About : Shares Market


For Fixed Deposit (FD), it is estimated 70% return of investment (ROI) in 20 years.
For Unit Trust, it should be at least 70% return of investment in 10 years, which is similar with KWSP Dividend return 6% - 7% annually.


How about Shares Market or Stocks Market, 70% return of investment in 5 years time? which probably 14% yearly profit.

Let's do some calculation below:-
a) 14% ROI in a year =  14% in a year (possible? )
b) 14% ROI in 6 months = 28% in a year (possible? )
c) 14% ROI in 3 months = 56% in a year (possible? )
d) 14% ROI in 1 month = 168% in a year (possible? )


Once we have reached the targeted 14% based on the above calculation, it is advisable to sell or exit the shares. Unless our target is 28% ROI?

One simple rule is that Shares Market ain't as steady as FD, as FD won't give us any losses.

Certain investment requires certain tools and methodology.

One may find it hard to digest when we say, the profit earned from Shares should not put back into the shares market but rather to diverse our investment portfolio, such as less risky portfolio like FD, or to pay loans clearing some loan interest.


Does shares provide financial freedom at the end? 
In order to achieve RM3000 monthly ROI, that would be RM257,142.85 invested in shares for a 14% yearly earnings. However, if we are able to generate 28% yearly earnings, that would be RM128,571.43 invested in shares.

We may well aware that Warren Buffett is great investor, in other way around, it is actually his serious interest in that particular business company that would bring profit to his investment as in shares. 

First rule, good company project good profit ahead. know what company we are investing.
Second rule, RM10,000 investment won't able to generate RM1 million profit.
Third rule, Know our exit and entry as shares needs to be low for buying also.



Investment in Shares Market is just part of the diversification of investment, just like Fixed Deposit and Unit Trust.  It has never been a financial freedom but rather being a passive income as well as passive losses at the end. 

It is not easy to generate RM3,000 monthly, however, I have started given a short "shares  course" to my closed customer, to learn from the basic and how calculation need to work in order to generate that kind of ROI.

Anyway, this customer tends to shortcut my teaching and I have to make him/her to restart doing the homework.

In summary, being a good investor need to be taught, learn and digest. As there is no shortcut. Of course, being an employee, every task is fixed. But in shares market, one might say buy, and the other might say sell,..... this is what would confuse for an inexperienced investor.



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