Who we are

MQ companies focus on assisting our clients since 1998 to excel in their wealth management. Our unique model has helped many entrepreneurs to embark on a strong footing in their line of business and life. It has successfully assisted many existing clients or affiliates to witness breakthrough improvement in terms of wealth management and life.  

What we do

You will find this one stop money quotient hub here in MQ with our areas of services to assist you.

Personal Financial Planning
Insurance planning
Retirement planning
Estate planning
Business Financial Planning
Business Funding
Guarantor Indemnity Plan
Keyman Compensation Plan
Business Succession Plan
Professional Value Plan
Group Employee Benefit Scheme
General Insurance
0
years
0
clients

Your reliable partner

MQ is committed to providing excellent service in wealth management of our clients and strive to be the central hub of financial services excellence with extreme passion to serve and share in personal or corporate level.

We love making positive impacts.

Thank you for taking great care of us on our insurance. You and your team at MQ Consultancy Sdn Bhd have been wonderful to work with. Just list out one of the friendly customer service that given, MQ’s staff is stationed in Ee-Lian café every Friday and ready to give professional insurance advice to our employees without extra charges. Jason has always been tried his best to provide the better coverage than the prior and save us in term of premium charges at the same time. I would recommend Jason to anyone without hesitation or reservation.

Dr Teoh Han Chuan
Group Managing Director
SWS Capital Berhad

Good,Affordable,Fast ; Products following market trend and demand; Feel personalized services provided by the MQ Team

10 years ago, MQ did my wife medical claim and handed the pay cheque to my house on my hand within 3 working days! Truly appreciated MQ founder Mr Jason Koeh efficiency in helping me to go thru my life most difficulties period. Mr Jason Koeh even think of the best on how to made claim for chemo therapy treatment on my wife using the medical card ( very lucky Mr Jason Koeh proposed the Medical Card to my wife as her first Insurance Policy). After all those sour and painful story we become very good friend and we treasure each other until today. Life is Great. I love u bro.

Ng Cheng Hoe
Director
Inno PDA Sdn Bhd

Friendly, reliable and efficient

MQ provides excellent service in many aspects since the beginning till now and the people in MQ has always been there for me like a family when needed. Hence, this is very important for me and as a customer as I felt MQ is reliable and efficient in providing their service.

Geoffrey Teoh
Manager
Financial Institution

Informative, latest update and financial newsletter

Dr Chong Yen Nee
Chief Executive Officer
Yayasan Penjaja dan Peniaga Kecil 1Malaysia

Quick response, competitive quote and comprehensive product info

Sheley Teoh
General Manager - Sales
Blu Inc Media Sdn Bhd

FAST,

EFFICIENT, 

HELPFUL!
Aster Lim
Group Managing Editor
Blu Inc Media Sdn Bhd

Professional advice on insurance, Effecient and effectiveness MQ team

I will recommend MQ due to the professionalism of the team. Look forward to see this organisation grow!

Eric Gan
Regional Sales Manager
MBNS (ASTRO)

Consult, Advise, Reference. Train all staff to implement same character.

Dr. Samsudin Wahab
Lecturer
UiTM

Service is professional and personalized. 

Efficient, competitive and attentive. Thank you for taking care of us and we look forward to many more years with you.

Aanear You Chee Chien
Executive Director
Yee Loong Engineering Sdn Bhd

Always updated service, knowledgeable consultation,

None of the financial company can provide such great service like they do!

Dr Shirley
Doctor
AOKlinik
ppl

Need professional advice on financial management?

Let our team assist you!

bino

Looking for something new to venture in your career?

Join our team and make a difference now!

Meet Our Partners

Our Corporate Social Responsibility

The most important objective of our company is to obtain profitability in the long term. Guided by its mission and values we seek to achieve profits without prejudice to society and the environment.

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When You Fill It with Positive Thoughts, Your Life Will Be Start To Change 😎

#FlyHighwithTakaful 🎉
#MQBerjayaBersama🎈
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1 day ago

 

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6 common mistakes when getting a personal loan

Are you thinking about taking on a personal loan? Well, you’re not the first, and you certainly won’t be the last. Many have walked this path before you, and some of them certainly managed to get what they wanted out of their personal loans. On the flip side though, there are plenty of horror stories of people taking the wrong personal loan and failing to get the best value for their money.

Now, you wouldn’t want to be one of those people, do you? The best way to avoid an unhappy ending is to educate you on the mistakes other people have made and make sure not to repeat them. With the right research and equipped with a reliable tool to calculate your personal loan settlement, you'd be on your way to getting the best fit.

Easier said than done, you say. Well we’re here to help; keep reading to find out about the six most common mistakes people make when applying for a personal loan.

1) Lack of research and / or comparison

There is an idiom which tells one to “test the waters”. The same applies when choosing a personal loan. It’s not only vital to conduct proper research; you’d need to spend time exploring available products in the market for the product that best suits your needs. It wouldn’t do for you to just throw yourself wholeheartedly into the first low interest offer that comes your way.

Know your financing options well and find the most competitive rates available by visiting trusted credit sources. Consult with financial experts to learn about possible alternatives that you can also explore, and have them help you to establish terms and a repayment plan that is both reasonable and achievable.

Do not hesitate to ask your credit representative about any concerns you may have, regardless of how silly you think your questions may sound. Remember, there is no such thing as a stupid question.

2) Disregarding your credit score

Your credit score is one of the most important factors that banks take into account when determining whether or not to approve your loan, as well as what interest rate they’re about to quote to you.

Through your credit score, banks can find out how punctual you have been when it comes to paying your bills and equated monthly installments (EMIs). If you always repay your debts on time, then you have no reason to worry, since your credit score will be good. A good score to maintain (according to the general guideline by CTOS) is 697 and above, based on an easy-to-understand three-digit system.

However, if you have a low score, you should try to fix it first by repaying any outstanding debts before you apply for a personal loan in order to avoid having to settle for unfavorable terms.

3) Failure to read the fine print

When applying for a loan, it’s easy to miss out seemingly minor details in your contract due to carelessness (or even sheer indifference). This will lead to you having to pay exorbitant fees in the long run. Why do you think lending institutions make you sign dozens of documents for a loan agreement?

It’s not for your reading pleasure, that’s for sure. Remember that each signature is proof of your acknowledgement and acceptance of the terms. This is usually included in the fine print stating that annual fees, bank charges, closing costs, commissions, length of loans and balloon payments are required.

Ensure that you’re well informed and have read the hidden clauses of the agreement. Be aware of the interest rates and the penalty costs on late payments before signing any documents. Ask for a sample of the loan agreement for you to take home so you can read it thoroughly overnight.

Patience is a virtue, and when it comes to taking out a personal loan, it pays to channel your inner Mandela. Or Ghandi. Or a tortoise. Tortoises are patient, right?

4) Incomplete disclosure

Don’t leave any ‘ifs’ or ‘buts’ when filling out your loan application form. Make sure to fill all your personal details with complete honesty and be as precise as possible. Incomplete disclosure or providing false information may hurt your credit rating and can even lead to legal action being taken against you.

As a result, not only will you be forced to repay your loan immediately but you may also be charged a hefty fine for committing fraud. Remember – a genuine and comprehensive loan application is a good loan application.

5) Going overboard

Before applying for a loan, always make sure to estimate the amount of money that is required to suit your needs. A personal loan charges a high interest rate since you are not required to disclose the reason for taking the loan or provide any collateral for it. Therefore, don’t fall into the trap of thinking of it as extra ‘free’ money and commit to a large debt.

Exercise extreme caution whenever you’re borrowing large amounts of money because the larger the loan, the more cost is attached to it in terms of interest and recurring expenses. Borrow just enough for your purposes, and no more than that. It’s a loan - not free money.

6) Patchy paperwork

Okay, so you’ve been really busy – we’ve all got those days. Hunting for the best loans takes time, and you have so many more important things to worry about than getting your documents in order. Paperwork? Nope, no time for such tedious trivialities.

Listen up though. ALWAYS make sure to take some time to organize your paperwork so that the lending institution is confident about your credibility. Don’t cut corners. No one’s going to trust – or like, for that matter – someone with a box of crumpled papers filled with illegible writing. Always state your nett salary instead of your gross salary to avoid confusion.

Additionally, make sure to file your Income Tax Returns (ITRs) regularly even if you are an average earner as banks always ask for your ITR as a criterion before granting a loan. One other thing you should be careful about is to mention your residential address in your paperwork correctly, as lenders may ask for proof of lease or utility bills to prove you have been living at your address for some while.

To conclude

So if you’re planning to sign up for a personal loan, make sure to avoid these 6 mistakes in order to save yourself from having to go through the painful ordeal of a messy loan cycle. Don’t say we didn’t warn you!

Source:AKPK

www.mqbusinesswealth.com
... Read moreHide

2 days ago

6 common mistakes when getting a personal loan

Are you thinking about taking on a personal loan? Well, you’re not the first, and you certainly won’t be the last. Many have walked this path before you, and some of them certainly managed to get what they wanted out of their personal loans. On the flip side though, there are plenty of horror stories of people taking the wrong personal loan and failing to get the best value for their money.

Now, you wouldn’t want to be one of those people, do you? The best way to avoid an unhappy ending is to educate you on the mistakes other people have made and make sure not to repeat them. With the right research and equipped with a reliable tool to calculate your personal loan settlement, youd be on your way to getting the best fit.

Easier said than done, you say. Well we’re here to help; keep reading to find out about the six most common mistakes people make when applying for a personal loan.

1) Lack of research and / or comparison

There is an idiom which tells one to “test the waters”. The same applies when choosing a personal loan. It’s not only vital to conduct proper research; you’d need to spend time exploring available products in the market for the product that best suits your needs. It wouldn’t do for you to just throw yourself wholeheartedly into the first low interest offer that comes your way.

Know your financing options well and find the most competitive rates available by visiting trusted credit sources. Consult with financial experts to learn about possible alternatives that you can also explore, and have them help you to establish terms and a repayment plan that is both reasonable and achievable.

Do not hesitate to ask your credit representative about any concerns you may have, regardless of how silly you think your questions may sound. Remember, there is no such thing as a stupid question.

2) Disregarding your credit score

Your credit score is one of the most important factors that banks take into account when determining whether or not to approve your loan, as well as what interest rate they’re about to quote to you.

Through your credit score, banks can find out how punctual you have been when it comes to paying your bills and equated monthly installments (EMIs). If you always repay your debts on time, then you have no reason to worry, since your credit score will be good. A good score to maintain (according to the general guideline by CTOS) is 697 and above, based on an easy-to-understand three-digit system.

However, if you have a low score, you should try to fix it first by repaying any outstanding debts before you apply for a personal loan in order to avoid having to settle for unfavorable terms.

3) Failure to read the fine print

When applying for a loan, it’s easy to miss out seemingly minor details in your contract due to carelessness (or even sheer indifference). This will lead to you having to pay exorbitant fees in the long run. Why do you think lending institutions make you sign dozens of documents for a loan agreement?

It’s not for your reading pleasure, that’s for sure. Remember that each signature is proof of your acknowledgement and acceptance of the terms. This is usually included in the fine print stating that annual fees, bank charges, closing costs, commissions, length of loans and balloon payments are required.

Ensure that you’re well informed and have read the hidden clauses of the agreement. Be aware of the interest rates and the penalty costs on late payments before signing any documents. Ask for a sample of the loan agreement for you to take home so you can read it thoroughly overnight.

Patience is a virtue, and when it comes to taking out a personal loan, it pays to channel your inner Mandela. Or Ghandi. Or a tortoise. Tortoises are patient, right?

4) Incomplete disclosure

Don’t leave any ‘ifs’ or ‘buts’ when filling out your loan application form. Make sure to fill all your personal details with complete honesty and be as precise as possible. Incomplete disclosure or providing false information may hurt your credit rating and can even lead to legal action being taken against you.
 
As a result, not only will you be forced to repay your loan immediately but you may also be charged a hefty fine for committing fraud. Remember – a genuine and comprehensive loan application is a good loan application.

5) Going overboard

Before applying for a loan, always make sure to estimate the amount of money that is required to suit your needs. A personal loan charges a high interest rate since you are not required to disclose the reason for taking the loan or provide any collateral for it. Therefore, don’t fall into the trap of thinking of it as extra ‘free’ money and commit to a large debt.

Exercise extreme caution whenever you’re borrowing large amounts of money because the larger the loan, the more cost is attached to it in terms of interest and recurring expenses.  Borrow just enough for your purposes, and no more than that. It’s a loan - not free money.

6) Patchy paperwork

Okay, so you’ve been really busy – we’ve all got those days. Hunting for the best loans takes time, and you have so many more important things to worry about than getting your documents in order. Paperwork? Nope, no time for such tedious trivialities.

Listen up though. ALWAYS make sure to take some time to organize your paperwork so that the lending institution is confident about your credibility. Don’t cut corners. No one’s going to trust – or like, for that matter – someone with a box of crumpled papers filled with illegible writing. Always state your nett salary instead of your gross salary to avoid confusion.

Additionally, make sure to file your Income Tax Returns (ITRs) regularly even if you are an average earner as banks always ask for your ITR as a criterion before granting a loan. One other thing you should be careful about is to mention your residential address in your paperwork correctly, as lenders may ask for proof of lease or utility bills to prove you have been living at your address for some while.

To conclude

So if you’re planning to sign up for a personal loan, make sure to avoid these 6 mistakes in order to save yourself from having to go through the painful ordeal of a messy loan cycle. Don’t say we didn’t warn you!

Source:AKPK

www.mqbusinesswealth.com

Wishing you a Prosperous Year 2018!
#MQ开工大吉 🍊🍊🍊
#生意兴隆🤩😍😘
#財源广进💰💰💰
#快乐whoopee 🏮🏮🏮
... Read moreHide

3 days ago

Breaking Free From Toxic Investments

Last week, we took a look at what some of the common signs are that one should look out for when it comes to cutting one’s losses in the world of investing. We then took a look at a real-life example of someone who cut his losses on time and saved himself from sure financial ruin. In this final part, we take a look at one more common sign which you should be aware of, including advice from industry experts on how you can make the whole process a little less painful!

Check the fundamentals
Unit trust investors, who are buying collective investment schemes rather than individual company shares, make their investment decisions based on the fund’s geographical region or asset class. On this asset class/region investment decision, investors ought to look at the fundamentals of investing and assess the principal points for the equity market, says Fundsupermart Malaysia’s general manager Wong Weiyi.
“These fundamentals include assessment on the economy, of which fiscal and monetary policies are of great importance. We look at the earnings growth of the companies, the dividends level paid by the companies as well as the price-to-earnings ratio of the companies on the index level (such as S&P 500 for US and Nikkei 225 for Japan) among others,” explained Wong.

The markets' movements are usually leading economic indicators. As such, when markets start to plunge by 10% in a month, for example, investors need to reassess the fundamentals because an impending recession will reduce the earnings growth of companies, which could impact the attractiveness of the markets.

“So in short, we look at fundamentals; if there is no change in the fundamentals, we wait for a rebound patiently. However, when fundamentals change in terms of worse than expected economic growth, or lacklustre earnings growth, then we have to cut losses,” said Wong.

Pauline Yong, author of I Love Stocks concurs that fundamentals play a key consideration in determining whether one should part with one’s investment. In fact, when deciding whether to cut losses on a stock, she always asks herself the following two questions:
1) Is there a fundamental change in the company?
2) Are the technical indicators pointing to the exit?

From the fundamentals perspective, the financial ratios that offer hints of a troubled company are historical and hindsight bias, noted Yong. In other words, by the time financial figures are released, the prices may have dropped significantly.

It is for this reason that Yong would rather look at the market share or market share-related statistics instead. “If the company has been showing a declining market share, chances are the company may produce subpar returns later. Hence, a smart investor would take the necessary steps ahead of others, instead of waiting for the audited annual financial report,” she explained.

Sometimes, official market share statistics can be found in press releases, for example the Malaysian Automotive Association for the car industry, or from analyst reports. “Unofficial statistics are actually from our own observations, such as when we see Celcom having aggressive promotions, and friends are switching to them. We can thus have a rough idea that perhaps Axiata is gaining market share,” clarified Yong.

For industries without readily available statistics, Yong looks at their gross margin rather than competition to gauge how lucrative the business really is. Whether a company can withstand unfavourable challenging environments depends on its gross margin to cushion the negative environment, she explained.

Fundamentals aside, Yong also relies on the technical chart of a stock for a more complete answer. “Technically, when a stock falls more than 20%, it is an indication that the stock is probably in a bearish market territory, which means the stock may not recover for at least six months and beyond,” said Yong, who advises those without holding power to cut losses at this point.
“However, if the stock is fundamentally sound with a large market share in the industry, the temporary setback maybe due to macro-economic factors, and given time, the stock should recover together with the general economy,” she elaborated.
Yong also refers to the 200-day moving average, which indicates whether a stock is worth holding for long term: “This line is an average of the past 200-day prices, which gives you an idea of the general trend of the stock price. If you see that your stock price is above the line, it indicates that it is still worth holding for long term. However, once you see that the stock price has crossed below this line, it means you need to cut loss even if you are a long-term investor.”

The other indicator that Yong relies on is the double top chart pattern, which she describes as “a classic chart pattern that every investor should learn to save you from grave mistakes”.
It describes a scenario when prices went from low to high to form a first rally, then when hit by some bad news, the stock price fell to form a trough. Investors eventually shored up the price of the stock again when it fell too low, leading to the formation of the second rally.

“During the second rally, investors realised the situation did not improve and they started to sell down the stock again. This round, the stock fell below the previous trough and investors panicked and the selling intensified, as the so called “neck-line” of the double top was violated,” she explained.

This pattern has to be significant enough for this chart pattern to be reliable, Yong cautions. “To be significant, the chart pattern is formed through a series of price actions that last for weeks, months or sometimes years,” Yong further elaborated.

“For example, comparing a double top chart pattern formed during a period of nine months, and a small double top chart pattern that was formed within three or four weeks, the smaller chart pattern is less significant or poses less ‘threat’ to a long-term investor, as the price fall may last for weeks only,” Yong added. However, she cautions when a large double top chart pattern’s neckline is violated, as chances are that the stock is entering into a long-term bear market.

Making the whole process less painful
It can be nerve-wracking when deciding whether or not to give up on an investment where the value is sliding or stagnant. Like most investors in your shoes, you’re not sure if you’re making the right move.

In this case, staggering the process of cutting loss could be one of your strategies. Making a decision to cut losses and invest actually subjects the investor to the same price risks, according to Wong.

“In investing, we always advise investors about dollar cost averaging (DCA), meaning that if they have a huge sum to invest in the market, they can break that sum into smaller investment amounts and deploy those monies over a period of time, instead of purchasing the investment in one shot.

“This DCA strategy is useful especially when markets are very volatile, and you have little confidence that markets will rise in the short term. Of course, if an investor is confident of his research and is willing to hold long-term, he could still invest one lump sum,” explained Wong.

He believes that this strategy is applicable to investors who are looking to cut loss. Again, whether you should dispose partially or in full depends on how confident you are of your research. If you are confident that fundamentals of the invested market have changed, or the selected fund manager has lost his touch, go for a clean cut. “However, if one has invested a huge sum and wants to cut loss or change strategy, he could also liquidate his position by parts,” Wong added.

Be that as it may, few would dispute that it is heart-wrenching to watch your hard-earned money go down the drain. The best way is to learn from the process, and to keep refining your strategies for the future.

Firstly, understand that stock losses are simply part of the investing process, advised Yong. Accept that mistakes are inevitable and re-examine your investment plan again. “The objective of a detailed investment plan is that it helps you to think carefully when you are buying a stock, what is your timeframe, reward-to-risk ratio, cut-loss point and expected return for the stock,” she said.

When the stock price reaches your cut loss point, execute according to your plan. “The emotional disturbance is likely to reduce if you think that the scenario is within your control as the possible scenario is depicted in your investment plan,” she continued.

Next, you could also try to diversify your investment portfolio by limiting a smaller percentage per stock, Yong offered. This is so that the absolute value of a possible loss is minimised, which would reduce your pain as a result of the loss.

In sharing her final piece of advice, Yong encourages lifelong learning and investment in oneself. “Learn about investing by reading extensively and attending seminars. Challenge yourself to learn something new about investment. Do your own research and form your own opinion. The more you learn, the better your decision making will become”.

Source:Focus Malaysia

www.mqbusinesswealth.com
... Read moreHide

1 week ago

Breaking Free From Toxic Investments

Last week, we took a look at what some of the common signs are that one should look out for when it comes to cutting one’s losses in the world of investing. We then took a look at a real-life example of someone who cut his losses on time and saved himself from sure financial ruin. In this final part, we take a look at one more common sign which you should be aware of, including advice from industry experts on how you can make the whole process a little less painful!

Check the fundamentals
Unit trust investors, who are buying collective investment schemes rather than individual company shares, make their investment decisions based on the fund’s geographical region or asset class. On this asset class/region investment decision, investors ought to look at the fundamentals of investing and assess the principal points for the equity market, says Fundsupermart Malaysia’s general manager Wong Weiyi.
“These fundamentals include assessment on the economy, of which fiscal and monetary policies are of great importance. We look at the earnings growth of the companies, the dividends level paid by the companies as well as the price-to-earnings ratio of the companies on the index level (such as S&P 500 for US and Nikkei 225 for Japan) among others,” explained Wong.

The markets movements are usually leading economic indicators. As such, when markets start to plunge by 10% in a month, for example, investors need to reassess the fundamentals because an impending recession will reduce the earnings growth of companies, which could impact the attractiveness of the markets.

“So in short, we look at fundamentals; if there is no change in the fundamentals, we wait for a rebound patiently. However, when fundamentals change in terms of worse than expected economic growth, or lacklustre earnings growth, then we have to cut losses,” said Wong.

Pauline Yong, author of I Love Stocks concurs that fundamentals play a key consideration in determining whether one should part with one’s investment. In fact, when deciding whether to cut losses on a stock, she always asks herself the following two questions:
1) Is there a fundamental change in the company?
2) Are the technical indicators pointing to the exit?

From the fundamentals perspective, the financial ratios that offer hints of a troubled company are historical and hindsight bias, noted Yong. In other words, by the time financial figures are released, the prices may have dropped significantly.

It is for this reason that Yong would rather look at the market share or market share-related statistics instead. “If the company has been showing a declining market share, chances are the company may produce subpar returns later. Hence, a smart investor would take the necessary steps ahead of others, instead of waiting for the audited annual financial report,” she explained.

Sometimes, official market share statistics can be found in press releases, for example the Malaysian Automotive Association for the car industry, or from analyst reports. “Unofficial statistics are actually from our own observations, such as when we see Celcom having aggressive promotions, and friends are switching to them. We can thus have a rough idea that perhaps Axiata is gaining market share,” clarified Yong.

For industries without readily available statistics, Yong looks at their gross margin rather than competition to gauge how lucrative the business really is. Whether a company can withstand unfavourable challenging environments depends on its gross margin to cushion the negative environment, she explained.

Fundamentals aside, Yong also relies on the technical chart of a stock for a more complete answer. “Technically, when a stock falls more than 20%, it is an indication that the stock is probably in a bearish market territory, which means the stock may not recover for at least six months and beyond,” said Yong, who advises those without holding power to cut losses at this point.
“However, if the stock is fundamentally sound with a large market share in the industry, the temporary setback maybe due to macro-economic factors, and given time, the stock should recover together with the general economy,” she elaborated.
Yong also refers to the 200-day moving average, which indicates whether a stock is worth holding for long term: “This line is an average of the past 200-day prices, which gives you an idea of the general trend of the stock price. If you see that your stock price is above the line, it indicates that it is still worth holding for long term. However, once you see that the stock price has crossed below this line, it means you need to cut loss even if you are a long-term investor.”

The other indicator that Yong relies on is the double top chart pattern, which she describes as “a classic chart pattern that every investor should learn to save you from grave mistakes”.
It describes a scenario when prices went from low to high to form a first rally, then when hit by some bad news, the stock price fell to form a trough. Investors eventually shored up the price of the stock again when it fell too low, leading to the formation of the second rally.

“During the second rally, investors realised the situation did not improve and they started to sell down the stock again. This round, the stock fell below the previous trough and investors panicked and the selling intensified, as the so called “neck-line” of the double top was violated,” she explained.

This pattern has to be significant enough for this chart pattern to be reliable, Yong cautions. “To be significant, the chart pattern is formed through a series of price actions that last for weeks, months or sometimes years,” Yong further elaborated.

“For example, comparing a double top chart pattern formed during a period of nine months, and a small double top chart pattern that was formed within three or four weeks, the smaller chart pattern is less significant or poses less ‘threat’ to a long-term investor, as the price fall may last for weeks only,” Yong added. However, she cautions when a large double top chart pattern’s neckline is violated, as chances are that the stock is entering into a long-term bear market.

Making the whole process less painful
It can be nerve-wracking when deciding whether or not to give up on an investment where the value is sliding or stagnant. Like most investors in your shoes, you’re not sure if you’re making the right move.

In this case, staggering the process of cutting loss could be one of your strategies. Making a decision to cut losses and invest actually subjects the investor to the same price risks, according to Wong.

“In investing, we always advise investors about dollar cost averaging (DCA), meaning that if they have a huge sum to invest in the market, they can break that sum into smaller investment amounts and deploy those monies over a period of time, instead of purchasing the investment in one shot.

“This DCA strategy is useful especially when markets are very volatile, and you have little confidence that markets will rise in the short term. Of course, if an investor is confident of his research and is willing to hold long-term, he could still invest one lump sum,” explained Wong.

He believes that this strategy is applicable to investors who are looking to cut loss. Again, whether you should dispose partially or in full depends on how confident you are of your research. If you are confident that fundamentals of the invested market have changed, or the selected fund manager has lost his touch, go for a clean cut. “However, if one has invested a huge sum and wants to cut loss or change strategy, he could also liquidate his position by parts,” Wong added. 

Be that as it may, few would dispute that it is heart-wrenching to watch your hard-earned money go down the drain. The best way is to learn from the process, and to keep refining your strategies for the future.

Firstly, understand that stock losses are simply part of the investing process, advised Yong. Accept that mistakes are inevitable and re-examine your investment plan again. “The objective of a detailed investment plan is that it helps you to think carefully when you are buying a stock, what is your timeframe, reward-to-risk ratio, cut-loss point and expected return for the stock,” she said.

When the stock price reaches your cut loss point, execute according to your plan. “The emotional disturbance is likely to reduce if you think that the scenario is within your control as the possible scenario is depicted in your investment plan,” she continued.

Next, you could also try to diversify your investment portfolio by limiting a smaller percentage per stock, Yong offered. This is so that the absolute value of a possible loss is minimised, which would reduce your pain as a result of the loss.

In sharing her final piece of advice, Yong encourages lifelong learning and investment in oneself. “Learn about investing by reading extensively and attending seminars. Challenge yourself to learn something new about investment. Do your own research and form your own opinion. The more you learn, the better your decision making will become”.

Source:Focus Malaysia

www.mqbusinesswealth.com

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