Hi,

Are you trading in FKLI right now? Do you making money consistently? If not, do you want to try another approach?

You guys can call me Mr. V. I was a licensed FBR(Futures Broker Representative) 2 years ago. I resigned and started my own business and has been well since.

There are people who is making money consistently from the stock market and there are people who continously lose money and still not giving up hope. We invest in hope that our money will grow, but how many of you have friends and relatives and even yourself who not making a decent return and even lose money?

One thing that I want to highlight is that, in financial market there are many participants.

There is a group called professionals. These are the people who work 5 days a week, watching the market from 9 to 5 every trading day. And behind them, they have a team of analyst doing research and getting all the information required for them to buy the right stocks.

And then there is a group called "us". We are retail trader, getting our news through our brokers, newspaper, internet or the night news. Some of us are crazy and monitor the market whole day. Some of us just put some money and leave it there. And some, only buy stocks when everybody is buying.

You see... The professionals have been around since the inception of stock market until today. The number of professionals are growing everyday, with new fund launching everyday in each part of the world. Have you ever ask why do these professional traders, after so many decades still in this field?

It's because they are making money. Making really really good money.

And if these professionals making really good money, who do they gained from?

It is us. It is our money they profit from!

So, if you really want to make money from the stock market, you should buy when the professionals are buying and sell when the professionals are selling. Why? Because they are making money and likely, we are not. Usually, we are at the opposite side of the professionals money. When they buy, we sell, When they sell, we buy.

Do not blame yourself for doing the opposite! It's because they manipulate our thinking. They have control over certain media and they can make you believe what they want you to believe.

Do you really believe that if the stock is going up, all the analyst whom being paid by these professionals will tell you in the public how good the stock is? If it is really good, they would have bought them already. Why they tell you to increase the demand and thus increase the price? And if the stock is so good, who is willing to sell? Will you sell if you hold the stock if you know it will goes up further? No, you will not sell. Instead you will want to buy more. Am I correct?

This is one of the tactic employed by professionals money so they can extract the money out from you. If they are not telling you that the stock is good, many will wary to jump in. However, if investment bank A says it is good, Investment Bank B says it is good, your favourite columist in the newspaper also tell you it is a good buy and people in forum telling you so too. This will make you easier to jump in and buy certain stocks. Because psychologically, people afraid to make mistake. But if everyone is buying, even if it is wrong, it is easier to blame on other things than yourself. You can say the market is bad, everyone is losing money, etc ....

Now, when you bought into the stock and it starts falling, will you jump out? Answer is, it is not so easy. Because again in psychology, if you jump out and you lose, that means your statement will comes in red. And doing that means admiting your losses. In other word, you made a mistake. Human nature is to avoid mistake. Let the stock run means avoiding this mistake. If you let it stay there, you might run into profit again. After that, you will start to look for more news to support your decision(Decision of not selling when the price falling). You check the newspaper. The well known analsyst says "Buy". And then you check investment bank daily report. It says "Buy". Then you go to forum, everyone says the drop in price is temporarily and judging from fundamental will rise again. So, you get all the news to support your decision. "Keep the stock!", you say to yourself. This is another part of human psychology.

Professionals have been using the same way again and again and human never change. That's why they can easily profit from us.

Forget the charts, forget the technical analysis and maybe forget the fundamentals. Fundamentals of a company does not change overnight. But stock prices do. If you can graps the logic behind all this "syndicate", you will start to make more money than you lose.

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Alright. Here is part two.

If there is one thing that you all must remember is this.

Do not forget that professionals money trade in large amount. If they want to buy, they need to buy during bad news. If they need to sell, they sell during good news. This is because, normal retail investors like us buy during good news and sell during bad news.

If professional money buy during good news, they will spike up the price. If they sell during bad news, the stock price will fall sharply because of their large volume. So, when it seems to be too good price to get in, it's probably is not a good price.

I am not sure how many of you know the game of Texas Hol'em Poker. If you play poker, you do not want people to be able to guess your cards.
Same goes to stocks.

If at anytime you see a large order to buy or to sell, be wary. All these orders are to make you believe that there is a large buying or selling interest in the stocks. As I mentioned in the game of poker, you do not want people to know your cards!

If someone wanted to buy a lot of stocks of a particular company, do you think he will tell the public and everyone that he is doing so? Of course not! That will only increase his buying price. Seller will sell higher price if they know someone wanted to buy so many stocks of theirs.

Let me get an example of large selling quantity in stock market.
In our market, you can easily see the best 5 buyer's price and best 5 seller's price.
Let's say Company A, trading currently at RM9.50
Here is the list of 5 best seller price with quantity.
3 units @ RM 9.60
2 units @ RM 9.70
5 units @ RM 9.80
10 units @ RM 9.90
155 units @ RM 10.00 <---- Large selling order

This create a situation.
For potential buyer, they see RM10.00 as maximum price the stocks could go in near future. Buying now seems have a thin profit potential. They will hold off buying untill this "sellers" are out of the market.
For stock holders who wish to sell. If they wanted to sell above RM10, they will think again. Because for the stocks to get past RM10 is very hard because a lot of people queueing to sell at that price. So, they will act smart and if they want to sell they will queue at RM 9.90. Why?
1. The queue is short in exchange with 10 cents difference in value per stocks.
2. Price unlikely to break through RM10 and they will sell at highest possible price.

Usually this will happens.
Stock price movement:-
Day 1: RM 9.50
Day 2: RM 9.70
Day 3: RM10.00
Day 4: RM 9.80
Day 5: RM 9.50
Day 6: RM 9.80
Day 7: RM 10.00
Day 8: RM 9.60
Day 9: RM 9.40
Day 10: RM 9.50
Day 11: RM 9.60
Day 12: RM 9.50
Day 13: RM 9.70
Day 14: RM 9.80
Day 15: RM 10.00
Day 16: RM 9.70
Day 17: RM 9.50
Day 18: RM 11.00!!!

Okay, let's examine what's happen.
Day 1: RM 9.50 (Stock holders looking to sell beyond RM10. Saw large selling order at RM10. Adjust selling price to RM9.90)
Day 2: RM 9.70 (Waiting for order to be done)
Day 3: RM10.00 (Sold. All short term stock holders out of the market)
Day 4: RM 9.80 (Moderate term and long term stock holder looking at disbelief. They wanted more than RM10)
Day 5: RM 9.50 (Stocks continue to fall. Half of moderate stock holder set RM10 as exit point as that is highest point and lots of sellers there. Quite hard to break RM10)
Day 6: RM 9.80 (Stock holders still waiting for price to move up before exit)
Day 7: RM 10.00 (Half of moderate term stock holders exit their position. Happy and celebrating because they missed the first time)
Day 8: RM 9.60 (Half of the moderate and short term stock holders releived that they sell early. Stock is dropping)
Day 9: RM 9.40 (Stock drop below RM 9.50. Another half of moderate term stock holders feeling regret)
Day 10: RM 9.50 (This remaining moderate term player set RM10 as exit as they missed twice. They see this as highest point the stock can goes)
Day 11: RM 9.60 (Still waiting)
Day 12: RM 9.50
Day 13: RM 9.70
Day 14: RM 9.80
Day 15: RM 10.00 (Celebrate and they exit their position!)
Day 16: RM 9.70 (Stocks coming down. All who sold their stocks knows RM10 is limit. Long term stock holders still holding)
Day 17: RM 9.50 (Long term player set RM10 as exit point. As technical analysis points out, this is the resistance line)
Day 18: RM 11.00!!! (All stock holders who sold their stocks regretted their decision)

We were taught to "Buy on support, sell on resistance". That is how professional money get all current stock holders to sell their stocks to them by manipulating on the support and resistance line. Only really long term investors will make money and they usually do.

All expert analysis, charts and brokers will tell us that RM10 is highest and many people selling at that point. How many times you see that all the order to sell disappear and the stocks jump right in front of your eyes?

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Alright. Today we move into why I started this topic.

I am an avid football fans. I used to play every week, twice and watch the game at every opportunity. That is what I love. So is trading.

Last year, I snapped my ACL on my knee, and doctor told me I need a surgery. For 4-6 weeks, I will not be able to drive. That means, I need to stay home for a month, or maybe more!

I know I will need to find something to do and I have decided that I will help whoever that need assistance - to monitor their Futures Trading account.

Yes, it is futures trading account, in FKLI in Malaysia market. Sorry, not stocks as I do not have in depth knowledge on that yet.

For this service, I will not charge you anything. It's a free service without hidden fees.
What I asked from you is, I want access to your current charting tool. I want to see which avaialable and how good are they. I rarely use technical analysis but I do need some information that easier to read compare to numbers alone.

If you allow, I can trade on your behalf. All losses are yours and all winners are yours.

I cannot guarantee my advice/insights will make you profit. What I can tell you is that I have seen lots of new account opening in FKLI and 95% if them lose money. Why? Because their indicator is overseas market. If Nikkei is up, Hang Seng is up, Singapore is up, then Malaysia should be up too. Right?

That's is the common formula used by all beginners and guess what, they do not just lose some, they lose all their money.
My advice is based on volume and psychology. That's all of them. No line, no Moving Averages. No fibonacci, no ADX.

If you are not earning through FKLI and would like a fresh approach, you may consider me as your partner and we work together. I am not after any commission.

IF anyone want to discuss FKLI over here, let's do it.

This post has been edited by Vitorbarbosa: May 31 2013, 12:11 AM

common sense

nice read

since no people post sumthing, I wanna ask.

I didnt get the second point. When stock falling, then what should the stock holder do?

This post has been edited by odour_stop: May 24 2013, 05:39 PM

I assumed you are talking about during good news, and price fall.

When this happen, usually what normal investor will do is to hold onto the stock. They will seek good news from various sources to support their decision. And if they sell, they will lose money and that is the considered a "mistake". People want to avoid "mistake".

What stock holder should do is to "sell" when stock price fall during good news.

Why? Because professional money sell during good news.

1 fact we should not forget is when we talk about professional money, we talk about large sum of money. Big quantity. If they want to sell off their stocks and get good price, the only time they can do so is during good news. Because during good news, many investors will jump in to buy.

Eg. Stocks A is trading at RM10. Suddenly good news come in. The quarterly earnings is better than expected by 50%. Very good news indeed! So, if investors see the price and still at RM10, many will jump in, seeing that as good investment and expect the stock price to move up further. But the thing is, every professional has that news and the stock price still not moving. It is because they are selling! And if they sell, we want to sell as well.

It is updated with my intention in the first post. It's a bit long but for whoever interested, I know they are not enough.

i am very interested......

This post has been edited by john123x: May 31 2013, 01:01 AM

You can PM me your locationYou can PM me your location. We can share with each other. I am in KL/Selangor area. Come find me.

Regarding this week KLCI index, all must aware that the market close with intense selling at end of Friday. This is usually a good news because with the close on Friday, the weekly candle will be in red. In short, last week was a losing week. This is a "fake sign" to investor that the market is going down. But if you analyze clearly, the drop happenned after market "close" at 4.45pm on Friday evening.

Why they do this?

Because on Saturday and Sunday, analysts will be able to call on the bear candle and tell you that it is risky to move into market now. The professional money wants you to hold your money, and get into market later.

See the movement at the last 15 minutes of trading window.


Now see the weekly candle. The last candle was last week's candle.


. We can share with each other. I am in KL/Selangor area. Come find me.

This post has been edited by Vitorbarbosa: Jun 1 2013, 09:23 PM

actually, i am thinking of shorting fkli instead....

To be honest, can't see FKLI dropping at near future. Retail participants is very low, about 10% only. Will only drop when retail investors % goes up to like 20%.

For current situation, rollover has been positive except on the last day. That means, June contract price is higher than May contract on last week except Friday. But that can be ignored because on Friday which is the last trading day for May contract, it follows FKLI index closely. But on Tuesday, Wed and Thursday, rollover has been positive. June price higher than May price and that is a good indicator the professional money thinks it will be higher in near future.

This post has been edited by Vitorbarbosa: Jun 1 2013, 11:37 PM