As you know, I dabble in stocks but I am lucky (or not so lucky depending on how you see it) that I do not go to the "share market" (quoted because it is actually a brokerage firm but "share market" is colloquial speak) to trade. I do everything on the phone and online.
So my friend told me that nowadays, people are into day trading and I was like, "HUH?" Then it dawned on me that what he meant was CONTRA-trading as I know it. Back in the day when the KLSE was experiencing BULL RUN, with the CI close to what it is now but the prices were roaring daily thanks to retail players, I agree that contra trading was normal and even extremely profitable. You could buy ten or twenty lots and sell it within the week and get a handsome profit. Those days, we have a T+7 settlement period. Then it was shortened to T+5, T+3, whatever, in a move to kill off retail players.
What I do not understand is how can people still do this daily and maintain a profitable margin? I can see it with IPOs but regular counters? Not unless you keep it for a couple of months, at least, no thanks to the depressive volatile market.
I do know, however, that there are people who will willingly cut their losses and sell prematurely when prices fall, rather than HOLD. If I were to play in this manner, why would I buy in the first place? I might as well just put my capital into Fixed Deposits, right?
I certainly do not advocate this type of investment. The pressure is just way too much to handle that whatever profit is not worth the medication for high blood pressure.
So my friend told me that nowadays, people are into day trading and I was like, "HUH?" Then it dawned on me that what he meant was CONTRA-trading as I know it. Back in the day when the KLSE was experiencing BULL RUN, with the CI close to what it is now but the prices were roaring daily thanks to retail players, I agree that contra trading was normal and even extremely profitable. You could buy ten or twenty lots and sell it within the week and get a handsome profit. Those days, we have a T+7 settlement period. Then it was shortened to T+5, T+3, whatever, in a move to kill off retail players.
What I do not understand is how can people still do this daily and maintain a profitable margin? I can see it with IPOs but regular counters? Not unless you keep it for a couple of months, at least, no thanks to the depressive volatile market.
I do know, however, that there are people who will willingly cut their losses and sell prematurely when prices fall, rather than HOLD. If I were to play in this manner, why would I buy in the first place? I might as well just put my capital into Fixed Deposits, right?
I certainly do not advocate this type of investment. The pressure is just way too much to handle that whatever profit is not worth the medication for high blood pressure.
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