Stocks with sound fundamentals are likely lo grow over a longer period. A steady
stream of reinvested dividends from your blue chips are most likely to grow your
asset. Thus, analyze thoroughly the stocks that you are buying.
Add more shares to each stock gradually if your finances allow. Do not buy too many
shares at one same price level. Spread your buying gradually so that your average
price per share will always be below the current market price of that share, the
advantage of "dollar-cost averaging". The diversification will benefit
you very much.
Always be a fun damental-driven investor. Be patient and wait for your funds to grow.
Do some studies on the market trend. Be responsive to any market news published in
the media. For beginners, it is worth buying some financial magazines or books as
a stepping stone. The Malaysian financial market is likely to mature in a foreseeable
future leading to a fundamental-driven market. Thus, it is important that you learn
how to analyze stocks fundamentally - study the "true" value of stocks
by using measures such as dividend yield, price/earnings ratios (P/E) and etc.
World famous investor Warren Buffit has consistently outperformed the market with
a simple technique - to buy and hold stocks with good prospects regardless of market
conditions.
A good trader must acquire strong discipline all times. Decision-making to buy a
stock after intensive analysis should not be influenced by friends or rumours. A
pure fundamental-driven or long-term oriented trader would likely avoid the speculative
Second Board. As a long term-oriented investor let's say for holding period of more
than 10 years, you should not be easily discouraged by short-term volatility.
