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 STOCK MARKET DISCUSSION V150

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Cubalagi
post Sep 20 2019, 11:37 AM

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QUOTE(infested_ysy @ Sep 17 2019, 04:33 PM)
How do you guys DCA for stocks? I’m on Rakuten trade, and I’m tempted to just DCA like RM1000 on stocks every week, but the transaction and broker fees is like rm12 each time I buy that little.

What’s the optimum amount I should buy each transaction to minimise the fees lost?
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I don't DCA for stocks. That's like investing blindly.

I set RMxxx capital to start and then invest. Later add on capital when have more money or receive dividends.

Optimum for Rakuten is RM 9,999. Coz brokerage is RM8 at that value.

This post has been edited by Cubalagi: Sep 20 2019, 11:39 AM
Cubalagi
post Sep 20 2019, 09:27 PM

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QUOTE(Yggdrasil @ Sep 20 2019, 08:45 PM)
Well, it is better to DCA if it helps remove the 'buyer's remorse'
Meaning let's say you want to buy Maybank.

Example:

Maybank is RM10 per share today.

Situation I: You want to buy 1,000 of Maybank in a single transaction to save RM80 fees.

Situation II: You choose to DCA across 2 days. Today and tomorrow. It cost you additional RM80 in trading cost.

Tomorrow turns out Maybank price is RM9.50 per share.

Total cost incurred (Situation I): 1,000 x RM10 = RM10,000
Total cost incurred (Situation II):  500 x RM10 + 500 x RM9.50 + RM80 = RM9,830

Difference is RM170.

Do note that it can work the other way. Meaning you lose potential gains by DCA. So, DCA only if it helps you sleep at night to remove the 'buyer's remorse' feeling.
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Splitting your trade into 2 is not DCA to me.

DCA is buying regularly fixed amount at regular intervals over a long period of time. Eg buying RM1k worth of Maybank share monthly.

Cubalagi
post Sep 23 2019, 04:43 PM

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QUOTE(moosset @ Sep 23 2019, 12:12 AM)
with low interest rate, and further interest rate cut, does it help the property market in m'sia?

I've some property stocks....
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BNM only cut 0.25%. I don't think that will make much difference on buyers. N no confirmation yet of any further cuts in near future.

Better wait to see if there are any goodies at Budget 2020.

This sector also start to come into my radar, as valuations are quiet low. At the moment, my take is still not yet. Wait for further catalyst. .

This post has been edited by Cubalagi: Sep 23 2019, 04:43 PM
Cubalagi
post Sep 27 2019, 12:40 PM

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QUOTE(moosset @ Sep 27 2019, 10:25 AM)
M1 finance allows the user to choose the ETF.

Is there any Robo-adviser that allows us to choose the ETF?
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U be the robot la.. U can choose..😆


Cubalagi
post Oct 25 2019, 04:32 PM

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QUOTE(~Curious~ @ Oct 25 2019, 12:43 PM)
Im looking at MFLOUR via KenTrade:
The commentary says what does "RSI is also showing an overbought condition which indicates some retracement may take place...."
By retracement, do they mean the price may go down ..which I don't get as being overbought, shouldnt price go up?

Can some sifus enlighten me plz,
Kamsahamida
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Overbought here means the RSI is saying price has gone up too rapidly in a short period of time, so be careful to enter as there is potential to fall.

Having said that, prices can be overbought or oversold for extended periods before they "retrace".

Cubalagi
post Oct 29 2019, 11:18 PM

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Bursa (1818) profits dropped 26.5%

https://www.malaymail.com/news/money/2019/1...e-in-q3/1804886

Malaysian brokers must be really suffering..

Cubalagi
post Nov 13 2019, 12:53 PM

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QUOTE(bmwcaddy @ Nov 13 2019, 10:22 AM)
Hi All,

im currently exploring other options for trading platform (apart from my current Maybank direct CDS) which is abit pricey in terms of brokerage fee.

Im seeing Hong Leong or CIMB per say, any thoughts on this?

Thank you.
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Are u looking at cash upfront or collateralized trading account?

QUOTE(bmwcaddy @ Nov 13 2019, 11:43 AM)
if not mistaken, 0.1% of transaction fee or RM 12 minimum
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That's not too bad. CGS Cimb charges the same for cash upfront online trading.

I noticed quite a number of brokers are charging 0.1% for cash upfront online trading account. The diffrenciator for cash upfront online will then be minimum brokerage.

This post has been edited by Cubalagi: Nov 13 2019, 01:00 PM
Cubalagi
post Nov 21 2019, 04:54 PM

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QUOTE(moosset @ Nov 21 2019, 03:31 PM)
cubalagi

do you hold EWM or other similar KLCI index funds?
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Haha.. Of course not! Why want to pay the high management fee of EWM n forex to buy a bunch of Bursa blue chips.. 😆

Basically, I will use etfs to diversify into other markets and asset classes (bonds, gold etc) outside of Bursa and SGX stocks.

This post has been edited by Cubalagi: Nov 21 2019, 04:58 PM
Cubalagi
post Nov 21 2019, 05:11 PM

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QUOTE(Kjk014 @ Nov 21 2019, 10:30 AM)
Want to ask, what is HSI-xxx such as HSI-H8F, HSI-C7J counter etc all means? why their price like roller-coaster, today drop so much tmrw rise so high???
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HSI is the HK index, which is volatile.

HSI-xx are warrants on the index, which amplifies the % movement a few times.

HSI-C7K for example is a call warrant over HSI with a 12x leverage as at today. So if hsi go up 1% expect it to go up about 12%. But today HSI dropped 1.5%, so can see the warrant dropped nearly 18%. Note that leverage of a warrant can change daily n this is something to watch out.

Really not for the faint hearted.. N usually should only be used for day trading.
Cubalagi
post Nov 21 2019, 06:39 PM

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QUOTE(moosset @ Nov 21 2019, 05:20 PM)
but if you buy and hold (cash upfront), it's ok, no?

like normal stock, buy and hold... but in this case, you buy and hold, it may drop today, but if it increases tomorrow by 1%, then you can sell and profit 12%?
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Never buy n hold these things.. Look up on leverage compounding effect and options time decay..

What I'm looking forward to on Bursa is the leverage/inverse etfs. These are still risky but less so than a warrant. Less leverage n more importantly, there are no time decay.

For eg. If it's a HSI 2x leverage etf, means it will "only" drop 3% today. These ones can hold for slightly longer.

This post has been edited by Cubalagi: Nov 21 2019, 07:44 PM
Cubalagi
post Nov 22 2019, 05:57 PM

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QUOTE(Kjk014 @ Nov 22 2019, 11:50 AM)
What would happen if hold until it's expiry date??
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If out of money, u lose all your initial capital. Even if warrant is in the money, the cash settlement might not be enough to cover your capital so u can still lose some.

This post has been edited by Cubalagi: Nov 22 2019, 06:01 PM
Cubalagi
post Nov 22 2019, 05:59 PM

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QUOTE(IMBeta305 @ Nov 22 2019, 02:57 PM)
where can we actually check abt the "leverage" of each warrant.
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U can look at warrant websites like malaysiawarrants.com (Macquarie) or Naga warrants site (Kenanga).
Cubalagi
post Nov 27 2019, 07:01 PM

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QUOTE(moosset @ Nov 27 2019, 06:03 PM)
just wondering..... if an ETF has gone too expensive, will the fund manager do a ETF split so that the price becomes more affordable?
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Yes, this can happen. Fundamentally makes no difference tho.

Cubalagi
post Nov 28 2019, 09:04 PM

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QUOTE(moosset @ Nov 28 2019, 10:56 AM)
how do we check the % of foreign ownership in a stock? like as of today?

is it only through the annual report?
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I've no idea too.

What I keep an eye out is the foreign fund flows into/out bursa (n it has been showing investors fleeing since PH yook power).

https://www.theedgemarkets.com/flash-categories/fund-flow

Cubalagi
post Nov 28 2019, 10:34 PM

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QUOTE(moosset @ Nov 28 2019, 09:10 PM)
so we can only see foreign funds in/out of bursa but not specific stocks?

for example, I want to see what % of foreign ownership for MBB. If the % is high and recession hits, then I can assume foreign investors would sell so the price would drop further. If the % is low, then I can assume the price will not go any lower?... I think.
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I guess u may need to dig out the annual report which may be too late.

But foreign investors hv been selling out of Malaysia since last year. I would expect their ownership to be at the low point now.

Retail investor participation also low, brokers are suffering.

Which to me then is a contrarian indicator...Buy.
Cubalagi
post Dec 3 2019, 12:32 AM

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https://www.cnbc.com/2019/12/02/in-2019-alm...ent-worked.html

Except Malaysia..maybe 2020.

This post has been edited by Cubalagi: Dec 3 2019, 12:32 AM
Cubalagi
post Dec 4 2019, 12:37 AM

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QUOTE(~Curious~ @ Dec 3 2019, 03:20 PM)
in times of a maybe recesssion,is it better to invest in main market counters vs ACE market stocks?
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Going into recession avoid stocks lar..but if must hold then it's cash cow consumer staples like Nestlé (people still drink nescafe n milo) n Dutchlady. Both were quite stable in 2009, maybe even sin consumer staple stocks like BAT,l or Carlsberg coz ppl still smoke n drink. At bottom of recession, then buy the other strong blue chips.

Of course, this is easier said then done.

This post has been edited by Cubalagi: Dec 4 2019, 12:39 AM
Cubalagi
post Dec 4 2019, 12:41 AM

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QUOTE(moosset @ Dec 3 2019, 06:14 PM)
we buy the Irish domiciled stocks / ETF to lower the tax on dividend, right?

if a stock / ETF doesn't declare any dividend, does it matter if you buy the US one or the EU one?
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If no dividend ETF, then actually better US ETF. Europe etf will still get hit by witholding tax on the dividends paid by the US companies.
Cubalagi
post Dec 4 2019, 02:11 AM

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QUOTE(moosset @ Dec 4 2019, 01:53 AM)
I see. So, for gold and silver ETF, it's better to buy those listed in the US then. Thanks!
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Gold n silver pay no dividends at all, so it really doesn't matter whether US or not, in terms of Wht. For these, I guess u should look more at fees, forex, spread costs n convinience.

Speaking of gold, it has been surprisingly resilient in MYR terms.

This post has been edited by Cubalagi: Dec 4 2019, 02:16 AM
Cubalagi
post Dec 4 2019, 01:42 PM

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QUOTE(~Curious~ @ Dec 4 2019, 11:50 AM)
those cows r expensive =D..
is tenaga considered cashcow?since ppl prolly still use electricity

BAT bukan not doing so well already?
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Tenaga is cash cow but it's a higher beta/more volatile than KLCI. So in my opinion it's not a "safe stock" to hold going into a recession. But it is a good stock to pick up if u think market has bottom in a recession.

Yes BAT has been pretty bad for the last few years due to competition from vape, smuggling, govt regulations. Sales n earnings have dropped a lot.

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