Brothers and sisters, hor bo? My Road to Damascus moment a few days ago has seen me reduce my frivolous trades and focus on fundamental analysis. It is not as exciting as the rumor and price action driven speculative goreng sessions but a lot better for my heart.
My blood pressure is down and I no longer have random tics on my face. My fainting spells are all but gone. My wife says I have stopped waking up screaming in the middle of the night too. I consider this a win.
My new trading approach is this: I’m queuing at the very bottom of support for value stocks. The support punya support. The dai lou you call when Big Bad Balan kicks your ass (again) and gives you a wedgie in front of your kan mei. The Unit Tindakan Khas that police call when they do a routine noise complaint check and startle a gang of gun-wielding Nigerian drug dealers in the midst of a multi-million ringgit deal. You know what I mean.
I have several blue chip and upcoming counters that I’m monitoring and I’ve set alerts for the ones close to support. I will only buy if it reaches that safe, bottom support. This also means that I don’t match most of the time.
And that’s okay.
I don’t need to actively trade. This is not my day job. My primary objective is to beat fixed deposit interest rates by investing in the stock market. My secondary objective is to preserve my capital. That may even be a more important mandate.
As investors, we sometimes get caught up in the excitement of the stock market and chase unrealistic profits. That may be possible if you’re lucky during the Great Goreng Party of MCO but those days are over. I believe the end of the loan moratorium and a drop out of retail investors will see a return to fundamental investing.
The stocks I queue at the bottom of support are also fundamentally decent stocks which I have confidence in. There’s no point in queuing at the support for dubious penny stocks. Painful experience tells me that the supposedly safe support can instantly become the new resistance instead. Hailat.
You want to be sure that your dai lou will back you up and bring a whole lorry of heavily tattooed Bruce Lee lookalikes wielding kwan tau to sic on Big Bad Balan’s big bad gang. You don’t need to have frivolous gang fights every day just coz someone looked at you for a millisecond too long. You think you’re still in high school meh? Reserve your flex for the times you’re really sure you have the upper hand and get your gang (your investing war chest) to whoop them kau kau. The support must hold, and it usually does for fundamentally good stocks as the intrinsic value is proven.
And when the support holds, there’s nowhere to go but UP! 🚀
Just you wait, Big Bad Balan. I’m coming for you. This time it’ll be different. Limpeh will make you cry and hide under your amma’s voluminous skirt like you are 9 years old again! Hmph.
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