Buy only when they get margin calls :) See Mycron can rebound so fast and furious which you will most likely took years to make this much gain in a short term.
As New Year is approaching, just bear in mind your own investment objectives, your risk tolerance, your own foresights on the companies you intend to investment your hard earned monies, what and why if scenarios, your time horizon for your investment, etc before putting your monies into the stocks....................no need to follow strictly those Gurus but you can learned the ways they mastered the markets and think out of the box based on your attitude and temperament.
Posted by Icon8888 > Dec 30, 2016 10:02 AM | Report Abuse
I have always been using KYY Golden Rule. It is just that I am not disciplined to do it 100% of the time. Sometime I buy sell without following that rule (for fun). Now I am saying that I should reduce or limit my NON KYY Golden Rule activities
Mr Icon, you mean non KYY Golden Rule investment method does not work ?
All this while, i am reading investment books and i find the best is margin of safety method of investment .
PlsGiveBonus > Dec 30, 2016 09:16 PM | Report Abuse
Buy only when they get margin calls :) See Mycron can rebound so fast and furious which you will most likely took years to make this much gain in a short term.
the authors of foreign books play in the largest ocean, have unlimited capital , patience and hundreds of stocks. We play in a small lake with limited capital and only few stocks in portfolio.
Posted by gohku > Dec 31, 2016 12:52 PM | Report Abuse Please explain so that i can learn.
Margin of safety and KYY Rule does not contradict each other. They can co exist. KYY's Rule forces you to focus on two things : (i) timing of approximately 6 months to one year. That reduces the risk of bad visibility (ii) Earning. He is saying that great emphasis should be put on future EPS instead of all kind of other things.
You can follow his rule, and then add on your own Margin of Safety cretirias to make your investment even more safe, if that is what you want.
gohku Posted by Icon8888 > Dec 30, 2016 10:02 AM | Report Abuse
I have always been using KYY Golden Rule. It is just that I am not disciplined to do it 100% of the time. Sometime I buy sell without following that rule (for fun). Now I am saying that I should reduce or limit my NON KYY Golden Rule activities
Mr Icon, you mean non KYY Golden Rule investment method does not work ?
All this while, i am reading investment books and i find the best is margin of safety method of investment .
Please explain so that i can learn. 31/12/2016 12:52 31/12/2016 13:13
Margin of safety and KYY Rule does not contradict each other. They can co exist. KYY's Rule forces you to focus on two things : (i) timing of approximately 6 months to one year. That reduces the risk of bad visibility (ii) Earning. He is saying that great emphasis should be put on future EPS instead of all kind of other things.
You can follow his rule, and then add on your own Margin of Safety cretirias to make your investment even more safe, if that is what you want.
Thank you Mr Icon, that mean margin of safety and Golden Rule is not mutually exclusive, we can do both. That is Great.
Gohku, margin is nothing as evil as what your Uncle told you. I have been using it for more than 20 years. Never kena margin call. It enhances your ROE. Good stuff.
You should learn to use it, but maybe at a later stage. You sound very new to the market, I think you might not be ready for margin.
Posted by gohku > Dec 31, 2016 01:14 PM | Report Abuse
My uncle, told me that he had seen many of his well very to do businessman friends, bankrupt because use margin to invest.
As a matter of fact, he is horrible the way he uses margin. I think he geared up super super high until when price drop 20 sen, he need to force sell
My margin is different. At most, my margin is 30% to 50% of my own equity. And everytime I geared up, I make sure there are liquid stocks for me to exit just in case of emergency
I never got margin call. Not only that, I am not once CLOSED to being margin call. I am always very very far away from the red line. I managed my margin facility very carefully.
(Posted by Icon8888) My margin is different. At most, my margin is 30% to 50% of my own equity. And everytime I geared up, I make sure there are liquid stocks for me to exit just in case of emergency
ME: That's interesting to check for the impact by entry differrent margin weight.
Anyway many lost badly in 1998 due to their heavy position of second board counters which were highly illiquid. Saw many second board co limit down all the way from rm10+ to penny stocks within days n then eventually suspended n delisted. Saw few uncles went broke...
other than Xing Quan, there is no evidence KYY ever buys speculative shares with no substance. His selections are liquid, best in its class ( sector ). Liquidity is very important.
Icon8888 > Dec 31, 2016 01:59 PM | Report Abuse
Of course, it is understood that if you use margin to load up sumatec, Asdion, etc , you are seeking death
margin of safety...100% ikut.....margin account- no way nak ikut kyy...cun cun nak mati cepat kalau ikut kyy...kalau ikut kaedah kyy yang semakin nyanyuk boleh menempah maut dan mengalami kerugian besar...bila-bila masa saham boleh jatuh macam xinquan dan jaya tiasa kalau terlampau yakin...kaedah yan lebih selamat dan konservatif ikut cara warren buffetts...ada jaminan sebab ikut "margin of safety method".....setiap tahun dapat gaji dari saham dividen dan peningkatan nilai saham...."Selamat menyambut tahun baru 2017"......
margin of safety...100% ikut.....margin account- no way nak ikut kyy...cun cun nak mati cepat kalau ikut kyy...kalau ikut kaedah kyy yang semakin nyanyuk boleh menempah maut dan mengalami kerugian besar...bila-bila masa saham boleh jatuh macam xinquan dan jaya tiasa kalau terlampau yakin...kaedah yan lebih selamat dan konservatif ikut cara warren buffetts...ada jaminan sebab ikut "margin of safety method".....setiap tahun dapat gaji dari saham dividen dan peningkatan nilai saham...."Selamat menyambut tahun baru 2017"...
I like to clarify Xinguan and Jaya Tiasa, KYY had not discover Golden Rule yet.
of course, no doubt that investors like earning growth, but it must be coupled with good fundamentals too... in case the growth did not turn out as expected, the share price will not be affected much too
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CharlesT
14,951 posts
Posted by CharlesT > 2016-12-30 21:07 | Report Abuse
Lol