Sunday, 8 December 2019


Gross Profits : RM15,186
Return on Investment : 37%
Duration : 9 minutes

We just did the math recently. RM1,666 in profits every minute. RM27 in profits per second. This was a fast one.

On this blog, we are generous with our information sharing. Learning is one thing though; application is another. And in this regard, our competitive advantage lies in our ability to apply, faster and better, than most people out there. (Editor's Note : sorry for the boastful tone)

We are extremely competitive about trading; oftentimes we are driven by rage and/or fear. But most of all we are guided by the desire to do the following :  

what is the best trade we can make given the circumstances?

Think of the butcher. He or she cuts large hunks of meat every day; it's their vocation. Given time, experience, and a lot of trial and error, they eventually will become better at butchering. They will do it faster, thus optimising their outcome of getting as much meat properly cut by the end of the day.

The business of trading is like that. As a vocation, we can only improve with experience. Certain things become ingrained in our minds. Reaction time is quicker. We even start spotting interesting things and patterns in a flash.

And as we get better - so the idea goes - we are able to execute a trade faster, and derive bigger profits.

As practitioners of price/volume analysis, this was essentially the key to our success in the SCNWOLF trade. We have seen the same pattern before, and we had to act fast.

The problem is that in the realm of instinct driven trading, there is not much we can teach you other than the amusing but irrelevant observations above. You can't exactly truly apply what we just said; the experience has to be your own, not to mention the time and capital commitments that come with it.

And yet, we keep writing about these kinds of trades, simply because it is such an amazing, powerful tool in our arsenal. We want to convince you that this is entirely possible to do, and to repeat. There's not many other avenues that can earn you RM27 a second, OK.

To get more details on how this kind of trade works, we'll keep it simple: it's really a repetition of how we traded GETS, DOLOMITE and SEDANIA in the past. Price/volume analysis, pattern recognition, followed by quick execution and exit. The catch is that you absolutely cannot screw up any of the three, otherwise your profits will go poof. 

Our advice? Read about those three trades, and come back to this one. Our profits in these type of trades are getting larger; our improvement as traders is an ongoing process.

As you can see, the reward is worth the effort.


What do you make of a chart that looks like this? The stock was essentially dead before December  rolled around.

SCNWOLF daily chart - 2 December 2019

And if we break down that big spike into 5-minute charts, the movement looks like this:

Yes, roughly nine minutes was all it took. But of course, when we were in this stock, and with our large sizing, those nine minutes felt like forever. Einsten's theory of relativity never fails to amaze us.

So much had to happen in those nine minutes, and we somehow trained ourselves to synthesise info and turn it into a trading opportunity. But getting in was one thing, staying in is another.

If there were a second-by-second account of this trade, it would look somewhat like this semi-fictionalised internal dialogue.

Stage 1 : Pattern Recognition + Information Seeking

2 December, AM

9:13:10 - saw SCNWOLF movement at 20 sen levels. Bloody thing was last traded at 14 sen the day before. This was a big move - WTF?

9:13:35 - checked Bursa Malaysia company announcements. Stupid old laptop - loading time is slow.

9:13:58 - oh no wonder, some good earnings there. Uncles will be chasing this stock, maybe. The early ones get the gains.

9:14:15 - damn, it broke 20 sen! Low liquidity at levels above - everybody's buying, no one's selling!

9:14:18 - shit, here we go...

Stage 2: Execution - Purchase

Aite, first dip in the waters....

20 seconds later... big lots commitment.
48 seconds of observation... it keeps going up. Let's get juuuust a bit more.
About 3 minutes later, after getting nauseous looking at large gaps in prices. Last hit.

9:18:34 - OK, think we're done. If this thing goes back to 20 sen, we're screwed. Keeping the faith though. 180,000 lots is big though - damn.

Stage 3 - Holding on for Dear Life + Getting the Hell Out

9:20:15 - What the hell... this thing is skyrocketing. Obviously the feeling is... should've bought more.

The next five minutes of our lives looks like the following minute-by-minute price chart...
We actually sold at 28.5 and 32.5 sen

This thing jumped 20% in seconds! It's really time to exit on the way up... the mania won't last forever. Even more importantly, we can't sell large sizes once nobody's around to absorb them.

Let's get the first bit out of the way..

OK, time to jump ship. Bye.

And that's pretty much how it's done. A nine-minute tale for the ages.

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