Thinking of the share market since it’s now bullish?

Thinking of the share market since it’s now bullish?

A bull market is good, it means the bull is charging. Sometimes that charging bull may face some dangers but most traders are hoping for a bullish market so that they could gain more from their tradings. A bear market is bad, it means the bear is sleeping or hibernating. Briefly, means nothing much is happening and investors are also staying away since effort does not necessary mean much results. I think in recent days, the buying interest in Malaysian equities are rising.

Ringgit’s movement also meant that foreign investors are paying more attention too. Ringgit had just reached 18 month high yeah. “4.3805/3580 against the US dollar” (Source: malaymail.com) So, what’s happening to the stock market.

Article in thestar.com.my FBM KLCI opened higher, tracking the eighth consecutive session of gains in Wall Street markets overnight. It added added 0.86 points to 1,649.56 at the open, extending its lead after having surged yesterday to its highest level in nearly four years on the back of a positive second-quarter economic report.

“The Bursa Exchange ended on a positive note, driven by banking heavyweights following Malaysia’s strong GDP data last Friday.

“We anticipate that buying support may extend in anticipation of a stronger earnings season this month,” said Malacca Securities Research in its market review. The research firm added that investors are focused on the upcoming meeting in Jackson Hole, where the Federal Reserve may offer clues on the timing of the next rate cut. Do read the article in full here: Article in thestar.com.my

Trading is also a skill and experience do matter, do we have it?

I have many friends who trade actively. There was one friend who was a senior manager in a Malaysian based company =who had just resigned to become a full time trader just some weeks back. I am like, WOW. Another friend trades every night in the US stock market and seems to be doing well enough that he quit a senior manager role in a MNC a few years back. All these are not the usual people yeah. They spent effort, time and have the experience and the knowledge of reading signals.

For most of us, if we intend to buy, then it’s best to know the company which we are buying. Understand why the price has been moving up or down. Understand the dividends they are paying and perhaps even whether the company is having huge debts beyond their assets for example. If we buy a good company, at least even when markets are down and they follow, when the markets recover, they would as well. The last thing is to buy a speculative stock which had its bubble suddenly bursting and sending the stock price going down double digits within days. It’s pretty scary yeah, even if paper loss. So, remember, only move into the stock market if you have the money yeah. If we buy first and hope it will go up and it does not, we may have to borrow money to pay for them yeah.

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