May was a really bad month for many traders due to the market crash. However, when it comes to the end of May, we saw the down market soften up with lesser selling pressure. So we went back into the market with short-term trading to test the water & also get our “trading touch” back after 2 weeks away from the market.
After making a few trades, we find many stock prices are moving like what happens from the end of April to early of May. With prices moving up 1 day and falling/hitting our exit rules the next day, causing us to cut losses at a breakeven price or a very small loss.
1 day up, next day down.
The mistake we made in June is we didn’t notice early enough the intraday opportunity for all these 1-day prices up. We could have applied the T+1 intraday rebound strategy that we use to trade during April. Taking a short-term profit of 1 to 2 ticks is better than breakeven & cutting loss.
5 mins chart, volume in at the low. T+1 price rebound.
But it is not too late for us to look into this trading method, those stocks that marked up in June are starting to throw prices down now. Therefore, we will continue to focus on those stocks that have the price fallen & look for any T+1 rebound for intraday trades.
Some might think intraday trading is a risky trading method because you are moving in & out of the market without looking at its fundamentals. I think we have explained a lot about the pricing mechanism, stock price move based on demand & supply of the shares. If you are using fundamentals or techniques for day trading, it will definitely be risky. You can’t learn how to drive with a “how to ride a motorcycle for dummies”.
The reason why we shift to intraday trading is that we don’t want to get trapped in stock prices falling in an uncertain market. At least the results show that our losses during the market crash are lesser than others.
Please don’t get us wrong, we are not against any schools, just that we are a very versatile investor/trader. Our trading method will change along the time according to the market conditions that suit the trading method of intraday, short, swing, or long term.
TAKE NOTE: Being a versatile trader doesn’t mean that you entered a trade expecting short-term profit at first, but end up in a losing trade. So you turn yourself into a long-term investor & decide to hold the trade, hoping the trade will turn back into profit in the future. This is not versatile, this is refusing to accept the fact of your losing trade & finding a reason to support your trade is not at a loss YET.
If you want to know more about how to become a versatile trader, feel free to join our upcoming webinar to learn more about the stock market operator & how to follow them at the link below:
Date: Sunday, 10, July 2022
Time: 9:30am - 11:30am
Malaysia's stock market is a unique market, hence it requires a customized trading approach to tackle & swerve. Many existing traders in Malaysia apply a plug-and-play strategy from the overseas stock market, but it is not necessarily the best strategy to trade in KLSE. This is due to the difference in local and overseas stock market regulation and the size of market participants of institutional funds & retail investors.
“True traders react to the market.” is the backbone of our trading method. Our findings and strategies are developed through years of trading experience and observance of the operating style in Malaysia’s stock market.
Trading Account Opening
They are offering an IntraDay trade brokerage rate at 0.05% or RM8 whichever is higher for day trading stocks RM 50,000 & above-transacted volume (buy-sell the same stocks on the same day). Buy & hold at 0.08%or RM8 whichever is higher.
Open a cash account now at the link below :
For more inquiries contact him by email: email@example.com or 019-5567829
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This blog is for sharing our point of view about the market movement and stocks only. The opinions and information herein are based on available data believed to be reliable and shall not be construed as an offer, invitation or solicitation to buy or sell any securities. Round & Surge and/or its associated persons do not warrant, represent, and/or guarantee the accuracy of any opinions and information herein in any manner whatsoever. No reliance upon any parts thereof by anyone shall give rise to any claim whatsoever against Round & Surge. It is not advice or recommendation to buy or sell any financial instrument. Viewers and readers are responsible for your own trading decision. The author of this blog is not liable for any losses incurred from any investment or trading.