Alpha Chart...The Final Post

I truly appreciate some very kind comments from Alpha Chart readers these few days. As my last post here, I thought I could share a bit more about stock investment with those who take this seriously...

1. Stock investment is never a small business
- Find a strong reason to believe in stock investment. Too many people miss the chance of a lifetime to build great wealth from stocks due to 2 main reasons...
i. they never improve their skills hard enough.
ii. they lost and fear losing again.

2. (Fund) Size Doesn't Matter
- Many people have a misconception that when a fund manager has a bigger fund size, it's always advantageous for him to make better returns. This is only half true in the sense that bigger funds will make him commit more time into the fund.
- In actual fact, the bigger fund size would pose threat in more work to uncover gems and liquidity issue esp. in smallish market like Malaysia.
- The Golden Nest portfolio was a good example where only with an initial investment of RM30,000+, it can be tripled in less than 3 years.
- If one couldn't handle a small fund of RM30K, how would him/her cope with much bigger investment size.

3. Don't Fear Losing Trades
- As long as we are in the market, we will encounter losses. The winners will make less losses and strive to make sure that the gains are always bigger than the losses.
- Take a look at some bad trades I have in one of my personal accounts with 4-5 years history...

Of course, there were winning trades too...

What's more important? The end result (gross profit)...

4. Going Through More Market Cycles
- The benefit of going through more market cycles is enormous and it helps us better our anticipation power.

5. Misconception of Technical Analysis
i. Buy on Breakout
- If I may advise on Technical Analysis, that will be don't buy on breakouts if you are new and always "buy-and-hold"; this game is for the professionals.   
ii. Trusting Volume Too Much
- I find it's absolute stupidity to preach that Technical Analysis is all about volume; it's not! Many gurus out there advise to analyse on volume to predict prices; again this is half true. We have to consider the fact that they are quite a number of day traders in the market who can always create volume only for intraday interest. In many instances, these volume will vanish in a matter of day(s). You'd notice that I seldom trade top volume stocks.

6. Develop Your Own Trading Plans
- As one progresses in trading/investing, naturally he/she will and should have own trading plans. If one doesn't have it yet, one hasn't reached that stage.

7. Know What Works (and stick to it), What Doesn't
- If one finds that he/she continuously make money from certain methods; continue using them. Ditch methods that repeat losses...

8. Think Risk Then Profit
- I find this tagline from Alpha Chart to be of the most value to my own trading and hope it will benefit readers the same way too.

I hope this last post would offer some value...As many had wished me luck in my investment, I hope the same for you guys too...Note that I will only keep the very recent comments (and incoming ones) for my own eyes only as some requested that I don't publish them while others are fellow bloggers whom I wish to protect their identities.