How Effective is Technical Analysis in Bursa Malaysia Stock Market?

 Plug & Play

There are many trading technique in Malaysia stock market are from oversea’s market like US, Japan or some other bigger scale stock market.

Their reason are their market are so much mature, therefore what has happen there can be introduce here, which I totally disagree.

Every market has different character, in term of the sizes, types of market participants and regulation. You can just plug & play the strategies from other world to our Bursa Malaysia.

We will explain to you in details below :

Different Stock Market Regulation

Let’s compare US stock market vs Malaysia stock market regulation on short selling. US anyone can do short selling, however, Malaysia stock market only allow institutional investor short sell ( e.g. Proprietary Day Trader).
This makes a huge difference on the volatility and the method to analyze the market. In US, you have to take into account of the short seller, where Malaysia normally don’t.

Market Size

Obviously US market is so much bigger than our KLSE. Everyone around the world are trying to trade there regardless of the timezone. In Asia, we see people stay up late just to trade US market, but no Americans will want to waste their precious sleeping time for Malaysia stock market due to lesser volume here.
You still can make it if you know how in KLSE, with our trading method.

Are You Sure You Are Listening to the Stock Market?

Many trading courses out there always ask traders and investors to listen to the market, follow the market and at the same time using projected profit target for exit. Projected or estimating are your own expectation, therefore, it is not listening to the market.
A true way to follow the market should based on the price on that day to determine the exit or entry.
For example, our trading follows stock market operator. We will enter when we see they have intention to push up. Exit when we see they have no intention to push higher anymore. Instead of setting a target price and wait. when the price doesn’t hit the target, traders cannot decide to be discipline or exit, end up losing all the profit.

To catch a rebound, don’t look at the floor, focus on the ball.

The traditional technique to catch a rebound stock is to look for the next support. The reason for that is because they do not want to catch “The Falling Knife”.
We have a different way of looking at it. In order not to catch a falling knife, we should keep our eyes on the knife (price) and observe when it stop.
Sadly, many traders out there are estimating the rebound point and most of the time is out of their estimation, traders should focus on the price and wait for it to stop.
Is as easy as catching a physical ball.

Next question is: “How do I know the price is going to stop and rebound?”
Find out more in our weekly public sharing class on Monday evening, starting at 8:30 PM.
Find out more here : Round & Surge After Market P.O.V

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