Saturday, February 19, 2011

Financial management

This post I will talk about financial management. I really happy with all the effort done by government including AKPK (Agensi Kaunseling Dan Pengurusan Kredit), which offer free counseling to people with debt problem or want to seek financial advise.

Talking about financial management, i was once a blind-man when comes into financial management. So, when did i start to realize the important of financial management. Thanks to my sifu Quek who leads me to a blog AhYap (who talk cocks all the time, haha, but provides very useful information). Then, he also introduce me to read book by Robert Kiyosaki's Rich Dad Poor Dad. That get me starting to plan.

Along the way, I have taught a few of my friends on terms like Power of Compounding, Rule of 72, share market investment term (Revenue, PBT, PATMI, EPS, PE, DY). When people mention about share market, they will likely think it is like gambling. Yes, it is indeed is like gambling if you dont do study before picking any stock. Listening to rumour blindly is worst than gambling.

Investing in any form of investment is all about calculated risk. There is nothing in this life without risk. Even investing in property also have its own risk. We must invest in something taking consideration of the risk. We want to invest in something that has more upside potential and less downside risk. This is what we call GEM. Spotting a GEM is not easy. However, same as life, opportunity does not always come into your life.

To all my friend out there who still hesitate to do investment (with various reason; no time, dunno how to invest, scared to lose). My words of advise is.. take action, or else you will be left out far behind financially. Is there any free money in this world? NO!! BIG NO!! To do investment, we also have to study. No commitment, no money. Me and my share trading partner discuss every night of the potential, after all 2 brain is better than 1 brain. (those who interested to join our discussion, can join us every night from 10Pm till finish discussion). We might study for few hours before deciding on a counter.

This is favourite Q ppl will ask. Do I earn this 2 years in investing? My answer is simple. Below are my trading performance (not something to boast about..)
2009: 21.49%
2010: 31.76%
2010: 5.84% (as of 19 Feb 2011)
This figure is much better than putting in unit trust or amanah saham. As my investment amount get bigger, achieving >20% is tougher, but I set that as my target.

I believe those whom I share my knowledge before (Suok Teng, Miss Wen, Su Keat) is doing well in their investment. Some are even better than me now.

If anyone is interested, do contact me, I am more than willing to share my knowledge and experience in trading.

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