1. Short Time Horizon
We all know the swing of HENGYUAN share price in the past two weeks. Does that bother you? If you want to make quick money and hope for huge return exceeding 10% in less than a month, HENGYUAN is not for you. Remember, my Target of RM20 is in a year... not within a month.Those who have sold it at RM12 to RM13 would regret... because your time horizon is too short.
In the short term, the price may move against you but if you are indeed a stable and long term oriented investor, you are likely to rise above short term volatility.
2. No Plan
It is pathetic that some people always depend on tips from others on which share to BUY. Do your own analysis and have a plan. My plan is simple, the TP is RM20 and it is going to announce good earnings and likely dividend too in about a month time. So why SELL?If you have no plan, you are likely SELL LOW BUY HIGH as you tend to "follow the herd".
3. Overconfidend and use margin
Margin amplifies your return, but it also amplifies your loss if the share price move against your direction. Long term investors are unlikely to use margin as the high interest rate will reduce overall return.
Conclusion: Maintain Target of RM20
