Baby steps- How to read Unit Trust Chart like a pro.

October 24, 2015 — Leave a comment

dear readers,

im so sorry for my absence since my last post. My schedule was really packed and i hardly got a time to properly sit down, reads some books and plan for my next article. Its only until recently i got few client asking me about how to read charts and their investment statements. in this article i am just going to share about chart reading for beginners.

zeno sunsetbar

lets get started. i got approximately 30 minutes to finish this post, i hope this can be very useful for those with Zero knowledge in chart reading.

P/s: i am not going to get very technical with indicator, chart patten, Fibonacci etc. its plain simple even a baby can understand and memorise it.

Baby Step 1 : An introduction to the Jungle.

in the beginning there are only price and time.

DATE PRICE
2/1/2014 0.7682
3/1/2014 0.7684
6/1/2014 0.7741
7/1/2014 0.7766
8/1/2014 0.7839
9/1/2014 0.7819
10/1/2014 0.7853

If you crunch this number everyday, i sure you life-span will be reduce by half. What i show above are only data for 7 days. imagine if there are hundred or even thousand of day of data. i can’t sit in front of computer and look for clue in the price when to enter and when to lock my profit base on numbers only. i need pictures. There is a saying, a pictures says a thousands words. i agree.

if i took those date and put compute a line chart on my excel file, you will see something like this,

FL 1-2

to read the chart above you need to know

  1. the price (green circle)- price move everyday so does your investments value
  2. you need to know the date (red circle).

FL 2-1

next,

what can you tell me about the data pointed by red arrow?

If you pull a horizontal line to the left, and you will get RM 0.91

Then you pull a vertical line to the bottom and you will find the date was on 22 of september 2014.

easy right?? so it means that the unit price for this fund is Eastspring Investments My-Focus is RM 0.91/unit on 22/9/2014.

Next Question. Where is the lowest price in the chart?

yes correct! 28/1/2014.

where is the highest price in the chart?

again you are right, 22/9/2015 & 22/4/2015.

in my next article i will explain on the price support and price resistance line. This simple strategy is really powerful for you to cash in more money from the fund by just looking at the line on the chart.

Not only that it cal also help you to avoid loses in your investment by lock in profit early.

lets move on…

What if…

FL 3-1

what if you invested a lump sum of RM 10,000 at the beginning of year 2014 Marked by point “A” and you keep invested until the end of the year 2014 Marked by “B” without doing anything except sitting on the beach and enjoy sun sets everyday.

Your RM10,000 will become RM10,630. a 6.3% gain. you probably will said the return is unattractive. you can do better in ASB.

but there is more! lets move on.

Investor call this the passive income!

my focus distribution

look at the picture above, the circle part. it show that this fund declare RM 0.0461 for each units you buy.

how many units you have buy with RM10,000?

-your capital / the unit price you buy (marked by “A”)

RM10,000 / RM0.7682

= 13,017 units. (assuming there are no more charges)

to know how much dividend you get 

-no of units X dividend payout ( red arrow)

13,017 X 0.0461

= RM600.

so you total return is RM630 + RM600 = RM1230.

In one year, your RM10,000 invested will become RM11,230. = 12.3% of gain!!! this is good compare with most investment.

just for your information. for year 2014, Bursa Malaysia suffer a loss of -5.66% while this fund giving you 12.3%!

But wait. there are still more!. i am going to show you the real deal. I call this “my investor blueprint”

My investor Blueprint – The art of locking up profit before the market takes it away. 

FL 4

base on my “BluePrint” i would suggest my investor to lock in profit and switch to other guarantee fund on 15/september/2014. if you follow that advise you would have lock in a total of 18.13%. (not including divided payout).

if you add dividend payout, your total return from january until september ( 9 months! ) will be 24.41%.

RM10,000 x 24.41% = RM2,241.

when do you enter again? i let you know in my next article.

by the time i finished this, it actually took me 3 days to finish this article. although tis only 700++ words, but the details presented i need to make sure its 100% accurate and reliable.

so thank you and have a great weekend. god bless.

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