As mentioned in the sidebar, I do not believe in technical indicators to trade the markets. I believe that the ultimate indicator a trader should pay attention to is price. Indicators such as MACD, Stochastics and RSI on the other hand involve dividing the price with "n", which produces a lagging number.
Therefore I only use simple support and resistance, volume analysis with a little pinch of fundamental analysis (earnings growth, D/E ratio, P/E) as my trading arsenal. This includes breakouts and bounces away and off support and resistance zones. Through painstaking research and a constant urge to find out what "works" in the market, I've come up with my own proprietary trading strategy that I call "EBS". It is basically a breakout strategy that buys only the best stocks.
For "investment" purposes (investment in my book means 1 year or more holding period), I will only buy quality blue chips at bargain prices, preferably those that have more than RM1 billion in market cap. Investing in REITS is also an option.
Money management for me is absolutely important. I am a conservative - in nature and in business. I will not risk more than 3% of total equity for trades during bull market or 1% during bear markets. For blue chips, maximum position size is 10% of total equity. I have a set of drawdown rules that will apply when I hit losing streaks.
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