Fundamental vs Technical Analysis (2th)

In this website, I would like to continue share out some of my investment knowledge. I will try to balance the contents, either from technical analysis method or value investing method in coming post.

In my opinion, value investing is the best for people who want to have a soundness sleep at night. All you need to do is to understand a business. I had layout the guidance for value investing in my previous post. If you are willing to work hard and dig more info from the business, and try to understand it, the chances for making a good profit are high!

The last thing you need is to be disciplined and have a cool mentality. “Fear is your friend, Euphoria is your enemy!” Warren Buffet clearly points out the differences from a good investor and a bad one! When the market is on uptrend move, it is best to avoid the most popular stock at the market. More often, all of this superstar end up in super-dust! I will layout a few of these market darlings in 2007 to 2008. For instant, KNM, Dialog, Petra, Muhibah, LCL in KLSE and Cosco, SC Global, Keppel Corp, China Oilfield, Raffles Education, China XLX, Hong Xing, in SGX. There are more of them and I can’t list out everyone. If you still hold on to all this stock, most likely your portfolio return now is –40% to -50% or even more!! All of the stocks I mentioned above are all well recommended for buying from the analyst previously.

I don’t want to say that all of the analysts are stupid! It is the best that you don’t follow blindly the advice from them. You have to go out and check on the business yourself.

In the coming post, I will discuss more in details on how to do a good trading without burning a hole on your pocket!