29 August 2016

Getting excited when the price is falling

Are you crazy? Why are you so excited when the stock market is so depressed?

Why not? I asked?

Because the share you bought loses its value! You used to buy at $1 and now it becomes $0.80. If you have bought 10,000 shares, now it will becomes $8,000!!! You have lost $2,000.

Is this true?

To answer this question, let me ask you one question.

If you go to the grocery stall and buy 1 dozen of eggs at $5, and 2 weeks later because the eggs stocks have goes up and thus causing the price to come down to $2.50, will you buy more or less? I don't know about you, but definitely I will rush in and buy more. Probably I will buy 2 dozen of eggs instead of usually I only buy 1 dozen.

This is the reason why I always get excited when the stock market goes down than going up.

26 August 2016

The Importance of Portfolio Balancing

Is portfolio balancing important?

Definitely yes!

Imagine that some of the stocks that you bought are over-valued and you still hang on to it without selling, guess what? After a few weeks or months, the market correct itself and the price came down and the size of your portfolio went back to square one again.

So what could be done better?

If you have followed my blog so far, you could use the "making use of market volatility approach" However, in stock investment, the most important question is to know the valuation of the company at the per share basic. Meaning that if the market cap of the company is worth so much, how much then the company would be worth per share? After you got the "intrinsic value" then you can sell the share when it goes over valued and buy in more when it becomes undervalued again.

Other way to do it is definitely to sell those over-valued shares that you are holding and buy into good/great companies that are over-valued.

Keep doing this, be patient and soon you will find that your portfolio will grow bigger.

24 August 2016

Using Option to "turbo charge" your portfolio

I have wrote about how to use option strategy to "turbo charge" your portfolio.

It is a simplified written EBook.

Feel free to purchase from "My Ebook and Product" section or alternative just click below to make a purchase:

Passive Income through Option Strategy

23 August 2016

Is yield important?

What is yield?

Yield is return, usually in a form of dividend of a stock.

So how do we calculate yield of a stock?

Example if you are getting $0.05 dividend of a $1 stock that you purchased, the yield is given by $0.05 divided by $1 which equate to a 5% yield. As simple as that!

So is it important?

The real quick answer is yes and no.

What's the reason for yes?

Its important because in order to get the highest yield of a stock, we need to buy at the lowest possible price.

What's the reason for no?

Its is not important because as an intelligent investor, we shouldn't just purchase stock simply because it gives the highest yield.

11 August 2016

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