Posted by PlsGiveBonus > 2016-02-09 22:55 | Report Abuse

11. Should be don't ever invest your money when the bad time is near

Posted by PlsGiveBonus > 2016-02-09 22:58 | Report Abuse

12. Capital preservation is also an investing strategy, keep more cash to wait for raining days

Posted by PlsGiveBonus > 2016-02-09 23:04 | Report Abuse

Shanghai market just 8 months ago, the SSX Index has dropped by 45% in just 8 months.
http://klse.i3investor.com/blogs/kcchongnz/79429.jsp
How many speculators and punters in China have lost their fortune, and their life? Don’t let OPM ruin you.


Strongly agree with the observations and also it tell you why you should keep more cash, so far there isn't anyone else in klse loss their pant their loved one or their life yet. Klse is very strong it is hard to believe

Posted by PlsGiveBonus > 2016-02-09 23:07 | Report Abuse

Not only Shanghai market, the global market are doing very very bad, all the market in this world is doing very very bad, klse is doing very very good

Posted by PlsGiveBonus > 2016-02-09 23:14 | Report Abuse

EPF is doing a very job to defend klse
However I won't last long when EPF contribution will be cut by 3%

Posted by PlsGiveBonus > 2016-02-09 23:16 | Report Abuse

EPF save a lot of innocent life
Must thank EPF for doing a good favor to everyone

Posted by PlsGiveBonus > 2016-02-10 00:17 | Report Abuse

China life very cheap
One or two of them loss their pant would not save the market
Unless Shanghai drop 75%
Klse will then feel the heat

Posted by PlsGiveBonus > 2016-02-10 00:18 | Report Abuse

If Shanghai can drop 75% I think another world war will be coming soon

Posted by PlsGiveBonus > 2016-02-10 00:26 | Report Abuse

This world world is not about who has the biggest bomb

Posted by PlsGiveBonus > 2016-02-10 00:28 | Report Abuse

Of course in the end of the war the casualty will still be the Asian

Posted by PlsGiveBonus > 2016-02-10 00:48 | Report Abuse

Why it has to be Asian?
The history show China has been generous for too many times.
Asian could be the most generous creature in this universe
It didn't come by occasion.

Posted by PlsGiveBonus > 2016-02-10 01:24 | Report Abuse

China only being generous to their boss
No mercy to their peers

Posted by donfollowblindly > 2016-02-10 03:37 | Report Abuse

BIMB-WA recommended by KC Chong at 66 sen saying it is undervalued as in attached blog. Now 28.5 sen losing 56.82% in less than 2 years.
http://klse.i3investor.com/blogs/kcchongnz/49210.jsp

Posted by ckwan11d > 2016-02-10 10:34 | Report Abuse

I need to read this article a few times.

Posted by Mat Cendana > 2016-02-10 11:26 | Report Abuse

#1 OPM - I agree with the general precaution here, about investors/speculators often not taking into full consideration the impact towards their account and capital when things move the other way. At the moment, I'm not using margin. But I feel it should also be considered as an option to be utilised on certain occasions. Despite the risks.

It's a bit like a credit card too - it's not the CC or margin that's the main problem, but the person using it. To me, it's always better when we have more choices. Having a CC or margin shouldn't mean we are using it all the time. When used properly, it can be a very useful tool. The more important thing to consider is in having a proper plan, including prudent capital management and the discipline to execute cut loss at a predetermined point. And also to take profit when the indicators say that the better thing to do.

Posted by Mat Cendana > 2016-02-10 12:07 | Report Abuse

The part about not treating OPINIONS by analysts and so-called experts is worth remembering. Some people confidently declare ringgit, crude oil etc. will be such-and-such "for 2016", and therefore investing decisions must be based on these. These may actually come about. But we must remember they are all only GUESSING. No matter what models they use, with colourful charts lines and all that look convincing, it's a fact that NO ONE knows the future. One or two changes in the variables may lead to a totally different outcome.

Read and think about all of these opinions. But make your own conclusions and decisions, because it's your money at stake here. My general stance and strategy: since we don't know what will happen (in detail), the next best thing to do is to respond...to just follow the trend. And to always hedge when things are so volatile and unclear, as right now. Buy dividend-paying counters when they suffer a fall (and thereby getting higher dividend yield)...AND ALSO put warrant of FBMKLCI-H as insurance just in case. As always, timing is important. But it is indeed possible to get better prices for anything when we aren't hurried while being decisive. No guarantee we will succeed. But at least we have a plan.

Posted by coolinvestor > 2016-02-10 12:21 | Report Abuse

Kc thank you for this insightful article. Happy CNY!

Posted by WangMali > 2016-02-10 22:05 | Report Abuse

Many good articles to share from Mr KC Chong on 10 golden rules to Mr Koon on 'don't be greedy and fall in love too much with your stocks after they move up fast and a lot'. TQ

Posted by kcchongnz > 2016-02-10 23:38 | Report Abuse

Posted by Mat Cendana > Feb 10, 2016 11:26 AM | Report Abuse

#1 OPM - I agree with the general precaution here, about investors/speculators often not taking into full consideration the impact towards their account and capital when things move the other way. At the moment, I'm not using margin. But I feel it should also be considered as an option to be utilised on certain occasions. Despite the risks.

It's a bit like a credit card too - it's not the CC or margin that's the main problem, but the person using it. To me, it's always better when we have more choices. Having a CC or margin shouldn't mean we are using it all the time. When used properly, it can be a very useful tool. The more important thing to consider is in having a proper plan, including prudent capital management and the discipline to execute cut loss at a predetermined point. And also to take profit when the indicators say that the better thing to do.


Mat Cendana,thanks for your comments. I always appreciate it. But I don't agree with you in this case that margin financing is like a credit card.

Credit card is a very useful thing for me for many reasons. Without it, it will be very inconvenient for me. It is a very useful tool for me. The most it costs me is its annual fee, RM50?

To set up a margin finance account for you to use if you need it involves substantial cost, 1%? You will be out of pocket of RM10000 upfront to set up a RM1m margin finance facility. Not sure if there is any maintenance fee.

Won't you use it after paying the upfront RM10000? If not, why would you set it up in the first place? Just for fun and pay the upfront fee?

That is what exactly this Mr Lee did in the link here:

http://klse.i3investor.com/blogs/kcchongnz/61822.jsp

Mind you this is not a made-up story, but a true story. And Mr Lee is not a novice speculator, but a very experience investor who had used margin financing for all his investing life and would have used this facility "properly". Look how he controlled his margin finance in this account, and how has his this account fared?

Would you still be able to stand up with the performance of his this account?

Posted by Shrekk > 2016-02-11 00:08 | Report Abuse

First advice to the newbies: Do not enter this dangerous place called the stock market without your accumulative reserves of 12 months'salary for emergency fund. Most of the newbies intentionally neglected and hesitantly adhere to this golden rule due to unevitable poise of being ahead of other people and quick rich mentality. I've to repeat again and again: 3 - 6 months' of emergency fund is not enough. You must have emergency fund of at least 12 months!

You are clearly not belong here without your savings of 12 months' reserves as you are indeed not ready for stock investment. Work harder, save as much of your money in any of good capital protected savings schemes and come back here later after accumulating your 12 months' reserves fund plus your excess investment capital. You are rest assured that you will be surprised when knowing that you are actually ahead of 90% of people in the stock market including the veterans who are having no reserves fund plus also suffering from negative returns.

Remember the keyword: 12 MONTHS. Otherwise, get lost from here and go to work.

Posted by ganasai > 2016-02-11 00:19 | Report Abuse

ok lah newbies should know. if market so easy earn money, nobody work loh. anything u must practice, u must fall down, then u will become strong. just take as a lesson. nothing need to scare, just dont over confidence and big head.

Posted by Probability > 2016-02-11 00:32 | Report Abuse

nice to hear advises pouring from the heart... Mat, Shrek n ganasai.

Posted by moneySIFU > 2016-02-11 02:09 | Report Abuse

An article with true wisdom & honest words, I salute you from my heart, Mr Chong.

I made more than 70% return with monies invested in stocks within 6 months period, but those only counted for 30% cash I totally have. I feel happy but always stay alert with all the market developments.

Why I did not invest it all? Because I do not know when will be the market head south.

Posted by moneySIFU > 2016-02-11 02:19 | Report Abuse

Sometimes we need newbies to take our stocks, or else who should we sell our stocks?

Everyone knows:

1. best unit trust fund in Malaysia can only earn 10%++ every year during good times (before real market crash)
2. Warren can only earn 20%++ over 40 years

Why many newbies still think they can win the crowd when they are indeed the chasing crowd?

Posted by Mat Cendana > 2016-02-11 12:11 | Report Abuse

@Probability - That is why I follow posts by people like KC Chong. It's not just the individual posts but also the comments from others. The constructive ones, of course. When people share their knowledge and experience, and thoughtful opinions, everyone benefits. I had been involved on-off in Bursa Malaysia since the 80s. When it comes to information, opinions, constructive arguments and criticisms, we've never had it this good. No guarantees the individual would make a profit over any given time period, but his chances are way better than in previous years. It's thanks to sites like this and bloggers like KC Chong etc.

Posted by regnig > 2016-02-11 14:14 | Report Abuse

i truly respect your experience and wisdom sharing mr.chong! gong hei fatt choy!

Posted by Ntpboon > 2016-02-11 14:56 | Report Abuse

KC, 新年快乐！
谢谢分享！
这十“不”将成为我的座右铭。
这也是游览 i3 股市新手的新年礼物。
若能领悟，必有所获。

Posted by kcchongnz > 2016-02-11 17:47 | Report Abuse

Posted by Ntpboon > Feb 11, 2016 02:56 PM | Report Abuse
KC, 新年快乐！
谢谢分享！
这十“不”将成为我的座右铭。
这也是游览 i3 股市新手的新年礼物。
若能领悟，必有所获。

Posted by regnig > Feb 11, 2016 02:14 PM | Report Abuse

i truly respect your experience and wisdom sharing mr.chong! gong hei fatt choy!



奇連伊士活 说, "「你令我很開心！」

「You make my day!」Clint Eastwood

Posted by Icon8888 > 2016-02-11 17:53 | Report Abuse

Kc 新年快乐

Posted by kcchongnz > 2016-02-11 17:56 | Report Abuse

新年快乐 to you too, icon8888

Posted by PlsGiveBonus > 2016-02-11 18:47 | Report Abuse

Very very dangerous to invest now
Anytime KLCI will collapse
Buy at your own risk at its best

Posted by PlsGiveBonus > 2016-02-11 18:49 | Report Abuse

Everyone just want to earn a little peanut butter profit
And they will face this potentially life threatening loss
It simply doesn't worth the effort

Posted by PlsGiveBonus > 2016-02-11 18:52 | Report Abuse

What is more worrying now is the food on the table,
I couldn't worry more than it

Posted by Kevin Wong > 2016-02-11 19:50 | Report Abuse

""Anytime is a good time to invest, but anytime isn't a good time to trade"", remember this wise adage all you investors and traders out there. Good luck everybody!

Posted by PlsGiveBonus > 2016-02-11 19:54 | Report Abuse

Good time to invest like what my banker told me to do so, but if you no have cash it isn't gonna good to invest anymore

Posted by Kevin Wong > 2016-02-11 20:18 | Report Abuse

ya and most old hand in investing like me, are fully invested at all times since years even decades ago...we too have not much spare cash to invest, can only reshuffle our portfolio

Posted by PlsGiveBonus > 2016-02-11 20:24 | Report Abuse

Fully invested and spare cash didn't mix well
It is contradict each other
However it is not necessary invest anytime is justified

Posted by tnsduntalkokkk > 2016-02-11 21:45 | Report Abuse

china crash your head la.

Posted by TeckChuan Lee > 2016-02-11 23:39 | Report Abuse

"It was the alert of a course participant which prevented me from average down when the share price continued to drop, and instead I cut loss at an early stage, though I still own a little now."

What was the trouble you found with coastal that made you sell most of your position?

Posted by kcchongnz > 2016-02-11 23:50 | Report Abuse

Posted by TeckChuan Lee > Feb 11, 2016 11:39 PM | Report Abuse

"It was the alert of a course participant which prevented me from average down when the share price continued to drop, and instead I cut loss at an early stage, though I still own a little now."

What was the trouble you found with coastal that made you sell most of your position?


The heavy exposure on 2 jack-up rigs with heavy borrowings and the crash of oil price.

Posted by Frank Soweto > 2016-02-13 05:53 | Report Abuse

another new year another great article from Kc :)
Maybe missing no 11 - donfollowblindly especially if you're extremely suwey ( bad luck )LOL but can also do with No 5 as a close replacement LOL
Anyway thanks KC n gong Xi Fa Cai to u :)
n also to my good buddy invest88 :)

Posted by TeckChuan Lee > 2016-02-13 10:50 | Report Abuse

"The heavy exposure on 2 jack-up rigs with heavy borrowings and the crash of oil price."

KC can you point me to the exact report of this borrowing matter? I checked the latest balance sheet the debt/equity are ok? what am i missing here?
Also can you tell us what made you so bearish on O&G? are the capex of oil producers not going to go back to the level before? in the future?

Posted by kcchongnz > 2016-02-13 11:13 | Report Abuse

Teck Chuan,

Coastal used to be in huge net cash position with minimal borrowings and hence low risk, and they were doing very well in their operating business in ship building. The latest report has shown it went into a net borrowing position. But I agree it is still not that bad in terms of total debt in relation to its total equity.

When it get into more exposure in the oil and gas sector, the plunge of oil price has affected all companies in this industry.

That caused the huge drop in the share price of those companies, including Coastal. That is just a reflection of the state of the O&G companies now.

Now,I don't predict the price of oil in the future, and the prospect of O&G companies. One thing I can say is in business, almost everything is cyclic. That implies oil price will definitely rise again, but I don't know when.

Posted by TeckChuan Lee > 2016-02-13 11:15 | Report Abuse

thank you for the heads up

Posted by Alphabeta > 2016-02-13 21:45 | Report Abuse

For your info TeckChuan, i am also looking at Coastal closely. I have make one round in early 2014. It rolling 4Q FCF has turn negative in 09/14. With the sale of one of its JUG, its should be in a better position to weather the O&G storm. Its current price looks quite attractive.

It has sold one of its Jack Up rig and waiting for delivery for the 2nd one in 4Q.

http://www.thestar.com.my/business/business-news/2015/04/22/coastal-contracts-clinches-rm807mil-rig-sale/

http://www.offshoreenergytoday.com/coastal-contracts-sells-jack-up-rig-to-avoid-market-downturn/

Due to the late delivery of the 1st Rig by the builder, Coastal file a notice of arbitration in Singapore seeking damages.

http://www.rigzone.com/news/oil_gas/a/141037/Coastal_Contracts_Unit_TML_Seeks_565M_in_Damages_from_2_Rig_Builders

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4890525

Posted by engeng > 2016-02-14 15:23 | Report Abuse

KC, heard tat u gv online FA training, can gv some info about that?

Posted by kcchongnz > 2016-02-14 16:40 | Report Abuse

Posted by engeng > Feb 14, 2016 03:23 PM | Report Abuse
KC, heard tat u gv online FA training, can gv some info about that?

Please contact me at

ckc14training2@gmail.com

Posted by Elwin Kai Kai > 2016-02-25 10:20 | 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

Posted by Elwin Kai Kai > 2016-02-25 10:24 | Report Abuse

the 2 book u recommended me， i have finish reading and still hunger for more... so if possible i really hope 2 have a step by step guide book and coaching directly from you...so i can follow through as i go through this unending learning process

Posted by kcchongnz > 2016-02-25 16:16 | Report Abuse

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.