We sold all our holdings before the market crash

 

FBMKLCI dropped -8.20%, -10.40% for FBMSCAP, -10.65% for FBMACE since the previous high starting on May 31, 2022. Some investors could be losing more than 30% in this round of market crash. It is hard to accept the losses & many “traders” may have turned into long-term investors after this market crash. Because it is too painful to cut the losses & choose to believe that the stock prices will move back to the intrinsic value by holding long term. Yes, it could move back to the so-called intrinsic value, IF that stock has a really good “supporting factor” for the funds to invest in & pump up the price again. If it is just because of your gut feeling that the stock price will bounce back to the value you invested in, we don’t call that investment, it is gambling. 


Investment is not gambling when you know when the big boys are running away & coming back into the stock market. This is the principle of our Operator Analysis, investing in the stock market is no longer about “What to buy?” anymore, it is about “WHEN to buy?”. It is all about TIMING the stock market big boys move to pump up & dumping shares for our entry & exit. 

 

Technical support & resistance lines can be easily broken & failed, we never have enough funds to average down our cost at each support line. By doing average down, you will miss the potential rebound in the future due to your funds being trapped in the losing trades. When you finally take a small profit from the previous holdings & buy other stocks at the peak of the bull market. You will get yourself trapped at the high price & start averaging down in the bear market again. This cycle goes on & on until you give up on trading/ investing short-term. 

 

Every retail investor's money-losing cycle is because we don’t know how to find out the big boy's intention. Traditional technical or fundamental analysis doesn’t tell us that. If it does, there won’t be investors trapped in some stocks that are red-flagged later, which are only known by the public a few months later after the financial year-end. 

 

How do we avoid the crash?


If you have been following us, we have shared with our followers to focus on short-term trade or intraday trade before the market crash. The reason is that we found the operator transaction patterns are more towards attracting buyers for their distribution instead of showing signs of the strong price up from the previous rebound. 

 

Therefore we change our trading method into short-term & intraday, holding 2 to 3 trading days & intraday trading to protect our position from a sudden market crash. This gives us an advantage over mid to long-term holding. Don’t get us wrong, we don’t mean that holding mid or long-term is bad, it is when to apply it to maximize our portfolio return at the right time. 

 

Our previous 2 months trading pattern

 

 

You can see most of our trades starting from April are mainly small profits. This is due to the price & volume transaction pattern doesn’t show signs of long-term market recovery. Instead, it is more like the big boys/ operators are in the middle of pump & dump for profit-taking before the next market crash. Even though we know they are marking the price up for profit-taking, we can still trade to make profits. Riding along with their price mark up & taking profit when they are about to throw the price down. 

 

22 Apr - 20th May 


The number of trades is reduced during this period because most of the big boys are in the dumping shares stage. But there are still trading opportunities in the market when the big boys are pumping up the price. So we make our trading decisions much more carefully around this period. We took the profit before they throw the price down & stay aside while they are dumping the shares out into the market. This is to secure the profit we made from the previous pump-up stage & protect ourselves from making too many mistakes by cutting losses or losses more than our profits. 

 

23 May - 2 June


The market starts to crash from 2nd June onwards. We sold all our holdings at that time, including warning our members to be careful trading/investing in the market. We did this because of the price & volume movement of many stocks that we’ve noticed during this period was having a shorter time of “pump & dump '' compared to 22 Apr - 20 May. This kind of transaction pattern is telling us that big boys/ operators are trying to sell their holdings more aggressively than in the past 1 month. This also means that the bad market is coming very soon. 

 

With such an aggressive pump & dump going on, it is difficult for us to have any profit potential. The big boys/ operators will pump up today & sell down the next day. That’s why our returns within this period are at a loss. The realized losses on 2nd June were lesser than the potential losses during the market crash. If we didn’t see the market crash coming, our losses could’ve gone up to RM 10k & above within the past 2 weeks of the crash. All the profits we have made earlier could have been wiped out. 

 

Although it is not much of a profit, in the past 2 months with such a bad market we are still able to secure a net profit of RM6,213 from trading. By knowing when to trade & when not to trade. Without exiting the market at the right time, our portfolio will be in the negative right now. 

 

Investment or trading is never about how much you can make, it is about how you can protect yourself from losing. If you already know how to make a profit from the stock market, the next thing to fine-tune your returns is to learn how to protect/ minimize the risk of losing in a bear market with us. 

 

Know the Big boys/Operator & you will know the market.


If the past 2 years of investment experience demotivates you to continue your trading journey in the stock market, you are reading the right post now that can help you to find the solutions to maintain stock trading as 1 of your second income stream. 

 

You will find solutions that you never see in traditional technical or fundamental analysis. Because both of these are based on historical data to find out what is the current trend which is often late for the investors or traders to make trading decisions. We don’t need the indicators to show us whether the market is bearish or bullish, the prices already react to it; the previous annual or quarterly report can be showing a particular company is good, but the next quarter's report could be showing missing funds in the company. 

 

The more you learn about traditional analysis, the more you are confused & lost in the stock market world. Because the traditional analysis is not tracking the main parties that influence the stock market price. We can’t use the previous price movement or financials to forecast the future price, because the big boys would have distributed their shares on the way up, they are selling! That’s why previous resistance, support lines, or indicators based on historical data are not telling the true story of the stock market. The financial statement of the company doesn’t promise that in the next quarter there will be business coming in, it doesn’t show you there will be a pandemic. Strong companies might sustain hard times but the stock value will drop too. As investors we don’t invest or trade for breakeven or for a sustainable company that doesn’t give us profit, we invest for returns. 

 

To avoid all of the above, you just need to know what the big boys/ operator transaction pattern looks like when the market is about to fall or rise. Just like what we have observed from 23 May - 2 June, most big boys aggressively pump & dump in the market. So we decided to stay away from the market until now.

 

Knowing how the big boys transact helps us to see opportunities & danger differently from others. Because our analysis shows us the truth about the stock market, rather than reading the same “textbook” as everyone in the market. 

 

Look forward to the market rebound


We understand seeing the losses in the portfolio right now can be quite difficult to accept. But we have to move forward because the market will never stay in a bear market forever. Every Bear market ends will be the beginning of a bull market, we just need to learn not to repeat our mistakes again & learn when is the best time to enter the market again. Make every dollar of losses we made in the stock market a force for us to become stronger. 

 

We will be sharing our analysis on the upcoming Wednesday, 29th June at 8:00pm in our webinar. We will also share with you the introduction of how to find the market rebound using our Operator Analysis. You can find the registration link below & learn the true way to invest or trade in the stock market.

 

RSVP link: https://bit.ly/3bpJ0Sh

Facebook: www.facebook.com/roundnsurgeofficial

Youtube: www.youtube.com/c/RoundSurgeoperatoranalysis

Instagram: @roundnsurge

 

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 inquiries 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 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.