Panic & fear fill the stock market today, with lots of Why and What happen?
When the market have a huge movement such as up or down, every investors and traders in the market are always looking for what is the reason behind the movement.
Just like today, I believe there are many people around the market are looking for reasons of why the market drop 1% in the morning and 2% in the afternoon. Why? & What Happen is in the mind of every traders and investors.
When you read the news, they will always have a reason for the market drop. Some times you even find the supporting news sounds funny. What we are trying to say here is that price always move first, news later.
As a trader, we don’t look for reasons after the market drop. We see the market daily and from the price and volume movement from the market tells us that the market is shaky and a drop will be comeing soon.
That’s how we can accurately react to the market and enter into short or long position.
News is always late, knowing the reasons doesn’t help you much. As a trader, what we want is profit, not explanation.
Is like the quote below :
“Analysts argue about Chicken & Eggs which one come first.
Investor take the Chicken & Egg and make more chickens & Eggs.
Traders buy the chicken & Eggs from investors and sell it at a higher price.”
So based on your action, which one are you now? Analyst, investors, or traders?
We have been giving out alert during our Weekly KLSE POV to our followers on every Monday night, sharing our view that the market is going to have another round of huge fall, asking our followers to stay out.
With the understanding of how the big boys works, we are able to move into FBMKLCI-H4V (put warrant) ahead of this drop.
Put warrant means when KLCI drop, the warrant price will increase. This is a financial instrument for you to hedge your position.
Again, operator analysis let us move ahead of it.
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This blog is for sharing our point of view about the market movement and stocks only. It is not and advice or recommendation to buy or sell financial instrument. Viewers and readers are responsible on your own trading decision. The author of this blog are not liable for any losses incur by any investment or trading.