If someone can tell you the long term trend of KLSE, most probably it's speculation..

Seriously, IMHO, no one could predict the trend in a market, they can analyze the trend of a certain stock whether it's bull or bear ... But not the trend for the whole KLSE market..

If this can easily be done, we wouldn't be seeing only ONE Warren Buffett now ...

Oh ... Guess I misunderstood your question
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About the trend in KLSE, I'm not sure about the details, but this is the story one of my ex finance lecturer told me...

She told me that the economy/share market of Malaysia is not that easy to predict as the economy/share market is heavily influenced by politics ... Is this true?

I believe you invest in a business by buying % of the share within the company ...

You lose your money when you bought the % share at the company drop ... For a small sized non listed company, you lose your money when the networth of the company drops... For example, you own 50% of the company and the company's net worth is RM100,000 ... But soon, the company suffer losses and the networth dropped to RM50,000 ... So even if you bought 50% at RM50,000, you can now only sell it for RM25,000, hence, you lost RM25,000 ...

I don't think you're liable for any debts of the company (depending on the type of small business you are referring to)...

I have no idea how to find small investment, but to research a company's financial profile, you can best look at the balance sheet of the company within a time frame say for example 5 years ... By digging through the balance sheet of this 5 years, you can tell whether the compnay is growing or losing ...

*How do you know not cheated... Erm, I don't quite get this question, sorry ...

Hopefully what I said is correct and please correct me if I made some mistake

No ... I'm actually still doing my final year now in engineering...

I like investment/financial stuff alot so I spend some time reading books related to these areas (though sometimes I still get my facts wrong...haha )

About online company, are you referring to those autosurt or things like that? As far as I know, they termed these sites as HYIP which I think, is too risky

There are some online investment (mutual funds and etc) website like Vanguard which is verified and trustable ...

Most of the time, people would invest in a company by buying a share of a particular company listed over the share market index board and most of the time, they would keep the share for quite a period of time like a few years and sell the share when they achieve an increment in turnover rate such as around 20% ...



Can you be more specific in your questions? Sorry, I don't really get what you meant by involving in that ? You mean in your investment or involving in a business of a company?

oh, I see ...

Well, basically every investment has it's own risk and there is no risk free investment (even FD also has risk, but really really really small risk) ..

I don't have much idea what is the right protecting an investor investing in a company, but as far I'm concerned, there's no policies which are protecting an investor from losing money .... However, a partner in a company will not be liable to any of the debts the company has ...

Perhaps someone more experienced can enlighten us?

This is a good place to start with ...

http://investopedia.com/

Yes, what they called timing the market is to use various technical analysis (candle stick, bar, pivots and etc) to determine whether the market is going bull or going bear ... From there, they'll time their entrance and exit in the market

Yes, there's quite a number of paper trading website like Oanda or metatrader (both of these are forex trading) ...

Hmmm, personally for me, I would research on a stock myself, talk to my broker about it and see what he thinks, take into account his opinion and look at the stock again ... Then I'll decide whether to buy or not on my own...

I'm thinking like this is because there are some unethical broker whereby they want you to trade as much as possible so that they can earn they money from your turnover each time ... However, some of the broker they refuse to give you tips because they do not want to risk losing their big time customer ... Let's say out of so many nice advice he gave you, he screwed up one or two and you lost your money, what are you going to say ?? Of course you'll spread rumors saying that this broker sucks big time by giving you false tips and etc ... IMHO, name and reputation in this field is rather important ...

(A perfect example is how one of the forummers who is unhappy about his broker, this is how all of us human will react, we tend to put everything on others instead of realizing we ourself has made some mistake too )



Haha... I never thought anything about diamond or gold before ... However, I did heard that some ladies tend to invest in all these commodities like for example, my sister's fiance's sister tend to collect diamonds, well, IMHO, it's kinda true as these items doesn't really fluctuate that much and they doesn't depreciate in value over time ... Unless one day someone found a huge reserve of gold mine, than it's a different case ... However, alot of fake and imitation items are on the market today, so I guess we must really be very very careful ... Besides, these items are "hard" items and imagine you have RM100,000 worth of diamonds ... Where are you going to store it? As I remembered sometime back, there was a lady where RM80,000 worth of jewellry she stored at the bank's safe was all gone ...

Hmmm, for beginners who are interested in trading, I think that they should at least have a good understanding before going for margin trading and leveraging

By the way, lklatmy, as you said you're a long term investor, do I need to know technical analysis if I wish to trade in long term? Short term trading is not really the thing for me as it requires tremendous amount of energy ...



There's always other forms of investment availble for average earner like us ... We can always start small and slowly accumulate ...

Haha, we now have both short term traders and long term traders here ...

Well, thanks alot for your detailed explanation and information ...

I guess the fundamentals of long term investing you're talking about is that, we must understand what we are investing in?

About the stock market in Malaysia, right now, I really have little, or should I say very little confidence in the PLC of Malaysia ... It seems to me they have very little ethiques when it comes to running their business ...

The reason I'm more interested in long term investing now is because I'm still a student and I'm doing some freelance work so therefore, I have very little time left to devote to short term investing ... However, it seems that it's not easy to spot an investment oppurtunity and even mutual fund doesn't seem to be the best place too for long term investing ...

I have just started to look at this https://flagship4.vanguard.com/VGApp/hnw/HomepageOverview

By the way, about the technical analysis part, do you have any books to recommend me? I have little confidence in books that boast about reading their book to earn from trading and etc ... It seems to me those are just some marketting gimmicks and seldom live up to the name ...

Besides, I'm interested to learn more about accounting and therefore, I'm looking for some books which is more about how to read financial statements and etc ... Right now at this moment, I can only understand simple accounting stuff

No point having the most detailed financial reports when I can't actually read it properly ...

Thanks many ...

IMHO, FD can't be taken as an investment ... It's more like a place to rest your money before you spot a proper investment ...

Unit trust huh ... I believe just like other forummers said, you need to time you investment right in almost any form of investment ...

Can't just get into something you have very little understanding in

Hi, Silveru, thank you for contributing towards this section ..

Anyhow, I find that it will be very confusing in the future if there's too much similar threads ...

Therefore, I merged your topic and edited the current title

Thread cleaned
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It's great seeing such a good participation in this topic and moreover, this topic is something which I like ...

However, because of this reason, please kindly refrain from posting things such as "thank you" or "wow, it's great, hope I can learn from you all" and etc, so that more information can be posted instead of single one liners holding no information (This is because if there's too many one liners, this section would extend quickly and alot of information will be buried under the earlier pages ... Of course, questions and information are welcome here

This makes life easier for ppl who wish to scroll back up to read more about what is being said previously ...

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KVReninem, please kindly use the edit button if you wish to add in more information and when there's no one posting below you the next time

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Lastly, thank you very much for everyone here who's contributing and keep all the infos coming

Topic merged, I believe you can get more response in this topic as there are quite a few experienced LYNers here

This post has been edited by Geminist: Nov 15 2005, 01:18 AM

This year, PBE has been promoting their funds quite often and persuading people to join their fund ... Hmm ... I wonder ...

By the way, I believe FD is more like a cash reserve for you to stash your capital before you're using them for any sort of investment ... The return rate of FD is quite low here in Malaysia ...

Anyhow, it's great for you to learn something before jumping onto it (as I made the mistake of jumping onto something without knowing everything) ...

By the way, welcome to JC and have fun

This post has been edited by Geminist: Dec 1 2005, 08:15 PM

Yes, personally, I'm also thinking about investing in futures when I have the right amount of knowledge ... However, currently, I still lack the knowledge in future ... Can anyhow recommend me anything such as books and etc? The futures I'm thinking is future index ...

It has already been discussed a few pages back, you can check there

Thank you for your reply ... I have been following mutual fund for quite a while now by reading and understanding more behind it ...

Yea, I have heard of technical analysis and I know alittle bit here and there ...

I'm not really that fond of learning TA through the internet ...

Do you happen to have any books which are good on technical analysis? I have been wanting to learn this for quite a while now, it's just that I can't find a good book about it ... I find knowing about TA is quite useful not only in stock, but also in other markets such as futures and FOREX ...

I never really come across anything from Public Bank that offers 7% yield ... Could you please direct us to the details?

*I tried to look for it but I still can't find it now*

Thank you ...

I was reading about the trial of the Enron case in the States yesterday and I came across a term called "Insider's investing" ...

I'm not completely sure about the term "insider's investing" so can someone explain on what "Insider investing" really is and why is it considered as illegal?

Thanks alot

Somehow I believe fixed deposit isn't all that good ...

Readjusting the earnings after accounting for inflation everyyear, the itnerest rate offered by FD doesn't mean much