Chapter 2.1 How to Minimize Risk in Share Investment

As Warrant Buffett said:" Rule No 1 :Never Loss Money, Rule No 2, Never forget Rule No 1. "

Every single cent that accummulate for investment is very precious to a new beginner. How to follow Rule No 1 of Warrant Buffett? Simple answer: Buy the share when the share is desperately low. Of cos select the share that you are 100% familiar with what they are doing in the company.

How to know the share market is already desperately low? Pls have a look on Sin Chiew's share price column. When there are more than 100 arrows pointing downward on the same day that mean the market is almost at the lowest level within 52 weeks.

Start buying the share when other people keep telling how bad is the market and do not enter the market. Buy the share when the value of the share is totally not tally with the share price(mean the share price is really low).

When you buy a share at it's lowest price and you dont have much to loss any more. The next step you have to do is be patient for one or two years. Your capital will grow more if your heart is much more patient.