Today there was a talk organized by shareinvestor Malaysia and Kenanga investment at shareinvestor Malaysia office at 3rd mile Old Klang Road.
The speaker of the talk was a guy from Hong Kong called Alfred Chan, his nickname was aptly Dr Money. He mentioned he is a Hong Kong Malaysia stock champion for year 2018. He has written a few books on investment, all are in mandarin.
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| Old Klang Road |
While he (Dr Money) is from Hong Kong he resides in Mont Kiara and trades in Malaysian and Hong Kong stocks.
A representative from Kenanga Investment was also around to promote their trading platform which can trade Hong Kong stocks from Malaysia.
A representative from Kenanga Investment was also around to promote their trading platform which can trade Hong Kong stocks from Malaysia.
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| Dr Money's Banner outside Shareinvestor Offices |
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| Waiting for the talk to start |
Dr Money started the talk about his background, track record as the winner for Hong Kong stock trading winner for 2018, beating other traders despite the 2018 bear market. He is a financial planner by training but ventured into stock trading somewhere in his 40-50s.
Interestingly, Dr Money talked about his past failures using buy and hold strategy and not cutting losts. He had to take a sabbatical leave from work to regain back confidence and skills to get to where he is today. While in his sabbatical leave he had to soak up all the knowledge about stock market and reflect on his past trading mistakes and tweak out a trading formula that is what it is today.
He shared 5 rules out of his 14 trading rules. One rule that stands out was to buy in 10 lots and then add the lots slowly as the stock rises. Example if you have RM 100K, divide into 10 10K lots. Upon identifying the stock, put in the 1st 10K lot into the stock, if the stock rises (say 5-10%), put in additional lots.
Dr Money talked about how he made money in local stocks like GHL (ecommerce point of sale) and UCrest (technology stock). He seems to be going after companies with new products that have new technologies that will have more demand in the future. GHL is a company that supplies merchant payment terminals that accepts AliPay, WeChatPay etc while UCrest seems to be a company that is pushing their iMedic cloud medical system. On this area, Dr Money gave a tip when evaluating stocks fundamentally is to ask yourself how a counter is going to make money in the future.
I like the way he used a lot of analogies in his talk. I think that is one of the techniques good speakers use. For example, he was speaking about when going into war, you need to equip yourself with a spear (offence) and a shield (defence), it's quite similar to some speakers who use football offence and defence analogies. Another analogy he used is "It's better to have 1 wife and 10 girlfriends" when referring about having a few high potential stocks on hand than buying everything in the market.
Dr Money mentioned he only holds 4 stocks at 1 single time, and out of the 4 stocks probably only 1 will be a winner. He emphasize on focusing on small-mid cap stocks because of its ability to grow faster. He mentioned that buying blue chip big caps like Public Bank and Genting stocks will not be able to yield 30% returns is a short to medium period of time. He also does not trade all the time, preferring to snipe at stocks when there is an opportunity (eg volumes start to rise, positive news on the company).
Dr Money observed stock market tend to have 3 yr cycles now, 2yrs of bull and 1 year of bear.
To recap Dr Money's important strategies I felt were very important lessons :
- Never lose money and cut loss fast
- Buy into small to midcap stocks
- Divide capital into 10 pieces and invest 1 piece 1st into a stock
- No hold more than 4 stocks at a time
- Wait and snipe
- Maintain cash positions depending on market sentiment
- Focus and look ahead for companies with a strong edge
- (Eg. 5G antenna companies)
Like all types of free seminars ,before the end of the talk, Dr Money took some opportunity to promote is VIP services, copy service and advisory services.
My afterthought was Dr Money was able to trade quite emotionlessly and also discipline is due to having real estate behind him, he mentioned having 5-6 Hong Kong properties. He does not trade with money he needs. This is something a lot of people are able to do so.
Overall the talk was ok. Personally, I felt Dr Money talk too much about himself than actually teaching how to trade. His courses offered were also a bit too complicated to understand because there were just too many options.
My afterthought was Dr Money was able to trade quite emotionlessly and also discipline is due to having real estate behind him, he mentioned having 5-6 Hong Kong properties. He does not trade with money he needs. This is something a lot of people are able to do so.
Overall the talk was ok. Personally, I felt Dr Money talk too much about himself than actually teaching how to trade. His courses offered were also a bit too complicated to understand because there were just too many options.