Investing in KLSE Stocks

Bursa Malaysia

Bursa Malaysia

In KLSE stocks we invest

Always hoping for the best

It isn’t for the faint-hearted

For the wild swings can cause a heart attack.

 

When the bulls are in control

Just go with the flow

But when the market is rampaged by bears

It’s time for tears and fears.

 

When stocks rally

Everyone is happy

When stocks slump

Everyone looks glump.

 

Many treat the KLSE like a casino

A platform where gamblers go

The stakes can be very high

When high rollers come rolling by.

 

We are told to invest in blue chips

But these normally don’t come cheap

Oftentimes they are boring

Keeping track of them is like watching grass growing.

 

Growth stocks often look promising

They have what defensive stocks are missing

If you’re looking for dividends

Income stocks will meet your requirements.

 

Penny stocks are the darlings of punters

Such people search for the next big one like hunters

But you have to watch out for the pitfalls

Don’t end up losing your balls.

 

Warrants offer great leverage

That’s why Cuscapi-Wa recently was all the rage

An intraday spike of fifteen cents in its price

Speculators laughed all the way to the bank because of the dramatic rise.

 

Nothing beats value investing

It’s often touted as a sure thing

Just look at Warren Buffett

His astounding achievement is an undeniable fact.

 

The famous adage “buy low sell high”

Promises to help you make a pile

But it’s easier said than done

Oftentimes it is done the other round.

 

Be fearful when others are greedy

We hear that countless times already

Be greedy when others are fearful

That can bring you misery if you’re not careful.

 

Diversification is the key to risk management

A good well-diversified portfolio shows your investment acumen

When headwinds blow

Their pressure sounds hollow.

 

Fundamental analysis is the cornerstone of investing

Like see-through lingerie it is revealing

Technical analysis attempts to forecast stock movement

To me that’s as difficult as trying to gauge the moods of women.

 

Stock analysis is crucial

Study the stock’s various ratios

Whether it’s the EPS, PER, NTA or dividend yield

Such knowledge you need to build.

 

Don’t act on tips and rumours blindly

Do your due diligence carefully

Analyse the financial reports

And always do research and keep good records.

 

Many find it difficult to cut loss

That’s what is going to cost the most

A stop loss acts as a plug

Minimising loss is not a matter of luck.

 

Beware of pumps and dumps

Or else you will experience serious knocks and bumps

Syndicates behind these schemes

At your expense they skim.

 

When T+3 comes around

And your stocks are down

And you don’t have the fund

Stock investing is no longer fun.

 

Markets go up markets go down

It’s like a merry-go-round

Liquidity brings a rush of adrenalin

Excessive speculation is a dangerous fling.

 

Market whims can get you screwed

Don’t accuse Mr Market of being cruel

Stock investing can be very lucrative

Like a double-edged sword it can also be very speculative.

 

Falling in love with a stock is a definite no-no

That’s something you should know

There’s no room for such romance

Or else your loss can be immense.

 

Limit up a stock goes

It’s like striking gold

But when a stock goes limit down

Your loss is difficult to surmount.

 

Always be on the alert

Don’t over-rate yourself as an expert

Don’t ever think you’re a sifu

You’ll end up exposed as a fool.