I would like to share or gather feedback/your thought about the share investment in Bursa Malaysia.
First of all, the most important thing that people invest in share is to get profit that is higher than fix deposit rate or make quick money. I am definitely one of them especially i am working adult. How much I can earn with monthly pay that I can calculate using simple calculator even 13 years old kid also know how much I earn for the next few years.
For a start, since I am young and single. I am investing 60% of my monthly salary into share. Do you think, i should not invest that much of percentage? Well, my thought is that it is worth or reasonable to invest more than 50% of my earning to stock. Why? Let me tell you why. If you just invest 10% then your return will not be higher even the stock price has surge by 100%. Below is the sample calculation:
Salary: Rm2000
Type A: 60% of Salary: 1200 capital
If buying price is 1.00 per unit with 1200 capital, you can get 1200 share.
If stock price surge by 100% which mean share price now is 2.00 per unit. With 1200 share, you earn 1200 profit.
Type B: 10% of salary: 200 capital
If buying price is 1.00 per unit with 200 capital, you can get 200 share.
If stock price surge by 100% which mean share price now is 2.00 per unit. With 200 share, you earn 200 profit.
Can you imaging which one has a higher risk? I believe Type B got higher risk. Why? Because you need to earn 6 times profit from Type B of investment in order to get the same return of Type A.
Do you agree?
