Malaysian Penny Stocks - Whales Already Bored?
Please, don't reach out to me, I don't have time to read your messages and comments and sorry, I don't care about you even if you are nice person.
The reasons why I only look at facts/data and not opinions because you can't not cheat or hide facts.
Here is one example. Year to date, Malaysia FMBACE index which represents small cap and penny stocks have been outperforming everything.
When you chart FBMACE against FBMKLCI, FBMSCAP, TECHNOLOGY you can see that it has been doing quite well.
Here, the FBMACE benchmark is almost at its all time high versus FBMKLCI since 2009 and about to break it.
What does this means? How do you interpret it? It just means that the FBMACE is doing its own thing and is not tied to the benchmark. Which means that the whales and syndicates who are operating these small stock stocks are bored and wants to pump these stocks.
Why the pump? Maybe they need to make money, maybe because retail investors are flocking to the market, especially considering that Bursa Malaysia has been making a lot of money recently. Why? I don't know.
As someone who has been in the market for the past few years, I am very cautious with this development.
Yes, some penny stocks will do 10-20x and then go back to ground and cause a lot of pain to the newbies. That's the reality of life.
I never encourage people to invest/trade in the stock market until they understand how the games are being played. In fact, I have been discouraging people around me to play the market until they understand how the whales/syndicates play the game.
If you are clever, you can make lots of money from trading these small cap or penny stocks but it is none of my business. I will trade and invest based on my risk profile.
I don't really care.
But you need to understand the game, then only you can succeed.
Regards.
The reasons why I only look at facts/data and not opinions because you can't not cheat or hide facts.
Here is one example. Year to date, Malaysia FMBACE index which represents small cap and penny stocks have been outperforming everything.
When you chart FBMACE against FBMKLCI, FBMSCAP, TECHNOLOGY you can see that it has been doing quite well.
Here, the FBMACE benchmark is almost at its all time high versus FBMKLCI since 2009 and about to break it.
What does this means? How do you interpret it? It just means that the FBMACE is doing its own thing and is not tied to the benchmark. Which means that the whales and syndicates who are operating these small stock stocks are bored and wants to pump these stocks.
Why the pump? Maybe they need to make money, maybe because retail investors are flocking to the market, especially considering that Bursa Malaysia has been making a lot of money recently. Why? I don't know.
As someone who has been in the market for the past few years, I am very cautious with this development.
Yes, some penny stocks will do 10-20x and then go back to ground and cause a lot of pain to the newbies. That's the reality of life.
I never encourage people to invest/trade in the stock market until they understand how the games are being played. In fact, I have been discouraging people around me to play the market until they understand how the whales/syndicates play the game.
If you are clever, you can make lots of money from trading these small cap or penny stocks but it is none of my business. I will trade and invest based on my risk profile.
I don't really care.
But you need to understand the game, then only you can succeed.
Regards.
Penafian
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