The Coming Bear Market?

Recently, the performance of the stock market does not perform well. Does it means that the Bull Market is coming to the end? Bear Market is coming soon? The candlestick pattern indicator is showing a weird signals. Based on the backtesting results,

HSI: Market (2007)

A breakout signal on 29 Oct 2007 with four candlesticks and then a gap drop signal to begin with the bear market. In fact, it was the beginning of a Bear Market,

If compared back to the recent HSI (2017),

Exactly the same candlesticks signals have appeared again. A breakout signal then four candlesticks and a gap drop signal with a similar Volume of transactions.

KLSE (2017)

For Malaysia Bursa, the stock market started to perform poor in June onwards. Recently, there were also a continuously 8 days of dropping in the stock market. In addition, the recent highest point in Sep was even lower than before in June, in which the market proved that the economy might be collapsing. The most critical point is 1753, better hope that the stock won't drop below that level. If not, 1727 (-3.34%) will be the next resistance line.

According to these recent performance, it is quite dangerous. However, nobody will exactly know or inform everyone that the Bear Market has arrived (not until you have almost reach to the bottom). Personally, I think everyone should re-examine your portfolio and try to get rid of useless or underperformance stocks as the market does not really look so healthy.

Technical Analysis - The wave analysis showed that this is the final wave of the Bull Market (5th wave) before the bear market has come. For those safety investors or low risk investors, short term stocks should not be considered as the current market is quite difficult to play.

Be Prepared For The Bear Market to arrive! Have you think of any strategies to prepare for the coming bear market?

Important rules for Investment

It is always important to remember certain important rules for all investors before trading in stock market,

1) Do not invest with borrow money. 

People always hope that the price will go even higher at the current price. So, they choose to borrow money to increase their stock portfolio.  This is not highly recommended, what if the stock price drop? No one can guarantee what will happen tomorrow, even on the market.

2) Diversify the portfolio

Everyone should diversify their stocks. Do not only 'ALL IN' in one single particular stock as the risk is way too high. Over diversify also quite difficult as too many stocks to monitor. Hence, please only select those stocks that you have done your detailed research on it.

3) Cut loss 

This is the most important rule, everyone should set a "Cut Loss" price for every stock. Many people loss a lot of money due to they do not perform a cut loss system. I will explain further on cut loss in the next blog as it involved Technical Analysis.

4) Invest as early as possible

Everyone learn from mistakes. By investing early, you could understand more about stocks and you might achieve the best returns after many years of investment. Always remember, stock investment is not a Rich Man's Game, anyone could be the stakeholders and gain profits throughout the years by dividends.

5) Avoid poor earning companies

Never invest into a company that have been losing money for the past few years. Normally, i will not invest in those companies that have negative earning (Not even a single year for the past 10 years).

6) Fundamental research

If you purchase stocks without a proper research, you are actually gambling money and you may lose money too. Hence, it is important to make sure that your selective stocks are not overpriced or no growing company. Fundamental research include PE, ROE, EPS, etc. I would be explaining it in details in the later part of the blog.

7) Do not over trading 

When a person over trading on the stock market, they will lose their conscious. They will slowly becoming a gambler and slowly they will lose track on their originally planned strategies. A good investor will only invest in a good fundamental stock and hold it for many years. For instance, the way that Warren Buffet invested in Coca-Cola.

Besides, I came across that Barclay Wall Street has set 10 Power Commandments rules for their employees, which it is quite interesting as it teaches people to respect their job as well as themselves while doing working in a investment banking.

Invest smart and don't lose money on the stock market.

Learn IPO Stocks Strategy Right now (Basic for Beginners)

What is IPO? Basically, it means Initial Public Offering (IPO). When a private company is planning to go on public listed, they will issued ordinary shares though an IPO. Most of the time, it is because of the private company wanted to obtain more fund for financing their operation costs.

There are many ways to obtain IPO, however different countries may have their different rules. For instance,

1) KLSE; Investors should obtain it through some paper works through banks or private institutions.
2) HSI; Investors could apply it through e-trading, which means that everything could be done through internet.
3) NASDAQ; Investors have to go through registered stockbrokers, they would request you to wiring funds to the firm before issuing the stock certificates.

What are the benefits from IPO? Generally, there are 2 types of IPO investors.

1) They have already fully understand and review about the company profile and financial report, so they would take an advantages of obtaining at the lower price (like Facebook, Airbnb, etc)

2) They hope to get profits of the price difference from the initial price on the first days. However, the prices may be lower than expected. Hence, it is not easy to gamble through IPO as there may not have enough information for investors to review.

Personal Advice for short term investors,
1) I would not suggest beginner investors to play with IPO as the information you found may be insufficient to analyze.
2) Try sell the stocks within 3 days, no matter Win or Loss.
3) Set a profit of 10%-15%, which is more than enough for most IPO (If only you don't have solid information to back up)
4) If the IPO initial price (before public listed) is lower than IPO price (Frist day on the market), try to sell on the same day.

Hope you guys could share and like the post. Thanks. :)

Upcoming Malaysia Market Trend

Alibaba's (Jack Ma) is planning to invest a huge amount of money into Malaysia as everyone knows. Which means that Malaysia technology stocks would be taking a huge advantages as he would either acquired or work together with the local technology company in order to build up his e-commerce market.

As this so called "Investment" by Jack Ma has not been confirmed between the government and him. But some of the stocks have already overrated on the news and his visits to Malaysia. For instance, XINHWA, 5267 and GHLSYS, 0021.

XINHWA, 5267. Recently, they have build up an ecommerce website (e5buy.com) which have actually attracted china investors.

When the news released, the stocks shoot up straight. 

GHLSYS, 0021. They have already signed an agreement with Alibaba on Alipay in Malaysia. Which means, the future of this stock could be highly considered.

A high volume and a gap after the news released

 For TA, we could consider looking at the support line. Once it hit the support line without further dropping, we could target the price to about 1.78.

According to Public bank research, there are also 7 more technology companies that we all should be aware. For instance, (PUC, 0007), (MTOUCHE, 0092), (KGROUP, 0036), (XOX, 0165), (NETX, 0020), (M3TECH, 0017) and (MNC, 0103). Besides, other than Technology stocks, CIMB and Maybank have also signed an agreement with Alibaba on the Alipay mobile wallet. In which, it may lead to another higher breakout.

Investment Tips: Always remember to set a Stop-loss for every investment.

Support And Resistance in Stock Market!! So Easy!!

When it comes to stock investment, there are many different books with different perspectives in the world. Most people doesn't really care and only know "Buy Low and Sell High". Who doesn't know? But in fact, how should we achieve it?

I have been studying about stock investment all around the world by many different authors (Obviously, i am still reading now) and i am going to give you all a simple Tips which i have concluded in most books.

Instead of "Buy Low and Sell High", we should "Buy Support and Sell Resistance". The most easiest way to trade in the stock market is to always find the Support of each stock as well as the resistance. However, we need to first identify the trend.

1) What is Support?  It is a level on the chart where buying interest is stronger than selling pressure.

2) What is Resistance? It is a level where selling pressure overcome the buying interest in the market.

KLCI Trend by Trading View

The Red Color line is the Support whereas the Green Color Line is the Resistance. The support line will be formed when the stock movement together with volume could not break through. Then a BUY signal appear. In the same, when the stock movement and volume cannot break through the Resistance Line, SELL signal appear.

For some investors, they will try to put a Buy signal on 28/12/2016 at 1630.3 (Support) and Sell Signal on 20/02/2017 at 1712.58 (Resistance). A beautiful profit could be make within 3 months.

In conclusion, earning in the stock market is not gambling. We should put more effort on doing some Technical Analysis or research, that's how we use money to earn money. Please remember, must always need to find the support and resistance together with a very high volume in order to gain the profit.

The future of this blog's direction

Hello Guys,

It's time to review my blog. From now onwards, i will be concentrated on the achieving financial freedom for everyone including myself. Stock investment is one of the ways of achieving it.

I am 26, Malaysian guy coming back from Hong Kong. For those who are interested in Stock Investment, i will be using my knowledge on Technical Analysis to assist everyone. Also, most of the part, i will be focusing on Malaysia shares and Hong Kong shares.