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Friday, August 3, 2007

What stock you choose???


In our life,when you start invest in stock market,one thing is hard to choose:



  • Low price stock

  • bluechip stock

Many people start to invest in share ,they must start to know how to choose stock,some people like to choose low price stock,some people ike to choose bluechip stock.You know what is low price stock and what is blue chips stock ???


Low price stock ----Share that low price ,and not a good company but also not a very bad company.Example:JOHAN,OPENSYS,Dbhd........


BLuechips stock----Share that normally have a littler bit expensive price,A good company ,a good magnement,a stable company,a good finiancial result,and some also is composite index company.Example :Genting,IOI,Publicbank.


When we choose stock,many people would like to buy Bluechips stock,because bluechips stock will not easy make you loss money.Do you think Genting will bankruptor loss money?the percentage is very low ,I think 1 %only.If you become the big capital company share holder ,you may get dividen or some vocher from this company few time in 1 year.BLuechips company also fast easy to grow on the share price ,but also got some bluechip company very stable price maintain at 1 level price .Example TM(telekon Malaysia),this company long time no raise ,it history price only around RM10,The share holder maybe only can get dividen,and hard to earn money from the share price.


Beside that,some blue chips company share price was grow very fast,like Genting ,Digi,IOI.This kind of stock was grow very fast in 2/3 year,Example last time the DIgi onlyRM8, but now the Digi already RM21=(more than 200%return)and not include the dividen every year.That is a good return to one investor.


Now we talk about low price stock,normally why the stock price so low is because the company always loss money in his finiancial result,the magnement is not good,or also the company capital not really very big.EXample,Gtronic,Dbhd,Johan.If this kind company want go grow faster got few idea.there are goreng by investor,many volume in 1 day to buy this share, or there finiancial result better than last term,they sell their porperty to pay the loan or debt.Have some good news.Example,link with govement,Govement become share holder of the company,merge with other company,foregin investor support it , and more......


Actually low price stock also got dividen,but the dividen is not higher than the bluechips stock,low price stock good own advantage,If the share price is low,you can get buy more volume,compare with bluechips stock.Sometime low price stock can let you earn fast cash because the low price stock volume is higher than bluechips stock,but there not so stable.Sometime low price stock also have good company.Example:Tomei


Conclusion,Bluechips stock have a good future,but the stock price must be expensive,and stable,IF you want to keep you money get high return and high dividen in long term(5year or more than 5 year),I suggest you should buy blueschips stock.If oyu wan earn fast cash,and play short term,you can choose low price stock ,the change of it will very big in one day,you may earn the margin of it.SOme time investment share also must be have some luck beside skill.


30%luck,70% skill.(I wish every investor have a good luck everyday)


My advice:When a stock high price or grow up fast, you must find the answer WHY


WHen a stock low price or drop fast,you must find the answer WHY


If no WHY in your mind ,then you should be careful because ....


* WHY is very good word in our life to solve problem*




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