Invest in GOLD?

I'm still remember 3 years back, I'd invested into Gold(paper terms) when the price was about RM165/g. Back then, fuyoh... many banks were offering gold account for you to hedge against inflation(they said). However, my thought that time was just to keep some of my saving in other types of portfolio rather than property as many seniors were still not encouraging me in stock trading yet. Soon, I'd began to buy into gold and have waited for it to hit another height(RM180/g - 2012). Unfortunately, gold price later was not as how beautiful it's looks and the spread(buy/sell rate) was not that good(RM7 of spread) to an ordinary man like me. Why not good? For example, Banks selling at RM10 to you but you can only sell to them at RM3(take a look at below screenshot taken just now)...

Well, the charges is quite expensive as every transactions(buy and sell) imposed a 4.24%... Meaning I need to earn more than 4.24% only can considered as profit. Somehow, things has not gone as good as it was expected,  and sadly the gold price kept dropping after I'd bought in(stupid me). Months later, I decided to sell all after it dropped to RM155/g(forced to sell at RM148/g, due to the spread) which equivalent to 10.x% loss(hmm...just realised I know cut loss even before stock trading... hahaha).

After this experience, I would only think that gold as an jewellery which for you to display or show off(but some time keep, like the old folks do). Besides, I will not think this as an type of investment anymore since then. Why? because it's actually has no appreciate value but merely depend on the supply and demand. In fact, it will not generate you passive income like stock giving out dividend/bonus/free gift or eat(during AGM).

Anyway, not to admit that gold is really a beautiful metal when you are holding it physically. That why I've just bought some to wear regardless it will appreciate or not. kikiki... it's still shinning :)

Well, don't get mad at me as it's just my opinion or you can share your view if you disagree with me. Sorry ya...

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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A dummy's trading experience Part-3: Cut loss

Frankly, no one hope to loss their investment... aww, who don't want to earn more? Somehow, trading in stock exchange does not guarantee profits but in fact, you may loss more than earn sometimes. The market can be so cruel and they don't care who you are or how new you are... haha... all about they care is of course $$$(Money). We may get ourself hit until bleed if we didn't learn some tactics to protect ourself. One of the tricks is to not to loss more than your preferred loss comfort level and doing so we can still protect our capital. Think those pro named it "Cut loss" but I called it "stop bleed and come back later" hahaha... Tell you, this is not funny but this is really helpful. Me experienced numerous times of cut loss and then able to join back at lower price to enjoy the rebound(sometimes bro, i meant sometimes)! By the way, my cut loss point was around 15% initially(I was a long term investor) and slowly became 10% then now preferred at 8-10%. I know is crucial for some people watching your portfolio valued lesser and lesser but, if you still locking your capital in and kept yourself watching only will only make yourself feel more painful. Of course, most of you've developed your own preferred way to trade and I'm not saying you are wrong but don't you think locking it until it to rebound may takes months or even years. Imagine, during the locking period, you may lose a lot of opportunities to buy some other potential stocks. For your info, I've just cut another loss for SBC at around 0.90(purchased at 1.0) and lowest it hit 0.64(hell, that's around 26% dropped but I managed to stop the bleed earlier and lucky to collect some other good counter that rebound after that). Well, I guess am just lucky again...

After so many times of stop bleed(cut loss) I do realised that I can buy any counter because I have cash in the weak/bad market! So I come out with a conclusion that, wise people are waiting the market to collapse and they can get to buy more superstar cheaper with the cash on hand. So if your capital is not liquid enough then you may just only watching the rich become richer while holding a bucket of blood(Sorry, I've no mean). Well... Try to develop your own tactic to practice it and also be disciplined for it to protect your hard earn money!

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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