I have often noticed that some people are very afraid of getting into the share market.
I know people who have spent days and thousands of ringgit on share investment courses
but have not dared to even buy any shares and do not know how to invest in Malaysia.
Some people are what I would call “excessive worriers” They worry about how the world
and local market indices will perform, whether the fung shiu chart will be accurate, or
whether fundamental analysis and technical analysis are accurate, and how the world and
local economies will perform. All these are important factors to take note of but they
should not distract you from your objective of going into the stock market, which is to
I have also come across some people who compare prices now to a few months back and are
afraid to buy because the prices are so much higher now. For example, the price is now
RM 2 and six months ago, it was 50c. These people worry that since prices have gone up
so much, the prices can come crashing down again. They are afraid because they do not
know the likely short-term daily resistance(R) and support(s) price levels. If you know
that based on the last trading day’s closing prices, S is 1.90, then you still have a
chance to buy (if there is a buy signal) and make money before the price breaks the S
level, unless something really bad and unforeseen happens. The R and S levels may shift
after a few days, so it is important to identify them daily.
You cannot make money if you are always scared and worry about so many things.
I do not waste time worrying too much whether the DJ or KL indices will go up or go down or whether the FA or TA is accurate. The reports by analysts and technical charts cannot be accurate all the time but they have helped me make money. I just identify a few potential counters and concentrate on studying and tracking only a handful of counters at any one time to keep losses small and try to get big gains. Based on my experience, some of my tracked counters were still able to give me profits, even when the overall investment market sentiment was not good.
In summary, there is no need to be afraid of investing and trading in the share market
provided you know what you are doing, have a good plan and can manage your risks. The
share market can make you rich quickly but it can also make you lose a lot of money if
you do not have a good plan or are not careful.
I have just started a Case studies page. Glomac is the first share I will be tracking.
If you want to follow my first case study on Glomac,go to the top of this page and click
on the drop down menu under Home.
Feedback and constructive comments will be appreciated. You can also submit your shares
for some quick TA, which may be able to help you in making decisions when to buy, sell