The Secret of Consistent Profit in Malaysia Stock Market

Many inquiry has been sending in asking how do we achieve consistent profit every months.

R&S Trading Fund Performance Comparison

Therefore, we are going to share with you today the theory that we follow strictly in order to achieve consistent profit in Malaysia stock market.


1) Trading Direction :

  • Who are you following in the market? The chart pattern? The indicators? The News or Rumours? Do you understand the stock market that you are trading in?

  • The current analysis that you are using, does it give you a very clear picture of the price direction? Or just left you hanging and rely on hope after entry signal?

  • Now think back every time after your entry, do you always hope the price will move higher?

  • If you are having this feeling, you are lost in the stock market. Is time to find your way out buddy!

  • The direction we have in the stock market is follow the Operator. Are you following them?

2) Understand the market:

  • When you understand how the operators work, you will have more confidence to move in and out of a trade.

  • By knowing the market you can increase the probability of winning trade over the losing trade. Because you can avoid moving into false signal stocks.

  • Because you understand their intention by looking at the price & volume movement!

  • Like how we did, we understand the market (Operator) and this is how we can move in and out in the stock market with confidence!

  • This is how we can achieve consistent profit every months too.

3) Risk Management


  • Many traders or investors did a very wrong way of allocating their funds in different stocks.

  • For Example :

    • Your Capital : RM 20,000, many traders will allocate their funds like below

Stock Name Share Price / unit Total Value Quantity (Unit)
Stock A RM 0.20 RM 5,000 25,000
Stock B RM 0.50 RM 5,000 10,000
Stock C RM 0.80 RM 5,000 6,200
Stock D RM 1 RM 5,000 5,000
  • By managing your portfolio like the above, you are exposing yourself at a cheaper price range stock. Don’t understand? Watch the below :

Stock Name Share Price / unit Total Value Quantity (Unit) Price Drop by RM 0.01
Stock A RM 0.20 RM 5,000 25,000
  • RM 250
Stock B RM 0.50 RM 5,000 10,000
  • RM 100
Total Loss –  RM 350

Stock Name Share Price / unit Total Value Quantity (Unit) Price Up by RM 0.01
Stock C RM 0.80 RM 5,000 6,200 RM 62
Stock D RM 1 RM 5,000 5,000 RM 50
Total Profit RM 112

  • Now the Total amount of loss in lower Price range stocks are more than the amount that you are profiting in higher price range stocks.

  • At the end of the day you are still losing RM 238 ( -RM350 – RM112).

  • Now do you know what is the reason that you can’t make consistent profit? Because of your imbalance risk management.

  • Our secret in risk management is to have an even spread of risk and follow Warren Buffet rule #1 : Never lose money.

4) Discipline on the Facts not Expectation:


  • You must be wondering what do we mean by Discipline on the facts not expectation?

  • Ask yourself, are you discipline now? Or have your try to be discipline before but sometimes missed out some profit because strictly following the rules?

  • If the above happens to you, you are using the wrong analysis and risk management.

  • The difference between us and what the other traders commonly use in the market is :

Round & Surge Normal Traders & Investors
Entry Follow Operator intention

  • Watch their transacted price movement to define their intention.
  • Resistance breakout
  • Golden cross
  • Support rebound
  • Bollinger band breakout
  • And many more
Take profit Follow Operator Intention

  • Watch the price and volume to find out whether operator have intention to push or not.
  • Set Profit Target
Cut Loss Follow Operator Intention

  • Understand at what price level operator will give up pushing.
  • Calculate the percentage of losses that you are willing to lose in each trade.
Risk management Equal risk exposure
  • Expose higher risk on cheaper stock.

  • Do you see the difference? Basically most of the traders and investors are not following the market. From the entry rules to risk management is just about themself.

  • We, as a True Trader, we follow the market, we always watch what is the intention of the operator and we React to it.

  • Are you reacting the market?

We hope after reading this articles, you will understand more about your trading behavior and find ways to improve it.

If you enjoy reading our articles, follow us on Facebook or YouTube to learn more about how we follow the operators in the stock market.



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