Those stocks in my portfolio were Ann Joo, Choo Bee, GKent, LC Titan, PetronM and Fajar. There could be one or two more stocks that I can’t re-call offhand.

I bought, topped up and held on to these stocks between late 2017 or early 2018 until 2020. The fundamental and valuation looks great when I bought them. But things started to deteriorate especially after the results of the General Election in 2018.

Except for LC Titan which spiked these two days, the rest of the stocks have dropped even further since I sold them in February 2020.

It was an expensive lesson that I learnt. A combination of lack of diversification, lack of skills, over confidence and no exit plan. Looking back, it was crazy to to be chasing/topping up a stock until I was holding more than RM70K in just one individual stock.

Good morning folks.

A tussle between the bear and the bull this morning for my glove stocks. Who will win?

I know nuts about the stock market. My observation...


Scenario A

Assuming I set up a company. I go for listing at Bursa Malaysia. Then I made losses consecutively for 5 years. Every year bad QR. But the price of my stock is “cheap”. Trading at RM0.10. I announce that I am now venturing into glove stock business or that I have been appointed as the sole distributor for the Covid-19 vaccine by the government when it is available in the future. But nothing has changed for now. My company is still making losses.

Somehow, the investors or traders will flock to buy my stock because it is “cheap” and “hot”. The traders who joined the party late are left bewildered when the stock start to tank later because the bubble has burst. Any surprises here? I don’t think so.

Scenario B

I have a listed company making glove stocks. This year I am making super profit because of the Covid-19 pandemic. My share price has gone up 500% or 1000% this year. Analysts are predicting that my profit will grow another 100% and the next QR will be fantastic. But all these good news have already been factored into the current share price. When the QR is released, it is good. But the profit “only” went up 25% and not 100% as predicted. The investors are left “disappointed”. The price drops again.

For me, I prefer to die in style. Even if I am going to goreng a stock, please show me some profits in the company first. At least the fundamental and valuation should be OK. Hopefully, this will give me a margin of safety. I prefer going into battle carrying a M-16, hand grenades and a bullet vest rather than carrying a baseball bat.

I see some of the daily stock trading recommendations by Rakuten. I did a quick check. The valuation and fundamental is near zero. But still traders are plying in with their hard earned money. This is scary.

I have made and lost money over the years. There is no one right method. Just trade or invest in the manner that you feel comfortable with. But the moment it starts affecting your sleep, your relationship with your loved ones or your work performance…then it is time to sell down. No amount of money in this world is worth your health or your family.

My 2 cents view as usual blowing water during the weekend. 

Hi bro, for now I only have Inari and Poh Kong for trading. Nothing interesting to buy.

I do post from time to time the stocks that I have. I have no problem sharing tipsy. I am happy it the forumers here share info and make money together.

But everyone need to do their own homework at the end of the day whether to follow or not.

I heard it was an exciting day but I missed all the fun because of meetings.

Supermax should be renamed Superman. Up +15.93% and still not bursting.

Harta's latest QR has been released today. YoY +134% but the stock closed with -2.73%.

For me, I am still holding Inari. To sell soon? Unrealised profit at +25.52%. Target price at RM2.50.

Free fall for the glove counters.

I am going in all out on a suicide mission.

Oh yes, you are 100% right. Trading should only be a small part of your portfolio. It is time consuming and high risk. I am only trading now because of the glove stocks mania. Once in 10 years or once in a lifetime opportunity. Eventually, we will be eaten by the sharks or crocodiles if we stay too long.

I think we need to diversify across time, assets and country. An example would be:

(1) EPF
(2) ASM, Wawasan 2020 (for non-bumi)
(3) Fixed deposit, advance payment into housing loan, etc.
(4) Unit trusts like FSM One Malaysia or FSM One Singapore.
(5) SSPN (if you have kids for tax exemption)
(6) PRS (for tax exemption again)
(7) Stashaway

The investments which did not work for me were:

(1) PSP lending like Funding Societies, etc (default rate too high)
(2) Gold investment like HelloGold (the spread is too high, no interest payment, etc).

Vanguard ETF is available in FSM One Singapore. I have opened an account in FSM One Singapore but I am stuck there because I have not opened a Singapore bank account yet.

Back on track now. Yes, maybe 10% of your money for trading if you have the time and skill.

You may want to allocate another 20% of your portfolio for stock investment in blue chips or growth stocks (this not trading stocks on a regular basis). Some people like the regular dividend payments. Otherwise, you may just opt out from stock investment and to dump it into unit trusts, etc instead.

Whatever it is, start early and have an emergency fund of 3 to 6 months first before thinking of investment. You don't want the decision of when you should sell your stocks or unit trusts to be determined by when your house roof leaks or when your car breaks down.

Buy some investment books to read. Read, read and read.

My 2 cents worth as usual. Sorry, a bit long winded during the weekend. 

Good morning folks. This thread is quiet this morning which means that some of the forumers here are losing money and cutting their losses.

The glove stocks are continuing their downtrend, the support line has been broken. Will it rebound? Only God knows.

This could end up as a massacre like The Battle of The Alamo. However, I am hoping that it will end up like the Battle of the Little Bighorn, with us being the American Indians.

Relax guys, this too shall pass. In the meantime, let's eat our pop corn and see if there is any opportunity for day trading.

I came back to office from a late lunch.

Logged into Rakuten. My eyes nearly popped out. All the 4 stocks which I bought this morning hit limit up or is almost there. Comfort, Careplus, Adventa and Ruberex.

I made a killing today. Sold off all Careplus and 1/2 of Comfort, Careplus and Ruberex to lock in the profits. 

To see how Mr. Market behaves tomorrow.

I came back to office from a late lunch.

Logged into Rakuten. My eyes nearly popped out. All the 4 stocks which I bought this morning hit limit up or is almost there. Comfort, Careplus, Adventa and Ruberex.

I made a killing today. Sold off all Careplus and 1/2 of Comfort, Careplus and Ruberex to lock in the profits. 

To see how Mr. Market behaves tomorrow.

Hey, don't despair yet my friend. It is not over. I have a six figure unrealised loss here.

If you have holding power, just continue to weather the storm until next week. The fundamentals have not changed.

The Big 4 will weather the storm. 

im mainly done substantial reseach on youtube and books, im willing to teach you guys for free, believe me what im going to teach maybe cost you alot of money outside,
but im not so free this time, year end closing, i work as accountant. if got time i will make zoom session for those who are interested. no money ya, FREE. maybe mid of this month im free abit

Historically, when guru recommended to buy is after he has bought or ready to sell.

Good morning folks. I sold Mah Sing just now with about 25% profit at RM0.930. May re-enter if opportunity arises.

Edited : Sold off LC Titan as well just now.

Good morning folks.

When the stock market is rising, everyone including myself becomes an instant stock guru. 'Investing' in stocks becomes a piece of cake. Buy low, sell high.

Confirmation bias will be strong. We will be looking for validation for the stocks we buy, whether it is glove stocks, etc. Any opposing view will be shot down.

When we buy a goreng stock, we have to be honest with ourselves the reason for buying it. When the goreng time is over, it is over.

Let's look at JFTech. 2 days ago, it announced that it will enter a partnership with the venture capital arm of Huawei Investment. Some traders including some of the forumers here rushed in to buy the stocks. JFTech has now dropped about -20% in 2 days. The traders are trapped.

Was JFTech a goreng stock or has its valuation ran ahead of its fundamental with a PE ratio of 108.95? Time to cut loss or top up for JFTech?

When the market is red, I did the only thing I could which is to go shopping.

Finished shopping. I bough a wide range of stocks across different sectors. Hope it will work out.

I went a bit crazy.

1.  Tenaga
2.  Public Bank
3.  Careplus
4.  Vstecs
5.  Esceram
6.  Magni
7.  Luxchem
8.  Inari
9.  JHM
10.  Liihen
11.  Latitud
12.  Homeriz
13.  Samchem
14.  Jaycorp
15.  Hevea

I kid you not.

Edited : I also entered the Big 4 on Wednesday, I think, before closing.

Part 2

Can we use the DCA or VA method to buy individual stocks on Bursa? I have to thank Cherroy for his/her contribution. Cherroy helped to clear up some of my doubts on this issue previously.

The short answer is yes and no. What type of answer is that???? Let me explain further.

Let’s start with the basics. I trust you know there is a big difference between DCA and VA. If you don’t know the difference, then Houston, we have a problem.

I repeat, DCA means “invest the same amount of money each time period, regardless of the price”.

In contrast, VA means “to make the value of your stock holdings go up by RM100 (or some other amount) each month”. The focus is on resulting value instead of on investment cost. Let me plagiarise  the following example from Michael E. Edleson’s book entitled “Value Averaging”.

E.g. of VA

At the beginning of January 2021, you owned RM0 worth of stock, so you had to buy RM100 worth of stock (at RM4.64) to get 21.55 shares worth RM100.

Next month, February 2021, the rule says to make the value of your holdings go up by RM100, (from RM100 to RM200), so you must own RM200 in stock after your February purchase. Because the new price is RM4.38, this means you must own 45.66 shares at RM4.38 to make the value RM200. You already own 21.55 shares from January. Thus, you must purchase 24.11 more shares at RM4.38 or buy RM105.60 worth of shares in February.

So, when the share price goes down, you will have to spend more than RM100 to “replace” the lost value. But when the share price goes up, you will have to spend less than RM100, because capital gains have provided some of your “required” increase in value.

Using VA, a large upward price swing often results in a sale of stock, instead of a purchase.

To be continued in Part 3…(if there is demand from the forumers here).