Posted by murali > Mar 3, 2016 10:29 AM | Report Abuse

After learning yr online FA courses then they can be safe from all these??



Let me get another of my readers answer your question.



Keng Leng Ho 1/3/16 10:16 PM (17 hours ago)

Dear KC,
Thank you so much for your teaching and guidance. I did not submit all my homework due to work and family commitments but I followed intensely and closely the course which I find highly educational, interesting, practical and useful.

I have learned the language of value investing in stock market. I believe this is one of the most valuable knowledge I have ever learned.
Does the course make a difference to me in my investment journey ?
I had started investing in Bursa two years ago. I bought the shares of good companies which were strongly recommended by professional analysts. I had no ideas of terms like safety margin, undervalued, ROE/ROIC, free cash flow, 'Good company is not a good investment if the price is not right' etc. So I bought Skpetro, MKH, Trop, KSL, LBS at high prices, and I suffered big losses.
Since I joined the course, I practiced what I learned. I invested in companies with deep values, with consistent growth, dividends and piles of cash. I bought shares of Magni, padini, Elsoft, CScenic, Hexza, Hevea, Willow, Tguan, FLBHD ect. Most importantly, I bought them when they were selling cheap at the time of big market correction a few months ago.
There is significant improvement in my investment returns since then ( from net loss of 50 K then to net profit of 60 k now excluding dividends ).
I understand share market is volatile, it can turn on me anytime.But as you always say, in value investing, heads I win, tails I don't lose much. I hope this will be the case for my investment by practicing value investing.
I still have a lot to learn. With the foundation that you have laid for me, It is much easier to learn by myself now. I have a dream : to establish a stock portfolio that will generate enough dividends for me for my daily expenses and retirement, in other words, financial free. I believe now I am much more well equipped to go after my dream.
Once again, thank you very much, my dear teacher and mentor.
Regards,
Ho KL

Most people don't realize that, for example, they think they can make 50% easily investing in stock market, because they think that they are much better than others (Yours truly included)in investing.

But that is what they think they can do, and that is in the future, an expectation, an Ex-Ante event.

Yes, thy often think that they are good, almost everybody does.

But do they really have the predictive power? Do they really think that they can control the market? Do they think that they can beat the investment bankers, the professionals, the insiders, the manipulators,the syndicates?

Posted by murali > Mar 3, 2016 09:40 AM | Report Abuse
KC seems to be very negative on Margin, I hope that's nothing personal with his feelings towards Koon Koon...though i always hentam Koon Koon here but i have nothing personal with him....

Let us forget about the promotion part of it. How many of you donate money to charities? So do not forget about the good deeds done.

But teaching the general public to “make money by using margin finance too the limits”? It is hilarious, unbecoming of someone who is well respected, someone the public wish to remunerate, and tend to follow his “advice”.

Why am I vocal about it? I will be doing a disservice to the young readers and newbies, and the public in general, for not writing strongly against it, just like the good thing you are doing,

Posted by murali > Mar 3, 2016 08:53 AM | Report Abuse
If you are not good in share investment, never ... I repeat ... never use margin financing.
Never buy shares too....better placed yr money in FD

except that I never engage in personal attack, even though I was personally attacked.

Posted by stockraider > Mar 2, 2016 06:18 PM | Report Abuse
Raider again says KC this article is contradicting loh....!!
In this case he use the example of 15% pa compounding as way of increasing wealth.

ME: CONTRADICTING? 15% COMPOUNDING, WHERE DID I USE IT?

If someone can achieve an average return of 15% pa....for many years...is it not worthwhile for him to borrow, when it cost him only 5% pa based on current low interest environment ??

ME: LOOK AT TABLE 1, QUICK WITH AN AVERAGE RETURN OF 15% A YEAR FOR TEN YEARS. HE MADE 100% FOR THE FIRST YEAR. BUT THE COMPULSIVE MARGIN PLAYER USING MARGIN TO THE LIMITS WOULD HAVE LOST BACK EVERYTHING HE MADE FOR THE FIRST YEAR IN THE SECOND YEAR WHEN HE LOST 50%, INCLUDING A BIG PORTION OF HIS OWN CAPITAL. SAME THING HAPPEN TO FOURTH YEAR AND NINETH YEAR WHICH WOULD MAKE HIM LOSE EVERYTHING. HOW MANY INVESTORS CAN SUSTAIN LOSING ALL HIS MONEY IN 1, 2 AND 3 TIMES?

Actually in a nutshell, people are barking on the wrong thing...it is not margin that causing people to go bankrupt loh....!!
It is the inability to master the viable investment tech, that cause people to destroyed wealth loh....!!

ME:MARGIN AMPLIFIES LOSSES, AND AFTER HARD FALL ONCE, TWICE, IT IS DIFFICULT OR EVEN IMPOSSIBLE TO STAND UP AGAIN.
AND IT IS NOT HOW GOOD AN INVESTOR HE IS. THE STOCK MARKET IS HIGHLY UNKNOWABLE, UNPREDICTABLE, AND UNCONTROLLABLE.
IT IS ALSO NOT ABOUT HOW LOW THE INTEREST RATE IS.

So if u can master your investment tech very well, then u should not miss the opportunity of using margin , when the cost of fundings are far below your average compounded return.
This argument is very valid especially in a very low interest environment loh....!!

If the investor...cannot get average return higher than the 5% pa...then he should be better off not to invest loh...!!

So the argument if u r a margin investor n u cannot got return above 5% per annum...then u better close shop.

For cash investor....if u cannot get return above 6.4% pa....then u better close shop....and leave the monies with the epf loh...!!
Please avoid investing....bcos u are destructing well too...!!

See the both example margin and cash....the investor cannot get return above 5% pa...that's why they run into problem of wealth destruction loh.....!!

ME: HOW MUCH RETURN YOU CAN GET IN THE SHORT TERM IS NOT ABOUT HOW SMART YOU ARE IN INVESTING. YOU MAY GET 30% RETURN, OR -40% RETURN, EVEN WITHIN A COUPLE OF MONTHS. IT IS IN THE FUTURE, AND THE FUTURE CANNOT BE PREDICTED.

CAN’T YOU SEE THAT????

Posted by goreng_kaki > Mar 2, 2016 08:39 AM | Report Abuse

Koon dumped ma....everybody wan sell high and buy lower later also.....


When a substantial shareholder uses margin to the limits, there will be a lot of forced selling, even for good shares, when margin calls.

It will happen to any share held a lot by him, not only Canone. Other shares, including V.S can also be forced sold one.

That is the peril of holding shares, especially less liquid shares, held a lot by a compulsive margin player, who have bought the share all the way up. All other short- term shareholders will suffer too.

RAIDER HAS NOTHING TO AGAINST KC HERE....BUT RAIDER THINK....KC THINKING IS FLAWS HERE...ON THE PREMISE...THE FAILURE OF THE ASPIRING MARGIN TYCOON...IS NOT DUE TO HIS MARGIN....BUT THE ISSUE OF LACK SKILL....TO MAKE THE GRADE LOH..!! JUST LIKE AN OLYMPIC ATHELETE U NEED TO MASTER THE NECESSARY THE INVESTMENT ROBES OF TRADE...B4 U CAN REALLY DO WELL LOH....!!

Me: Let us see which argument on margin finance is flawed, me or yours. You have actually contradicting your own argument with these statements below.

YES RAIDER ASK HOW MANY PEOPLE CAN MASTER A SKILL....B4 HE CAN COMPETE IN OLYMPIC LEH ?
YES RAIDER SAYS W BUFFET....IS THE ALL TIME GOLD MEDALIST IN THE INVESTMENT WORLD LOH...!!

Me: How many Buffetts in this world? How many Olympic gold medalists are there? How many gold medals Malaysia, with a population of more than 30m, has achieved? How many investors in Malaysia have achieved the status of “investment tycoons” using margin finance? How many “Star Investors” are there?

RAIDER SAY YES....W.BUFFET...STARTED INVESTING WHEN HE IS 7 YRS OLD....IN FACT HE HAS GONE THRU ALL THE ROBES OF INVESTMENT LOH.....!!
HE HAS USED MARGIN B4 TOO....WHY HE DISCOURAGE ? BCOS WARREN ADVISE IS FOR THE AVERAGE INVESTOR LOH....!!
HE DO NOT MEAN FOR STAR INVESTOR.....WITH ASPIRING OLYMPIC MEDAL IN MIND....AND MASTER INVESTMENT....TO BE A TYCOON LOH...!!

Me: When did Buffett say “Star investor” should use margin finance? Which statement he made which infer that?

RAIDER SAY ALL THE ABOVE EVENT....KC MENTIONED MARKET CRASH....BUT IN ALL OCASSION IN THE HISTORY OF INVESTMENT....IT ALWAYS COMEBACK AND GO EVEN HIGHER AFTER THE SHAKE UP LOH....!!

Me: Agree with you above. But how many of those who got killed using margin finance such as at the time of 1998 manage to come back?

AGAIN THIS RAIDER DISAGREE LOH....IT ADD VALUE....WHEN YOUR EXPECTED PAYBACK IS HIGH AND THE DOWNSIDE IS LOW LOH....!!
Me: Agree with your statement. But “expected payback” is just an expectation, especially we don’t know when that expectation will be realized, and if there is a big downside when margin finance users are already killed before that expectation is realized.

IT IS COUNTER INTUTIVE LOH....IF U WANT TO AVERAGE JOE....LISTEN TO THE ADVISE OF THE GREAT RELIGION....BUT IF U ASPIRING TO GO FOR IT....U SHOULD REALLY GOLD FOR THE MEDAL....THEN ....LEVERAGE IS AN IMPORTANT TOOL LOH...!!

Me: Investing is not always come with upside. The downside happens as frequent as the upside. Yes, go for the Olympic Gold Medal, everyone of you!

RAIDER SAYS IF U REALLY WANTS TO BE A TYCOONS THAN U BETTER START YOUNG...NOT ALL CAN MAKE IT...U HAVE TO GO THRU HARD AND DIFFICULT PART...LIKE AN OLYMPIC ATHELETE..U NEED MASTER MANY MANY SKILLS B4 SUCCESSFUL LOH....!!

Me: “Not all can make it”. So what is the percentage who make it? How sure you are that any youngster who doesn’t even have the basic investment skill is the only few lucky ones?

Posted by stockraider > Mar 1, 2016 02:53 PM | Report Abuse
What would be the result of lack of capital, lack of skill, and combine with the use of margin finance? RAIDER AGREE LACKED OF SKILL CAN BE TRAINED...BUT USING MARGIN FINANCING IS ALSO PART OF THE OVERALL INVESTMENT SKILL....SHOULD RAIDER SAY TRAINING INVESTOR TO MANAGE THEIR MARGIN IS ALSO PART OF THE INVESTMENT SKILL,,,PERHAPS RAIDER SAY IT IN A DIFFERENT WAY...IT CAN BE CONSIDER ADVANCE PART OF INVESTMENT LOH....!!
Me: Most young people can’t even handle the elementary part of the investment skill, so you want to training them the “advance” part, using margin financing? Would you want to train an aspiring pilot to fly now when he can’t even understand the instrumentations in the plane?

Still want to encourage youngsters to invest with margin finance?
Yes, skill can be taught, but that guarantee the success in investing, especially in the short run? AS RAIDER SAY EARLIER...INVESTMENT IS NOT SHORT TERM....IT IS A LONG TERM PLAY....!! REMEMBER THIS ....SHARE PRICE IS A VOTING MACHINE IN THE SHORT TERM....THAT MEANS U UNABLE TO PREDICT ITS MOVEMENT IN SHORT TERM, BUT IN THE LONG TERM IT IS A WEIGHING MACHINE, THAT MEAN ITS VALUE CAN BE DETERMINE LOH...!!

Me: How can investing with margin finance to belong term when the change in share price can be more than 30% in less than two months as some of the stocks described in this thread, or even up to 50% in a year? Isn’t there high risk of margin call? Even there is no margin call, won’t youngsters subject to the high risk of losing 60% in a year like what have been described in this article?

If one uses margin finance, he has to be right, not only in the long run, but also in the short term. Otherwise any sharp fall in the market incurs short selling and capital can be wiped out easily.
So a skilful investor guaranteed of short-term success in investing with margin finance? WHETHER PEOPLE USE MARGIN OR OWN MONIES TO INVEST...THEY NEED TO BE RIGHT IN THE LONG RUN...IF THEY ARE WRONG WEALTH WILL BE DESTROYED LOH....!!

Me: No, margin users not only have to be right in the short-term but have to right in the short-term too as described in this article. Genetic lost 48% of its share price within 3 months. 50% margin users would have lost everything.

DON'T FORGET, EVEN IF U INVEST USING YOUR OWN MONIES....U R EXPOSE TOO...SAME AS MARGIN LOH....!! U NEED TO MAKE HIGHER THAN UR OPPORTUNITY COST....!!

Me: I can withstand even short term losses, and I often do, but not necessary must be higher than opportunity cost. You are exposed to short-term margin call risks, besides higher return from your opportunity cost.
Anyway, opportunity cost should not be the prime concern of a margin user. The high risk of margin calls and forced selling due to market volatility, which is very common, is the concern.

IN FACT SOMETIME IT IS BETTER TO USE MARGIN THAN UR OWN MONIES LOH...!!
FOR EXAMPLE IF U LEAVE MONIES IN THE EPF...UR RATE RETURN IS 6.4% PA BUT IF U CAN BORROW USING MARGIN AT 5.4% PA, THEN IT IS BETTER FOR U TO BORROW LOH....!!

Me: Why do you compare with the return of EPF and use it as an opportunity cost? Why not from your FD, or Along? Do you also encourage youngsters to take up their safe EPF and reasonable return fixed income to invest in risky assets, not guaranteed of higher return?

HAVING SAY THE ABOVE, AN INVESTOR NEED TO ON GUARD MORE ON MARGIN COMPARE WITH OWN MONIES.

1. WHEN SHORT TERM MOVEMENT MAY TRIGGER MARGIN CALL

2. THE BANK MAY CHANGE THE CAPPING VALUE OF YOUR SHARE, AGAIN THIS MAY REDUCE UR SECURITY..RESULTING THE RISK OF MARGIN CALL AND FORCE SELL.

3. THE BANK MAY COMPLETE DISALLOW THE VALUE OF YOUR SHARE PLEDGE, AGAIN THIS MAY TRIGGER A MARGIN CALL,

IN THE CASE OF A MARGIN INVESTOR...HE NEED TO BEAR IN MIND OF RISK ITEM 1 TO 3 COMPARE TO SHARE INVESTOR.
OTHER THAN ITEM 1 TO 3....THE RISK OF CASH INVESTOR AND MARGIN INVESTOR ARE EXACTLY THE SAME.

SO IN ORDER TO USE MARGIN FINANCING U NEED TO MANAGE YOUR MARGIN RISK LOH....RAIDER WILL ELABORATE THIS LATER...!!

Me: So you do see the high risk of margin finance from your above statement. Aren’t they any concern to youngsters? Why still encourage and want to train youngsters to use it in the first place?
Let us hear how you manage them.

Posted by stockraider > Mar 1, 2016 10:51 AM | Report Abuse

Actually using margin and not using margin the investment risk is the same.....don be mislead for avoiding margin all together.
Especially in very low interest rate environment.

USING MARGIN AND NOT USING MARGIN IN INVESTMENT IS THE SAME? YOU MUST BE KIDDING!

HAVE YOU CONSIDERED MARGIN CALL RISK, BANKRUPTCY RISK, EXAGGERATED LOSS RISK, SLEEPLESS NIGHTS RISK, STRESS RISK ETC?

Fyi....a margin investor actually enjoy lower cost compare to cash equity investor loh.!
For example margin cost is 5% pa, whereas epf cost is 6.4% pa loh...!!

THE COST THE SAME? HAVE YOU CONSIDERED THE SETUP COST, COST OF MARGIN CALL, ETC?

U just need to manage the margin better loh....!!
They are 3 points raider mentioned earlier, that u need to take note for using margin.

PLEASE RAISE YOUR "3 POINTS" HERE AND WE CAN DELIBERATE HERE.

Posted by bracoli > Feb 29, 2016 12:49 AM | Report Abuse
Newbie like me use margin die lor... Need to sell house later.. Gg

Great comment bracoli, forced to sell house is nothing compared to this:

Posted by TAH > Feb 29, 2016 04:33 AM | Report Abuse
History, got people jump from high rise building during market plunge because of Margin oh! Don't Play 2 Oh!


Jesse Livermore, perhaps the greatest stock market tycoon of all time, died on November 28, 1940, by his own hand, via a revolver bullet through the brain.

Posted by natelietan > Feb 26, 2016 11:20 AM | Report Abuse

hi kcchongnz

may i know where did you get the figure for Minority interest = 116813 ?


It is from the balance sheet equity section

Posted by paperplane2016 > Feb 27, 2016 05:39 AM | Report Abuse
Kcchongnz, finally, this is what i wish you write.
Can ask how to derived the standard deviation of portfolio? I had hard time getting correct std dev for my calculation. Do i use annualised return monthly and see std dev past 12 months? If portfolio jist started how to get this trailing 12m std deviation? Appreciate your helP here.

It all depends on what the usage is. For Sharpe ratio, use annualized std obtained from daily share price return is good enough.

Annualized std = daily std *sqrt(260)
I think VAR uses daily std.

But this VAR thingy has no use in real life investing. Why do you want to know about VAR?

Posted by Desa20201956 > Feb 26, 2016 04:49 PM | Report Abuse
Margin calls is not the end of the world.....one day I will produce a proper article on a portfolio using KYY as a case study......Mr Koon admitted margin call but is it end of the world? In the case of KYY , a margin call can still come when he is up 300 % for the last 12 months......you cannot understand that unless I show you how.
And the bottom line is that the performance is still better than without margin account. It can be proven conclusively......it is so counter intuitive but true.....once I show you how.


Good good good. I promise I will help you to compile the data, and analyze too if you don't know how to. But bear in mind we must use a complete and established records, say at least for the last 5 years with an assumed investment outlay, say RM50m and say with another 50% margin.

For your ease of study, you can study the last 5 years articles written in i3investor to get those actual stocks purchased and sold.

We are eagerly waiting for your article, Desa.

Posted by Elwin Kai Kai > Feb 25, 2016 10:20 AM | Report Abuse

mr.kc i would like to ask whether u have a book？ cause i really like ur valuabale methodology and skills in investing... if u do have one can let me know where i can get？ i love to attend ur training but not very good using linkedln


I am still compiling my book. It is not an easy task. it takes a lot of time. I will let you guys know once it is done.

However, what is in the book will be more general. If you wish to learn in a structured manner, attending my course is definitely a better way.

Posted by bluefun > Feb 24, 2016 10:38 PM | Report Abuse

Thanks for sharing KC, avoid margin financing, invest in stock market using our own blood money.

Market down, no margin call, market up, no margin call too~


bluefun,

Wise saying.

Posted by Desa20201956 > Feb 24, 2016 10:24 PM | Report Abuse

I have ideas how to do it, make it interesting, applicable, relevant but it's too much effort for a public forum.


You should start to recruit students now to teach modern portfolio theory as a passionate job and at the same time earn some income like some of us do.

Posted by stockraider > Feb 24, 2016 09:45 PM | Report Abuse
We must buy spac way below is cash level in order to be profitable...!!
For example raider make the purchase on cliq at around rm 0.56 about 2 yrs ago.....today market price at rm 0.69, a potential gain exceeding 10.5% pa and today its liquidation value is at least rm 0.730 loh....!!

U get back rm 0.730 in say in 8 mths time...!! if ur cost is rm 0.695...the potential gain is 7% pa

Notice that both case the return is above financing cost of 5% pa...thus investing in it create positive npv loh...!!

Btw Kchong..ur computation on losses on ipo...is misleading..take sona for example IPO Rm 0.50 v current mother price Rm 0.465 plus warrant price rm 0.07 = rm 0.535....actually u do not lose monies if u bought during ipo.

To make your investment viable...people should have bought sona at say rm 0.38 which raider did and hold to maturity a return exceeding 11.2% pa loh.....!!


AGREE WITH YOUR STATEMENT ABOVE. SO YOU WEREN’T CRITICIZING THE ORIGINAL STATEMENT I HAD FIRST MADE, RIGHT?
BUT NO, I DIDN’T MEAN TO MISLEAD ANYONE ABOUT THE OMISSION OF WARRANT FOR SONA, JUST A GENUINE OVERSIGHT.

Posted by VenFx > Feb 24, 2016 09:34 PM | Report Abuse
Hi ! Kcchongnz, will there be any spac is exceptional ? E.g. Rsena ...


I will copy and paste my comments about SPAC here again:

Posted by kcchongnz > Jul 21, 2013 08:43 AM | Report Abuse X
Hibiscus, cliq, sona, wonderful SPAC, all in the fantastic oil and gas industry, or are they?

These are all murder holes! SPAC is the short from of Selling Promises And Craziness. Best deal for investment bankers.

Think about it!
1) Would a promising company need to do deal or merge with SPAC, or rather it just go public through a IPO on its own merits?
2) SPAC no doubt has some seemingly successful business people behind them. Are you sure they too will succeed in this new ventures? Or they were successful because of luck or through other people? I tend to believe more of the later.
3)Believe in Harvard57 above, those early birds whose cost is so much lower will unload in droves once listed, leaving those poor retail investors holding the hot potato.
4) Investment bankers will be laughing to the banks with your money. They pay themselves multiple times:
a) When they take it public
b) Consultant to the SPAC on retainer as a potential acquisition is sought.
c)When an acquisition is found
d) The one year process when SPAC is seeking shareholders and regulator approvals.

Fees, fees, fees, an ATM machine for the investment bankers. Guess whose money in the ATM machine?

Posted by stockraider > Feb 24, 2016 08:06 PM | Report Abuse
Spac is a hedge bet....if got QA...if u assess the deal no good..just vote against it, u still get back the cash held under trust with interest mah....!!
If no QA...u still get back the monies held under trust...with interest..when the mother spac is liquidated upon expiry loh....!!
The spac return is better than bond investment in the region of 8% to 12% pa....a very good source of return....with safety too loh...!!


My statement above was made on 21st July 2013. Hibiscus has not got its QA. Sona was just going to do its IPO at 50sen. Here are the prices then and the prices now:

24/2/2016 21/7/2013 Gain/loss
Cliqe 0.730 0.690 -5.5%
Sona 0.500 0.465 -7.0%
Hibiscus 1.470 0.185 -87.4%
Average -33.3%


All SPACs make losses with Hibiscus, which has “successfully” made a QA, loss of a whopping 87.4%. The average loss is 33.3%.

If one has taken margin finance after listening to a talk on “how to use margin finance to the limit to become rich?”, with an assumption of the setup fee of 1%, interest of 5% per year, both Clique and Sona with no QA has lost 20%. The total loss for the portfolio would be 47% as shown.

24/2/2016 21/7/2013 Set up fee 1% Interest, 5% Gain/loss Gain/loss
KLCI 1807 1664 0 0 -143 -7.9%
Cliqe 0.730 0.690 0.0073 0.09125 -0.139 -19.0%
Sona 0.500 0.465 0.005 0.0625 -0.103 -20.5%
Hibiscus 1.47 0.185 0.0147 0.18375 -1.483 -100.9%

Average loss -46.8%


The stocks in the portfolio above would have been all forced sold and the holder of this margin portfolio would have left with nothing. Kosong, with no money to be gotten from the termination of the SPACs.

Those who didn’t use margin finance will still get back some money from Clique, and may be Sona, hopefully, but still will lose at least 20% if they have invested around 21st July 2013, the day I made the statement above.

It is actually lucky that no QA is done. Otherwise nothing will be left. Now at least those bought below liquidation price will earn some decent return.

Posted by kcchongnz > Jul 21, 2013 08:43 AM | Report Abuse X

Hibiscus, cliq, sona, wonderful SPAC, all in the fantastic oil and gas industry, or are they?

These are all murder holes! SPAC is the short from of Selling Promises And Craziness. Best deal for investment bankers.

Think about it!
1) Would a promising company need to do deal or merge with SPAC, or rather it just go public through a IPO on its own merits?
2) SPAC no doubt has some seemingly successful business people behind them. Are you sure they too will succeed in this new ventures? Or they were successful because of luck or through other people? I tend to believe more of the later.
3)Believe in Harvard57 above, those early birds whose cost is so much lower will unload in droves once listed, leaving those poor retail investors holding the hot potato.
4) Investment bankers will be laughing to the banks with your money. They pay themselves multiple times:
a) When they take it public
b) Consultant to the SPAC on retainer as a potential acquisition is sought.
c)When an acquisition is found
d) The one year process when SPAC is seeking shareholders and regulator approvals.

Fees, fees, fees, an ATM machine for the investment bankers. Guess whose money in the ATM machine?

Posted by Desa20201956 > Feb 23, 2016 07:13 PM | Report Abuse
chong...after reading all your replies, I still think you need to register yourself for a course in Finance as much as newbies to the stock market need to register to your course.
They learn Part 1 form you, you learn Part 2 from the pros.


Desa, let me tell you that I have learned business administration, personal financial planning and gone through the highest level of study in finance, i.e. Master of Finance course and have done an academic research paper of a calendar anomaly in an overseas University. I was top in the class obtaining a degree in Master of Finance with Distinctions. I could give lectures to finance undergrads on corporate finance, financial risk management, and investment, no sweat. May be not now as it has been a while. No, I can’t teach accounting, though I have done some papers of accounting.

I have worked as a licensed independent financial planner with CMSRL, CUTA and FAR licenses before.

So wonder why I challenged you when you mocked me, and kept on mocking me about what I have written? But you just chickened out, good move by yourself. Save yourself from embarrassment.

But have you read about me boasting about this? Not until now after being irritated by you, by your very strange behaviour of agreeing and singing along, and kept on praising everything and whatever someone you idolized, whether it makes sense or not, but on the other hand, mocking all others, and you have climbed over my head.

Why didn’t I boast about this? Because though the course is very mathematically challenging and I enjoyed them very much, and it had provided me with a foundation in finance, there is very limited use in investing in the stock market. In other words, those modern portfolio theory, efficient frontier, capital asset pricing model, the alpha, beta, gamma, theta and all the Greeks, Real option, the financial engineering such as Straddle, Strap, Condor, Butterfly and what not, value at risks etc. have no use for retail investors like us, and they have limited usage even for fund managers.

So what is really useful in investing? Those are all listed down here which have been mocked by you all this while I and others write about them:

http://klse.i3investor.com/blogs/kcchongnz/88007.jsp

So continue to “hit the horse’s fart” if you wish, that is your prerogative, but stop mocking and telling me what to do in investing. You are not qualified to do so.

Posted by Desa20201956 > Feb 23, 2016 07:13 PM | Report Abuse

chong...after reading all your replies, I still think you need to register yourself for a course in Finance as much as newbies to the stock market need to register to your course.

They learn Part 1 form you, you learn Part 2 from the pros.


Please enlighten me on who are the "pros" i need to learn from; and what constitute the "part 2" you are talking about.

Posted by stockraider > Feb 23, 2016 05:22 PM | Report Abuse

Actually there is no difference between managing cash investment or margin investment except for the points stated below;

HAVING SAY THE ABOVE, AN INVESTOR NEED TO ON GUARD MORE ON MARGIN COMPARE WITH OWN MONIES.

1. WHEN SHORT TERM MOVEMENT MAY TRIGGER MARGIN CALL

2. THE BANK MAY CHANGE THE CAPPING VALUE OF YOUR SHARE, AGAIN THIS MAY REDUCE UR SECURITY..RESULTING THE RISK OF MARGIN CALL AND FORCE SELL.

3. THE BANK MAY COMPLETE DISALLOW THE VALUE OF YOUR SHARE PLEDGE, AGAIN THIS MAY TRIGGER A MARGIN CALL,

IN THE CASE OF A MARGIN INVESTOR...HE NEED TO BEAR IN MIND OF RISK ITEM 1 TO 3 COMPARE TO SHARE INVESTOR.
OTHER THAN ITEM 1 TO 3....THE RISK OF CASH INVESTOR AND MARGIN INVESTOR ARE EXACTLY THE SAME.

SO IN ORDER TO USE MARGIN FINANCING U NEED TO MANAGE YOUR MARGIN RISK LOH....RAIDER WILL ELABORATE THIS LATER...!!

As Desa has mentioned if ur funding cost is lower than ur opportunity cost and your investment return is very much higher than than your funding margin cost, taking margin is an obvious advantage, but u just bear in mind the 3 extra risk that raider has highlighted....!!


Raider, so are the three points a small or big concerns? How can a retail investor guides against them?

Tell us how you manage margin risk.

What is your opportunity cost? Forget about using epf rate, as investors should have a good asset allocation that he should have some in fixed income, and epf is the best fixed income to me.

Cost is a fixed thingy, is your investment return, especially in the short term a fixed return, or just an expectation? Bear in mind, your return in the short term must be realized too, otherwise if you lose big, margin calls will be made.

Posted by Desa20201956 > Feb 23, 2016 01:47 PM | Report Abuse
Two kinds of skill sets
One, the stock picking skill sets. The ones followed by internet gurus and sifus , the self taught investors, those who read some books about Warren Bufett

Two, the skill sets needed in managing portfolios. The kind of stuffs universities and CFA courses spend a lot of time on.

ME: BELIEVE ME, THE FIRST KIND OF SKILL WILL PROVIDE YOU WITH A MUCH HIGHER PROBABILITY OF SUCCESS IN INVESTING THAN THE SECOND KIND MENTIONED ABOVE. BUT NOT ONLY BOOKS ABOUT WARREN BUFFET AND HIS LETTERS TO SHAREHOLDERS, AND BOOKS OF OTHER INVESTMENT GURUS SUCH AS JOEL GREENBLATT, SETH KLARMAN, HOWARD MARKS, MOHNISH PABRAI, PAT DORSEY ETC.

THE SECOND KIND HAS NO USE AT ALL FOR THE INVESTMENT SUCCESS OF A RETAIL INVESTOR WHICH WE ARE DISCUSSING AND CONCERN ABOUT.
Once you are on borrowed funds and margin accounts, once you buy more than one stock , you are in this territory.
WHAT THE F????

All the Warren Bufett wannabes and copy cats just repeat what they read.......and become sifus......how about teaching the basics of portfolio theories?

YOU ONLY TALK ABOUT PORTFOLIO THEORY WITHOUT KNOWING MUCH ABOUT IT. PORTFOLIO THEORIES DESERVES NO PLACE FOR RETAIL INVESTORS. IT HAS LITTLE USE TOO IN FUND MANAGEMENT.
YOU FUND MANAGER AH?

Margin accounts remain very popular. You cannot be complete sifu by focusing on 1 and completely neglecting 2.
WHAT THE F? WARREN BUFFETT, SETH KLARMAN, MOHNISH PABRAI, HOWARD MARKS MANAGING FUNDS WORTH BILLIONS USD AND MADE BILLIONS FOR THEIR INVESTORS. ANYONE OF THEM USES MARGIN FINANCE?

Margin account too risky is not a good answer.

INVESTING ITSELF IS ALREADY A RISKY ENDEAVIOUR. MARGIN ACCOUNT AMPLIFIES IT MANY FOLDS. WE DON'T NEED THAT.

Assume a portfolio of two stocks.....perfectly and negatively correlated. Why got risk one?

REALLY AH? NO RISK? ARE YOU TALKING ABOUT USELESS MODERN PORTFOLIO THEORY FOR RETAIL INVESTOR?
OK OK. GIVE ME EXAMPLE OF TWO “PERFECTLY AND NEGATIVELY CORRELATED” STOCKS IN BURSA.

FOR YOUR LEARNING PURPOSE, IN REAL LIFE INVESTING, YOU CAN’T EQUATE RISK WITH PRICE MOVEMENT OF STOCKS.

It will be silly not to margin this portfolio if the dividend income is higher than the interest cost.

1) HOW SURE ARE YOU THIS DIVIDEND WILL CONTINUE?
2) WHAT IS MORE IMPORTANT; DIVIDEND RETURN OR TOTAL RETURN?

This will , then , be your perfect compounded growth, exponential growth portfolio at zero risk....why cannot margin?

HOW WONDERFUL. EVERYONE WILL BE RISH THEN. TEACH THEM, TEACH THEM PLEASE.

"When you locate a bargain, you must ask, 'Why me, God? Why am I the only one who could find this bargain?'" - Charlie Munger

Chong.....don't just criticize margin accounts, be creative.

PROPAGATING AND ENCOURAGING YOUNGSTERS TO USE MARGIN FINANCE IS THE WORST THING AN INVESTMENT COACH TEACHES HIS STUDENTS. IT IS ALSO A GREAT DISSERVICE TO THE SOCIETY. PERIOD.

If done well, it can be a popular course. The people wants margin accounts.....what they need are some basics of modern portfolio theories.....even Koon Ywe Yin soon attend. His portfolio is too focused and therefore too high risk for a margin account. But how do you tell a guy that unless you are equipped with all the knowledge of modern portfolio theories?

YOU TELL THAT TO KKY, YOU LAUGH DIE HIM AND HE WILL LAUGH UNTIL ROLLING ON THE GROUND

For those who are innovative and creative, there are business opportunities....but only for the creative and innovative.

WHY AREN’T YOU A TYCOON YETAH?

Posted by optimuskingX > Feb 22, 2016 11:01 PM | Report Abuse
laugh die me liao....create id to self praise self promote! LOL! kcchonngnz laugh die me liao...wahhahaha!

Tell you what. There is one and only one kcchongnz id in i3investor and in the world wide web. kcchongnz doesn't require to create any other id, unlike this apaini optimus, thousands of ids.

published records are published records. No manipulation, can't manipulate. kcchongnz has done nothing wrong, probably has done many rights in i3investor. Why create another id?

Posted by duitKWSPkita > Feb 22, 2016 10:52 PM | Report Abuse
Mr kc chong...
看开点，我们来这里提拔人而已。。。。我们没有资格去改变任何人（何况人家不领情）。。。把时间留给有潜能被塑造的人才

You know I have not been arguing with anybody in i3investor for so long,and I don't wish to now too. But this fellow came to my threads and mocked and ridiculed me, not only once or twice. So I just want see what he has to mock me? But I have found out that he has nothing, absolutely nothing at all. So why mock me?

Posted by Desa20201956 > Feb 22, 2016 10:46 PM | Report Abuse

chong you pay me ah?

for free...that is as far as I go.


I know I know, that is as far you can go. But you already all naked.

Posted by duitKWSPkita > Feb 22, 2016 10:44 PM | Report Abuse

Mr.Chong....

rilek la bro... tonight Chap Goh Mei....... spend quality time with loved family..... it is the besttttttttttttttttttttttttttttt...


Thanks Duit. Just a little excited as long time never discuss with anybody about modern portfolio theory, financial risk management etc. These were my favorite topics. I said "were". Now there seem to be a "knowledgeable" person to discuss with.

Posted by optimusv2 > Feb 22, 2016 10:41 PM | Report Abuse
LOL! taichi got la! KYY teaching better because real! kcchongnz bungkus la! LOL!


What do you think about these?

Posted by coolio > Oct 22, 2015 11:58 AM | Report Abuse
I just want to take this opportunity to say thank you again because recently I have achieved 7 figure in my investing journey...hehehe.. Thanks for your investing methods, no 8 wonders in the world is really amazing!

Posted by joe2703 > Dec 21, 2015 10:22 PM | Report Abuse
An investment in knowledge pays the best interest.... I've learned so much from your online course and I made quite some good profit with the knowledge that you taught me, thank you very much and Merry X'mas!

Posted by Intelligent Investor > Dec 21, 2015 08:24 PM | Report Abuse
An investment in Mr. Chong course provide me the ever best return.

hissyu219 December 2015 at 00:10
ha... every new lesson tighten my stock selection criteria but also increase my confidence on those selected counters :)

Dear KC,
I just want to say how much I appreciate what you have taught me via your online course. I practically know nothing about business accounting and stock investment to begin with. TQVM for everything and a happy CNY to you too.
Kind regards,
James


These are less than 10% of those comments

Posted by Desa20201956 > Feb 22, 2016 10:39 PM | Report Abuse

Chong.....cut and paste?

You must be impressed to think it is cut and paste job.

Say you are impressed with Desa and next time sure to listen.


Impressed me? All what you are talking is empty and without substance. Want to discuss in more details?

Posted by Icon8888 > Feb 22, 2016 10:33 PM | Report Abuse

How about pohlanpahpedia ?

That reference is disgusting!

Posted by optimusv2 > Feb 22, 2016 10:34 PM | Report Abuse
i3 members claim this la claim that la! tell them follows KYY donates money to charity, kcloh kcchongnz only huh! LOL! wahahaha...same class like cipet teh! always profit one! LOL!


I don't simply claim this claim that one. Those are all published in i3invstors since more than three years ago.

No, they are not meant to boast around, but just to defend myself as you can see.

Posted by Icon8888 > Feb 22, 2016 10:18 PM | Report Abuse
I think Desa cut and paste from Wikipedia ...


When you come to hard finance, wikipedia, investopedia, Desapedia should never be used. One will fail citing from them as often the facts are incorrect.

Posted by donfollowblindly > Feb 22, 2016 10:14 PM | Report Abuse

Agree. Black Scholes does not tell BIMB W can drop from 66 sen to 28 sen.


Of course not. Only those follow blindly,without knowing a thing, think so.

Posted by Desa20201956 > Feb 22, 2016 10:10 PM | Report Abuse
Black scholes talks about warrant pricing....not about risks and margins.

Black-Scholes Option Pricing Model is only one of the models made famous by ‎Fischer Black and ‎Myron Scholes for option pricing.

They also utilized this somewhat similar stochastic calculus model to carry out risk arbitrage in Long Term Capital Management in 1990.

Posted by Desa20201956 > Feb 22, 2016 09:42 PM | Report Abuse

Hedge funds use a combination of longs and shorts and saddle to manage risks using standard deviations calculations.

Really kah? Can elaborate?

Posted by Desa20201956 > Feb 22, 2016 09:37 PM | Report Abuse

No big deal this enterprise value.....especially since it turns out most companies come out with the same answer whether use PE ratios or enterprise values.

Just a tool.


Yes, accountant must know what is enterprise value (EV). It is absolutely must as it is his bread and butter in his profession.

A simple company has just 3 components in its EV

EV = market cap + market value or book value of total debt - cash

You got two of of the three wrong, either with the sign wrong, or total omission!

Posted by koonthebest > Feb 22, 2016 08:39 PM | Report Abuse
PONG PONG PONG!who cares profit drop 70%! dcf fcf are everythng ok! ask giant tong kcchongnz! PONG PONG PONG! critics should study why they still poor!


Oh, Pintaras’s this quarter profit dropped 70%. Is it my fault? What is dcf fcf? How you know “they” still poor?


Posted by koonthebest > Feb 22, 2016 08:45 PM | Report Abuse
giant tong kcchongnz PONG PONG PONG the best! critics do not made money from stock market! hope amateurs subscribe to articles which do not teach imvestors made money in real life! PONG PONG PONG!


These are my portfolio published in i3investor three years ago. Does it appear that “they” are poor?

http://klse.i3investor.com/blogs/kcchongnz/88504.jsp

These are just a few of those comments published in i3investor:

Posted by coolio > Oct 22, 2015 11:58 AM | Report Abuse
I just want to take this opportunity to say thank you again because recently I have achieved 7 figure in my investing journey...hehehe.. Thanks for your investing methods, no 8 wonders in the world is really amazing!

Posted by joe2703 > Dec 21, 2015 10:22 PM | Report Abuse
An investment in knowledge pays the best interest.... I've learned so much from your online course and I made quite some good profit with the knowledge that you taught me, thank you very much and Merry X'mas!

Posted by Intelligent Investor > Dec 21, 2015 08:24 PM | Report Abuse
An investment in Mr. Chong course provide me the ever best return.

hissyu219 December 2015 at 00:10
ha... every new lesson tighten my stock selection criteria but also increase my confidence on those selected counters :)

Dear KC,
I just want to say how much I appreciate what you have taught me via your online course. I practically know nothing about business accounting and stock investment to begin with. TQVM for everything and a happy CNY to you too.
Kind regards,
James


So what do you think? Where is your accomplishment????


Posted by followblindly > Feb 22, 2016 09:12 PM | Report Abuse
follow blindly buy kfima and mfcb.kfima and mfcb returns on 3 years period fared worse than reit and fd.blind sifu lead followers to holland!buy reits already better than sifu!


I have shared scores if not hundreds of stocks in i3investor. So you can only name three which didn’t do very well, but still good. What man!!!!! You should be able to do better than that.

Please look at my portfolios above.

Posted by Desa20201956 > Feb 22, 2016 08:28 PM | Report Abuse
Enterprise value....it is some thing I am very familiar with .....but a bit rusty that day and made some errors ...no idea how errors come from..

Yes, accountant must know what is enterprise value (EV). It is absolutely must as it is his bread and butter in his profession.

A simple company has just 3 components in its EV

EV = market cap + market value or book value of total debt - cash

You got two of of the three wrong, either with the sign wrong, or total omission!

How? Still want to mock an engineer talking about accounting stuff, which as an accountant (?), you are not even able to debate with him.

Posted by Desa20201956 > Feb 22, 2016 08:26 PM | Report Abuse
Chang...didn't realize you that bad....
Compounded growth curve is another word exponential curve la....same thing.


Me bad? Or you bad? Proton Saga is a car. Is a car also must be Proton Saga?

Posted by Desa20201956 > Feb 22, 2016 04:20 PM | Report Abuse
Think creatively......there is always bigger opportunities when think creatively.
Margin, gearing, borrowings will be with the market as long as there is a market
You want to be guru, you have to give them what they want.
Oh...and I was mocking you on that smooth exponential curve you introduced earlier.
Yes, finance is an exciting field, looks like you have to go back to classroom as much as your students.
Cannot sit still and no change one.


"Oh...and I was mocking you on that smooth exponential curve you introduced earlier."

Before you "mock" someone else, look at yourself in the mirror first. You don't even understand what is a graph showing compounded annual growth, and called it "smooth exponential growth".

"Yes, finance is an exciting field, looks like you have to go back to classroom as much as your students."

Me need to go back to classroom? Or is it you go back and learn at least some accounting stuff before you simply shoot everywhere and nobody knows what the f you are talking about.

First you came to my thread on enterprise value and gave your new theory on what enterprise value is, as "an accountant"? You realized your mistakes and deleted all your posts, but there are still some there which were copied and pasted by others.

Then you came to another thread of mine and tried to mock me again and again, and talked cock again with all nonsense, but when challenged couldn't answered a thing of what I asked about accounting and finance.But you just keep on talking nonsense again.

On the other hand, whatever someone rich said, whatever, whether make sense or not, you be throw praises relentlessly. I just simply can't agree more with these remarks:





Posted by Icon8888 > Feb 20, 2016 07:18 PM | Report Abuse
I am against u because u Poh lan pah
I found that despicable
Period

Posted by Ven Felix > Feb 20, 2016 09:17 PM | Report Abuse
R u nuts? DESA...

Posted by Icon8888 > Feb 20, 2016 10:58 PM | Report Abuse
You no substance said no substance lah
KC is waiting for you to response. Don't beat around the bush. Go straight to talk about portfolio performance management

Posted by soros228 > Feb 20, 2016 11:33 PM | Report Abuse
KC , Desa is still very new in stock market.

Posted by PureBULL . > Feb 21, 2016 03:01 AM | Report Abuse
DESA,
This big time u 'toh leow'.
I was hinting to u to just zig up.


Posted by coolinvestor > Feb 22, 2016 03:43 PM | Report Abuse
I am beginning to see why lots of ppl decided to refute desa in large groups.
cheers and good investing

Posted by NOBY > Feb 22, 2016 03:50 PM | Report Abuse
Good read
https://en.wikipedia.org/wiki/Long-Term_Capital_Management


Even Nobel Prize winners, yes genius, failed miserably using leverage.

Posted by Desa20201956 > Feb 22, 2016 02:44 PM | Report Abuse

funny, we have Chong talk about smooth exponential growth but no margins.

WHICH CHONG TALKED ABOUT "SMOOTH EXPONENTIAL GROWTH"? WHO SAID GOT SUCH THING AS SMOOTH AND ALSO EXPONENTIAL GROWTH?

I prefer to talk about no such thing ( as smooth exponential curves) when dealing with stocks, but margin is a tool regularly used in the stock market . Learn to live with the fluctuations and manage it. Keeps you awake, and alert

DO YOU USE MARGINS? PLEASE SHARE WITH US HOW YOU MANAGE IT AND BECOME RICH?

If there is smooth exponential growth people should take on bigger gearings. Hedge funds routinely takes on gearing of 10 to 1 or sometimes even gearings of 100 to 1 depends on how certain their strategies can give them a smooth exponential curve during the period covered.

ARE WE TALKING ABOUT INDIVIDUAL INVESTORS HERE OR HEDGE FUND?
IN YOUR CASE HOW DO THEY INVEST, IN WHAT, TO GIVE THEM YOUR THIS "SMOOTH EXPONENTIAL GROWTH"?

eg ,if their strategies can give them a smooth exponential curve of 5% (within 5 standard deviation certainty) and borrowing cost is 4%, they take up a gearing of 100 to 1, then their ROCE becomes 100%.

SO ARE YOU MANAGING A HEDGE FUND AH?
HEARD OF LONG TERM CAPITAL MANAGEMENT?

So Chong, why talk about smooth exponential growth and then no gearing?

WHERE AND WHEN DID I TALK ABOUT APA INI "SMOOTH EXPONENTIAL GROWTH"?

People should be aware that market is about risks,,,there is no smooth exponential curves...but risks can be changed by many many methods and risks must be managed.

SO HOW YOU MANGE THIS RISK OF "SMOOTH EXPONENTIAL GROWTH"

the methods and strategies for managing risks can be covered by modern portfolio theories.

REALLY AH? BUT YOU DIDN'T EVEN WANT TO DISCUSS WITH ME WHAT YOU KNOW ABOUT MODERN PORTFOLIO THEORY AND BRUSHED IT ASIDE AS "YOU DON'T WANT TO GO THERE", HOW THEN DO YOU KNOW MODERN PORTFOLIO THEORY CAN MANAGE THAT "SMOOTH AN EXPONENTIAL GROWTH" RISK?

From a financial blogger I respect very much.

http://klse.i3investor.com/blogs/kianweiaritcles/91644.jsp

Posted by Desa20201956 > Feb 22, 2016 12:49 PM | Report Abuse

People pay good money for course in the stock market because they want to be tycoons in the stock market , simple as that.

And margin accounts are as popular as ever by looking at the shares of substantial shareholders held by bank nominees.


Are you sure? How come you are still not a tycoon at the age of 60?

Does it mean substantial shareholding held by bank nominees are all on margin finance? I seriously didn't know it.

noobnnew,

Thanks for your excellent, up to date example on Hevea.



Posted by noobnnew > Feb 22, 2016 11:25 AM | Report Abuse

Rule number one in investing. Never borrow money to invest. Nobody can predict the market in short term. If things turn ugly, then margin will wipe out all your hard earn gain.

An example scenario:
Hevea had been going down from 1.7x to 1.2x recently. If you bought on margin, you might facing margin call and force selling which will wipe out most of your capital.

However, if you bough on your own cash, you are free to buy more or hold on to the Hevea as the fundamental of company still intact.

Use margin unless you are 100% certain on the direction of the company in short term. But I love people using margin account because it will provide liquidity to the market and opportunity for real investor to acquire more during margin call.

Posted by CFTrader > Feb 21, 2016 05:17 PM | Report Abuse
I just want to ask .
HOW CAN YOU EARN MONEY BY GETTING MARGIN CALL ?
It doesn't make sense right ?
Okay, lets say,
if someone buy at 1.50, and the share price increase, they get a bigger collateral amount. And they keep buying.
The average acquisition price of share increases.
And when you get margin call, you had to sell some of your holdings and you claim it's taking profit action.
First, usually a person's position won't have any profit left if they get a margin call.
Second, if you still have profit to take at a certain position during margin call , it means that "another" position which is badly performed causing the drop in portfolio value.
Example , buying A @ 1.00, B @ 1.00, and C @ 1.00 ,
When margin call , A is priced at 1.30, B at 1.00, C at 0.30
To reduce collateral, he sold A .... and claim I take my profit ....


I can’t fathom that too.

However, I am thinking more of this scenario. When say Focus Lumber share price, a relatively illiquid stock, was purchased up by someone from RM2.40 to RM3.00, I would think the average buying price would be much higher, probably in the region of RM2.80. When margin calls came in, it was sold down probably from RM2.20 to below RM2.00. Those share sold would have incurred a loss, plus now FLB at the closing price of RM2.51, there would be a loss. I always think that when margin calls come in, the loss would be substantial. So how can earn money from margin calls? I am as bewildered as you do.

Anyway, I am just guessing.

Desa20201956 .....perhaps they think they are moral teachers......while teaching stock market.
If it is stock market, talk about the tycoons in the stock market lah.
If it is moral teachings, taught about Jesus, or Modhamed or Buddha.
Right, paper?


A responsible teacher teaching youngsters in investment must first instill in them the right way of investing, before he even starts teaching the bolts and nuts about investing. That is my core principle. I don’t teach moral science in my investment course. But think about it, I should include that in my course materials in view of so many snake-oil salesmen around and my course participants should be aware of them.

Yes, if you notice in my article here, I did include the teaching of Buddha, Islamic and the Christian teaching about use of debts. I hope youngsters pay attention to them. They are more important than the analysis and interpretation of financial statements and valuations I teach in the course. But of course you have to read between the lines and have your own independent thinking, which you can see, i didn't follow them strictly.

I do talk about a lot of the principles and methodologies of super investors; I mean real super investors in the world. Talking about tycoons when teaching about investing? I fully agree with icon that it is just PLP.

Posted by stockraider > Feb 22, 2016 10:34 AM | Report Abuse
Btw....what is the perceive weaknesses of young people ?
The answer....is lack of capital....!! Of course beside the lacked of skill.!!


What would be the result of lack of capital, lack of skill, and combine with the use of margin finance?

Still want to encourage youngsters to invest with margin finance?
Yes, skill can be taught, but that guarantee the success in investing, especially in the short run?

If one uses margin finance, he has to be right, not only in the long run, but also in the short term. Otherwise any sharp fall in the market incurs short selling and capital can be wiped out easily.
So a skilful investor guaranteed of short-term success in investing with margin finance?

Posted by Frank Soweto > Feb 22, 2016 07:52 AM | Report Abuse
You want to be teacher, please teach people "the hidden secrets of tycoons."

LOL those r no teachers those are snake oil salesman :)


"Best comment of the month".