Thursday, June 28, 2007

Divided Stock

I reach home early after submitted the documents to Land Office. My wife told me that share market index has been toughing 1300 points as shown on TV. She asked me is it a good timing to enter this bull market?

I have been involved in Malaysia Share market since from year 2003 and I can not say I am expert in this field but here I would like to share some experience to my wife and those whom interested in share market.

I still remember in year 2003, the index during that period was around 600 points and market can be considered bear; no people did the trading due to scare. I was influent by my general manager and senior manager. They used to discuss share market while during quarterly visit and subsequently, I also “enter” the game. Initially, I start with small capital and invest some shares which have been discussed by my 2 bosses. I did not know whether there was rumor and tips. But I really made money from them. Perhaps I was luckily during that period. Money can be easily earned within 3-4 days and I gained a handsome income from share market even market was down.

Good time has their limit. Year 2005, I just realized that my entire shares are dropping and some even drop until 50% from the actual price. After that incident, I ceased for a while and monitor the market. I read a lot of financial books and magazines and hopefully, I can recover back. From the reading, I noticed that all the while, I am doing gambling and the term their used is trading. We can deny that share market is a place where trading is occurred daily and share market similar in a huge ocean. Person like me is a “small” fish where easily can be eaten by giant fish. Greedy the main keyword if you want make money from share market. Avoid greedy behavior, set the percentage before you enter and more important when to “escape” from tsunami (market drop).

Education in financial is vital after that bad investment. I can conclude that whether the market is bullish or bearish, we also can benefit a handsome income with a condition-Plan. If you do not have plan, I personally advise that please do not follow this slogan “I jump, you jump”.

Even market is bull, I still prefer divided stock where this stock able to generate steady income to you without having heart attach (this is no a joking. It happens). Please do not fall in love with you stock and always in mind that stock is a leverage to generate income for you. Thus, before you able to invest for a stock, please investigate the company. You must know what the company background, their cash flow and account statements. Share market is a gambling game. You need to read a lot of financial books and magazine rather just heard from rumor if you really want in share market.

The reason I bought divided stock because I can sleep well without worry the price drop or increase. Ok…Below are some good divided companies.
Berjaya sports Toto
Public Bank
Maybank
Digi

As Warrent Buffatt mention in his book, you are buying business and no the share. Please bear in mind….my dear investor.