之前有读者要求我写关于Margin Financing的文章。由于最近还在工作转换的时期，实在无法花太多的时间去写稿，加上本身并没有使用margin，顶多也只能写一些知识，而不太能分享到真正的感受。很高兴周末收到管有缘（Mr Koon）的电邮，也在讲着着一个话题，那么借此机会就翻译一下这篇文章。
现在的借贷率是BLR 6.6%- 2%，也就是一年的利息是4.6%。第一年是没有Rollover fees。过了第一年，Rollover fees是每三个月 0.5%，如果这三个月里没有交易。如果12月之内，完全没有交易，那么年利率就是6.6%。这个你们可以询问CIMB或其他银行。
一般上，我会有几个公司的股票。这些公司的价钱都会有一定的波动，那么我就会借此机会卖出，借着我才能买到我自己已经此有的被低估公司还是新发现被低估的公司。因此，我不必给Rollover fee。在任何时候，我都不会使用完我的限额，避免margin call。
Why & How to use Margin Finance to increase PROFIT
Koon Yew Yin
My purpose of writing this piece is to teach you how to make more money or how to improve your profit from the stock market by using margin finance. As I often said, I walk the talk. My wife and I have a total borrowing facility of more than Rm 100 million from 6 local financial institutions.
If a businessman or investor trades within his capital, he is considered inefficient. Almost all successful businessmen and investors borrow money to do more business or to buy more shares. You must remember, it is the business of the financial institutions or banks to lend out money and they are not there to cheat you. We must not be afraid to borrow to do more business or buy more shares to sell to make more profit.
The current lending rate is base lending rate of 6.6% minus 2% equal to 4.6% per annum. There is no rollover fee for the first year. After the first year, the rollover fee is 0.5% for 3 months, if you have not traded within the 3 months. If you have not traded for 12 months, the total interest rate will be 6.6%. You can check this out from CIMB or other banks.
Let me tell you how I use my margin finance. For a start I must be able to select shares that have profit growth prospect of more than the interest I have to pay. If you do not know how to select good shares, then you must not borrow to buy more shares.
I normally have shares from a few companies. Often their prices fluctuate up and down and I take advantage of this phenomenon to sell some so that I have funds to buy those really undervalued shares which I already owned or one I newly discovered. As a result, I do not need to pay roll over fee. In any case, I do not use up to the limit of my borrowings to avoid margin call.
As you know, a big seller was aggressively selling Jaya Tiasa in the last few days before year end and we borrowed almost to our limit to buy it. I asked a few professional fund managers and they all could not think of any good reason why anyone would want to sell so aggressively just to push down the price purposely. Probably he thought he could buy cheaper later on. Even if anyone wants to sell, he should sell slowly to get a better price.
An old fund manager told me that the big seller could be a foreign fund manager who wanted to close his account urgently in Malaysia.
It is very easy to find companies that can increase their profit annually by more than your borrowing rate. Almost all the well established companies in the finance, real estate and plantation can make more than 6% per year. It is very safe to buy them especially when their share prices are down.
After you have identified them, you have to wait patiently to buy. There are always some sellers. In the same way, there are always some buyers to buy your shares. So, you do not need to buy or sell in a hurry. Moreover, unlike doing business, I have no administration difficulties and my profit from share investment is tax free in Malaysia.
I am obliged to tell you that Jaya Tiasa is our largest holding in our investment portfolio and I am not asking you to buy it.
Best wishes for 2014
Koon Yew Yin
4th Jan 2014