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2010-01-28

What Cause Panic Selling

















Yesterday FBM KLCI drop as mach as 20 point in 2nd season trading and recover a bit back at end of the day. You can see yesterday drop mostly in bank sector like CIMB, AMMB and PBBANK all this share is profitable share.














At early of the month news roll out still positive and for the month of January likely will be a safe time zone to invest into share market however share market always surprise us at the end. Normal retail investor likely to invest start 18 Jan to 22 Jan and plan to take profit at the end of January but all the big fund know how mach retail investor in the market and I think likely the number of retail investor is big and is the time to cause the panic selling. Due to the plan to take profit at end of January when the market drop a lot most of the retail investor will panic and sale they share at low price.
























For me yesterday I just buy in into some good share like TopGlov and PBBANK and AMMB-CG because to my investment plan buy during red sea and sale during share rally. A panic selling is a good opportunity to buy good quality share. The policy set by China is to cold off a bit the economic because not point your economic going too fast when US still far from recovery and planing to flow out trillium of US paper dollar. For me FBM KLCI should need to worry about the flow out of FDI fund, with the policy set by Malaysia most of the FDI is running away and this we should need to panic!

1 comments:

Unknown January 28, 2010 at 6:30 PM  

hi, is anyone a stock investor? i'm UCSI student and doing final year project. asking whether can you help for do a 5 mins questionnaire survey for my thesis purpose? thanks alot !!!!
http://www.surveymonkey.com/s/VMFPWBX

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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