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Saturday, June 27, 2009

Take profit or hold ...

Recent movement of KLCI and regional burses raise question to many investor, should I aim for short term profit or long term investing. A multimillion question that most investor ask and yet to found a good answer.

The fact that icap investment strategy on value investing is more on long term profit, it did took profit when a portfolio hit full valuation like Digi and some met with uncertainty like corporate excersice. However, as I remembered, some of its portfolio like mieco invested in 2002 and 2003, price ranging from 1.3 to 1.5 after corporate exercise, did not exit all when the share price reach an all time high at 3.20 only to see the price dip till 0.30 recently. Sometimes, it is all about psycology and the action you have taken.

Also, there is a school of thot in the market on exit and cut lost strategy. By reading a tool, one exit or enter the market so that to stay relevant always in the market. Not sure the profit or loss incur on it.

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