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These trading tips are applicable for stock trading in Bursa Malaysia:
1) Some counters will take time to go up. Diversify your portfolio. 1/3 for short term, 1/3 for mid term, and 1/3 for intra (same day buy and sell).
2) Avoid counters with low volume, or you might stuck in it for long time. Enter counters with at least 300k units volume per day.
3) Always buy after 4:30 pm to avoid false rally during mid day. Usually when price goes up in the morning you will ‘chase the price’ and buy. Then price goes down in the evening and you get panic and cut loss.
EXCEPT for intra buy calls. Just buy when we give the buy call and follow the instructions given.
4) Fundamental Analysis (FA) is used to pick WHAT stocks to buy/sell. Basically for FA, we just look for companies that make profits and win tender of big projects.
Technical Analysis (TA) is used to calculate WHEN to buy/sell. For TA, maybe if you can gather around 20~30 friends and set up a place, we can go there and we can have a study group together.
5) Red sea is time to buy at lows. Green sea is time to sell at highs. Volume and price spike is a MUST TO SELL even if the price still not reach your target price.
Volume spike: The counter get in the top volume page after 10:00 am
Price spike: Price up more than 5% from the day before
6) If there are more than one target prices, when the price crosses up the 1st target price, the 1st target price will automatically become new stop loss. For example:
Target Price 1=0.15
Target Price 2=0.20
You bought Stock A at 0.13, then price goes up to 0.16. You choose to hold your stock and you want to sell it at TP2=0.20. At this point, your stop loss is no longer at SL=0.10 but you change it to SL=0.15. This is called previous resistance becomes new support. By doing this, it is a confirm profit even if the price doesn’t reach the next TP.
The best stock trading strategy formula, can be written as:
Where a=money, b=time, c=knowledge
The best trading strategy is different for everyone. Our money in the CDS, our time to monitor the stocks, and our knowledge about stock trading are all different.
Even the best strategy from sifu A, sifu B, my team, or even my own personal strategy (of course need to keep some secrets only to myself lah haha) doesn’t necessarily can be your best strategy.
You need to adjust your own strategy according to:
- How much money you have in CDS
- Frequency you can monitor the stock market
- How much stock trading knowledge you have
Invest money, time, and effort into stock trading knowledge first is the fastest way to make profit. Read all the books, watch all the videos on Youtube, and go to all the classes about stock trading (cheap or free classes are enough).
Try and error. Make some loss first until you find the one strategy that suits best with yourself. Just assume this early losses as your ‘fee’ for the future consistent profit making strategy that can be used forever.
NEXT: How to make consistent profit in Bursa Malaysia.
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