Tuesday, May 19, 2009

Simulation Model Portfolio 1


I believe every one have thought of investment either in property or equity. Both investment types got their own risk and advantage. For me, I prefer equity, for a simple reason, I can cash out any time. Anyway, I will emphasize that there are different ways to invest in equity market, either speculation or investment. Both make profit base on price different, the latter need more time, the former need less time probably, but with high risk.

I personally will suggest those who want to invest make some study, put some effort before jump in! I will suggest study about the whole market condition, then from there decide which sector will grow under the current market condition. Follow by choosing the best share from the same sector. Make comparison and narrow down the risk. Then only start to invest. But bear in mind, I strongly suggest to do investment rather than make speculation to make short time profit. Investment mean you really want to put your money into the business because you believe that the company can bring value, profit for you after some time, probably in 5 to 10 years time. Also mean, you really have extra money which you will not need it for the next 5 to 10 years. Let the money make money for you.

As a beginner, I do worry that I will lose money, same as everyone else, because we lack of experiences. So, I have decided to make a simulation model portfolio. Meaning that I buy those share I chosen ‘on paper’, assume that I have bought it, so if I make mistake, I still not lose my money. Also this will test how big the risk I can bear, imaging if the share you bought drop 50%, how you feel?

I have created my own simulation model portfolio and will update it from time to time. Also, I will explain why I choose those shares one by one then. All those shares that I picked I have followed for sometime. I have made the portfolio on 3 April 2009, which I believe the economy may see bottom soon. And now, I decided to share with you. For just 1 month plus, I made almost RM 10,000 of profit, even though is ‘on paper’. But it also mean one thing, buy the right share at the right time will double the chances of success!

1 comment:

  1. do up date your portfolio~~
    i will come and see~~
    good luck ya~~

    fung~~

    ReplyDelete