Thursday, October 10, 2019

Top Down approach and the LONG term trend - KLCI - Banks - Properties

There are a few simple basic rules that I will always adhere when it comes to financial markets irrespective I am making my moves into stocks or derivatives or commodities.

1. TOP down business sectors - ALWAYS start with BANKS for stocks and move on to the next sector namely PROPERTY

2. Focus on the key volume 5-10 selected stocks for the sector that consistently record trading volumes to ensure liquidity and low spiky moves

3. Finally a quick verification that the selected stocks are not candidates of potential bankrupt

4. There is no story to write if one is a SERIOUS chart analysts. The more story you write to justify the more entrench you are mentally and emotionally to the selections and HIGHLY unable to change when the trend changes.

5. Never try to analyze the trend with little historical data. Always try to look into a trend with 10-20 years data to get a MACRO long term trend.

6. Trends are like Sea Waves ... look into the trend tide and decide the risk or potential risks. Trend will always move up and down ... high and low ....

7. Only allocate fund which you can afford to loose!!  

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