Monday 14 January 2008

TRADING BASED ON RUMOURS OR TRADING BASED ON RESEARCH?

Before I start with anything, I would like to welcome a long time friend to the 'trading club'. He knows this message is for him when he reads this. Welcome to the club bro.

Well..... I received a text from the other fellow investor a few days ago, 'knapa x beli uemworld leh buat duit le beb n hubline, gtronic beli le cepat'. I replied , 'pasal hubline leh naik?'. He responded, 'Sbb lama tak gerak n business dia v good this year.'

Hmm.... and so I texted my remiser to buy 35 lots. A small investment to that counter considering I am not going to dump all my money on this one. This counter is not even in the 20 counters that I tracked. I bought because I trust my friend and he is an experience investor. He took a lot of market rumours seriously and so far he gained a lot out of it. He took a lot of bold transactions too which I don't even consider. I target medium term investment for this counter, between 3 to 6 months and let see how it goes. At present it is going down.... *sigh*. Even if I am not going to make money on this counter, it is alright for me. I just want see if my friend's hunch is working.

I have changed my investment strategy recently. I am putting my money in a few counters instead of one counter like I used to do before. I researched the 20 counters that I tracked. The capital, the profit and lost, the shareholders etc. I have a good idea at what price to buy and what price I should sell. I am waiting for market shocks, and I would go in and buy. Shocks normally happen a few times in a year. You just can't believe the price of a good counters drop down rapidly at that time.

Just let see what 2008 would land me in.

10 comments:

Mazza Homemade Cookies said...

I'm not really into shares trading and seldom done it..but as a researcher myself, I would prefer doing any trading based on research...but I guess in financial, romours do play in important role...well, you know best

merapuman said...

since it has reached a few new peaks lately, i've sold some that i were holding for the past 1 year

east43street said...

myfisol...
You should go into trading frequently. It will add more spice in life.....

merapuman....
Past one year?? That is too long man. Normally one year holding should translate to more than 100% return.

akula said...

Wonder who your friend is?

east43street said...

akula....
This friend of mine? Oh he used to be a big bully in his childhood.

Anonymous said...

appreciated if you could share ur researched and advice us dude!

east43street said...

anonymous....
Most investors follow their counters like following a religion. Investors look at counters in a very different way. So there would be no advice on which counters to buy.

But on the investment srategy in general, I suggest you read from Ben Stein and Robert Kiyosaki sites. There are so much insight for a medium and long term investor.

Anonymous said...

ya, it did. bought at .59, sold at 1.41 :)

east43street said...

azwanhadzree....
That is more than 100%. Congratulation. You can do it again this year as the prices are cheap now.

Unknown said...

why don't u try to invest in unit trust also?there is a lot of funds u can invest..i suggest u to try Public Mutual..it's already emerged as the Best Islamic Fund Manager in Asia..