Mind to tell us which stockbroking company? We can goreng the counter!

I keep reading "buy on dips and sell on rally". Sounds simple right? And I thought I understand this too and that I can put this to use anytime I want to. But thinking deeper, I started to ask myself, what is a dip, and what is a rally? Is KLCI - 0.05% a dip? Or does it take more than -2%? Is +1% considered a rally?

Everyone, its time to be a bit more prudent in your buying. The correction has come as predicted.

Probably will drop more tomorrow as the LondonEx is down like nuts, Dow future is down -40, HSI is giving up most of its gains today up only 187 (when the days high is 540). FKLI is down a lot a lot. (was good day for me as I managed to short some for RM3k profit, not to mention I've consolidated my portfolio to more reits and long term fundamental stocks)

Tomorrow might have sales, and the next day megasales. Hope you guys haven't used up all bullets by now.

Damn... I could have gained profits of 63k.

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Added on June 4, 2009, 8:55 pm

If you made 100k from being a fundamentalist back then, why did you want to do short term goreng stocks and dump 200k in TA-WB now? Might as well pass me your money, I give you my TA shares and 1 year supply of Toilet Paper.

Hahaha. Wouldn't you like one year supply of Toilet Paper?    Seems like a lot of people did q-ing for TA-WB. LOLOL. 

There might be a correction, but I doubt we are talking 900s, much less lows of 750. At most, it will be KLCI @ 1000. I'm looking at relatively low beta shares in bursa now, to avoid goreng-ed counters. Some admittedly are reflecting much higher prices than it was a month ago, but that's because their sectors have seen improvements, so I give the counters that much allowance. I can't wait for 1 year for a correction, I'm not working so this is my salary. I'm not allowed to touch my investment capital (by myself). Every month my savings will be amply reduced by my expenses, if I choose to wait and see. Much less wait 4 years  . Of course, I still have some investment cash left in case I need to average down.

Why am I choosing China as well? Sure there are sharks, there might even be more 'creative' accounting issues there than here in bursa. But I see real greenshots there, I have huge faith in China's government doing the right thing to move their economies forward. It will, no doubt in my mind, be the economic powerhouse that everyone talks about soon. I've lived in China and I've seen how a really developing city and country really feels like. When I returned to KL, if feels like I've returned to a stagnant city of past glory, that's 20 years behind Shanghai or Beijing.

If you follow China's news, China's economic policies to the recession are well thought of, some of them are really helping businesses to survive and grow, foreign or non foreign, small or large. Unlike our stimulus policies, or US's (sorry obama) or any other government's implementation. SGX probably is also a trustworthy government that would tend to their economy fast. If you are worried of investing in local companies in China, maybe you can wait a while till 100% foreign companies in china are listed in the SSC, as the China government have already started devising policies to allow that. Hey, maybe GM's china operations would be listed. That would be an interesting investment proposition.

I don't have the technical skills and I don't think I can handle the burden of handling other people's money. I'd feel guilty and bad if losing their money! I'd rather enjoy my own investments, profit or loss without that added stress.  

Yes, a lot of businessmen got badly burned. But there are also some who made their fortunes there. Same as anyplace in South East Asia, a different culture can be difficult for a foreigner, red tape and corruption. Are there capital guaranteed funds for China? That could be a good investment instead of investing yourself. My china fund was not guaranteed and I lost quite a lot in my China fund (bought in late 2007) due to greed (it went up 25% in 1 month and didn't redeem), then dropped steadily till losing 40% of investment amount. But I held on, averaged down and now its a few cents away from breakeven!  My capital is RM300k, can be topped up to RM400k. But now that I've lost heart in KLSE, I'm just going to restrict to RM200k-250k max, with the rest in overseas trading.