invest@net

 

Issue No.

Part1of

Back to index

This article is reproduced with permission from
Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
15th Floor Menara Multi-Purpose, No 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur
Tel : 03 - 469 5560 Fax : 03 - 294 5561


This article is copyright and no part of it may be reproduced in any form without the prior consent of Normandy Advisory Services















Stocks with sound fundamentals are likely lo grow over a longer period. A steady stream of reinvested dividends from your blue chips are most likely to grow your asset. Thus, analyze thoroughly the stocks that you are buying.

Add more shares to each stock gradually if your finances allow. Do not buy too many shares at one same price level. Spread your buying gradually so that your average price per share will always be below the current market price of that share, the advantage of "dollar-cost averaging". The diversification will benefit you very much.

Always be a fun damental-driven investor. Be patient and wait for your funds to grow. Do some studies on the market trend. Be responsive to any market news published in the media. For beginners, it is worth buying some financial magazines or books as a stepping stone. The Malaysian financial market is likely to mature in a foreseeable future leading to a fundamental-driven market. Thus, it is important that you learn how to analyze stocks fundamentally - study the "true" value of stocks by using measures such as dividend yield, price/earnings ratios (P/E) and etc.

World famous investor Warren Buffit has consistently outperformed the market with a simple technique - to buy and hold stocks with good prospects regardless of market conditions.

A good trader must acquire strong discipline all times. Decision-making to buy a stock after intensive analysis should not be influenced by friends or rumours. A pure fundamental-driven or long-term oriented trader would likely avoid the speculative Second Board. As a long term-oriented investor let's say for holding period of more than 10 years, you should not be easily discouraged by short-term volatility.

NEXT PAGE