Saturday, August 25, 2012

Bought in Vitrox– New Average Price: RM0.70

After the announcement of the good financial result of the quarter last Thursday, I added on Vitrox at RM0.675 on Wednesday (22/8/2012), the first working day after Hari Raya.

The trade volume for this stock is very low, and the last trade done was by me, on Wednesday. At first, I queued for RM0.660 before I went to work in the morning. After the lunch-break, I checked and found that the price raised to RM0.670. Without hesitation, I cancelled the previous order and raise my queuing price to RM0.675. That set the highest price of the day, the last done price.

Although I can’t get the lowest price, but I still manage to bought in within my budget, which is lower than RM0.68. After buying in this stock, my price is averaged down from RM0.76 to RM0.70 now. It’s now the leader in my portfolio, occupies 69% of it.

Nothing else to do, except continue observing

Before buying this stock, many efforts have to be paid. From finding stocks, downloading company’s financial stock, analysing them fundamentally, finding related company’s news, to calculation on my portfolio, such as how many units to buy, how much should the price be, how much return will I get before and after I buy in, and how long I have to hold the stock, or how much return should I get before leaving this stock.

These works are typical and important for any serious investors. We always want to get the best return, we have to calculate, anything that is quantitative analysable, we should do.

After analysing for more than 5 companies, I picked Vitrox, because I have owned it. And it’s a good time for me to average down the price.

Business men/Investors always worry about how many chances they have, instead of worrying how much money they have. We can always have money, but what we are limited are chances to invest. That’s why, after I sold my Gtronic, I have cash on hand, and I started to worry where should I invest to get a better return besides putting in the Fixed Deposit Account.

It’s a release now, I don’t have to worry too much. What I need to do now is just observe my portfolio, whatever stocks I own. Keep observing the companies’ performance is to make sure they grow healthily. This is also to make sure, if anything happen, I can leave before it’s too late.

Investors have better flexibility

Investors have better flexibility compared to business men who have to take care of their business all the time. Investors, will just need to make sure their fund is growing healthily, invested in a good company. But, business men need to make sure they are using the investor’s money safely, smart, to make sure they keep the shareholders’ funds, at the same time to ensure business is on track.

If something happen to the company, investors can leave, but business men cannot. I’m very admire those who are having business now, both big and small businesses. They found chances.

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