Monday, January 2, 2012

Investment Idea - Dec 2011


It's the final month of 2011, US stock market holding steady in the midst of “waiting” for Europe's problem to be solved. At least there's light in the end of turner, last week, Central Banks (The Fed, the Bank of Canada, Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank) came to Rescue … all agreed to lower the pricing temporary USD liquidity swap arrangements by .50 basis points and IMF also raised their hand. What's this mean? Never mind if you feel too complicated, but one thing for sure... There are plenty of Hot Money on the way , say hello to Inflation ...

Is the market going to die? No... as long as there's hot money, we can expect market very active for next few weeks. Inflation will happen, faster than year before, it doesn't matter if you invest or not. Through the stock market, we try to make inflation as our friend, especially if you know how to save “Shares” instead of save money.

However, not all the stocks can be “Saved”, some of the stocks are mean for Trading only, (buy and sell) especially the Hot stocks and Penny stocks. When the up trend just start, you may jump in, when the trend is about to reverse, sell and hold cash is important. Trading in these type of stocks, investor need to have a proper trading plan with risk management, set the cut lose and take profit level before trading.

We like the volatile market (up and down), each time when the market moving down, it's your chance to make money. Among the trading stock, UEMLand, MRCB & Genm had make us earn few rounds of profit in last 3 months. I am waiting to sell these 3 counters next week if they can not go up further. I like Genting & Genm very much , as they are adding new customers (New York Casino & London Casino), the new machine of making money starting from Nov 2011. Any market correction is an opportunity to buy these stocks and wait to harvest when market up again! You can “Saved” it or trade it, hence, it's suitable for long term (at least for next year) and short term investor as well.

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