Time Is Everything

You can't do anything without time. If time and money are on your side, you will eventually win.
To make money in 12 months is much easier than to make money in 12 weeks
Here are some clichés that refer to time:

• Time will tell: This means that something will revealed or become clear over time
• In the nick of time: This means something happened just in time
• Lost track of time: This means you stopped paying attention to the time or to how long something was taking
• Lasted an eternity: This refers to something that lasts for a very long time (or that feels like it does)
• A matter of time: This refers to something that will eventually happen or eventually become clear
• A waste of time: This refers to something that was silly or not valuable to do
• Rushed for time: This means you do not have sufficient time to do something
• In a jiffy: This means something will happen soon
• The time of my life: This refers to a really great time
• At the speed of light: This means something done very quickly.

The cliches stated above are from: http://examples.yourdictionary.com/examples-of-cliches.html

Where ignorance is bliss, 'tis folly to be wise

I am not a software vendor promoting TA (technical analysis). So whether people believe in charts or not is not my concern. In fact the more people believe that charts do not work, the better for those who believe in them. I believe charts are useful; I always refer to them before I buy or sell.

If you don't like charts and think of them as useless, I have no qualms about that. You have every rights to your own belief. I agree to disagree. So let us not quarrel over that for nothing.

I said in my previous article that the best way to stock market success was to choose good stocks and hold them for the long term. Buy and hold is a good strategy only when you buy the right stocks. However, I think that strategy can be improved to: buy, hold, monitor and switch.

To do this, you have to be on your toes all the time. You have to be on the lookout for something good to switch to. As soon as you find one, you let go the weakest stock in your portfolio and replace it with the new stock. This process has to go on and on and on. There is no end to it.

You must have full confidence in yourself. If you need to discuss with somebody before you buy, that is a sign of weakness. It shows that you are not ready yet to be an active investor.

The Best Way to Stock Market Success

The more I am involved with the stock market, the more I am convinced that the best way to build up wealth is to, first and foremost, master the skill to identify great stocks. Buy them at bargain prices and hold them for the long term is the best strategy. This is the surest way to financial freedom for your golden years.

Easy as it may sound, it is, in actual fact, not that easy. If you don't know how to read an annual report and understand the figures there, you will never be able to become a good stock picker.

So the first you need to do is to arm yourself with some accounting knowledge. You must at least be able to understand the Balance Sheet, Cash Flow Statement and the Income Statement. Once you know these, you can go on to calculate the key ratios such as:

the PER, EPS, NTA, Current Ratio, Quick Ratio, PSR, PEG, PBV, Debt-to-Equity Ratio and others.

Knowing how to calculate these ratios is not enough. You must understand their meanings and implications. Once you have learned and understood these key statistics, looking for a winner becomes a possibility.

There is an awful lot of work to do before you can say, " I found a winner".

MNRB Moving Higher

Every trade is a battle between a bull and a bear. The bull wins if the price moves up after the opening price; the bear wins if the price moves down. This should be easily understood.

Volume signifies interest. The higher the volume transacted, the more interest is shown in the stock. Thus big volume means more bulls and bears are participating in the fight.

The closing price of the day is the one to note. If the closing price is higher than the opening price, a white candle will be shown in the chart. If the closing price is lower than the opening price, the candle shown is black. Thus,a white candle means the bulls have the upper hand and a black candle means the bears are stronger.

MNRB opens at 3.09 with 10 lots traded. As a continuation of yesterday's run, the price promptly moves up to a high of 3.22 by 9.20 a.m.

Volume transacted is above normal. Because the price is moving too fast, profit-taking sets in. This pushes the price down. At the close of this morning's trading, the priced ends at 3.14, up 5sen. Total volume comes to 5174 lots which is above average for MNRB.

I notice that there is a lot of support at 3.10. I think this level should not be breached by the end of the day. Action to take is to average up if you have bought when the price was lower.

As usual, you listen to me at your own risk. The opinion expressed is that of the writer. You have your rights to disagree.

MNRN ON TRACK TO CHALLENGE PERVIOUS HIGH AT 3.39

MNRB put on 13 sen today with 3696 lots traded while the FBM KLCI is down 2.09 points.

The bullish candle displayed in the chart is likely to prompt shrewd investors/traders to buy in. Whether there will be a pull back or not is difficult to say.

In the last few trading days, it volume has been improving. The overall view at MNRB is positive. The stock should move on to better things.

As usual, you buy at your own risk.

The market is most dangerous when it is most attractive

“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”
Sir John Templeton puts it aptly. I fully agree with him.

The problem is that you may have to wait 10 years before you see a time of maximum pessimism. What about maximum optimism, maybe another 10 years?

When stocks are being sold ex-hope and cum-despair; when no one wants to talk about stocks, and when remisers are looking for another job, that is a good time to buy. During such time, professionals are accumulating at their own leisurely pace. You should be there to join them.

On the contrary, when people are rushing in to buy; when stocks are being the talk in coffee shops, restaurants, and wet markets among the hawkers, barbers and shoe-shine boys, that is an excellent time to sell everything.

You see new comers everyday and all the seats in the broker firms fully occupied. You will also hear lots of people bragging about their gains. During such time, the rewards are fantastic, but the risk is extreme. If you can't stand the heat, don't get close to the fire.

Patience is a must, an important ingredient, in the recipe of success.

Know the market, know yourself, and you win.

It's Best To Be Flexible

The Chinese has a saying: 随机应变. In English, it means: change with the circumstances, or set your sails accordingly to the direction of the wind.

The world is forever changing; we need to change with it. He who does not change when there is a need to change, is sure to be left behind.

What about a stop-loss you placed in a trade? As with everything, there are exceptions, this is one of them.

A stop-loss is a device you use to limit your loss. A trade without a stop-loss is equivalent to driving a car without brakes.

If your stop-loss is usually triggered, obviously something is wrong. Probably, you are not as good as you think.

After you have bought a stock, the share price moves up fast. It reaches the overbought level. The price is moving ahead of the fundamentals. What is your next move? Average up or take profit?

Different people have different opinions. Some will average up while others will take profit.

Smart traders will use a trailing-stop to lock in their gains. This is how they do it:

When the price moves up to a certain level, they will place a trailing-stop a small percentage below the price. And as the price moves up further, the trailing-stop moves up as well. As soon as the trailing-stop is hit, they will sell. This strategy is to ensure that they do not sell prematurely.

The stop-loss and the trailing stop-loss are devices designed to minimize your losses and maximize your gains. Using them gives you the competitive edge.

Are You Fit To Trade

Are you fit to trade?

ABC bought a stock at $1. He placed a stop-loss at 95 cents. The stock dropped to 96 cents. He said, " I will give the stock a little more room". He moved his stop-loss to 90 cents. He has breached his discipline; he is not fit to trade.

To be a successful trader, you must have ironclad discipline. Once you set your stop-loss at 95 cents, what does that mean? Does it mean you should place your sell order at 95 cents? In my opinion, it is not. It means that as soon as a trade is done at 95 cents, you should sell at the next bid. This next bid could be at 95 cents or lower, maybe 94.5 or 94. You must not delay; you must sell it immediately.

Ask yourself, can you do this? If you can't, you are not fit to trade.

The only way to convince a fool is to let him have his ways.

The person who likes to ridicule others out of envy or jealousy or for whatever reason is doing a great disfavor to himself. What he does not realize is that by trying to pleasure himself (shock sendiri), he is creating bad blood; he is not doing himself any good or to anybody.

This type of personality is not limited to the uneducated. Well-educated men or women also have these kind of traits.

They are mean in their praise and generous in their criticism. They are always on the lookout for the bone in the egg.

Criticism is okay provided that it is constructive and logical, and expressed in a euphemistic manner. The person who cannot do this should refrain himself from making any comment at all.

A wise man speaks because he has to; a food speaks because he has to say something.

How do we deal with this kind of people? The best way is to avoid them. It is no use trying to change them.

You can alter the mountains or rivers, but you can't change the inborn character of a person. A leopard never changes its spots.

Thus, the saying: The only way to convince a fool is to let him have his ways.

If you are interested to upgrade your trading or investing skill, join my Super Telegram Group, Intelligent Investing, by using the link below:
https://telegram.me/joinchat/BO0NxTua7NZ57y2pV6Mzrg

Gold or Silver

Gold or Silver

Historically, the ratio of gold to silver is 16 times to 1. This means, if gold per ounce is USD1700, then silver should worth US$106.25 per ounce.

A quick check at the prices reveal that gold is now selling at around US$1720/oz whereas silver is traded at around US$32/oz. So the ratio now is 53.75. This disparity is not logical.

Silver has hundreds of uses, maybe a thousand. It can kill bacteria, and is used in water filters. Your computers, smart phones, i-pads and other ICT products all use silver. In fact what gold can do, silver can do. But what silver can do, gold may not be suitable to do it.

The price of gold is about to explode, come Jan 01, 2013, If this happen as predicted by some experts, the price of silver will shoot up as well.

Silver is so low now because some large banks are controlling the price. Once the government step in and changes the rules, you will see silver shoot up easily to US$100/oz.

What is the best way to invest in silver? My opinion is to buy stocks whose core business is mining silver or involving in silver. If this is not within your reach, you can open a gold account or a silver a/c at a local bank.

Should you be interested in silver stocks listed at the NYSE, Click here.

Japanese Candlestick How Good

A Successful History

"Knowing the history of the formations inevitably imparts confidence in the Japanese Candlestick technique. Japanese rice traders developed the system over a 400-year period. Logic dictates that a system that has persevered that long must have credible features. The history of the rice traders that developed the signals reinforces that assumption. With its 400 years of development, the Candlestick methodology got its major refinement in the mid-1700s.

Kosaku Kato (1716—1803) was born in the city of Sakata (now Tamagata Prefecture) during the Tokugawa Period (Eighth Shogunate). Adopted by the Honma family, he became known as Sokuta Honma. His successful interpretation of the candlestick formations made him the most feared and respected rice trader in Japan, and the wealth he produced for his family became legendary."

Success is a ladder that cannot be climbed with your hands in your pockets. Japanese Proverb

Among the few TA books I have read, the best is: Profitable Candlestick Trading by Stephen W.Bigalow. This book is sure to change your mentality about TA. I strongly recommend it.

Stemlife

The First Wealth is Health (R.W.Emerson)

StemLife has a proven track record of success in releasing stem cells for treatments, especially in young patients with leukaemia, thalassaemia and cerebral palsy, and adults with knee injuries, chronic wounds, heart disease and more.

StemLife is a FULLY LICENSED cord blood and peripheral blood stem cell banking facility, under the PHFS Act 1998, Ministry of Health Malaysia.

More than 40,000 clients have already stored their stem cells with StemLife, what are you waiting for? Store today!

Stemlife has announced that it has fallen out of favor to acquire Tonik Asia Group because it cannot come to terms with the vendor on certain matters after a due diligence is carried out. The bonus issue of 1 for 2 is on track. It will be interesting to watch how investors react to the news.

For more information about Stemlife, click here: http://www.stemlife.com/malaysia/stem_cell/index.html

Fat Cats are harmful to companies

There are many kinds of animals in the stock market. We have the bulls, bears, stags, ostriches, pigs and fat cats. Among them, the fat cats are the most harmful to a company.

Literally speaking, a fat cat is a cat that eats too much and sleeps too much. The result is that it has become very fat. In stock market jargons, a fat cat is a different thing.

Investopedia defines a fat cat as:

Definition of 'Fat Cat'

A slang word used to describe executives who earn what many believe to be unreasonably high salaries and bonuses. These top executives also receive generous pensions and retirement packages, consisting of extra compensation not available to other company employees.

Investopedia explains 'Fat Cat'

This term conjures up the image of cats that consume more than an appropriate amount of food and become grossly overweight. 

Publicly-traded companies are required to disclose the amount of compensation that their top five executives receive. As a result, companies have been under a lot of scrutiny for excessive executive compensation, especially in the face of floundering revenues.

A real-life example of a fat cat would be former Disney CEO, Michael Eisner. For a period of five years in the late 1990s, Eisner received over $737 million in compensation, despite the fact that the company's five-year net income shrank an average of 3.1% each year.

Charts Can Be Misleading

Charts were initially designed to monitor the big boys long before you and I know about charts. Nowadays, charts are available to anyone who knows how to use a computer. 

Apple, Google, Microsoft and SamSung have all contributed to change our lifestyles. What was once used to check the big boys are now used by the big boys to trick and trap us. It is for this very reason that charts have false breakouts, both up and down. 

Many people after having read a book or two about charts thought they know how to read charts. They start using them to time their trades. For a while they may find them to be useful. But as they go deeper and deeper into charts, they find that charts are really not so easy to understand. 

One thing you need to know is that the big boys are very strong financially and much smarter than us. They are so strong that they are able to manipulate the charts, the news and one or two quarterly reports as well. So you have to be very careful with what you see or read. What appears to be bullish may actually be a Pump and Dump situation. That's why we have bull traps and bear traps.

Of course, not all charts are manipulated. So you have to use your own judgement when you make an assessment. Every chart has a personality of its own. This is because the people behind it, are different.

Remember, the big boys know what you are looking at. 

If you like the above article, please tweet and link it to Facebook. Thanks.

PW Root is moving in the range of between RM1.08 and 0.975. The pattern appears to be one of distribution. I understand that FGV, a major shareholder of the stock has been selling PW Root for some time. It has not sold everything. So obviously it does not want the stock to go down.

The formation of the last two candles is called a Harami.  If this formation appears at the bottom of a chart that has a long downtrend, it's a bullish sign. But it is now at the top although it is at the bottom of a range. I think the stock can only be considered to be bullish after 1.08 is beached. If the price breaks down to below 95 sen, the stock has turned bearish. 

When a major shareholders sells, institutions may be buying, hence you see the large turnover. In such a scenario, whether the stock breaks up or down depends on who is the stronger and how keen other buyers are. Buyers will rush in to buy when the quarterly report is better than expected. This is true the other way round.

PW Root is about to announce its 2nd quarterly report, the latest being the end of this month. Watch out for this report. It will determine the direction of the trend. In the meantime, should you buy or sell?

It's your money, you make the decision.

Feng Sui Matters

When you invest in properties, be they lands, condos or landed properties, the first thing you should look at is the Feng Sui of the place.

The most important thing to man is fresh air and water. Man can live without food for 3 weeks. They can't live without water for 3 days and they can't live without air for 3 minutes. Therefore air is your first priority.

A place without fresh air can never be an ideal place to stay. To have fresh air, you must have greens all around you. Dumpsites and factories which produce offensive smell and pollutants must not be nearby. 

When we talk of water we think of rivers. Thus rivers and mountain streams are part and parcel of good Feng Sui. Once you have identified a place that has good Feng Sui, you have to look at many other things as well. The designs of the buildings must be in accord with the Feng Sui. The atmosphere of the place must be calm and serene and yet lively with birds flying about. The feel-good feelings must be there.

There is a residential project in Bentong that has all the basic principles of good Feng Sui. This site has a school nearby. It is only about 2 km from the town. Constructions of the buildings are presently underway. I understand that there are not too many units left after the commencement of booking.

Click here to have a good look. It may serve your purpose well. 

Remember: Opportunity neglected seldom returns.

YONG Privatisation $6.60

YONG, a China-based company and listed at Nasdaq has received an offer from its chairman to privatize the company at US$6.60 a share. The stock is presently traded at around the $5.50 level. 

Here is an opportunity to make a 20% profit within a short period of maybe 3 months. In my opinion, this is low risk and high reward.

Many China-based companies are going private because of their low market value.

If you are interested in these companies, click here: http://seekingalpha.com/article/925621-6-china-stocks-going-private-since-september-2012

There was interest in PW Root as indicated by the fairly large volume shown in the chart. Unfortunately, the tock moved down. This is not a good sign.

At the close, there were  24,819 lots traded. Support is likely to come in at 95 sen. If that level is decisively breached, the stock is likely to trend lower.

The quarterly report for the period ended Aug 31, 2012 may be announced today or tomorrow. The corresponding period for last year was announced on Oct 25,  2012.

As usual, you trade at your own risk.

Why you will not win as a small trader

I understand that at OSK, the minimum commission for a trade is RM40 if you go through your remisier. If you do it online yourself, the minimum commission is RM12.

Assuming that you are a small trader and you do not know how to trade online. That means that every trade you do, you have to go through your remiser. 

Suppose Tom bought a stock for RM6000 and made a 15% profit. That means he made RM900. From this trade, he a has to pay commission, stamp duty and clearing fees. Both ways, the amount works out to be: roughly RM40 + 40 + s/duty 13 and clearing fees 4.80. The total is 97.80. And don't forget that if his fund is financed by the bank, he has to paid interest which has to be factored in as well but is not included here. 

Thus his profit of RM900 shrinks to RM802.20. 

Now let's see what happens if he loses RM900. Plus the expenses stated above, his loss of RM900 inflates to RM997.80.

To sum it up ( for this case),  if Tom wins, he wins RM802.20 and if he loses, he loses RM997.80. From this calculation, you can see that the odds are heavily against him.

What is the odd against you when you play roulette, soccer betting, and 4D?

If you really want to bet, find out what is what before you wagger or very soon your cash will just say: Bye bye!

Never overestimate your own ability to survive in the gambling world.

FBM KLCI from 1997

The 13th GE........??? (Must be held latest by June 27, 2013 according to Wikipedia)

The 12th GE: Mar 28, 2008; The 11th GE: Mar 21, 2004; The 10th GE: Nov 29, 1999

The 09th GE: Apr 25, 1995; The 08th GE Oct 21, 1990. The 7th, 6th, & 5th, find out yourself.

The chart shown above dates back to 1997. The primary trend of the chart has been on the uptrend since 1997. This is a trend in motion and is likely to continue in the same direction. How the market will behave just before and after the 13th GE is anybody's guess. If you know TA, the above chart may be of some use to you. Please remember that TA is an art, not a science.

The only certainty in the stock market is uncertainty.

Good luck, and may God bless your every trade.