Yesterday major newspaper screams market is very hot will high transaction volumes. Retail players certainly have their field day with high excitement and expectation. FBM SCAP index has crossed 19,000 points multiple times and racing to reach 20,000 points. As I write this, the transaction volume has exceeded yesterday's transaction volume. But surprisingly the trade values is more or less the same as yesterday's. Loser counters outnumber winning counter by 4 to 1. It shows today focus is very much on penny of the penny stocks. Some commentators even claimed that a lot of hot money has flown in. But it would be naive to believe hot money flows in to pick up penny stocks.
With the current market sentiment, I get excited too but not for the same reason like many people. It seems the party has 'started'. For good or for bad, it depends which side you are at. When penny stocks play has become the main theme, it is the sign of the beginning of something and at the same time it is also the sign of the-end of something. There will also be opportunity but that opportunity has to be cautiously measured. Most brave retail players will see current penny stock play is an opportunity to make quick kill for money. It is a game of the fastest competition of in and out. No more technical analysis or fundamental research. Some will said sarcastically - "technical analysis, fundamental research? What's that? Waste time la." Some even go further "Before I could finish reading the research report, I could probably have make several in/out from the market in fastest time even faster than my eyelid blinks and make money. Hell with the research report." I, for one, am happy with such sentiment but not for the reason to make quick kill, even though I did make a few quick punts just for the fun of it. Just for the fun of it. Because I know I will never get burnt with this. I just want to get by the day filled with fun actions. So that there is topic to chat about whenever get around together with friends. Similarly like betting on golf game. Whoever loses, he has to pay for the lunch meal for everyone. Never about money. Treat your punt this way, you are safe - mentally and emotionally, most important your wallet. But never forget your main goal is to make good money for long term. Penny theme play like this will come and go even before you know it. The one that makes the most good money is long term investment in good stocks.
What interested me now is not the current penny stock play euphoria, but rather what's next that is in store for us. What has Mr Bursa planned for us after this. If you can understand this and plan along with it, you will be more prepared for what come may. Stay invested. Stay safe and good luck.