R&S Malaysia Intraday Trading Strategy Intro 1 [Pre-Open Market]

Day trading is a popular way of trading, and many investors have been looking to become day traders like those in the movies. In and out of the market every minute, making millions in an hour. Instead of clocking into work, you can work from home and profit from the market every day.

 

In the movie, it seems easy to make a profit by day trading. Actually, it's not just looking at charts, drawing lines, or using some form of indicator. In fact, drawing lines and indicators don't help much in intraday trading because it's too late to exit when a signal occurs or wait for the price to react and trigger a technical exit.

 

You can watch some of our day trading educational videos below to get an idea of ​​what real day trading is like.

https://youtu.be/NUCh3s62LE8

 

Actually, it's not as exciting as what you see in the movie, or as lucrative as it's shown in the movie. In fact, there is no need to have a large amount of money to do it like a movie. When we try new trading methods, we always start small. Although day trading in Malaysia is not as volatile as other markets, if you trade more than you can handle, you will start to make a lot of mistakes. Day trading is different from your usual trading or investing where you can wait for the price to bounce back when you lose money. In and out during the day, sometimes a few minutes. If you start trading huge funds that you have never traded before, you will repeat the same mistakes by holding trades. Day trading doesn't make sense to you anymore because you're still holding trades overnight.

 

The main reason we have to exit the same day is that the types of stocks that are suitable for day trading are those that only go up in 1 day. Therefore, if you are not able to exit at that time, your profit may reduce or turn into losses because of the short moment of indecisiveness. 

 

If you still want to become a day trader, then you need to be prepared that the journey will not be easy. But once you master it, this skill will be with you forever. We’ll share with you our experiences on what could happen in the journey of mastering day trading skills and what you need in order to start learning and sharpening your day trading skills.

 

Maintained Low Brokerage Fees

 

It is important to have a low cost for intraday trading, due to the profit margin we are getting from day trading. Sometimes it could be just 1 tick to 2 ticks. If your brokerage fees are too high, your profits will not be able to cover the trading fees.

 

The market now offers low brokerage fees for cash accounts with an average market rate of 0.08% or RM8, whichever is higher, and should be at least around RM25 per transaction in and out including all other stamp duties and CDS charges.

 

With a minimum cost of RM25, you can set a position size of approximately 5,000 units (50 small lots) per trade. For each trade (0.005), you will earn RM25 from your trade to cover the transaction fee. You can start small with low brokerage fees.

 

Never use leverage for day trading.

 

The biggest mistake traders make is to take advantage of the limitations provided by the broker. This means that the brokerage commission will also be higher (the market rate is around 0.3% or RM10, whichever is higher). Many traders think that if they have more capital it means more profit. True in theory; but in practice, we have no control over how much the stock price will rise, so we need to control costs and exits. For a brokerage rate of 0.3%, you might need 2 to 3 ticks to break even, which is a huge difference compared to just 1 tick.

 

Always think of the limit as a credit card. When you don't have enough cash in your trading account, you'll only use it for emergencies to buy long-term stocks. At the same time, make sure you have enough cash to pick up the shares.

 

Forget What You Have Learned

 

While the analysis we apply to the stock market is only a small part of our trading, it is the starting point for us to understand the real mechanics of the stock market and apply it to intraday trading.

 

We cannot use traditional analysis for day trading because the signals and analysis are too lagging to allow you to decipher the true intent behind price movements. If you put resistance on the entry time, you will always enter at a high level, and so do the indicators. When we use indicators in day trading, they are too uncertain. Since prices can move up and down within minutes, reversal signals can trigger or expire within minutes, making it difficult for traders to make the decision to enter or exit a trade.

 

We need to hit the reset or reformat button to understand what we've learned and embraced the right way to interpret market data to understand the Big boys/Operators' intentions. Because day trading doesn't focus on charts or indicators and doesn't trade fundamentals like we usually do in short or medium term trading.

 

We spend 90% of our time viewing transaction data such as market depth, quote changes, trade time intervals, market depth order changes and price changes during the trading process. That's why you can't use traditional technical analysis in day trading because we didn't learn all of the above in technical analysis.

 

Furthermore, the traditional technical analysis fails to explain many price movements and always gets very general explanations when stock prices react.

 

Try to ask yourself, why is there a pullback in an uptrending stock? Some technical analyst "artists" will tell you that the bull market needs a break, or the general answer is that some investors decide to sell at this point and create resistance. (Keep asking) Why are these investors selling at this level? Maybe that's fair value, but if it's fair value, why is the price going higher? If you still can't get a reasonable answer through all these questions, it's because we're thinking in the wrong direction. This is why retail investors never understand the pricing mechanisms of financial markets, always blinded by supposedly reliable information in financial statements, news and charts.

 

We know it's annoying to be questioned multiple times, but that's how we learn. If we don't know what to ask, we won't learn. We asked the question because we found the answer to the price movement.

 

Every price movement has a reason. We need a more detailed analysis to understand why and how prices are rising, such as what we did during the intraday session in the video below:

 

You can watch some of our day trading educational videos below to get an idea of ​​what real day trading is like.

https://youtu.be/WVps17UnyiI

 

If you have more inquiries and wish to find out more about intraday trading in the Malaysia stock market, join our intraday trading demonstration livestream on Facebook or YouTube this Thursday at 8:40am (3rd March 2022). Click join with the link below :

 

Facebook: https://fb.me/e/1eCSJGFk2

YouTube: https://youtu.be/t1uiNUxrnC8

 

The livestream will be demonstrating how we identify stocks before the market opens using theoretical opening price & volume. Usually, the trades will last around 10 mins during the golden hour, sometimes could be shorter. You may check out some of the recorded intraday trading sessions we’ve done in the Malaysia stock market below : 

 

Intraday Trade Playlist :

https://youtube.com/playlist?list=PLkUdzgFDlpsJ7WYINutITEereFNXYIrHa

 

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Easy way to learn how big boys accumulate shares: https://bit.ly/roundnsurge

Website : www.roundnsurge.com

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Kelvin's Instagram: @kelvinnny810

 

Malaysia 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 :

https://registration.mplusonline.com/#/?drCode=R311

 

As Kelvin’s trading client, you will be exclusively invited to join Kelvin’s weekly webinar and telegram group. Click here to join.

 

For more inquiry contact him by email: kelvinyap.remisier@gmail.com or 019-5567829

 

If we have missed out on any important information, feel free to let us know and feel free to share this information out but it will be much appreciated if you can put us as the reference for our effort and respect, thank you in advance!

 

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.