M’sian stock market to perform better in 2011

M’sian stock market to perform better in 2011 ; KUCHING: The outlook for trading in emerging markets, including Malaysia, will perform better on a relative basis in 2011 compared with both Europe and the US. Trader Larry Pesavento shared this view with Business News from The Borneo Post yesterday after his pattern recognition swing trading session with Kuching traders, giving them the exclusive opportunity to observe, learn and acquire the sage advice of the veteran trader who has been trading for about 45 years.

“It is a relatively new market here. Primarily, we are looking at crude palm oil and some related raw materials,” he said. “In South America for that matter, emerging markets are performing well thanks to the increase in prices of natural sources such as soybean, rubber, copper, steel and gold.

“The Malaysian stock market has done much better than most emerging markets such as Hong Kong, China and Singapore,” he opined. “But at this particular level, it is fully priced. In other words, I think that most of the ‘easy money’ has been made in the stock market.

“So now, certain stocks will do better than others. Not all stocks will go up. It will be harder to pick winners now because of the increase they had over the last two years.

“Sometimes, things happen but we don’t understand why. The fact that it is occurring is all we need to know (for trading),” he noted.

Pesavento underscored the key figure to note on the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) was 1,600 whereby should the market go above the 1,600 mark, the market could go substantially higher. “This is based on a technical perspective and not a fundamental one,” he stressed.

Currently, the trader is working on developing an automated trading system that is related to high frequency trading using the pattern that he has developed over the past 30 years.

The veteran trader even has his own bi-weekly radio show that airs worldwide on the back of writing several weekly newsletters and doing some private mentoring to traders worldwide. Pesavento’s advice to Kuching traders was to learn as much as one can before risking real money.

“If you see a lot of funeral cars in front of a doctor’s office, it is usually not a very good sign,” he said jokingly, using this analogy to reflect the red flags of trading with other dealers. “Do your research well and be careful of the quality of the individuals you are dealing with. “If you have the passion for trading, never give up no matter how overwhelming it may seem,” he concluded. For the latest updates PRESS CTR + D or visit Stock Market news Today

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