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[STOCK] To make money in the stock market, what is the best approach?

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In my opinion, you can't make money trading unless you are a genius. Big money is not in trading; it is in the waiting. The buy-and-hold strategy is still the best provided you know how to identify good stocks to buy.
by bewise 9-Mar-2010 5:55 PM reply
I bet many people got burnt from this strategy and until this day can't recoup all their investments. Best strategy is to cut loss and ride the trend. You can still make profits if you are right 1/3 of the time.
by stockoperator 11-Mar-2010 8:56 PM reply
Our economic and investment environment have changed that a buy and hold strategy is no longer valid or applicable.
It would give better return if one is able to time market and ride the trend correctly. Of course, cut loss is an important part of the strategy.
by limko1 11-Mar-2010 11:53 PM reply
How long is the hold though? 30-40 years.

I think if you have enough money you can take advantages in trading especially with today technology where news travel so fast and computer put in trade in light speed.

In US, even the SEC is paying attention how trader utilizing technology to take advantage in day to day trading activity.

I think it is even easier to manipulate market like BURSA or other countries with volume similar to Malaysia.

So i personally think enough money and time spent, you can make money from trading. Is like 10% winnig and 90% losing.. just need to figure out how the 10% do it.
by masio 12-Mar-2010 10:05 AM reply
Buy-and-hold strategy is normally for retirement people to grow up more money to live and also depends on the investor's objective. If for young generation, it is not suit because you have fresh legs to make more money.

You can apply that strategy in the US stock market. But not in Malaysia. Here, there are many issues can affect the Index. Even it is just a small thing, it would cause red to Index.

I fed up with Malaysia stock market and it is tired for waiting the uncertain things.It is good thing to ride the right trend and set the profit target so that you can lock the gain at right time
by sanhafiz 12-Mar-2010 12:05 PM reply
Investing is boring. The buy-and-hold strategy probably does not suit the majority. Who does not want excitement and make money at the same time? But let's be honest; how many have the skill to do that? It's easy to say: Cut your losses quickly and let your profits run. In actual case, it's much easier to cut your profits and let your losses run. Let's why many traders lose money and they will continue to lose money, trading. You are the exception if you can win.
by bewise 12-Mar-2010 12:32 PM reply
Sorry, Let's should be That's in the above post.
If you really have the ability to trade, you should trade the FKLI or the FCPO where you either go short or long. Presently, shorting stocks is illegal in Bursa and there is nothing you can do even when you see that a bear market is on track. But, with the FKLI or FCPO, you are legally okay if you short. Make sure you don't lose your skin, though. Go slow, be cautious.
by bewise 12-Mar-2010 12:50 PM reply
HiHafiz,buy and hold strategy is for young people and definately not suitable for retirees lah. They are too old to buy and hold. How long do you expect an old man hold on to a stock? And how long do you expect an old man to live? Young men can buy and hold for 40years but for old men even 4 months is too long. So please dont advise your dad to buy and hold.
by obe3141 25-Mar-2010 11:04 PM reply
Buds drop; flowers drop; young fruits also drop; of course, matured fruits drop as well. You may actually outlive your son, or your father may outlive you. You never know what is going to happen. Warren Buffett is 70 plus now. I don't think he has changed his strategy. (Please don't feel offended. I have not intention to offend anyone.)














by bewise 26-Mar-2010 8:55 AM reply
Retirement people dont have any income sources anymore They can only depends on the retirement fund to invest and received the capital gain and dividends to live. As what u asked, how long do you expect an old man hold on to a stock? If it can be more 20-30 years, is it sufficient to spend on expenses (inclduing if sons still studing in college or unemployed yet and so on) and enjoy remaining life. If these people cannot live more longer, their money can be transfer to their son. Which parents dont care about their son? They find the money also for their son's future. So, It is worth to buy and hold for these people to have lower risk and higher return.
by sanhafiz 26-Mar-2010 10:31 AM reply
Actually I agree with you at the present time. There are certain international stock broking firms that allows us to trade in Singapore, Hongkong, Dow, Nasdaq & S&P. At the moment, I trade in these places. Non in Bursa.
by dominicgoh2000 2-Apr-2010 3:59 PM reply
IMHO, Buy-&-Hold not suitable in most markets in APAC, KLSE included. Instead of having our funds sit in a market that is stagnant, why not make it work in others that are moving? And, I disagree with you that you need to be a genius to profit in trading.

Based on my experiences, the golden formula should include a proper plan coupled with some sound TA analysis, and trading the trend.
by phantom78 18-Mar-2010 5:39 PM reply
Trading the trend, that's easier said than done. Don't forget that a trend confirmed can suddenly change course. As for having a plan, that's easy, the hard part is trading the plan.
If you had bought shares in Haio, Hartalega, KPJ, Adventa, Top Glove and many other good counters, in early 2009 in the KLSE and adopted the buy-and-hold strategy, you would be pretty rich by now.
As for how long you should hold, Warren Buffett says that his time is forever. Genius is nothing more than elegant common sense. If you don't this, then you really need professional trading before you have any chance of winning in trading.
by bewise 22-Mar-2010 3:28 PM reply
hehe .. years ago, such scenario I agreed with active buy/trading can make the kind of good vitamin M when riding with a cycle of uptrends. Well, after all these years, I realize there are still many things to do in life, esp when the goo d old days of T7 had long gone.

Identifying the REAL stock is probably the difficult task, esp. small cap, with extraordinary returns in a mid term duration, this probably fits & worths the kind of stategies you laid here; if not, then revert back to traditional ways of buy into Public Bank, Genting, Tanjong loh ..

Somehow, in the Stock Market, people tends to enjoy certain level of some self satisfaction other than just aiming for normal & steady return from investing. I actually prefer your way. I am looking at one stock name now, just see how it turns out in the few two years. Tks.
by kakaman98 26-Mar-2010 8:05 PM reply
i agree with you .This the secret to make big money in stock market . Nothing come free and easy and fast.
by syeanho 2-Apr-2010 2:14 AM reply
yeah. limit on your investment sum and weighs various risk factor loh. Anyway, buying into small cap into the top 30 shareholder list might also need titanium balls to do so.... hehe. Good lick & luck, pal.
by kakaman98 2-Apr-2010 5:22 PM reply
I would say that its much more safer than trading..

Preferably 80% investment and 20% trading would be a better choice, at least you will only lose 20% of your money..
by Zacky 6-Apr-2010 11:12 AM reply
http://biz.thestar.com.my/news/story.asp?file=/2010/4/7/business/6003482&sec=business
by faisol.mubarak 7-Apr-2010 5:07 PM reply
Wow, this sure is a long discussion. Heck man, those still believing in buy-and-hold gonna go down memory lane...dinosaurs' way you know. Ever heard of HFT? Sure you have. They're going from femtoseconds to attoseconds now....40 years?? Ah, just for some enlightening readings, please see Veryan Allen's @:
http://hedgefund.blogspot.com/2010/03/high-frequency-trading.html

Good trading!
by DagTrader 10-Apr-2010 11:26 PM reply
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