Diversification is for Idiots

Warren Buffett says… Diversification is for Idiots I have seen a lot of gurus and market experts advocatingyou should focus your ammunition on 2-3 stocks that you know really well. They claim that retail investors don’t have the capability to own so much stocks and limited time to do research on companies. Even Malaysian stock […]

How Effective is Bollinger Bands in KLSE?

Trading with Bollinger Bands Bollinger Bands is a common strategy used by tradersI like the mathematical nature of this strategy,using a smooth moving average line, and make a “band”of n standard deviations (usually 2) away from the line. This kinds of remind me of the mathematics of normal distribution curve.I am not covering the mathematics […]

How Effective is Moving Average Strategy in KLSE?

Moving Average Strategy Moving average strategy is a common strategy used by traders. Unlike some of the more exotic indicators,moving average readily available in many charting software or website such as klsescreener or tradingview One common usage of moving average is that,when the “fast” moving average goes above the “slow” moving average,we buy in,when the […]

How I found the most profitable month in Bursa using Python.

The mysterious “Window Dressing” I knowThis is a crazy idea, why would there be difference in returns among months? But stay with me,after around 5 years in the market, I have heard a lot of news and rumours,about which season/month is more bullish. One of the example is the infamous phenomena we called “Window dressing”,where […]

A Monte Carlo Simulation of your Retirement Planning 💵💵

Intuition There are countless people who planned their retirement by saving a monthly sum and investing it into the stock market 📈📈📈. There are also plenty of investment gurus advocating this investment strategy that is known as “Passive Investment”, which means you do not try to time the market, but rather you invest periodically no […]

Portfolio Construction. Full Equity, Full Bond or 50/50?

Introduction People often equates return and risk, giving statements like “high risk high return”. If high risk does secure you high return, is the investment considered high risk anymore? I find Howard Marks return vs risk graph a nice way to visualize risk. According to him, the higher the risk, the more variability your return […]