To trade well it is not sufficient to understand the balance sheet and finances of a company. It is not even sufficient to understand how a company may have performed in the past. To trade well it is important to be able to look into the future.
One of the things which good analysts look at [...]
Archive for the 'Investment Notes' Category
How Competition Structure Affects Trading Decisions
Published by September 4th, 2008 in Investment Notes. 0 Comments This week’s Economist has a great article entitled “Turning Panic Into Opportunity”, which discusses what to look for when buying in a bear environment like we are facing today. Adapting the article to the Malaysian market, in summary the criteria proposed are:
1) Volatility: In the US, the VIX index measures the degree of volatility in [...]
One more pain - bear market strategies
Published by July 8th, 2008 in Investment Notes and Tenaga Nasional Bhd. 0 Comments Back in March I commented that there will be “one more pain to come” as the bear cycle moves to the next and possible final phase. This is the hardest and longest part of the market which is characterised by depression.
Judging from the sentiment I feel from reading reports, articles and talking to traders, I [...]
Following last week’s stock market plunges I am starting to hear fear creeping into the mentality of many traders. 6 months ago the most common brag of punters is he or she invested in this stock or that stock and made X% in so many weeks. Now, the most common brag is that he or [...]
Came across this article in the papers today which provides an interesting case study. I quote:
“Four months ago, judging myself to be the next Warren Buffett, I logged on to my Charles Schwab account and did something that in hindsight was astonishingly stupid, even for my own very long roster of financial screw-ups. I clicked [...]
So you think you know about Malaysia? If so, see if you can answer these questions.
A. What is Malaysia’s largest economic sector?
Ans: Manufacturing (electronics and electrical components) - despite all the brouhaha over palm oil. This is followed by the services sector (banking, insurance, trade etc.) It is estimated by Deutsche Bank that only 2.1% [...]
It is just so amusing to hear all the research reports coming out now touting shares again, when 3 or 4 weeks ago we did not hear so much as a pip out of them. What has changed between now and then? Absolutely nothing. Except that prices seem to have stopped going down. If [...]
Economic vs Financial Markets - Is the end in sight?
Published by March 28th, 2008 in Investment Notes. 0 CommentsWhen analysing financial markets, it’s important to also keep one eye on the economy, because financial markets are not the same as economic markets. In financial markets, there is only one consistent measure of value: price. However, in economic markets the measure of value is more subjective, and is contained in the question [...]
A few weeks ago almost every research house on the street were publishing recommendations on how to play the election in the stock market. Their reasoning was that the government will continue to pump prime the economy. So GLCs such as UEM, ECM, YTL Corp, ICP were being touted. Here’s what DB analysts had [...]
Why Timing The Market Should Be Unimportant
Published by February 28th, 2008 in Investment Notes. 0 CommentsThese days we hear even more about ‘timing the market’. Ever stopped to ask yourself what this really means? Most people assume it means buying at the bottom and then selling at the top. But that confuses outcome with the process, because how are we supposed to know when the market is at the bottom? [...]
