Where are the Klang Valley hotspots for property investment to make more money? Everyone is so interested to know where to invest in property hotspots at KL and PJ. Therefore, I keep collecting the information released from our Malaysia property experts and consultants regarding the hotspots for property investment, especially residential property at KL and PJ.
MALAYSIA KL AND PJ PROPERTY HOTSPOTS FOR INVESTMENT
- Northeastern Petaling Jaya (Bandar Utama, Taman Tun Dr Ismail, Mutiara Damansara, Kota Damansara, Sri Damansara, Desa ParkCity and Valencia)
- Subang Jaya – Shah Alam belt
- Damansara Heights
- Sri Hartamas
- Bangsar
- Taman Seputeh
- Taman Desa
From the locations listed on above, medium cost up to high end properties are available for different group of people. So, where is your favorite and preferred location for property investment during this slowdown economic? Keep an eye for all the new launch property or completing soon project at the locations abovementioned. Get ready to make more money from hotspots property! More importantly, get your money be prepared! Cash is King!!!
Many property investors are adopting a “wait and see” attitude. Nothing to be surprised, do thing last minute always is Malaysian style! For me, there are three groups of investor in whatever type of investment:
- Sense first, get first （先知先觉）
- Sense later, get later （后知后觉）
- Never sense, never get （不知不觉）
So, sense more and get more! Go visit more property showrooms, do more actual site survey, read more property investment books, do more analysis, and etc. Put for afford and just do it!
With the widespread availability of electronic trading networks, trading currencies is now more accessible than ever. The foreign exchange market, or forex, is notoriously the domain of commercial and investment banks, not to mention hedge funds and massive international corporations. At first glance, the presence of such heavyweight entities may appear daunting to the individual investor. But the presence of such powerful groups and such a massive international market can also work to the benefit of the individual trader. The forex market offers trading 24 hours a day, five days a week. It is the largest and most liquid market in the world. According to Bank For International Settlement, trading in foreign exchange markets averaged 5.3 trillion per day in 2013.
Trading Opportunities
The sheer number of currencies traded serves to ensure an extreme level of day-to-day volatility. There will always be currencies that are moving rapidly up or down, offering opportunities for profit (and commensurate risk) to astute traders. Yet, like the equity markets, forex offers plenty of instruments to mitigate risk and allows the individual to profit in both rising and falling markets. Forex also allows highly leveraged trading with low margin requirements relative to its equity counterparts.
Many instruments utilized in forex - such as forwards and futures, options, spread betting, contracts for difference (CFD) and the spot market - will appear similar to those used in the equity markets. Since the instruments on the forex market often maintain minimum trade sizes in terms of the base currencies (the spot market, for example, requires a minimum trade size of 100,000 units of the base currency), the use of margin is absolutely essential for the person trading these instruments.
Buying and Selling Currencies
Regarding the specifics of buying and selling on forex, it is important to note that currencies are always priced in pairs. All trades result in the simultaneous purchase of one currency and the sale of another. This necessitates a slightly different mode of thinking than the way required by equity markets. While trading on the forex market, you would execute a trade only at a time when you expect the currency you are buying to increase in value relative to the one you are selling.
Base and Counter Currencies and Quotes
Currency traders must become familiar also with the way currencies are quoted. The first currency in the pair is considered the base currency; and the second is the counter or quote currency. Most of the time, the U.S. dollar is considered the base currency, and quotes are expressed in units of US$1 per counter currency (for example, USD/JPY or USD/CAD).
Forex quotes always include a bid and an ask price. The bid is the price at which the market maker is willing to buy the base currency in exchange for the counter currency. The ask price is the price at which the market maker is willing to sell the base currency in exchange for the counter currency. The difference between the bid and the ask prices is referred to as the spread.
The cost of establishing a position is determined by the spread. Most major currency pairs are priced to four decimal places, the final digit of which is referred to as a point or a pip. For example, if USD/JPY was quoted with a bid of 134.3919 and an ask of 134.3923, the four-pip spread is the cost of trading this position. From the very start, therefore, the trader must recover the four-pip cost from his or her profits, necessitating a favorable move in the position simply to break even.
More About Margin
Trading in the currency markets also requires a trader to think in a slightly different way about margin. Margin on the forex market is not a down payment on a future purchase of equity but a deposit to the trader's account that will cover against any future currency-trading losses. A typical currency trading system will allow for a very high degree of leverage in its margin requirements, up to 100:1. The system will automatically calculate the funds necessary for current positions and will check for margin availability before executing any trade.
Rollover
In the spot forex market, trades must be settled within two business days. For example, if a trader sells a certain number of currency units on Wednesday, he or she must deliver an equivalent number of units on Friday. But currency trading systems may allow for a "rollover" with which open positions can be swapped forward to the next settlement date (giving an extension of two additional business days). The interest rate for such a swap is predetermined, and, in fact, these swaps are actually financial instruments that can also be traded on the currency market.
In any spot rollover transaction, the difference between the interest rates of the base and counter currencies is reflected as an overnight loan. If the trader holds a long position in the currency with the higher interest rate, he or she would gain on the spot rollover. The amount of such a gain would fluctuate day-to-day according to the precise interest-rate differential between the base and the counter currency. Such rollover rates are quoted in dollars and are shown in the interest column of the forex trading system. Rollovers, however, will not affect traders who never hold a position overnight since the rollover is exclusively a day-to-day phenomenon.
Conclusion
As one can immediately see, trading in forex requires a slightly different way of thinking than the way required by equity markets. Yet, for its extreme liquidity, multitude of opportunities for large profits due to strong trends and high levels of available leverage, the currency market is hard to resist for the advanced trader. With such potential, however, comes significant risk, and traders should quickly establish an intimate familiarity with methods of risk management.
The role of psychology in trading
Successful trading is not down to any single trade, but a number of trades using a strategy. This means that a trader must be disciplined enough to stick to their strategy, even throughout a losing streak. However, human beings often do not behave in a logical way and there are many times that emotions influence us and we act differently to normal.
Do you remember the last time you were very angry? Maybe you did something and you were surprised by your actions. As much as you regretted it afterwards, at the time you probably couldn't help it and furthermore, you are likely to act the same way again if you become angry in the future.
This is because the psychology of a person is made up of thoughts and feelings that are an incitement to act, and so psychology shapes our behaviour in every aspect of our lives – trading is no exception.
Emotions are inevitable – especially for a new or unskilled trader and they can prevent you from making an objective decision. For this reason, learning how to control emotion becomes paramount to successful trading over and above everything else.
The Zone
When a trader is thinking clearly and uninfluenced by emotion, he is said to be in the zone. When you are in the zone, you are in control of your behaviour and are able to follow a trading strategy in a logical and systematic way.
Some traders find it easy to get into the zone, but even those who struggle can learn to control their behaviour and become emotionally detached from trading.
Emotions that influence trading
The emotions in trading that have a negative impact on results are greed and fear. These emotions cause a trader to deviate away from their plan, which can lead to further issues, such as ego and revenge trading.
The following are examples of these emotions and how they can negatively affect trading results.
Fear of losing can lead to further losses
When a trader has a fear of losing, they try to avoid them. This can actually increase losses.
For example, a trader may open a trade and place their stop loss, say, 20 pips away – based on the strategy they use. In other words, there is a technical or fundamental reason for it being placed where it is.
However, a trader that is influenced by fear may close the trade prematurely, simply because the trade temporarily goes against them. So if the trade goes against them by, say, 10 pips, then the trade results in a 10 pip loss. If the trade turns out to be a winner, then the trader has just turned the winning trade into a losing one out of fear.
Another scenario is when a trader closes their trade as soon as it has gone into profit, out of fear that they can lose that profit. If the trade then goes on to hit the profit target, then the trader has reduced a full winning trade down to a much smaller win.
This behaviour ultimately turns a profitable strategy into a losing one, because the trader reduces the amount of winning trades and/or reduces the profit overall because of fear of losing.
Greed results in trying to take too much profit and end up with less.
When a trader experiences greed, it means that they try to go for too much profit and deviate from their strategy. For example, a trader may place their profit target in accordance with their strategy. This means that – as with placing a stop loss – there is a technical or fundamental reason for doing so.
However, when greed influences a trader, they do not close their trade when the strategy has dictated they should – they try and go for more. What can happen is that the trade can turn against them, ultimately ending up with less profit, or worse, a losing trade. This means that they actually reduce the profitability of a strategy because they try to increase their profit through greed.
A trader influenced by ego will never admit they are wrong
A trader under the influence of ego does not want to admit they are wrong.
For example, if the trade does not go well, instead of closing their trade according to the strategy, they carry on taking a bigger loss than necessary because they cannot admit that they are wrong.
Another scenario may be that after taking a loss on a perfectly good trade, they do not go on to look for the next setup according to their strategy. Instead, they continue taking trades based on their original analysis because they believe they were right in the first place.
Revenge trading is chasing the money you have lost on a trade
Revenge trading is when a trader chases the losses they have made – they are so focused on winning the money back that they fail to realise that they are not trading with a set of rules and each trade ends up resulting in another loss.
The importance of discipline when trading
To avoid emotionally influenced trading, you will need to build discipline that will allow you to think as objectively as possible. There are several ways in which you can do this:
Trade with a tried and tested strategy
You are much more likely to remain calm under pressure if you have confidence in your trading plan. If a strategy has not been tested enough, it may lead to doubts that could allow fear to overwhelm the trader.
Demo-account trading
Testing and further development of a strategy should be done on a demo account first before using real money. Using real money creates an additional pressure that is likely to amplify negative emotions that are involved when trading, which can lead to further losses. Click here to access Demo Account.
Accepting the risk
A strategy with a 100% winning ratio is unrealistic. You must be prepared to accept losses. It is normal to hope that every trade turns out to be favourable. However, inexperienced traders are likely to experience a stronger emotional impact when they take a loss. In contrast, a profitable trader is able to accept losses as part of the trading strategy and move on to the next trade, without allowing greed or fear to affect future decisions.
The word stock and stock market can usually be acquainted with large-scale businesses all over the world. This is mainly how the business grows besides from the products and services that they offer. An equity stock, or more commonly known as a stock or a share, is an individual's portion or ownership in a corporation. This individual is called a stockholder or a shareholder and can either be a single person or a whole company represented by a single person. Stock market is a public place for the trade of equity stocks and derivatives at a price agreed upon by the seller and the buyer. The seller is the owner of the stocks while the buyer is the individual negotiating for the stock with the intention of buying the stock and becoming a stockholder or part-owner of the seller-company.
How Are Stocks Used
Each stockholder is given a written certificate of the amount of stock or money that he/she has invested with the company. Once a year or once every quarter depending on the policies of the company, dividends representing the stocks are distributed to stockholders. These dividends are derived from the gross income of the company and are not considered as expenses but rather as a return to the stockholders of their investments. The amount of dividend will of course depend on the number of stocks owned but the priority of the distribution will depend on the type of stock purchased.
Tips On Having A Good Stock Market Investment
There is really no definite time and period to start investing in stocks. It all depends on the situation and the budget of the investor. The first thing that an investor should take into consideration is research. The internet is the best source of getting company information and how they are doing in the stock market. Once you have created a list of good investment prospects, weigh your options, check your budget and consider the following investment to avoid tips before entrusting your hard-earned cash to another party:
* Always check the financial statements of the company you wish to invest in, especially its history of liquidity and distribution of dividends. When you invest in stocks, it's like playing a game of poker with professionals. Remember that they are already masters of the trade; therefore, you need to be really wise and prepared. It always pays to do your assignment beforehand.
* When seeking the advice of stock brokers, be wary for those who try to charge you with upfront fees for these charges are usually for advertising expenses or their commission. There are good investments that do not require upfront fees so keep your eyes wide open and your pockets intact.
* Be wary for fraud and stock manipulation. It is best to have the basic knowledge regarding financial ratios, as these computations will help you all throughout your stock market career. They will be responsible for determining which stock is really cheap and which can be considered a good investment.
Financial lingo is very important for anybody interested or invested in products like stocks,bonds or mutual funds. Many of the financial ratios used in fundamental analysis include things like outstanding shares and the float. Let's go through these terms so that next time you come across them, you will know their significance.
Restricted and Float
When you look a little closer at the quotes for a company, you may see some obscure terms that you've never encountered. For instance, restricted shares refer to a company's issued stock that cannot be bought or sold without special permission by the SEC. Often, this type of stock is given to insiders as part of their salaries or as additional benefits. Another term you may encounter is "float." This refers to a company's shares that are freely bought and sold without restrictions by the public. Denoting the greatest proportion of stocks trading on the exchanges, the float consists of regular shares that many of us will hear or read about in the news.
Authorized Shares
Authorized shares refer to the largest number of shares that a single corporation can issue. The number of authorized shares per company is assessed at the company's creation and can only be increased or decreased through shareholders' vote. If at the time of incorporation the documents state that 100 shares are authorized, then only 100 shares can be issued.
But just because a company can issue a certain number of shares doesn't mean it will issue all of them to the public. Typically companies will, for many reasons, keep a portion of the shares in their own treasury. For example, company XYZ may decide to maintain a controlling interest within the treasury just to ward off any hostile takeover bids. On the other hand, the company may have shares handy in case it wants to sell them for excess cash (rather than borrowing). This tendency of a company to reserve some of its authorized shares leads us to the next important and related term: outstanding shares.
Outstanding Shares
Not to be confused with authorized shares, outstanding shares refer to the number of stocks that a company actually has issued. This number represents all the shares that can be bought and sold by the public, as well as all the restricted shares that require special permission before being transacted. As we already explained, shares that can be freely bought and sold by public investors are called the float. This value changes depending on whether the company wishes to repurchase shares from the market or sell out more of its authorized shares from within its treasury.
Let's look back at our company XYZ. From the previous example, we know that this company has 1,000 authorized shares. If it offered 300 shares in an IPO, gave 150 to the executives and retained 550 in the treasury, then the number of shares outstanding would be 450 shares (300 float shares + 150 restricted shares). If after a couple years XYZ was doing extremely well and wanted to buy back 100 shares from the market, the number of outstanding shares would fall to 350, the number of treasury shares would increase to 650 and the float would fall to 200 shares since the buyback was done through the market (300 – 100).
Hold on a minute, though - this is not the only way the number of outstanding shares can fluctuate. In addition to the stocks they issue to investors and executives, many companies offer stock options and warrants. These are instruments that give the holder a right to purchase more stock from the company's treasury. Every time one of these instruments is activated, the float and shares outstanding increase while the number of treasury stocks decrease. For example, suppose XYZ issues 100 warrants. If all these warrants are activated, then XYZ will have to sell 100 shares from its treasury to the warrant holders. Thus, by following the most recent example, where the number of outstanding shares is 350 and treasury shares total 650, exercising all the warrants would change the numbers to 450 and 550, respectively, and the float would increase to 300. This effect is known as dilution.
The Bottom Line
Because the difference between the number of authorized and outstanding shares can be so large, it's important that you realize what they are and which figures the company is using. Different ratios may use the basic number of outstanding shares while others may use the diluted version. This can affect the numbers significantly and possibly change your attitude toward a particular investment. Furthermore, by identifying the number of restricted shares versus the number of shares in the float, investors can gauge the level of ownership and autonomy that insiders have within the company. All these scenarios are important for investors to understand before they make a decision to buy or sell.
Establishing an appropriate asset mix is a dynamic process, and it plays a key role in determining your portfolio's overall risk and return. As such, your portfolio's asset mix should reflect your goals at any point in time. Here we outline some different strategies of establishing asset allocations and examine their basic management approaches.
Strategic Asset Allocation
This method establishes and adheres to a "base policy mix" - a proportional combination of assets based on expected rates of return for each asset class. For example, if stocks have historically returned 10% per year and bonds have returned 5% per year, a mix of 50% stocks and 50% bonds would be expected to return 7.5% per year.
Constant-Weighting Asset Allocation
Strategic asset allocation generally implies a buy-and-hold strategy, even as the shift in values of assets causes a drift from the initially established policy mix. For this reason, you may choose to adopt a constant-weighting approach to asset allocation. With this approach, you continually rebalance your portfolio. For example, if one asset is declining in value, you would purchase more of that asset; and if that asset value is increasing, you would sell it.
There are no hard-and-fast rules for timing portfolio rebalancing under strategic or constant-weighting asset allocation. However, a common rule of thumb is that the portfolio should be rebalanced to its original mix when any given asset class moves more than 5% from its original value.
Tactical Asset Allocation
Over the long run, a strategic asset allocation strategy may seem relatively rigid. Therefore, you may find it necessary to occasionally engage in short-term, tactical deviations from the mix to capitalize on unusual or exceptional investment opportunities. This flexibility adds a market timing component to the portfolio, allowing you to participate in economic conditions more favorable for one asset class than for others.
Tactical asset allocation can be described as a moderately active strategy, since the overall strategic asset mix is returned to when desired short-term profits are achieved. This strategy demands some discipline, as you must first be able to recognize when short-term opportunities have run their course, and then rebalance the portfolio to the long-term asset position.
Dynamic Asset Allocation
Another active asset allocation strategy is dynamic asset allocation, with which you constantly adjust the mix of assets as markets rise and fall, and as the economy strengthens and weakens. With this strategy you sell assets that are declining and purchase assets that are increasing, making dynamic asset allocation the polar opposite of a constant-weighting strategy. For example, if the stock market is showing weakness, you sell stocks in anticipation of further decreases; and if the market is strong, you purchase stocks in anticipation of continued market gains.
Insured Asset Allocation
With an insured asset allocation strategy, you establish a base portfolio value under which the portfolio should not be allowed to drop. As long as the portfolio achieves a return above its base, you exercise active management to try to increase the portfolio value as much as possible. If, however, the portfolio should ever drop to the base value, you invest in risk-free assets so that the base value becomes fixed. At such time, you would consult with your advisor on re-allocating assets, perhaps even changing your investment strategy entirely.
Insured asset allocation may be suitable for risk-averse investors who desire a certain level of active portfolio management but appreciate the security of establishing a guaranteed floor below which the portfolio is not allowed to decline. For example, an investor who wishes to establish a minimum standard of living during retirement might find an insured asset allocation strategy ideally suited to his or her management goals.
Integrated Asset Allocation
With integrated asset allocation, you consider both your economic expectations and your risk in establishing an asset mix. While all of the above-mentioned strategies take into account expectations for future market returns, not all of the strategies account for investment risk tolerance. Integrated asset allocation, on the other hand, includes aspects of all strategies, accounting not only for expectations but also actual changes in capital markets and your risk tolerance. Integrated asset allocation is a broader asset allocation strategy, albeit allowing only either dynamic or constant-weighting allocation. Obviously, an investor would not wish to implement two strategies that compete with one another.
Conclusion
Asset allocation can be an active process to varying degrees or strictly passive in nature. Whether an investor chooses a precise asset allocation strategy or a combination of different strategies depends on that investor's goals, age, market expectations and risk tolerance.
Keep in mind, however, that this blog gives only general guidelines on how investors may use asset allocation as a part of their core strategies. Be aware that allocation approaches that involve anticipating and reacting to market movements require a great deal of expertise and talent in using particular tools for timing these movements. Some would say that accurately timing the market is next to impossible, so make sure your strategy isn't too vulnerable to unforeseeable errors.
