Hancur! Retail traders out, penny stocks koyak.

Are you still here, kawan kawan sekalian? Today marks the end of the loan moratorium. The depressingly blood red market and low trading volumes suggests that retail traders are pulling out of Bursa in droves. This is worse than the time you challenged Big Bad Balan to a gang fight and you jio your friends Ah Seng and Ah Beng to back you up but they FFK you to die alone. Nabeh. It’s okay, not their fight also. But this time really ki chia liao.

As an investor who has made some (admittedly) ill-advised trades during the bull run of MCO, I have my fair share of exposure to penny stocks. Penny stocks are, for a lack of a better adjective, fun. Small movements translate to big earnings. The inverse is also true – huge losses are possible with the slightest downtrend.

I present to you, Exhibit A:

I don’t know the source of this image since it was forwarded to me in Telegram. It looks like something produced by The Edge Weekly from the style and colors. I am holding 3 of the penny stocks in that list – TFP Solutions (TFP), Pegasus Heights (PHB), and Kanger International (KANGER). Truly hailat, man. 😨

I hope no one has jumped off a building yet k. I am relatively fortunate as I did not opt-in for the loan moratorium so I do not have pressure to sell. I would have cut loss on some of those counters if I were available, but unfortunately I was very busy yesterday and did not have time to even peek at my portfolio.

Some of those counters like TFP are very close to their historic lows so there’s no point in cutting loss anyway. Nowhere to go but up right? 😄

This brings me to the lesson of the day. I am very much a contrarian at heart and at times I need to consciously fight the urge to go against the flow. I blame this on my teenage angst phase filled with death metal, tattoos, piercings, body modifications and alternative lifestyle choices. Limpeh has matured into productive member of society but there’s a tiny hint of rebel still inside me.

I knew the loan moratorium was ending. Statistics have shown that trading volume is steadily decreasing in the entire month of September as retail investors locked in their profits (or losses) and cashed out. However, I believed there were opportunities for last minute goreng and went around picking up stocks at a hefty discount without giving much weightage to fundamental analysis.

Moving forward, I will focus on fundamental analysis and look for good value stocks for medium and long term investments.

I strive to be a better investor and a better person everyday. Keep up the kaizen brothers and sisters!

Aside to Ah Beng and Ah Seng: I have forgiven both of you. You may visit me during CNY again.

Memo to Big Bad Balan: I did not run hor. I had a sudden and extremely urgent bowel movement. I just popped into the corner mamak to use the toilet and came back 3 hours later but no one was there dy.

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