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He's an agent I think, right?

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Added on January 3, 2010, 9:25 pmWhy did you just post that? lol


This post has been edited by wodenus: Jan 3 2010, 09:25 PM

i mostly read alot.. fragments of stuff.. you'll be surprized how the non-mainstream news can have profound truth than those nice suited newscaster on the mainstream talks about..

it's a nice thing to listen closely to behavioristic chatters.. i give you an example that helped me in my investment.

during my bumping around the internet.. kepoch-ing around, i kept hearing how many people like about a certain place, sing praises about it, etc.. that place is bukit bintang.. the chatter came from myriads of places, some forums, some professional exchanges, etc..

thus i went to bukit bintang and dig around at a time when there was this forced-sale of a property.. some are doubtful others wanted more convictions..

i worked my due dilligence and purchased it.. it turned out to be a very good money generator.. this was several of years ago..

when behavioral chatters become loud.. like most sociology would attest.. a momentum will build up down the road. i've emptied PFEPRF for the same reason too.. the chatter of housing prices is getting ridiculous.. and thus i left the fund by late oct-2009

Errrmmmm.... don't understand your question.....

I only made 30% profit mainly because I didn't want to take the risk and it was the first time I "played" stocks. Next time I would be a bit wiser (by buying and holding on to bluechip counters)..... hopefully....

i'm not an agent of unit trust.. besides, i'm a protagonist of an agent *lol* because i distrust their intentions most of the time..

so for anyone of you who would like a second opinion about your agent's remarks.. i'm glad to offer one..

No, afraid that's not the case.

Amplification is purely due to the total amount ($ value) of the investment, which doesn't change with distribution. You cannot make amplification happen by simply tweaking the number of units. The total number of units is irrelevant.

Otherwise, Fund Managers would simply make units of very small NAV value which gives everybody a large number of units and everybody's investments would be amplified and everyone would be very happy. But that's not how it works unfortunately.

yes, most of the time.. when there's a bloodbath.. it's much much safer to enter..
i couldn't predict what's a bottom looks like (there's also a risk trying to catch a falling 'dagger' as well)

but thanks to the ability to switch quickly.. i limit myself to a stop loss of about 2%.

what about now? well.. i'm just uncomfortable about today's economy's situation.. there're lots of bluff out there.. it's how to listen between what's true and what's fake.. nevertheless, it's still better to employ a stop loss with unit trust.

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Added on January 3, 2010, 9:40 pmyou don't happen to have a poor comprehension, do you?
of course nothing happens at the onset of the distribution.. the keyword here is 'moving forward'
that element of post-contribution is what generates the 'amplifying' effect.

This post has been edited by lwb: Jan 3 2010, 09:40 PM

Same here, I was in because I was arguing with this guy, who said you could make like 6% a month. So we dumped some money in there and he pretty much proved it. He had stacks and stacks of data with stuff like NBV and NPV and EBITDA and whatever not it's English but I didn't understand half of it lol. I know I was sweating a lot because the whole thing was so inefficient. I mean you'd key in a buy order, and it might be 10 minutes before it was matched. In that 10 mins anything could have happened. It's either that or keep fishing, setting buy orders that never get done because it slipped again. Sure we made 6%/month as promised but it was wild.

You mean you made 30% by buying and hoping? is that 30% a month? or a year or what?

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Added on January 3, 2010, 9:43 pm

So how do you manage to not pay commission?

This post has been edited by wodenus: Jan 3 2010, 09:45 PM

Yeah, I also think the stock market is too forward-looking at this moment. One day, everybody will suddenly realize that the economy is not good and there comes the bear and the double dip (my opinion only). That's the reason I'm taking my money out of stocks and putting it in a "safer" environment. FD, REITs and my newest investment tool - unit trust.........

it feels like gambling doesn't it? and it feels good to win some too..?
investing into something that one don't understand is a magnet for trouble..

well, the next time you punt a stock, do remember your safety belt.. your cut-loss. don't just put a buy order and cross your finger, setup your cut-loss level.. it's better to be able to try(punting) again some other day than to loose it too much that your self-esteem is wrecked..

Um.. you do realize that some funds trade solely in local stocks?

remember code 99?

Exactly. And I don't like to gamble. I don't punt. I don't even speculate. I invest.

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Added on January 3, 2010, 9:52 pmUm.. okay what does that have to do with not paying any commission? now that is something I'd like to know about lol


This post has been edited by wodenus: Jan 3 2010, 10:04 PM

Errrmmmm.... not sure what technique that was but I was basically bottom-fishing. Entered the stock market in Nov 2008. Bought a few stocks and sold most by April-May 2009 when the bull was running. Made my 30% during that period. Sold most of my stocks because I thought the bear would return, which it never did!!!!

i hope you're not referring to local reits, are you? the local reits seemed to have this stubborn inertia that it's always get stuck on 1st gear..

i'd pay a close attention to commercial loans regarding reits.. this is what keeping my fingers away from reits.. debts always have a way to spring an ugly ambush..

Let's take a simple example. Let's say Fund A holds RM 1 million of stock ABC. The appreciation/amplication of the stock is purely due to the RM 1 million. The stock market don't care whether the fund is split into RM1 mil x 1 unit, or RM500k x 2 unit or RM1 x 1 million units.

Moving forward, you still have RM 1 million. Just because you decided to split it up doesn't mean your 1 million now have greater amplication effect. You cannot create something out of nothing.

In your example, after the distribution, EACH unit will have a lower NAV, so it is WRONG to assume it will still go up by the same 1 cent. Comprehend?

Amazing. So you didn't know anything about any of these companies, you went in, bought a few and made 30% in 6 months?

i still think you're not comprehending what i'm saying here.. you still take the event at point-zero, at the day where the distribution takes affect..

let's take 'moving foward' as something like 1-week after the distribution date.. now, when the fund prices close on that T+1week later is up by 1cent.. what happens to your nav? (as compared to T-1week; a week before distribution happens)

.. do you see the difference here?

what i'm explaining here is also coined as "compounding effect" by the industry.. but i personally like to call it as 'amplifying effect'

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Added on January 3, 2010, 10:07 pmthis is where 'greed' will start to sink in and slowly takes over.. be glad that you've pocketed your 30% (a fairly handsome gain, i'd say)..

investing is like an ongoing lesson to learn about ourself.. we make mistakes countless of times.. i'd rather make baby mistakes than a fatal ones that can wipe off 30% of my capital..

don't worry.. the bear will eventually return.. when it does.. and you are ready for the next great ride.. then consider yourself good as you've learnt a new level about yourself (your own patience)..

This post has been edited by lwb: Jan 3 2010, 10:07 PM

Yes I do. However, I believe fund managers would get any news faster than us ikan bilis if we were to play stocks ourselves.

Unfortunately yes, I'm referring to local REITs.

Anyway, what I'm saying is that besides FD, I'm looking for investment options that don't have such high risk as stocks. Everybody knows that FD is useless as your money will still get smaller and smaller due to inflation. FD is low risk low returns. The next step would be unit trust, which is medium risk medium returns, would it not? (Of course, based on what type of unit trust). Besides unit trust, I can't think of any other investment options.

Note : I have tried a few times to buy ASM and ASW2020 but always goes back home upset and empty-handed. However, I managed to get some AS1M.... errmmmm.... hope the dividend is as good......

This post has been edited by kmarc: Jan 3 2010, 10:13 PM

No, wrong.

No compounding effect here. Unlike FD where the total value goes up after interest. Here the total value doesn't. Your RM 1million is still 1 million before and after distribution.

Very simply, in your example, you cannot expect that a lower NAV after the distribution will still have same capability of increasing by the same 1 cent. It simply doesn't.