Trading plan PDF

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Course code:FIN 348Course name:Introduction to Technical AnalysisTopic:Trading PlanPREPARED BY:Name Matrix NumberMuhammad Daniel Bin Yusaini 2019228672 Muhammad Hazeem Ezariq Bin Mokhtar 2019231664Muhammad Aiman Bin Rosfridin 2019232132 Muhammad Izzat Syafiq Bin Mohd Shahril 2019296132Muhammad Azmir...

Description

Course code: FIN 348 Course name: Introduction to Technical Analysis Topic: Trading Plan PREPARED BY: Name

Matrix Number

Muhammad Daniel Bin Yusaini

2019228672

Muhammad Hazeem Ezariq Bin Mokhtar

2019231664

Muhammad Aiman Bin Rosfridin

2019232132

Muhammad Izzat Syafiq Bin Mohd Shahril

2019296132

Muhammad Azmir Haikal Bin Norazmi

2019247912

Lecturer Name: SUHAILY MAIZAN BINTI ABDUL MANAF

Index Content

Page number

1.0 Introduction

1

1.1 Goals

1

1.2 Mission Statement

1

1.3 Objectives

1

2.0 Money And Risk Management

2

2.1 Capital

2

2.2 Stop Profit and Loss

2

3.0 Methodology 3.1 Fundamental Analysis 3.2 Technical Analysis

3-5 3-4 5

4.0 Sectors

6

5.0 Tools

7

1.0 Introduction A Trading plan is a trading strategy that sets out on how us as a team can find and conduct trades, including the conditions under which we can buy and sell securities, the size of the position will be taken, how the positions will be handled, what securities should be exchanged, and other guidelines on when to trade and when not to trade.

1.1 Goals The goals for our team are we want to increase our value of our entire portfolio by 15% by the next 12 months. 1.2 Mission Statement The mission statement for our team is we would be able to trade high capital value without having the fear of taking loss.

1.3 Objectives The objectives of this trading plan are to make sure that we gain crucial experiences and good discipline throughout our involvement in the stock market investment in Bursa Malaysia.

1

2.0 Money and Risk Management Money and Risk management help us as a trader to trade efficiently and prevent losing our money. We will manage to maximize our profit and minimize losses in order to achieve our goals.

2.1 Capital Capital : RM 500,000

NAME

RM

Azmir Haikal

100,000

Aiman Rosfridin

100,000

Daniel Yusaini

100,000

Hazeem Ezariq

100,000

Izzat Syafiq

100,000

TOTAL

500,000

2.2 Take Profit and Stop Loss These are two important keys towards planning in trading. As a trader we should know what price we are willing to pay and at what price we are willing to sell. It helps us to measure the probability of the stock hitting our target.We set the stop loss 10%-15% of the losses based on the technical analysis to minimize the loss. Our target of profit is 10% and above to maximize the profit in the trading session.To decrease the risk of the capital we have considered to use the one- percent rule by using 1% of our capital into a single trade. The entry price is based on the technical and fundamental analysis that we have done before trading. All of our knowledge in Investment analysis will be used and efficiently to gain the benefits and experience of investment.

2

3.0 Methodology Methodology is a technique and collection of ideas or principles for collecting and validating information on a particular topic. The types of methodology used in gathering the information are Fundamentals Analysis and Technical Analysis. These analyses will assist us in making good decisions on selecting the best companies to execute tradings in the Bursa Malaysia. 3.1 Fundamentals Analysis Fundamental analysis (FA) is a method of determining the intrinsic value of a security by looking at related economic and financial factors. Our team will be looking at everything that can impact the value of a security, from macroeconomic factors like the state of the economy and market conditions to microeconomic factors like the company's management effectiveness. We can also differentiate the Fundamentals Analysis into 2 types of categories to ease our process of which is Quantitative and Qualitative Fundamentals Analysis. Quantitative Quantitative Fundamentals Analysis is one of the tools to invest properly in the stock market. The tool is linked to data that can be represented as numbers and amounts. In this context, quantitative fundamentals are hard numbers. They are the measurable characteristics of a business. The datas can be obtained from the companies’ Annual or Quarter Report. Examples of Quantitative Fundamentals Analysis that we analyze are : 1. Financial Statements - The businesses acquired a large amount of capital and the number of shares must not exceed 1.2 billion. 2. Balance Sheets - The businesses are making profit consistently. 3. Financial Ratios - Earning Per Share (EPS) must be positive for a good company - Price per Earning (PE) ratio is not too small or too big.

3

Qualitative Qualitative Fundamentals Analysis are a bit more complex. They could include a company's main executives' backgrounds, market understanding, patents, innovative technologies. This type of Fundamental Analysis is relating to the nature or standard of something, rather than to its quantity. Examples of Qualitative Fundamentals Analysis that we look upon to are : 1. The company’s business model - A business that highly demanded by the people 2. The company’s board of management - The board of management must have a line of potential and influenced key people 3. The company’s current and future projects - Excellent prospect of future projects 4. Government Incentives / Political events / Supply and demand

4

3.2 Technical Analysis Technical Analysis is the art of analyzing charts, statistical trends and price movement in the market. Our team will be using various types of technical tools to determine the signal to buy or sell. The technique is Golden crosses Moving Average, RSI, Chart Pattern, Support and Resistance. Golden Crosses MA Consist of Moving Average 50,200,26,5 Buy signal: All the moving average cross above all together in an upward trend. Sell Signal: All the moving average cross below all together in a downward trend.

Relative Strength Index The setting of RSI is standard 14 Buy Signal: When RSI line goes upward above 62% (for short-term trade) When RSI line make a pool below 30% line (for swing trade) Sell Signal: When RSI Is above 70% line When RSI pointing downward

MACD The Setting of MACD 12, 26 close 9 Buy Signal : When MACD cross above zero line Histogram turn green and go above zero line Sell Signal : When MACD cross below zero line Histogram turn reed and go below zero line Chart Pattern All the chart patterns will be included.

5

4.0 Sectors A list of stock market sectors being sorted to the members of the group. NAME

SECTORS

Hazeem Ezariq

Telecommunications

Azmir haikal

Consumer products

Daniel Yusaini

Energy

Aiman Rosfridin

Industry products and services

Izzat Syafiq

Technology

6

5.0 Tools

TradingView TradingView is made for day-traders and everyone else alike. You can view between one and 15-minute timeframes for stock changes. The platform has a thriving social media component amongst Bursa Saham traders, which allows you to trade and share ideas with other people rather than trading alone. The platform also allows you to set-up alerts and view multiple charts on the same screen for comparison. As with most stock chart programs, TradingView goes by a freemium model. ChartNexus ChartNexus was created out of the frustration that most applications were too expensive or high in difficulty in usage. As a result, its stock chart platform is free for everyone to use. It does not restrict its users in any way to paywalls. However, one could not see stock values during intraday trading, and could only do so at the end of the day, potentially restricting one to trade strategically midday. ISaham iSaham specialises in screening and ranking stock in Bursa Malaysia according to fundamental, technical, indicator and fibonacci data and analysis. Malaysia Stock Biz MalaysiaStock.Biz provides Bursa Malaysia's share price information, latest announcement for quarter report, dividend news, bonus/rights issue news for all the listed companies in Bursa Malaysia. This website is a free channel to access the Bursa Malaysia market watch information covered from Top Volume, Top Gainers, Top Losers, and up to each category and individual listed company.

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