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Investing shares and HSI

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  1. #21

    Well if I had the money now ... I would do the 3 month stint. If not I'll have to save up and plan the 3 years investment
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  2. #22

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    What do you understand by "big return"? How many percent?

    In general the higher the potential return the higher the risk that instead you will get a big loss.

    Currently in HKD or USD there are no "safe" investments with returns greater than about 3% per year. Any investment with the chance of more than that is going to have a potential downside.

    For example, if you had invested in the Tracker Fund 3 months ago, you would have seen a LOSS on your investment of approximately 10% (in addition to your trading costs, which for small amounts might add another 2%). If you had invested one year ago and sold last Friday you would have seen a gain of 50%. But if you had invested in October of 2007 and sold last Friday you would have LOST 33%%.


  3. #23

    So its all about timing and when to buy
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  4. #24

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    Timing the buy is easier than timing the sell! But yes, it's all about what to buy and when to buy it. Then what to sell and when to sell it.


  5. #25

    Join Date
    Feb 2009
    Location
    Gulf Region, ex Mid-Levels
    Posts
    1,933

    Nucleus,

    Having been asked similar questions in the past, two things must be in your mind.

    1) How much can you afford to loose? The markets are risky and can go up and down. If you are looking for something with the potential to rise quickly, it can also fall very quickly with a risk of never coming back.

    For instance if you go to Macau, put all you money on black you might double your money you might not (18/37 win vs 19/37 loose assuming a single zero slot) and the time to get your return is quick. The reason why everyone is not using the casino is that on average the odds are against you.

    There are lots of risky shares (and markets) out there and not everyone will win, in face many will go bust as investors in small Chinese H-Share / Singapore listed companies can attest, some (maybe fewer will go very well).

    2) When would I need the money back? As various other posters have suggested timing is everything. You may need to set tight either to take advantage of brighter prospects or for markets to recouperate.

    The Hang Seng index is volatile (goes up and down a lot) and has quite a significant exposure to property.

    I myself buy shares with a very long term view based on quality management and a decent relative price. I have been picking at the moment non-cyclical, blue chip, companies in Europe, the US and Asia with a couple of more risky companies. The fees you face are higher than internet trading in HK only but you get more access.

    If you have little savings already (say c. 6 months salary) and you need the money in 3 months time, deposit it in a bank.

    shri and chris86 like this.