I stand a chance to manage a private fund from a group of my friend about a year ago. Of course, this work out is purely due to friendship and have no single intention of personal benefit in it. I was given the full control of the fund and only to agree to report to them on a half yearly basis.
I've just finalized a simple account to all the “unit holders” so call, and to my surprise I managed to garner a return of 61.04% since inception of this fund. This is far too good compare to my own personal investment in which I merely get about 16% this year.
Sound pretty impressive right ??? Of course, in bull market this return is nothing to shout about. Many can achieve much higher than this I believe. What if bear is coming to town ??? Would you be able to sustain the same kind of growth ??? Frankly, i don’t know but what I have adopted is the same method I used to do all this while, by long term investing to quality and dividend stocks solely. Except that this fund I added some recipe in it where I traded some of the stocks by buying and selling and keep repeating them but limited only to the same group of quality stocks. Simple method, buy high sell low, buy high sell low and again buy high sell low on the same old stocks. Transaction traded not very high about 2 – 3 at most per month…. May be this is luck that just comes this year and you may not be that lucky next year. hahaha
Obviously, why is there such a big different comparing my personal return, 61% versus against 16% ?? A complete opposite ?? I notice that I dare not risk my own fund too much while dealing with trading, so I trade less, on the contrast, I trade more on people’s money… see the difference…AHA!! Who cares !! after all is not my money that I am dealing with. I lose nothing. So, who win this round ?? The psychology wins and wins real BIG this round. Dealing with people’s money tends to be fearless, aggressive, risk taking and determine. Of course, with these elements in me, I don’t just invest blindly, still stick to my rule of thumb, only quality & dividend yielding stocks.
Till then happy trading, may the best price be yours.
15 comments:
Market volume record another new low as sentiment mostly on holiday mood.
However, portfolio manage to record another handsome profit from contra gain on Dijaya, paper gain on Protasco and Hingyap :D)
Core portfolio
Dijaya 76.9%
Protasco 38.6%
Lonbisc 29.4%
Hingyap 2.4%
Trading portfolio
IOIcorp 16.7%
'I managed to garner a return of 61.04% since inception of this fund. This is far too good compare to my own personal investment in which I merely get about 16% this year'
Horse
Is it your real story!? you managing other people money?
hng,
Yes, it is true not a story from outer space... ;)
COngrat to you again, non stop making money.. Happy for you. :)
Horse
Your own investment YTD return 16% vs. manage fund YTD 61%? If is true, you should demand them to reward you at least 5% management fees + 10-15% performance fees :)
Digest what is different between own ivestment vs. manage fund and if possible just pool all the capital together with your own + other unit holder to create larger capital and manage professionally, in which you can concentrate on fund management and sharing with others the risk as well as reward.
As mentioned these are done because of friendship, so there should not have any commerciality substance in there.
May be look at it from a different angle, use this to polish up my trading skill.. :)
I will soon put this fund to rest in just dividend gaining no trading.
The trading, Will apply more on my own fund.
Hi,
I am here again. I am confused. What do you meant by buy high, sell low? How to make profit by buying high selling low in Bursa?
Sold some Dijaya at 94sen
Bought IOI corp at 5.37
haha Greenleaf,
u r damn sharp. I am testing whether ppl do really read my article or not. Irrespective buy high sell low or buy low sell high, eventually if u have method like hng u still win. Both ways also there is winning stake there, u need to see how hng did it. Many case hng bought high and manage to turn them to positive. This is the superb trade that u got to learn from master hng.
Actually is my mistake... :), just let it be, will not correct them, see if ppl ask the same q or not. lol.
BTW, GreenLeaf, u manage to claim yr tax back ??
horse
Please don't quote me as master trader, i'm here to share and learn and we all are equal. Thanks
Greenleaf
What horse try to address is aside traditional buy low, sell high, one may encounter reverse case in the market. Buy high sell low is condition whereby we may miss right timing/right entry price or wrongly pick stock.
To make it turnaround/breakeven or minimize loss, we need to buy high, sell low and buyback at lower price to average down holding cost. After several trading, one may either breakeven/minimize loss and even record profit.
Sold back today IOI corp at 5.41; realize few hundred intraday gain :).
Sold more Dijaya at 94-94.5sen, realize more contra gain :D)
Hi hng and horse,
Now, I understand why you mention buy high, sell low. Currently, I am holding BJTOTO which I bought at 4.28 and buy again at 4.2 cost average to become 4.22. I think that this is the way you mentioned, buy high sell low. :) Now, I have made some profit but I will not sell it yet because I think it will rise more again.
For the tax claim back, I have not done it because I really lazy to go to open the account and take the money. Because the money is quite little, I think not more than RM20 because last time, I buy very little amount of stock to try my trading techniques. So, I will claim it when I start working around June or July 2010 if I manage to graduate properly. :)
Thanks for the great guide. I am a bit confused about the fees and charges, if I buy at high price(eg: 4.28) and I buy again at low price(eg: 4.2), how to calculate the total fees and charges?
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