Hey.. Meng teck.. Can u kindly explain what is hedging? I dont really understand the term, and dont know how it works as well. Hope to get a simple example of hedging. Let me know how it works, and the advantage and disadvantage of hedging. Thank you. :)
Kuok Sin, a chapter on portfolio management will be taught during the Live Event. This will cover diversification & hedging as well. In short, hedging is simply buying assets that are OPPOSITELY correlated with each other. In other word, when one asset go up, the other will go down. Therefore, you will not be affected by the cyclicality of these assets. More examples will be give to you during our Live Event in about 2 weeks =)
I sold a good portion of this stock today at 0.425. Company turned around in the end. But mainly due to gain from derivatives. Ringgit strengthened unexpectedly. The operating income is negative. Didn't think it's a good long term hold, people chased once they see full year profit is green, I sold it to them.