Tuesday, August 31, 2010

DOW down by 140 points, barely above 10,000 level. Crude oil below USD75. KLSE closes today as Malaysia is 53th today.

While JCY reaching for new lows, A123 paused from moving lower and seen some bargain hunting. It is above USD7 now(low at USD6.32). How low JCY could go? 90cents? 80 cents? or lower? I will buy more at 0.88 and 0.77 and 0.66 ... I dont know about 0.55? Buy or bye? To me, it is a strong BUY at the moment. The prices should have factored in the bad news but we could see more selling. Markets always over-react, especially during the selling.

I m recalling AirAsia dived from RM2 to penny stock! Do you remember or perhaps I should check the chart of AirAsia later. I was very new then to dare enough to BUY Airasia at 0.90? Today AirAsia climbed back to 1.70 level? Will it go back to 2.00?

Markets will over-react when it dives as it is human nature to re-act towards the FEAR. Will JCY becoming another LCL, for example? Especially if a person bought into LCL or Kenmark recently as learnt a painful lessons. So, will it be wise to hold on to the knife?

At times we need to go against the tide, when many screaming for SELL, that should be the time we collect those abandoned stocks. Most of the time, the crowd/herd is WRONG. But at times, like KNM, LCL and such, SELL with huge losses is the only choice.

If I continue to collect at lower level, the fear will be ... it never recovers. JCY is NEW ... and no a long history for us to check on its chart. AirAsia will rebound. JCY??

After thinking about it, and reading articles or reports related to HDD, I believe JCY will rebound. So, I need to be dare enough to INVEST in such lousy stock. Notion, Unisem, ENG are also badly battered. Time to collect these stocks too? I like Unisem the most but cleared it for small loss the other day to buy more of JCY.

ZhongWang : New low at 4.51, closed at 4.60 yesterday. RSI at 35, so will I enter when RSI below 25 and reaching for new low ... say, below HKD4? This is my HKSE's waterfall I m collecting. I will be clearing TopGlove for a loss and buying into this one.

With JCY, A123 and ZWang in my portfolio, these are huge waterfalls. Each losing more than half of their values and trading far below their IPO levels.

Wish me luck with my waterfalls. MERDEKA.

Yes, need to make independent decisions from the herds.

Property searching

I went to Shah Alam last night. we were at SACC Mall and ... hmm ... the only Chinese family seen!! It has been years since the last time I landed in SA. I could only remember PKNS complex but SA has few new malls and building. Not much changes and we like it 'slow'. Well, I m not a person who will like to stay in Chinese area like Subang Jaya. And they said many Indians in Klang. I do not want my kids growing up discriminating human by the colour of their skins. So, staying in SA is not an issue for us. SA is near than Klang.

I m actually looking into Shah Alam seksyen 25 or above, nearer to Subang Jaya side. Shah Alam is actually very big!! Puncak Alam houses are cheaper and nicer but it is too far! So, I need to look into places nearer to Subang Jaya, if possible.

Klang - Bandar Putera and Puteri are good alternatives. So, today I will take a look over there. I m looking at those below Rm200k. Next question - should I bother if it is freehold or leasehold?

Property : freehold vs leasehold

Yes, obviously many will go for freehold houses and it costs more. Normally the leasehold tenure will be written there as 99 years(I wont be around by then, of coz) ... so, if I m buying to STAY there for long, leasehold is fine. But, currently my intention is to stay for 5-8 years. By then, I think I could afford another property(and my loans for my apartment in Sabah will be fully paid off). Depending on my financial situation by then ... could I be able to sell my property if I m buying a leasehold house now?

Many advised me to buy only the freehold as the leasehold houses will depreciate in time. I checked on few housing area(leasehold ones) in Puchong and what they said is NOT true. In fact, due to the demand, those 'old' leasehold houses have appreciated very much(compared to the initial launching price).

LOCATION : This is the main point, I believe. If the location is high in demand, even if it is leasehold, people will buy(to stay). There are still many medium or low salary earners like me in Klang Valley.

So, I think it doesnt matter much whether it is freehold or leasehold? If the leasehold is cheaper in price, I will consider it(seeing that my income is not high, yet)

Saujana Putra I seen last week by LBS is leasehold and it is a new housing area. Of coz I WONT buy the new houses from the developer as the demand there is NOT high and many selling at almost their cost prices(after 3-5 years ... so, 99 - 5 = 94 years left).

1. Landed prefered
2. Non-bumi lot
3. Leasehold or freehold
4. Single storey
5. 15km or less from Subang Jaya

1.45 pm : I just finished a 3-hour tuition class(rate : RM100 per hour). But a colleague of mine, who is also teaching Math having 6 hours of tuition today (= RM600). So, I need time to establish myself as a tutor(as I know I m good, if not better than most of Math tutor here) over this area. Once that is done by next year, I should be not so tight financially and also can start putting more money into my investment banks(OSK, RHB and CIMB - thinking of Jupiter).

IF all my waterfalls fail to rebound and as large amount of my funds will be stucked there for some time, I will be losing my investments. I wont mind being loooong term investor with whatever I m holding to(at the moment, no obvious flaws in those waterfalls) until a huge change in its fundamentals which give me reasons to sell with huge losses(one day).

In the mean time, it is all work-work-work, to pay for my basic commitments and accumulating some bullets. Increase my fixed income(salary), increase my extra income(tuition as a business) and put into investments(stocks and property) while continue to acquire more knowledge about MONEY - accumulating it and create wealth ... in order to be financial free ... one day. My plan to be atrainer one day still in tact, at the back of my mind.

At the moment, I m still new to tuition market here. I m also still new in share markets. I m definitely not qualify to coach anyone just yet. But with my determination and persistence, I know I could dare to dream ... further than what I m acheiving now.

MERDEKA ... well, it is financial independence that I m looking for ... perhaps at age of 50(another 7 years). Then, I might drop my full-time job, giving tuition in my own center and coaching trading/investing in stock market using my center. By doing that, I could have more freedom too ... knowing I hv financial freedom without much worry about money as the main subject.

I woke up in the morning thinking of MONEY ... and I sleep at nights stressing by MONEY. I know my goals well ... and also still refining my ways of earning money while trying to reduce expenses. Every dollar save is a dollar earn, as they said.

Hold on ... I m still uptight and struggling now. Just another 5 years ... I will like to see myself as what I m imagining now. MERDEKA.

ZhaoJin( : HSI down almost 300 points but ZhaaoJin breached HK20 today, to the new high ... markets may go down, GOLD will continue to go higher. Its PE now at 35. When I recommended Dr Julian to buy at HKD10, he was very glad to take profit at HKD13(30% profits in less than a month - he was impressed then). Today, he will still curse me for not showing him those stocks which doubled or tripled in 3 months! I have one year time frame in mind when I was coaching him. He became GREEDIER(from a person who dont even know what a stock is or how to trade a counter!!), of coz.

Dr Julian Lim - a Dr Jackyll and Mr Hyde in real life - and will always an experience in my life. I have to teach my kids to aviod these cunning people. Hey, Dr Julian, are you still with Sabah Medical Center? Are you still in markets? Are you still reading these lines and my blog - while cursing me in your prayers? I hope not ... as I have tried to make peace with you. You have ignored my sms or e-mail. Heard from my wife that your wife(my friend too, ok?) giving birth to a baby girl? Congrats!! Keep away from my blog, ok?

For new readers, Dr Julian was my first student when it comes to coaching about trading/investment. I taught him INVESTMENT, actually. But he got greedier and want to earn money in faster rate. Then, I taught him MACD crossover, RSI and such ... 40% of what I knew then(one year plus ago). I do not think so market is suitable for him. He is too coward and greedy. I believe those two characters are a set-back in a person's success in investment. I dont show him AnnJoo-wb but asked him to buy AnnJoo at RM1, instead. P/E was below 5 then. Today, what is the price of AnnJoo, doc? And what is the price of ZhaoJin? He changed his initial words - he told me he want to learn investment from me with time frame 1 year. And he will be glad if he could get 10% or more per annum. Hai-chee ... excuse me, human changed when they realised(as they thought they were) that their INTELLIGENCE could certainly do better than their initial targets!! Arent we a greedy lot?

I m still very firm with my LEARNING process. I m more concern about how much I have learnt and how do I apply what I m learning. So, by buying different stocks, in different markets under different market environments are my motives. Profitting is a bonus. Yeah ... in a way, I m accepting losses IF my theories and plans go against me. Do look at current level ... talking about market efficiency 2 months ago ... trying to apply it here, buying into waterfalls!! With a longer time frame, looking into the rebounds ... learn learn learn.

Example of GREED : Sinotop


No comments: