1H 2024: Learning to Swim with Moomoo in the Waters of Bursa

My report card for my first 4 months with Moomoo MY (MM):

Note:

i). Posting this for MM Points

A). SAFETY FIRST: DON'T LOSE MY CAPITAL

Put on a "lifebuoy" before entering the pool! And that "lifebuoy" for me was MM's sign-up rewards.

All these provided me with a "lifebuoy" worth RM950 and confidence to explore the turbulent waters of Bursa

If I racked up losses to the tune of RM950 I would give up as that probably meant I wasn't cut-out for Bursa "swimming"

Next, I went through MM Learn's crash courses, got a couple of badges, and jumped straight into the water - the shallow end 😅

B). TREADING WATER & STAYING AFLOAT

My strategy was simple and crude:

1). CHOOSE

Find a stock with high market interest that experienced a significant pullback e.g. 6% or more. Check that the market has a positive sentiment over the company;

2). CALCULATE

Determine the capital (total costs of the shares) inclusive of trading fees (for both buy & sell trades), which would also serve as the breakeven price (by dividing it with the number of purchased shares). Calculate the profit-taking price by multiplying the capital with the profit ratio (5% for me) and dividing it by the number of purchased shares.

3). EXECUTE

Buy the shares and set a GTC limit sell order with the take-profit price.

4). MONITOR

(Forgot this very important part). Price might go up or down so I need to monitor my positions. The crucial time was when price went fown and I had to decide whether to average down my costs, do nothing, or cut loss.

5). TEST

This came in the form of the task of making 18 buy trades to unlock the RM50 cash coupon. If I could accomplish this without incurring any losses, I would deem myself to have passed.

RESULTS:

- 56 Transactions over 24 Counters

- 13 Realised Gains (no Realised Loss yet )

- 3 Unrealised Gains & 5 Unrealised Losses

CONCLUSIONS:

1). I likely wouldn't drown in Bursa since I could already tread the Bursa waters -  staying afloat shouldn't be much of an issue;

2). Lotsa movements & thrashing about but little distance covered. Based on rough calculations (excluding MM's Newcomer Rewards), my net realised returns were only around RM700 (divided by the 13 Realised counters would average out to RM53.84 net gains per counter) while my total trading costs were estimated to be about RM210 (a whopping 23% taken out of my Total Returns) . The bulk of these were Platform Fees paid to MM (Hint to MM: Any rewards for my hard work? ).

C). MOVING FORWARD

1). Fewer counters & greater concentration. Have to rid myself of my growing addiction to buying & selling multiple counters which is wasting efforts for little gains and not capital efficient 😅

2). Focus on IPO subscriptions & new IPO listings with my MM buddies. Less risky, greater rewards . We are still learning & refining our strategies.

D). FINAL WORDS

If you have read until here, I applaud your perseverance & thank you. I also wish you good fortune in your trading & investing, and good health, for health is wealth