of all political parties to adhere to the objective of public service and to refrain from involvement in business, and to ensure the separation of business from political parties.

To my mind, this is the principle which is being transgressed all the time and which needs all political parties and politicians, especially from the Barisan Nasional side to observe it scrupulously.

It is with respect to this principle of selfless public service and the need for politicians and political parties - while helping the private sector thrive – to stand apart from it that I most remember Tengku, especially since I was privileged to witness him personally practice it.

At that time more than 30 years ago Tengku Razaleigh was the Minister of Finance in the late 70's and early 80s. I was already an established businessman having founded Mudajaya and IJM. I was also the Secretary General of the Malaysian Contractors Association as well as being a member of the Board of Engineers and a member of the SIRIM Committee that was responsible for drafting the Malaysian Standards for Cement and Concrete.

From my key position in the construction industry during that period, I had various meetings with Tengku on emergency issues and developments that affected this important component of the Malaysian economy.

Price fluctuation clause for building materials

Perhaps the most serious challenge to the construction industry occurred during the fuel oil crisis in the early 1980s when the prices of all building materials shot through the roof and contractors were caught in a jam. They all could not fulfill their obligations under the terms of their contracts. Many of the material prices went up more than 100%; for example the price of cement went up from RM 3.50 to Rm 8.50 per bag of 50 kg.

How could contractors complete the contracted work when their original bids were made on the basis of much cheaper priced materials? As a result of this crisis, all schools, hospital, highway and other public construction projects came to a standstill.

When I met the Tengku, I told him that existing construction contracts did not have a provision for material price adjustment. I also pointed out that if clients – such as the Government - were not obliged to reimburse contractors for any additional construction cost arising from the fuel price hike, contractors who could not afford to lose so much money to complete their contracts would simply walk away from the projects.

I told him that the only fair way was to introduce a price fluctuation clause in all the construction contracts. This would ensure that clients and employers were obliged to compensate contractors for the additional cost when the material price went up whilst reductions and adjustments to progress payments could be made when the material prices went down.

I remember vividly that as a result of our meeting, Tengku Razaleigh immediately instructed his top treasury officials to work out the details for the price fluctuation clause and for its immediate implementation.

Tengku's Character 

Not only did this reveal Tengku to be a man of decisive action but there was no hemming and hawing on how difficult it was to introduce the reform.

Neither was there any attempt to extract personal benefit or advantage from it for himself or his party as now appears to be the accepted practice in Malaysia when politicians deal with the construction industry.

Without the introduction of this critical escalation cost clause, I am sure that many contractors such as Yeoh Tiong Lay (presently of YTL fame) as well as I myself would have gone bankrupt.

As a result of Tengku’s decisive action in introducing the price fluctuation clause, our construction industry was able to survive the crisis period of the 1980s in relatively good shape. Since then, the construction industry has grown from strength to strength and has gone global, competing on competitive tenders in other countries including India and China.

I have no doubt that it was Ku Li’s understanding and practice of the economics of moral and material development during the late 70s and 80s that has provided the crucial ground work for the prosperity and affluence that we take for granted today.

The best tribute that we can pay to someone who has the longest record of selfless public service to the nation is to ensure that his Ten Golden Political Principles become the template for our future development.



Thursday, November 21, 2013

Stock Watch : Benalec



Benalec : Today it was actively traded ... dropped 8% plus to close at RM1, support. It touched 0.99 ... in somewhat a panic-selling. ... what is going on?

It is a falling-knife ... dare to catch?

TEH

Tuesday, November 19, 2013

True Grit




It is listening time ... on how 'talents' is over-rated.

GRIT : PASSION and PERSEVERANCE

As in trading, they called it 'luck' simply because they are lazy enough to look into possibilities to increase their 'luck'. That is another reason why many going into technical-analysis and hoping to get a system which could catch those huge profits in days.

Without PASSION, many could not last ... without passion in teaching, I would not last to teach Math for 25 years. Without PASSION, I do not think so I could be waking up 4.30am daily to learn from ground-zero, by myself ... a loong winding journey being a newbie in markets, and now a novice(advanced level... whatever, it doesn't matter to me). I do still have about 5years or more for me to reach my 10,000 hours of learning about trading.

No one is interested how we get the skills or struggle to learn at initial stage ... they want results. No one will ask a student how he/she obtained the straight-A ... but the result itself is becoming the ULTIMATE destination. It is a waste that the journey or in my case, my trading adventure is being forgotten ... as I am still venturing into a path where ... I m still struggling to understand about trading/investing.

Now I have my whole groups with me ... many experienced traders, many more are newbies-novices, trying to learn some skills in trading markets. It is simply too huge to learn many aspects about trading in shortest of time? So ... one need to be REALISTIC. Noting that majority of those in markets are losing or lost due to their UNREALISTIC expectations ... of profits. It is out-of-the-world kinda logic ... where a well-educated person could throw out their common sense when it comes to trading or learning to trade better. They want instant results, not realising that it took us at least 4 yrs of Uni to graduate?

Listen to the clip above .. listen to more of such clips to understand HOW we human learn ... and how some are more successful than the majority? It takes time to digest some terms ... it takes us lot of painful time, failures ... to be experienced. It takes tears ... and joy ... hours of monitoring ... days of analysis of our trades, months of reflection for us to grow ...

Growth mindset ... means, we believe we could improve if we hold-on there. Especially when things do not go our way or up to our expectation, and continue to learn.

Grit ... and deliberate practice ... two words sticking in my mind now, reminding me that I have been complacent and need to push myself to achieve my 10, 000 hours. Doing it alone ... focus in things in hand. Making it a reality ... and continue to focus in my own trading adventure.

Hope I could inspire or motivate those newbies ... who are struggling in markets. It is my 6th year now it markets and this blog is more than 5yrs old.

Mix with right people ... positive ones, those who want to see u learning or improving.

THINK (use brain and time)

TEH



Monday, November 18, 2013

Why buying TNLogis and not Sumatec



TNLogis : Today hitting RM5.80 and I sold my portion today(again ... traded her from RM4.40 and some of members still holding?!!) 

Last Sat, we were asked to mention one uptrend stock to be used(showing MA). I answered : TNLogis ... and explained a little to the trainer that TA doesn't really apply in my trading for TN(Tiong Nam). It is the strong uptrend shown and the news of split that is pushing it up. Pure TA-kaki could benefit form reading about the news-announcements and such, to capture these counters, rather than punting into the most actively traded counters?

Anyway, I told him that ... if not mistaken, EGM was on Sat ... and expecting it to shoot higher this week when many coming in to buy. TNLogis was our main stock discussed last month in tratles-meeting(besides Pensonic at 70cents ... today ex-bonus, at 57cents). I have sold Pensonic before ex too. Well, I was questioning him if technical-charts could tell us about why TN will(almost in certainty ... 80% confident) ... shoot up?



Now, take a look at Sumatec ... if one really bought at 33cents, managed to sell at 50cents, that is one good trade. Today ... that lousy Sumatec dropping 13% ... to 41cents now. that is huge OUCH ... if we punted into her ... and now, u cannot afford to average down. This is simply playing on greed-fear ... control of our emotions ... simply difficult to trade. But, some of them will mention they managed to profit 30% in days?? Be real ... tell truth to those newbies-novices, can we? 

It is all about our risk appetite ... and noting that majority 80% losers out there, will you choose :

A : A restaurant with many people queuing up to have a dinner, hoping it is nice

or

B : A nearby restaurant where we do not need to queue? 

And if I know the restaurant in B is good? No brainer, right?

With majority are losers, it is only logical to be a contrarian  ... do the opposite and what others do not do.

If my remisier asking me to punt into Sumatec, I will leave the remisier. I have nothing against technical-charting, in fact I use charts in daily basis ... but, we need to check on the fundamentals of the companies we are buying. FA + TA ... more into FA first ... then, TA and a lot of LA = Logic Analysis.

Never follow the herd ... never chase up the stocks. Place these rules clearly if you are newbies-novices. 

TEH


Waking up early



“Early to bed, early to rise, makes a man healthy, wealthy and wise.”

http://elitedaily.com/life/motivation/if-you-snooze-you-lose-5-reasons-why-getting-up-early-is-essential-to-success/

I was never be able to wake up early ... as a normal lazy human, I will have to drag myself out of the comfy of the bed ... to go to school, uni ...and work. Just a few more minutes extra being in bed, escape from facing the grueling punishing world... i will try to give excuses why I should allow myself that extra minutes.

That all changed merely 6 years ago ... when I decided to go into markets : KLSE.

As I knew NOTHING at all about financial-markets, economic-accounting ... starting from ground-zero is difficult. VERY difficult.

So, to find TIME ... I have to force myself to wake up around 4.30am ... listening to some biz-channels while mugging the 'Dynaquest'. As a normal people around, I may know companies such as Astro, AirAsia, MAS ... Maxis, Digi ... and such. Household names .... but I do not know anything else about the financial-part of these companies ... which company giving good dividends, which is highly geared ... who owned the companies ... which are GLC(I don't even know what GLC means back then ... I was really from ground-zero, know what I mean?) etc etc ...

So, the article above is about Waking Up an hour earlier than normally we do. I admit that I no longer wake up at 4.30am ... but around 5.30am now. Not so much to read anymore, yet still much to study or learn.

Do read that(for newbies) ... get motivated and wake up. Do your homework.

Good morning ... it is Monday.

TEH

Sunday, November 17, 2013

GRIT : Passion and Perseverance




Never give up! It's more than just a platitude. In her extensive research, psychologist Angela Lee Duckworth found that more than IQ or talent or any other factor, the #1 predictor of a person's success is their unflagging commitment to a long-term goal... in other words, their grit. Find out why...




This is for those who wish to stay long in markets ... be successfully in trading or anything in our lives.

GRIT : Passion and Perseverance

Day-in day-out ... for years ... I will want to write more about this as I could related that well. I used to blog in daily basis ... questioning my trades, checking on all needed to learn(what i thought then, but now I knew much more ... many silly things I tried).

Listen and save it. Re-listen until you could understand the characteristics of successful people. If we want easy way out(like using some computer-software, believing they will trade well for us?) ... we will never be able to improve.

Just for sharing purposes.

TEH

Saturday, November 16, 2013

CNX Talk : Moving Averages


As I am 'free' today, I went to ChartNexus(CNX)'s talk at Cititel, MidValley. I am glad to meet a friend there(he is always there for market-talks) ... and he invited me to another talk next week, Value-Growth Investing and I agreed to attend. So, next Saturday will be another talk for me ... and I will share what I heard or my opinions on that(censored, of coz).

So, the title is "How to ride the trend using MA" by a young trainer of CNX. They are chartist and using TA for trading.

1. Classical Analysis : Price Movement, Chart Patterns, Support-Resistance and Volume.

To me, Price-Volume analysis is important ... and some will be learning it as VSA(Volume Spread Analysis). Knowing these will help us to check on the on-goings(accumulations and distributions). Yes, we do use support-resistance a lot in technical analysis charting ... the horizontal-lines where support turns resistance and vice-verse. I seldom look into chart-patterns such as Head-n-Shoulder(H&S) or Cup-n-Handle. Ascending or descending triangles or flag/pennant ... I will use the sparingly.

2. Indicators

I do use very few indicators ... simple MACD and RSI are sufficient. Yes, candle-stick reading and also lots of experiences in reading the characteristics in the counter(s) we are trading, that is much more important. And common-sense?

He pointed out correctly : Three one-million-dollar questions ... what to buy, when to buy and when to take profit.

Well, I will say ... when to SELL. Selling doesn't mean profits ... it could be cut-losses or it could be because we have something 'better' to buy ... we sell. Taking profits? That is optimistic ... and while it is good to stay positive in trading, one needs to be realistic.

Oh yes ... I like what he reminded all : Do you know that statistic showing that 80% to 90% of those in markets losing money? GREAT.

Now, that is what I called ... 'marketing strategy'. It is instilling FEAR in the audience. Most of those attended must be in those situation, right? Chances is high that ... they are losing in markets and that is why they are 'attracted' to the market-talk, hoping that the MA could help them to earn some 'lost' money? Yes? No?

While the statement is true, it is so de-moralising to remind many there that ... they lost money or losing money!! That is tuition-fees being paid for being in markets!! Well, it is only a tuition-fees IF the trader or person LEARNT something from the losses ... majority of those newbies-novices won't analyse their trades, and wasted the lessons!!

Alright ... back to the 'talk'.

Usage of MA : 1. As support-resistance 2. Trend indication 3. MA crossover

The longer the time-period, the MA line is a stronger support-resistance. Agreed.

Using of 20MA as the trend indication ... sloping up, sloping down and flat.

MA crossover : Bullish and Bearish.

He was using 20-100 pair ... I do not use MA crossover as signals as it is lagging.

He didn't  really teach others how to use MA to trade ... it is merely a talk to attract some TA-newbies to believe it is that simple to be used, but he did mentioned that we should use other indicators to complement with MA. Agreed.



Sumatec : I don't know why I got myself upset when he mentioned how they spotted Sumatec at 0.33 level and selling at 0.50 giving us 50% profits in days!!

If that is true ... I was tempted to ask if he bought into it and profits 50%? ouch ... I am attending those marketing-talk ... those who giving the audience WRONG impression on how we could profit hugely in days?!! Yes, it is mis-leading ... so, I voiced my dis-pleasure. Sigh ... I should have just kept quiet ... as I knew where he(they) are heading to ...

He, then, when on to introduce future-market trading. Hmm ... how one person can short FCPO at 2852 and took profit at 2284 days later when CPO prices diving. Yes, every point is RM25 ... that translated to RM14,000 profits for one contract in days. Hmm ... need we work?

I am always skeptical when I heard all these 'talks' on how to catch a trend, ride on it and how we could profit hugely in shortest of time period? it created GREED.

FEAR in the early talk ... GREED in the closing? Marketing strategy ... and many newbies-novices will believe such 'logic'.

I will want to repeat ... DO NOT trade those speculative counters such as Sumatec and many more actively traded counters. The buaya-darats are there ... one may lose the trade, the confidence ... and quit.

Get your MINDSET right ... never believe in fear-greed ... trading are supposed to be PLANNED. And make sure one knew what the biz of the counters we are buying. Do not gamble. TA won't really works on those counters as they are manipulated. Suddenly, an UMA issued ... what is next?

The package of the trading course worth RM11, 000 plus ... but they are giving a huge discount to RM6, 000 plus ... and for those who registering TODAY ... it will be RM4,000 plus.

QUESTION : To those who attended those few thousands dollars trading-courses :

Are you one of the top 10-20% of winners after the course, consistently?

e-mail to me at cpteh@yahoo.com ... so that I could make a compilation on which trading-course is the 'best' around, will ya? There are few 'popular' ones ... and I won't expose anyone's identity or the trading-course. Fair?

Nice Sunday ahead.

TEH

DOW at new high 15 960

DOW closed at new high but KLCI still below 1800, will be re-testing 1800 soon.




TNLogis : Our group bought into her, some still holding from RM4.50 level, some traded a few times, and the latest late-comers bought at RM5.40 level, which was given again in my stock-watch last Monday. It closed RM5.60, a new high. We believe it will go up higher ... so, buy high and sell higher.

It is overbought, and we should not be chasing it up next week ... as I m selling soon. It is going for a split ... and if it is at RM6, it will be divided by 5 ... becoming RM1.20(cheaper?). The last time I bought a splitting stock was TDM(before split of 5 too).



PChem : Bought into her yesterday, average at RM6.69. Oversold. This was given in my stock-watch as a technical-rebound counter. Watch if it could rebound? Why is it diving in the first place?

Chart-Nexus : I am attending the talk this morning(later) at Mid-valley. I did not have the time to attend any of their meetings but I hope to find some time(since I am 'free' now) to attend one or two. Well, I hope to apply to be part-time trainer or 'speaker' there. Will write in.

to join my group : e-mail to cpteh@yahoo.com

Ok, time to go ... have a nice weekend.

TEH

Wednesday, November 13, 2013

KLCI down 12.31 points


Finally ... something interesting to write about. I am having 'holiday' till end of year ... no more hectic schedule for past month, so free to monitor markets ... listening to some talks and trade. Time for me to reply some e-mail ... and organise my plans for next year.

KLCI down sharply today by 12 points ... and it is NOT a surprise move ... well, I have highlighted to my group last week about the weaknesses seen and I have written here(or was it at www.tratles.net ?) that KLCI is to correct(coming down la).

I taken two short-FKLI positions at 1812 and 1802 ... missed the 1822 that I wanted. I covered my short at 1788 too early, but will hold on to my short/pants.

HSI down by 400plus points ... CNOOC is below HKD15 again, it was lucky that I sold it at HKD16. HSI(PER 8-ish) is so much cheaper than KLCI(PER 15-ish) ... so, I do see some buying opportunities there, while in KLSE ... there is trading opportunities as KLCI diving now ... great!! Get busy.

IPOs : New IPOs doing well ... we have 'Caring' shooting 50% above its IPO ... some condom company, Karex, shooting for the moon ... full erection and today showing some signs of bursting ... some newly names counter Barakah being grabbed by so-called punters/gamblers. Haha ... the scene is amazing ... Westport shot up day one too sharp but came down. Waterfront postponed ... dont know when they are listing Malakoff. UMW-OG is doing good ...

Waterfalls : There are many in the making ... great and it has been some time I list out the waterfalls. Do go for short term technical rebound. If you want to learn, join my group. Catching a knife? ouch.



Alam is forming one of nice waterfall here ... will you catch? Ask ... why is it dropping so sharply? Check if the forums are noisy saying die-die or cursing about their losses ... blaming on everyone else, then it is time to consider.

Speculative counters : Many stocks goreng up and down ... if there is someone asking you to buy Sumatec or even talk about it, you know that this is called gambling. What chart showing it up or down? Don't be mis-lead by those so-called sifus ... keep AWAY from these counters. Use common sense ... if one still consider market is a casino to gamble, in long run ... one will fail to recover.

The most actively counter today is Ethiopia ... I thought it is a country in Africa? Oh ... it is Utopia ... my bad. Some so-called chart analysis will claim that the buy signals for this counter shown last month when it was trading at 6cents and they bought in millions ... today is 8.5cents, and the chart saying that it will goreng to 10cents, resistance? haha ... that is how some technical-chartists will tell you, and we believe that?

Trading good fundamental counters is only LOGICAL. But, market comprises of so many type of traders ... scalpers, day-traders .. contra-players ... and most of the time, it is excitement that we are looking for. Ultimately, it is investors who gain the most ... using simple strategy of buy-hold of undervalued companies ... buying in stages and patiently wait for it to be discovered.

When market crashing down, at least these counters giving us opportunities to buy more ... and wait for market to recover. Do nothing ... play golf, play pc-games ... haha ...

Logic is NOT in markets. Otherwise, we could never explain why 80% of those in markets are STILL losing money or lost-quit markets. I am glad to know that majority of them in my group(tratles and stock-watch) are the top 20% of those in KLSE. The main thing is to maintain that winning streaks.

Do know when markets going to correct before it dives ... do diversify and use logic to buy good counters. Avoid those speculative-counters. Never be greedy .. use common-sense which is NOT common in markets(majority losers there?) ... blah-blah ...

Hope for another long black-candle to form tmr ... and many in forums will yell die-die-die ... time to go shopping again. And the cycle continues  ...

good luck

TEH



Tuesday, November 12, 2013

Financial Habit : Being frugal



1. Live a frugal life.

- Knowing the value of your Ringgit means every penny counts. Live a frugal life by being wise in every money-related decision. First, make a mental list of your monthly and yearly subscriptions, and what you pay for every month. Then decide whether it is really important to be subscribed to any of these. For instance, do you really need cable TV subscription or magazine subscription when you spend most of your time at the office or outside of your home?

TEH : Live within our means ... many will be saying such or we have heard of such advises. It is a good financial advise we all should heed, especially if we are young, in our twenties ... or still in mid-thirties. I would say ... how I wish to know these simple concept ... of being well, financially.

Nothing is too late ... I started to THINK about my bad financial situation when I was 38, after I got married(and marriage is costly, ok? tho mine is the simplest one due to tight budget). So ... slowly I force my financial-idiotic brain to THINK on how to earn more, how to save ... how to invest ... how to do more and use less.

One could search the net for such materials to read or get good books to read. One of my first book about financial is RDPD, the popular Robert. Then, Milan's and Adam's books. These are just materials as guidance and one will not get rich reading these books.

I was reading Azizi Ali's "Millionaire in me" ... year 2006 ... and I kinda like the way he writes. One day, my father-in-law asked sarcastically ... one could be millionaire by reading books? Err ... I never respond to many comments on my financial change in my mindset ...

Now ... back to the 'frugal' part ... I am reflecting on my spendings ... and current buyings. ouch. Am I still frugal? I could not afford anything at all when I first came back from KL nearly 4yrs ago ... I was heavy in debts(personal and credit-cards ... heavy losses in markets too as I was a newbie).



Think ... if one is FORCED to be frugal, it is not a choice. Paying mininum amount every month on the credit-cards(got 3 then) is not what anyone want. To reduce our expenses ... using basics and getting the better discounts for things we are buying. Always saying NO to BUYING, unless it is necessary.

Living within our means ... could means, we have allocated 10% of our income as saving, and if our income is not huge, we should control ourselves from buying expensive items ... or so-called fine-dining. Control the bills too ... every aspect of USING MONEY. That is being frugal to me.

Recently, I do start to buy many items that I like ... such as speakers, earphones, headphones, home theater ... hmm ... assembled a good pc, bought two notebooks, a Samsung tab, a smartphone ... these are gadgets. And they are not cheap. Are they necessary? Should I live frugally and use the old-items?

Income vs expenses ... I do use 'percentage' for my monthly budgets. Do have a habit of planning for our monthly expenses so that we could know how much we are earning(averagely per month) and what are our expenses could be. Can we increase our income? Can we reduce our expenses?

Let's take a CAR LOAN as an example : Assuming I am earning RM6000 ... and paying my Proton car loan around RM600, that would be 10% of my income, right? Ideally, car-loan should be 5% of our income!! So, in other words ... my car-loan is RM600, I should be earning averagely RM12,000 per month. Hmm ... how many percent of Malaysians earning RM12,000 per month?

But, you could see most of young grads or working adults car-loan exceeding 10% ... or even 20% of their salary, right?

This is one example I am seeing myself as frugal ...to maintain less than 10% of my income allocated for car-loan(a depreciating asset). Either we increase our income OR get a cheaper car. I do not drive but ride second-hand bike to office.

House-loans ... should not be more than 20% of my income. House and car are always largest of loan we are taking. So, if one asked why am I only staying in low-medium cost apartment ... it is because that is all I could afford. I am paying RM1700 for my house-loans. Assuming my income is RM6000, it exceed my 20% quota, right? ouch.

Controlling these two largest items is very important. That is 30% of our income or should be LESS than 30%. If one bought a house, took a house-loan and manage to rent out the house, that is great ... but we still need some money for the differences(bank-loan and rental) and maintenance.

I will NOT change my Proton for years to come ... and if I do, it has to depend on how much I am able to earn then. The rule of NOT more than 10% of my income holds. If I am going to drive ... say, a Honda Civic, taking RM2k loans per month ... I have to be earning averagely more than RM20k? Yeah ... when I am able to change a car, it really means my income is huge enough ... as I am still living frugally(below my means).

Dinners ... this is another large expenses for me!! Somehow ... I enjoyed to bring my wife-kids for nice dinner in restaurants. Mere 4yrs ago and when I was in Sabah ... I could not really afford dinner at a restaurant ... not even once a month!! I am still a very simple person when it comes to food ... I could take chicken-rice or mamak-mee daily for my meals ...in food-stalls. I will always still enjoy the simple way of having a teh-tarik ... but these days, I 'reward' myself by taking my family to dinners in any restaurant, to try whatever food they like ... and seeing my wife being happy with that, my kids enjoy it ... that makes every ringgit worth it!! I m determined to reduce the makan-expenses next year as I have overspent in this area ... great to be reminded to be ... frugal.

Bills ... electricity bills, water bills, phone bills, unifi bills ... if you have a family, and the only breadwinner, you will understand all these bills need to be paid every month. Again, I place it to be less than 5% of my income. Otherwise, we have to cut here and there ... if I am using RM6000 .. 5% is only RM300? Kidding me ... haha.

NOTE : RM6000 is being used as recently media been saying that average middle-income Malaysians earning RM6000. My salary is still way below RM5000, for your info.

Another goal I do have is to save 20% of my income every month, and put them in my trading accounts(for trading and investments) ... in this case, I am almost reaching 20%, but still fell short. So, another new year resolution here!!

20% saving, 20% house-loan, 5% car loan? 5% bills? Food another 15%? Kids 10%?

What about household items? What else? Books/magz?

Membership subscriptions? Entertainment?

I really do not use money much ... as I will make sure I stay 'frugal'


How I wish I could be with more of frugal-living individuals ... most of my colleagues are teachers and teachers are very bad when it comes to personal-finances. Yes, I do wish to join such fugal communities. Invite me, please ... or I will create my own frugal-group?

Buy only during sales, get discounted items ... I do not mind wearing second-hand shirts-pants(please donate to me if you have the extras to be given away. Thanks!!)

Time to write my financial resolution and re-adjust my monthly budget for next year. I hope to increase my income by 10% and reduce my expenses by 10%.

Can I just do it? Wanna join me ... especially those young 20s-30s? If I could get myself out of debt, doing so well now, what are your excuses? What?? Tempted to buy the latest Samsung Note3, using credit-card loan for it?

Live your life ... you way, then.

TEH


How to Extend the Malaysian Ringgit





Knowing the value of each Malaysian Ringgit becomes more essential when you reach your twenties. When you’re in your twenties, you slowly stop relying on your parents for support, as your regular school allowance gets replaced with the regular income you get from a job. Being in your twenties is also the time when various responsibilities kick in –anything from allocating parts of your income to household expenses, providing financial support to your parents, starting a family of your own, paying rent for living in an apartment near your office, or completing monthly installments on a new car. So with all these things to pay for, most of us need tips on saving money. Here are some ways on how adults in their twenties and above can extend their Malaysian Ringgit.

1. Live a frugal life.

- Knowing the value of your Ringgit means every penny counts. Live a frugal life by being wise in every money-related decision. First, make a mental list of your monthly and yearly subscriptions, and what you pay for every month. Then decide whether it is really important to be subscribed to any of these. For instance, do you really need cable TV subscription or magazine subscription when you spend most of your time at the office or outside of your home?

2. Get an insurance plan.

- Another helpful tip in extending your Malaysian Ringgit is to get yourself and your family an insurance plan. Even if you are a naturally frugal person and saving is a regular habit for you, you will still not be able to predict when a natural disaster can occur. Natural disasters can come in the form of earthquakes, typhoon and fire, but can also mean sudden illness, car or swimming accidents, unexpected death in the family, and many others. To be able to protect your savings from just being gobbled up by hospital bills and other necessary expenses for accidents and natural disasters, you should get yourself and your loved ones a medical insurance that can cover medical expenses so that you wouldn't have to be burdened with the full costs of hospitalization and medical bills.

3. Learn about the power of investments.

- After mastering the art of living a frugal life, you may want to level up your saving power by learning about the power of investments. When you save money in a piggy bank, you won’t see your money grow as time goes by. If you want to see your money grow just by keeping it in one place, then you should try investing your money into investments that yield compounded interest such as a savings account, a fixed deposit account, a unit trust, or shares. Savings account that can yield 1 to 2% compounded interest, while a fixed deposit account can give you a compounded interest of 3.7% per year, and unit trust can offer 5-20% compounded interest Meanwhile, investing in shares can give you anything from 50-100% compounded interest. What’s good about compounding interest is that the longer you keep your money in the account without withdrawing any amount, the bigger your money grows. You just have to note that accounts with bigger possibilities of returns for your account, such as investing in stocks and shares can also mean bigger risks of losing bigger amounts of money. It is therefore important to learn about investing and how to invest so that you can get maximized growth for your money.

4. Use credit cards wisely. 

- Finally, another good way to extend your ringgit and save money effectively is to use your credit cards wisely. It is a smart move to get credit cards to extend your money, but you should keep in mind that credit cards should only be used for emergency purposes, and should not be used at all just to gather reward points which, in the end, can only cost you more when it’s time to pay your monthly dues. Always make sure to pay your credit card monthly dues on time every month, and when possible, try to zero out your balance or pay more than the minimum payment amount required. When you have fewer obligations to pay, you will see that it can save you money that can be consumed by late payment fees, underpayment fees, and other unnecessary costs you could have just easily avoided.

Follow these four tips on saving money faithfully, and you will see that after a couple of months, your debts will be significantly reduced, plus you will have more money for yourself and your loved ones to enjoy.

About the Author: 

This article is written by Compare Hero for CP's blog. Compare Hero is Malaysia's leading financial comparison website. Access the website and equip yourself with financial knowledge, compare and find out the best credit card and other financial plans for free.

do visit him at  http://www.comparehero.my
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The author has been trying to e-mail me a few times but due to my crowded e-mail ... and many things to manage, I forgotten to reply to him. Yesterday, he e-mailed me again ... and I do like his persistence. And the above article is well-written ... glad that I replied to him.

to share with readers ... and will like to comment. Been some time I didnt write my blog, having a 'guest' writer will be great. Anyone else want to write and get posted in my blog?

thanks.

TEH

Monday, November 11, 2013

Meeting with Mr Koon by yuwen



http://yuwenstocks.blogspot.com/2013/11/mr-koon-yew-yin.html

也许一些人对Mr. Koon不熟悉,他是IJM,Mudajaya,Gamuda的创办人,或者谷歌一下他的名字,就会找到关于他的点滴。笔者第一次阅读Mr. Koon的文章是关于收购TWSPLNT。一直很想感谢他,那篇文章带给我对收购概念的启发,也激起了我对收购股的兴趣。星期四那天,机缘之下,在 klse.i3investor.com读到Mr. Koon 的新文章里,看到他邀请读者们去他的家聚一聚,然后请我们用餐。看到这个,当然就二话不说,怎么可能会错过这次学习的机会呢!其实那天的聚会,我是有录音 的,不过不知何故,打开不到录音。希望有人可以分享。

Maybe some people Mr. Koon not familiar , he is the IJM, Mudajaya, Gamuda founder, or Google about his name , you will find information about his background. I first read Mr. Koon 's article is about the acquisition TWSPLNT. Always wanted to thank him, the article gives me inspiration for the acquisition of concepts , but also aroused my interest in the acquisition of shares . Thursday day, opportunity under the klse.i3investor.com read Mr. Koon new article, inviting readers to see him go to his house to get together , and then invited us to dine . See this , of course, apart from anything else , how could miss this opportunity to learn it ! In fact, the day party, I was a recording , but somehow, opened less than a recording. I hope someone can share .  

由于星期六我的男朋友工作半天,很感激他给我的爱与支持,一回到家我就和他一起北上怡保。五点钟准时到达他家。当时,已经有几个人都到了。进到屋子里,有个老外年轻人就招待我们,过后才得知是Mr. Koon的外孙。填写了名字,参观一下这间豪宅别墅,接着我们就开始了。

Because my boyfriend work half a day on Saturday , very grateful he gave me the love and support I have a home with him northward Ipoh . Five o'clock arrive at his home. At that time , there have been a few people up. Goes into the house , there is a foreigner young men entertain us until after that is Mr. Koon grandson . Fill in the name, a visit to this luxury villas , and then we began.


Mr. Koon就大概讲解了那篇文章得到的评论,没想到会引起那么激烈的讨论,所以就希望能与读者们会面,才办下这一次的聚会。接着,他就介绍一些书籍。无论是 Warren Buffet,Peter Lynch,还是Benjamin Graham,他发现他们全部讲的都是价值,价值之外,就是成长。他特别叫我们去阅读Glen Arnold的《Valuegrowth Investing》,这本书集合了五位大师的理论,比较容易阅读。


Mr. Koon will probably be explained in the article comments , did not think it would cause less intense discussion , so I hope to meet with readers , only this time the gathering to do next . Then , he would introduce some books. Whether Warren Buffet, Peter Lynch, or Benjamin Graham, he found that all of them are talking about the value, value addition , is growing . In particular, he told us to read Glen Arnold 's "Valuegrowth Investing", this book is a collection of five master's theory , it is easier to read.

 
有人讲投资靠运气。对Mr. Koon来说,运气就是准备。你做了功课,下了功夫,就是对股价上升最好的准备。他打个比喻说,水果从树上掉下来,你的手也得张开去迎接,才能够得到,连手都没准备,你怎么去接?

Some people say investment luck . For Mr. Koon , the luck is preparation. You've done your homework , the next effort, is the best preparation for the stock price rise . He hit a parable , fruit falls from the trees , they have to open your hand to meet before they can get , even the hand did not prepare , how do you pick ?

专家都看PE Ratio,他们忽略了未来的成长。有报告指出,在大马75%的基金经理都表现不如股市。主要原因是他们无法长期持股。他们每年都必须交出报告,表现不好很影响他们的饭碗。而90%的Day Trader都是输钱的。也不要买GLC,因为他们只会依赖政府给的合约.

Experts are looking PE Ratio, they ignore the future growth . There are reports that 75% of the Malaysian fund managers have underperformed the stock market. Mainly because they can not long-term holdings . Each year they have to hand over the report , the performance is very bad impact on their jobs. And 90% Day Trader are losing money . Do not buy GLC, because they only rely on the government to contract .

他说,这些年以来,他比较喜欢种植股。因为长远种植的成本是很低的,可以达到100%的利润。相比建筑公司,为了获得政府颁法的合约,到头来,利润可能只剩下5%或更少。然后他就说为什么他看中Jaya Tiasa,大致上和i3investor说的都一样(有兴趣进去看看,我只补充没有的内容)。他收Jaya Tiasa的票有一段日子了,也引起公司老板的注意。这家公司是首富张晓卿先生的。张先生的儿子-Kenny(我猜应该是Dato' Sri Tiong Chiong Hoo)邀请了他,坐上直升机参观他们的树园。以生意角度,他并不担心公司的负债。

He said these years, he prefers plantation stocks . Because the cost of long-term cultivation is low, up to 100 % of the profits . Compared to the construction companies, in order to obtain government contracts awarded France , in the end , profits may only 5% or less. And then he said why he saw Jaya Tiasa, and i3investor said substantially the same ( interesting look inside, I would only add that no content ) . He received Jaya Tiasa ticket for some time , and also attracted the attention of the boss . This company is the richest man in Mr. Zhang Xiaoqing 's . Zhang 's son -Kenny ( I guess it should be Dato 'Sri Tiong Chiong Hoo) invited him to visit their boarded the helicopter Tree Park . In the business point of view , he is not worried about the company's liabilities.

过后,笔者私底下问他的好朋友 Mr. Teoh Beng Suang,据说砂劳越的土地不适合种油棕,他反驳说,他在砂州的油棕园比较小,比较容易照顾,并且成本更低,还有更好的收成。土地是没有问题,反而是照料方面决定产量。

接着到了Q&A,他看到各位还没有人发问,就打圆说,是不是想知道,怎样才可以长寿?每天吃黄梨,弄到我们全场都笑了。他说,他每一天都吃整粒黄梨。早上空肚子吃,好像把我们肠胃刷了刷,对消化系统有帮助,哈哈,开玩笑。

Next to the Q & A, he saw no one ask you , hit circle that is not trying to know and how we can live longer ? Eat pineapple , we get the audience laughed. He said he ate whole pineapple every day . Morning empty stomach to eat , as if our stomach brush brush to help the digestive system , ha ha, joking.

有位先生问,现在股市那么高,还可以进场吗? 这个问题也被Mr. Teoh回答了。他认为我国的股市还是有上升的空间,2000点是不难。比起印尼和菲律宾,我国的股市逊色了很多。

A gentlemen asked , now the stock market is so high, you can also approach it ? This problem has also been Mr. Teoh answer. He believes that our country's stock market still has room to go up 2000 points is not difficult. Compared to Indonesia and the Philippines , China's stock market a lot less .

笔者也问了,TDM还可以买吗? 这个问题也是由 Mr. Teoh 回答,由于他曾经是TDM第三大股东,这方面他比较清楚。 他说,TDM现在在建着两间医院,帐目会出现庞大的费用。这两年里的盈利都不被看好,最快都要等到2016年,他也把他所有的TDM卖掉了。

I also asked , TDM also can buy it ? This issue is also the Mr. Teoh answer , because he was once a TDM third largest shareholder , he is quite clear in this regard . He said , TDM is now in progress with the two hospitals, there will be a huge expense accounts . These two years are not to be optimistic about the profitability of the fastest have to wait until 2016 , he put all his TDM sold.

另一位先生问,除了Jaya Tiasa,还有什么种植股被看好? Mr. Koon回答说,Kulim。Kulim是难得的政府关联的公司里,管理层最好的公司。

Another man asked , in addition Jaya Tiasa, what plantation stocks to be optimistic ? Mr. Koon replied , Kulim. Kulim is a rare government-linked companies , the management of the best companies .

TEH : The man was me la.


结束了疑问环节,Mr. Koon就说,人生最终目的都只是要获得快乐。如果有能力,就要懂得回馈别人。Mr. Teoh也说吃自己的,做别人的。假如有一天我们因为Mr. Koon赚到钱,他只希望我们能做一件事,把他的宗旨继续传下去,就是帮助有需要的人。无愧是一名深受别人尊敬的慈善家。

Ended questions about links , Mr. Koon said, the ultimate goal in life is just to be happy . If you have the ability , we must know how to back someone else. Mr. Teoh also said to eat their own , do someone else's . If one day we as Mr. Koon earn money, he just hope we can do one thing , his aim to continue to pass on , is to help people in need . Worthy is a deeply respected philanthropist others .

在晚餐结束之前,他特别感谢他的妻子。一位成功的人背后就会有位成功的女人。他把成功的一切都归于老婆的包容与付出。真是感人的一幕。

Before the end of the dinner , he special thanks to his wife. Behind a successful man there will be a bit of success woman. He attributed the success of all his wife's tolerance and pay . Really touching scene.


“吃自己,做别人”,就是说自己用自己能力赚的,再把自己做到的与众人分享,这是一个不简单的事情。他们两位都是真正的慈善家。也真正因为他们分享得更多,得更多。试想想,你曾邀请素未某面的人到你家做客,和他分享你的投资经验,教你怎么选股,再请你吃一餐丰富的晚餐?这是很奇妙的经验。我看应该有很多人会怀疑,是不是真的Mr. Koon?还是什么诈骗集团。很侥幸笔者没有抱任何怀疑,才能够接受这一份特别的礼物。


"Eat their own, doing what others," that they used their ability to earn, and then do their own share with everyone, this is a simple thing. Both of them are real philanthropist. But also because they share a lot more real, more. Just think, you have not been invited to a vegetarian who face a guest to your home, and his share of your investment experience, teach you how to stock selection, and then ask you a rich meal for dinner? It's an amazing experience. I think there should be a lot of people would suspect, is not really Mr. Koon? Or what scam. Was lucky I did not have any doubt, be able to accept that this is a special gift.

Translated by : google-translate.

TEH : The translator is not good ... but at least we could more or less get the meaning?

When I uploaded the clip into youtube, I will post it to share my point of views. I do still have many questions to ask Mr Koon and glad to know that he is willing and kind enough to 'entertain' me.

Thanks Mr Koon.

TEH

Sunday, November 10, 2013

A good productive weekend ...


Just came back from Ipoh ...


Friday night ... we had our monthly tratle's meeting ... and coming out with a review of our last month meeting which we stated to members to buy Pensonic around 70cents(to sell at 77-78) and to buy TNLogis around RM4.40 ... both given to my stock-watch group and many who bought into it were very glad with the profits. There are some still holding to TNLogis ... at RM5.25 now. After teh-tarik session, I was back late ... slept around 1am.



It was not a usual Saturday for me ... I was at Putrajaya(PICC) early in the morning for my girl's performance(kinder -5 yr-old) ... then, received a confirmation sms ... from Mr Koon, personally. Excited ... I rushed home to get ready and to drive up to Ipoh ... it was my wife's b-day too.



The meeting was scheduled at 5pm at Ipoh, and I was still at home around 1pm plus ... and I need to go to fetch my son!! Then, I received an SMS from my e-tratle(SH), wanting to car-pool ... up to Ipoh. He is going back to Kampar every weekend, anyway. Well ... a nice man(mid-30s) ... who have just joined my e-learning and my stock-watch group. He is very glad to join me ... only he knew me earlier? haha. Will be posting testimonials by my stock-watch group as many doing very well.

We reached Jelapang around 5pm ... phew ... not late for the meeting. After whole day of rushing and driving, it was a relief for me to be able to stretch my legs. I brought my wife(plus kids) along as I m supposed to celebrate my wife's day ... well, she is very understanding when it comes to my stock-market ... as I always given priority to learning to be a better trader-investor. I have even postponed my tuition for this talk.

And it worth every minutes spent ... no market-talk could be more open and honest as Mr Koon.

I recorded his talk for my keeping and will re-listen to it few times, before I summerise and write what he said about being a good investor!! And I will take heed.

Day-trading : Say NO to day-trading and contra-trade as 90% of those losers doing that.

Fund managers : 76% of them under-perform markets.



Plantation : Buy into plantation counters as their profit margin is very high even CPO at 2,500 level

Constructions : Avoid construction counters as their profit-margins is very low(around 5%)

GLC : Avoid those GLC-linked companies as they have bad managements, inefficient and heavily relying on contracts given by Gov.



Book : Value-growth investing. Do buy it from Amazon.

I will write more about what he mentioned on how to be a good investor. Thanks for such invaluable advices.

Charity : Once you have some extra money, always remember to give-away your 'extras'.

Well, I have high respect on what he is doing ... and I am, in my small scale, been donating some money into some charity-houses. Will be passing the hats around for my Christmas-charity fund ... from my tratles and stock-watch group.

Wife : Behind every successful man, there is a supportive woman.

Quote : Ultimately, in life ... be happy.

It was raining heavily around 7pm as we are ready to go for dinner. Very nice dinner!!



Anyway ... I am very glad to be able to meet Mr Koon in person. I am planning another trip up to meet him personally, getting some advises from such a nice and wise person. Yes, learn from those successful ones.

Night.

TEH

Wednesday, November 06, 2013

Buying AT or TA?


AT closed at 0.195, down 18% in a day ... the black candle shown above.  Without any LOGIC, it went doubled ... shot to 40cents high ... where many greedy retailers(newbies-novices or old-timer who never learnt not to gamble-punt) trapped. No way out at 20cents now ... unless some invisible hands want to push it up again. Such get-rich-quick counters will not be in my list and I never want my groups to punt/gamble. Gamblers will not win ... in long run. That is for sure.



Take a look at TA, instead. Well, written in Focus weeks back about it being the only stand-alone broker-house ... and Tony been buying into her, some news on in MGO ... how much would that be? It is everyone guess now, but many are chasing ... I will not chase, missed the breakout of 72cents. by the way, TA does not stands for Technical Analysis here ... but it is Tony-Alicia. Nice name?

TEH


Tuesday, November 05, 2013

Censof at resistance


Censof : One of the hot stock ... from 64cents to 34cents now back to 64cents? Crazy-trading, right? That is how many retailers losing money ... punting into these counters, believing in news being spread, rumours ... tips ... . So, you are in good-profit position in Censof ... congrats, chart showing that it is at resistance ... overbought and time to take profit.

Disclaimer : Some of members in my stock-watch group are trading this counter(and many tech-penny counters) but I have no interest in such trades. Buy-sell at your own risk

TEH

Saturday, November 02, 2013

Malaysian Business

I am a regular reader of Malaysian Business Magz(MB) ... and I will encourage newbies to spend some money(invest) into these resources. It is published twice in a month, and RM9 each.

The recent copy ... Oct 16-31 is a MUST have for those who wish to know more about top 100 Malaysia's largest listed companies. Get one. Buy it.

page 29 : Highest Net Profit

1. Maybank
2. Genting
3. CIMB
4. Tenaga
5. PBBank
6. PChem
7. Sime
8. Axiata
9. HLG
10. IOICorp
11. YTL
12. Maxis
13. HLBank
14. AirAsia
15. RHBCap
16. AMMB
17. UMW
18. MMCCorp
19. GenM
20. PetGas
21. TM
22. KLK
23. Digi
24. YTLPower
25. Kulim
26. MISC
27. PPB
28. PetDag
29. IHH
30. BAT
31. DRBHcom
32. SKPetrol
33. Affin
34. Sunway
35. IJM
36. AFG
37. BStead
38. Nestle
39. BIMB
40. HapSeng
41. UEMS
42. Parkson
43. JCY
44. BJToto
45. Airport
46. SPSetia
47. Armada
48. Lafarge
49. WCT
50. MPHB

So ... it is 'safe' to say that those with highest new profit counters could be considered as 'blue chips'. Hmm ... well, we do need to check on their DEBT levels too, and it is wise to avoid those with high-debt(gearing) and prefer those with cash-positive flow, giving consistent dividends.

From the top-50, one could see that we do have many banking-financial institutions. So, it is 'safe' to say that newbies should learn to trade those counters.

sin-counters : Genting, GenM, BJtoto, MPHB, BAT are in the list ... GAB, Carlsberg always in my list too as human basically as sinful(haha). That wont change ... they will continue to profit well in yers to come. But they are not shariah-compliant ... do note.

I do like property-construction counters such as YTL, IJM, UEMS, SPSetia, Sunway, WCT ... whichever we are buying, it is OK.

Plantation counters always in my list too as these are profitable companies (CPO above RM2500 now, expect a rally in these sector) ...while the giants SIME and IOICorp are not pure-plantation play(IOI is listing there property arm ... when is SIME going to list their plantation arm, since BStead is doing that now??) ... KLK, Kulim, BStead are in the list above.

How about telco? This is a good-dividend sector ... Axiata, Maxis, Digi, TM ... make your choice.

O&G still in play ... the latest copy of MB stating that it is still being favoured. SKPetrol is over-valued, PetGas-PetDag-PChem ... these Petronas counters are are new high, and the dividend yield is no longer attractive.

Consumer stocks? Nestle is a gem ... but over-valued too.

When market collapse, do remember these 50 counters(minus AirAsia, MMCCorp, JCY and few more for me!!) .. as they will recover well.

Newbies ... keep your cash ... earn more money, save as much as you can by being frugal ... invest in simple magz like MB ... read as much as you can. Get in touch with me(cpteh@yahoo.com) and join my stock-watch group. Nov-Dec is open for subscriptions.

Only logical ones will profit and survive in markets. Punting into those penny-stocks and for quick profits will end up losing more when market collapse. That will be my advise.

Happy Holiday.

TEH


Friday, November 01, 2013

Happy Deepavali




Good morning ... it is NOV now. Great feeling of a new month ... year-ending. Wishing my readers HAPPY DEEPAVALI(invite me for open house? hehe)

KLCI down 10points yesterday, as expected of the retracement. So, selling when KLCI is overbought is only logical ...

KLCI opened in RED, minus 5 points ... but recovering back now.

Will have a nice break for holiday ... creating a nice work-space myself ... preparing to do better next year.

TEH