It's the post election stock market bullish euphoria!!!       !!!

Let's join the bandwagon but for goodness sake don't stand still before T3  and let the 'Bukary' train to run you down.

Don't let the element of hope to overule your destiny,act like RAMBO the mercenary in stock trading.You got another day to plan your strategy.Tackle the situation according to levels as the market is always there but not you as time is not in your favor where your risk profile will diminished.

The high trading volume which you are going to see days ahead are made by the action packed  Proprietary Day Traders (Pdts) and also known as Stockists who are a members of participating firms of Bursa Malaysia. They(the trader) has a dealer’s representative license and their trading account opened in the name of a Participating Organisation.

They are the privileges ones as they don’t have to pay for brokerage fee and stamp duty when trading in stocks on Bursa Securities.

Their cost in trading is only paying for the clearing fee which is a tiny 0.003% of the value of the stocks traded.

This explain why they can move or buy and sell any counters traded.

If you calculate their cost of trading(due to lower fee), the Proprietary Day Traders can makes money even the stock moves one price bid even on penny stock. For example the current price for Ramunia(THHeavy) is trading at RM0.57. When the price move one bid up from RM0.57 to RM0.575, profit would have be make.

As the name implied, they will close their position before the market close.

Their roles in increasing liquidity in the market and reducing the imbalance of long-term investors and short-term traders is important to the stock market. However they must be a fair and orderly market control in place as there is no level playing field extended to retailers and other institutional investors.

* There are 58 PDTs as at today

* They trade for the brokerage firm

* They profit earned has to be shared with the brokerage firm. Brokerage firm will get usually 60% of what the PDTs  earned.

* For losses, PDTs  will have to bear it 100%

* They can short(naked short selling) the market however it must close all  the open position  before market close. Therefore they will only trade stock with volume.

Proprietary Day Traders (PDTs) were introduced in January 2007 with the aim of increasing liquidity in the market and reducing the imbalance of long-term investors and short-term traders. Their introduction was also part of Bursa Malaysia’s effort to facilitate a more robust price discovery mechanism. Proprietary traders exist in markets around the world, and in Malaysia, anyone who has passed the exam for a Dealer’s Representative Licence and has five years trading experience can apply to become a PDT.

While PDTs enjoy incentives such as clearing fee rebates if they trade a certain amount in a month and can conduct intraday shorting, it is important to note that there are also restrictions imposed upon them and they operate under a controlled environment as licensed professional traders.

For instance, PDTs must close off their short positions within the day. Unclosed short sold positions are deemed to be in violation of the rules.

PDTs are not allowed to acquire the shares and all purchase positions must be closed within two days of the transaction date.

PDTs are not allowed to trade on the ACE Market and they are strictly prohibited from carrying out trades for clients of brokers.

These restrictions are vigilantly monitored to ensure that the benefits enjoyed by PDTs are appropriately used. Action will be taken against those found to have breached the rules.

So do you think company directors are playing?Do they have to charge their shares to bankers and pay interest for the collateral.?

Same case if you use the 'Margin Facility' offered by the sweet talking investment banks.Market in the money,the umbrella is still with you,Out of the money,banker say Go and Fly Kite,I need to force sell in the market.

Happy trading boys and girls.