UNIVERSITI TEKNOLOGI MARA

Faculty Of Business Management

Bachelor of Business Administration (Hons) Finance

Academic Session
March – July 2020

(FIN552) BA2424C

INVESTMENT AND PORTFOLIO ANALYSIS

Group Assignment

PREPARED FOR:
Dr Hajjah Surianor Kamaralzaman

PREPARED BY:

Imran Azizi Bin Zulkifli (2018286292)

Muhammad Hanif Aiman Bin (2018205846)
Nizaruddin
Luqman Syaffiq Bin Omar (2018683066)
Muhammad Amien Shamil Bin (2018206248)
Ahmad
Mohamad Nazri Bin Mohd (2018440232)
Kamim

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 ACKNOWLEDGEMENT

First of all, we would like to thank Allah S.W.T and Prophet Muhammad S.A.W. It is
because of His blessing it is possible for us to finish this assignment. We had finally managed
to finish up the project with great enthusiasm and determination. All the time spend to search
and discuss idea as well as justifying theoretical clues to drive the output were worth out effort
and time, Insya Allah.

Therefore, I would like to acknowledge with thanks, the individuals who had guided us
in making this project. Firstly, we would like to thank to our (FIN552) Investment and Portoflio
Analysis lecturer Dr Hajjah Surianor Kamaralzaman. She had guided us on how to search
information about this assignment. Then, we would like to thanks to our parents that help us a
lot in sharing ideas and support our human resources studies. Not to forget the staff and students
of UiTM Puncak Alam that help us indirectly.

We hope our assignment is complete and will be received. We had used our effort and
acknowledgement to search information and ideas. We really hope that our effort was worth it.

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TABLE OF CONTENT

Title Page Number

1.0 Introduction 4
2.0 Factor Affecting Stock Price 5-6
3.0 Different Reading and interpretation 7-8
4.0 List of instrument traded 9
5.0 Group Stocks 10 - 14
6.0 Individual Stocks 15 - 19
7.0 Task for every member group 20 - 22
8.0 Strength and weakness in the trading 23
9.0 Unprofitable and profitable trades 24 - 28
10.0 Strategies can be applied in future 29
11.0 Conclusion 30
12.0 Appendix 31 - 50

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1.0 INTRODUCTION

Investing ensures present and future long-term financial security, the money generated
from your investments can provide financial security and income. Technically, anything that
generates a return is an investment. The thought of investments needs to come to your mind
since the day you have your first salary in hand. There are many reason doing investment and
people need to do investments, not saving money and keeping the same in your pocket or in
some hidden wallet in your wardrobe. Keeping money hidden is simply dead money that has
no value. It doesn't matter how you do it whether you invest in stocks, bonds, mutual funds,
options, futures and many more. Thus, investment is important in order to secure your financial
stability in the future. However, we need to understand how investment work to avoid big
losses, and in order to manage the risk there are many technical analysis that we can learn,
understand and apply.

The purpose of technical analysis is to help the investor make a more financially sound
investment decision. Therefore, with the introduction of Bursa Market Place by Bursa Malaysia
Bhd provides a complete range of exchange-related services including trading, clearing,
settlement and depository services. This is where we can explore and use multiple tools to
analyse stocks based on volume trading, price movement, latest developments and dividend
pay outs. We have assigned to join the game that created in Bursa Market Place with
RM100,000 for each student with one-month period given. In this game, we have to apply the
technique, theories and calculations that we have learn in FIN552 Investment and Portfolio
Analysis in order to make sure we have a better understanding in this subject.

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2.0 FACTOR AFFECTING STOCK PRICE

The main factor driving stock prices is investor demand. Stock prices rise when buy orders
outnumber sell orders, and prices decline when sell orders outnumber buy orders. Demand is
proportional to four factors: earnings, economy, expectations and emotion. Stock prices usually
rise when all four factors are positive and fall when all four are negative. Stock prices are
volatile because these factors change frequently.

1. Earnings
Publicly traded companies typically report earnings about three weeks after each quarter end.
Investors punish the stocks of companies that cannot meet their own projections or the
consensus estimates of research analysts. Stock prices generally rise when companies meet or
exceed published estimates and provide optimistic guidance about upcoming quarters.
Investors are often willing to pay a premium for companies that can demonstrate above-average
earnings growth and cash flow. The reaction on the downside can often be harsh. The markets
can cut stock prices in half or more when companies fall short of expectations, even by a few
percentage points.

2. Economy
The economic factors that drive stock prices include interest rates, unemployment and currency
fluctuations. Higher rates mean higher borrowing costs for individuals, who cut back on non-
essential spending, and higher interest expenses for businesses, which reduce payroll and other
operating expenses. Rising unemployment leads to further revenue and profit declines for
companies, and stock prices suffer. However, if the Federal Reserve lowers rates to stimulate
economic growth, consumer spending and business investment resume. This leads to a virtuous
circle of rising revenues, profits and stock prices.

3. Expectations
Stock markets tend to look ahead six months or more. The stock prices reflect expectations
about everything from revenues and profits to election outcomes. Companies usually provide
some guidance on their expectations for upcoming quarters. Research analysts use this
information, among others, to publish guidance on expected earnings and target price ranges
for hundreds of companies. Stock prices also factor in expectations about global economies,
because many companies rely on overseas markets to drive revenue growth.

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4. Emotion
Basic human emotions, such as fear and greed, also affect stock prices. An unsubstantiated
rumor about a revenue slowdown could lead to a sharp sell-off in a company's stock, just as
speculation over monetary easing can result in a euphoric rally. These sharp price swings
usually have nothing to do with the underlying fundamentals of individual stocks or even of
entire industries. Experienced investors ignore these periodic market tantrums because they
know that the underlying business fundamentals are going to determine long-term price trends.

5. Dividends
Dividends indicate the movement of share prices. When companies make dividend
announcement, the share prices of such companies are likely to increase. It is important to note
that if the dividend rate announce is lower than the investors’ expectation and vice versa.

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3.0 DIFFERENT READINGS AND INTERPRETATION

There are few ways for us to determine different readings and to interpret the chart of our
targeted stocks. There are few ways which is to identify the trend line, look for lines of support
and resistance and understand historic trading volumes.

1. Identify the trend line

Uptrends and downtrends are used in technical analysis to ensure that it is working
towards the investor favour rather work against it. Downwards sloping trendlines suggest that
there is an excess amount of supply for the security, Uptrend is a signal that the demand for the
asset is greater than the supply and is used to suggest that the price is likely to continue handling
upward.

There are two methods in which to trade using trend lines. Enter when the price finds
support or resistance at the trend line and enter when the price breaks through the trend line. If
a trend line has been identified and it is holding as support or resistance, then you can use the
trend line to enter into the market once the price comes back to it.

The trend line break method uses the actual breakout of the line to determine an entry.
When the price breaks through a trend line, it is no longer valid as support or resistance and it
is likely that the price will continue to reverse direction. There are two ways to enter using a
trend line break: an aggressive entry and a conservative entry. An aggressive entry is to enter
using a trend line break is to enter as soon as the candle breaks through and closes on the other
side of the trend line. A conservative entry is way of trading the trend line break and to wait
until the price has broke through the trend line and then tested from the other side as either
support or resistance.

2. Support And Resistance

Support is a price level where a downtrend can be expected to pause due to a
concentration of demand or buying interest. As the price of assets or securities drops, demand
for the shares increases, thus forming the support line. Meanwhile, resistance zones arise due
to selling interest when prices have increased.

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 Zone of support or resistance once identified, those price can serve as potential entry or
exit point because as the price reaches a point of support or resistance, it will bounce back away
from the support or resistance level or violate the price level and continue to its direction until
hit next support or resistance.

3. Trading Volumes

Volume of trade is the total quantity of shares or contracts traded for a specified
security. Volume of trade measures the total number of shares or contracts transacted for a
specified security during a specified time period. It includes the total number of shares
transacted between a buyer and seller during a transaction. When securities are more actively
traded, their trade volume is high, and when securities are less actively traded, their trade
volume is low.

Each market exchange tracks its trading volume and provides volume data. The volume
of trade numbers are reported as often as once an hour throughout the current trading day.
These hourly reported trade volumes are estimates. A trade volume reported at the end of the
day is also an estimate. Final actual figures are reported the following day. Investors may also
follow a security’s tick volume, or the number of changes in a contract's price, as a surrogate
for trade volume, since prices tend to change more frequently with a higher volume of trade.

Traders use various trading factors in technical analysis. Trade volume is one of the
simplest technical factors analyzed by traders when considering market trades. The trade
volume during a large price increase or decrease is often important for traders as high volumes
with price changes can indicate specific trading catalysts. High volumes associated with
directional changes in price can also help to reinforce support for the value of a security

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4.0 LIST OF INSTRUMENT TRADED

Trading have many processes to undergo before we go to buying and selling instrument
or commodities it is the very main core before start to buy or to sell, that is why it is very
important to set up a strategy and trading plan so we can identify which instrument or
commodities to choose to maximize our profit with less cost or risk in the trading market. Most
of the process of trading activity we use fundamental analysis and technical analysis method
to determine which instrument that we need to choose to maximize our profit. Fundamental
analysis helps us to know which companies’ robust growth and value characteristic while
technical analysis helps us to identify trading opportunities by analysing statistical trend
gathered from trading activity

All the stock that we choose have its reason. The first thing we choose the stock it is
the most active stock in the market, it has high volume which mean this stock is trade actively
between buyer and seller. Other than that, this stock is listed in the BursaMktPlace which mean
this stock have a strong market, this is the reason why we choose the stock because we believe
it can help maximize our profit in a certain period of time.

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5.0 GROUP STOCK

1.Trive Property Group Berhad

Chart 1: Trive Property Group Berhad

According to our Technical Analaysis, the shares in Trive Property Group Berhad
Increased to 33% in early trade in active trade. The counter rose from 0.5 sen to two sen and it
is one of the most active counters with 17.87 million shares done. Trive Property is involved
in property development and construction, as well as research and development of intelligent
battery management systems for rechargeable energy storage solutions. This is one of the
reasons why we choose to trade the Trive Property Group Berhad instruments. Furthermore,
we also used technical analysis to analyse the movement of the stock price. A contraction of
the Bollinger bands in early 2020 to may 2020 of the stock price shows a period of low price
and it is considered by traders to be a potential sign of future increased price volatility and
possible trading opportunities. Other way around, the expansion of the bands from towards
early December indicates the chance of a decrease in price volatility and it is a possibility for
us to exiting the trade.

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2.Top Glove Sdn Bhd

Chart 2 : Top Glove Sdn Bhd

Top Glove Sdn Bhd, During Corona Virus 19 (Covid-19), because the pandemic
happen around the world and the case rising day by day, the hospital need equipment such as
protective personal equipment which is the main is hand glove. So in 3 month trading, price of
stock increase from RM 5.98 to RM 10.395 (83.86%). This stock show gift more profit to
trader who take early action.

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3.SUPERMAX CORPORATION BHD

Chart 3 : Supermax Corporation Berhad

SUPERMAX CORPORATION BHD,During Corona Virus 19 (Covid-19), because the
pandemic happen around the world and the case rising day by day, the hospital need equipment
such as protective personal equipment which is the main is hand glove and mask. So in 3 month
trading, price of stock increase from RM 1.53 to RM 3.865 (154.97%). This stock show gift
more profit to trader who take early action.

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4. KPJ HEALTHCARE BHD

Chart 4: KPJ Healthcare Bhd

KPJ HEALTHCARE BHD, this stock is volatile stock because it take 5 day to price
drop to the lowest RM0.720 and reverse to uptrend to the high RM0.935. after that, the trend
is change to sideways and the price is not up high or low down.

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5. PETRONAS GAS BHD

Chart 5 : Petronas Gas Bhd

PETRONAS GAS BHD, this is the big oil company in Malaysia. Their main product
is oil and gas, the price of oil in Malaysia is follow world crude oil. If the world crude oil is
drop Malaysia oil also drop and if the word crude oil increase the Malaysia also increase. The
performance of this stock is is okay to buy for the long term investment it is because the world
crude oil is very low USD 3.43 per barrel and start to increase and now is 39.53 per barrel.

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6.0 INDIVIDUAL STOCKS

1. Luqman Syaffiq Bin Omar

Pegasus Heights (4464)

Chart 6 : Pegasus Heights Bhd

Luqman choose Pegasus Heights is because he used to follow the
indicator to help in forecast the price in future. He used to follow the moving
average to forecast the future price and also use a fundamental analysis such as
revenue growth rates which is quite high at 39.9%.

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 2. Muhammad Hanif Aiman Bin Nizaruddin

Datasonic Group (5216)

Chart 7 : Datasonic Group Bhd

The reason why Hanif choose this stock because of he used support and
resistance indicators in order to forecast the future price. For example, at the chart above
he used the support and resistance indicator which is support line reverse become
resistance line. It also the strong signal to buy this portfolio. He also used some
fundamental analysis which is gross profit margin at 54%.

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 3. Imran Azizi Bin Zulkifli

ACO Group Berhad (0128)

Chart 8 : AOC Group Berhad

ACO Group Berhad is new in Bursa and newly listed on since earlier of the
April. ACO is famous with electrical products for industries, commercial and
residential use. Since its still new on Bursa, Imran only rely on fundamental analysis
which is he confident that the price will go up in future because ACO is on electrical
business and nowadays people need and electrical in their life. The alpha indicator also
scored at 6 which is neutral which is not to high risk and high return but average.

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 4. Muhammad Amien Shamil Bin Ahmad
Mega First Corp Berhad (3069)

Chart 9 : Mega First Corp Berhad

Shamil choose Mega First Corp as instrument to trade because the trendline is
on uptrend since the FBMKLCI is on low during the middle of March. He also used
support and resistance indicator to set either to buy the stock. The price broke the
support at the first and become the resistance and break the lines. Here we can say that
the price is on the good level. Next, the fundamental analysis here is quite strong
because of the net income of the company is quite high. This also the reason to the
potential investor believe in this company to invest their money.

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 5. Mohamad Nazri Bin Kamim
Barakah Offshore (7251)

Chart 10 : Barakah Offshore Bhd

Nazri choose this stock because of technical indicator to help him to determine the
price for the future. He also used Moving average to determine either the stock is active or
not in the market. The alpha indicator on BursaMKTplace also stated that the score is on 6
which is neutral and the stock is on underperform. Since Nazri buy the stock at the low, so he
got the high return when the price is on high because he traded on the large amount.

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7.0 TASK FOR EVERY MEMBER GROUP
HANIF AIMAN
Task for Hanif Aiman is serching for information abaout the current situation. The
information about the current situation is very important for now. It is because the condition of
the economy is in very bad condition because of the Restricted Movement Order (RMO). Thats
why to gather the information abaout the company and the current situation is the most critical
task that must be done very specefic. This task have been given to Hanif Aiman because of he
good in searching for the information about economy and also searching for company
information.

MOHAMAD NAZRI
Next, the Task for Mohamad Nazri is make teachnical analysis for traded stock. The
other important task is to make technical analysis. The technical analysis result is the most
critical information that need to be done very details and careful because it will determine the
profit or losses that trader will get. If the technical analysis result is correct, the chance to get
profit is higher rather then making trade without any technical analysis. Otherwise if the result
is wrong then the trade can cause losses. This task is given to Mohamad Nazri because he can
make technical analysis even not good as professional.

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 AMIEN SYAMIL
Then, Task that given to Amien Syamil is to test the market stock price by doing the
early traded. Why this task is necessary? It is because he need to study about the game and rule
of the game. He also need to gather the information about how the trade is done. This task is
important because if all member make the same trade and same decision then the group will
only waste the trade that have been given in the game. It not only waste of the trade it is also
losses for the team because all of the member team making the same mistake without the team
member realize that they have make mistake and repeat it. The information from this test is
necessary to gain higher profit for the team.

IMRAN AZIZI
After that, the Task for Imran Azizi is to compile all the information that have been
gather by all team members. The information that have been gather but not be compile can be
use but there maybe confusion about how the stock trade, the movement of the stock price and
many more. This task must be done by someone who is very systematic in his work. This task
is very suitable with Imran Azizi because of his systematic attitude in making his work that
why this task is very suitable with him. He also can deliver the information to all member of
the group with very fluance that can help the other member to understand the information that
have been gather for the trade.

LUQMAN SHAFIQ
Lastly, task for Luqman Syafiq is to trade the stock using the information that has been
gather and compile. He also need to gain profit higher from any of us to cover the losses that
have been cause by us for the early trade to gain the information for the group. This task also
very important in order for the team to lead the game. That is why Luqman Syafiq need to save
his trade and making the higher and biggest profit from all of us.

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 In conclusion, all the task that have been given to all team member is very important
for the trade that are going to be made. So all member need do their task in order to achieve
the highest value of the game. After all the task have been done the result can be seen with the
achievement that have been gain by Luqman Syafiq as our team member who responsible as
last trader. That all the task and information about our team member that have been assign.

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8.0 STRENGTH AND WEAKNESS OF THE TRADING STRATEGY
STRENGH
The strength of our trading strategy is we allocate our capital to a few stock when we
are trading. With this strategy we gain reduce our risk of losses because when one of the stock
price fall we still can back up with the other stock that we trade. The stock trading is something
that we can predict but the prediction not always happen. That is why the allocation of capital
is necessary to reduce risk of losses. not only we reduce our risk of losses, we also increase our
percent of gain profit.
Next, the strength of our strategy is we also gather the information that very useful for
the trader to make stock trade. In trading stock world, information is very important and
valuable thing that all trader must have in order to make a successful stock trading. The
information that we have gather is really helpful when we making our trade. This statement
have been prove with the profit that have been gain by our teammate to cover our losses and
make our team lead the other team.
Then, weakness of our strategy is our team must make sacrifice our trade in order to
allow our team to lead the other team. The sacrifice is necessary to gain better or higher game
value for the team. Even though, this is the weakness of our team strategy it has become our
group strength because our team member will sacrifice what is necessary to achieve something
greater.
In conclusion, our strategy have it own strength that can allow us to lead other team for
the whole game. It is because we have success in allocate our capital and also we have gather
the information that very important for this trading game. With the strength of the strategy that
we create our team has gain the profit and we also gather the valuable information in stock
trading. Even thought, we have weakness in our strategy but it is necessary to make sacrifice
to gain something greater.

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9.0 PROFITABLE AND UNPROFITABLE TRADES

I. Profitable stock (Trive Property Group Berhad)

Earning profits into the stock market and taking care the of the capital is the type of
challenge for most of the investors. Our experiences, discipline and proper strategy
combined that made us to gain profit in stock market. Thus, we learned to protect our capital
first instead of making profit to avoid from getting loss and this led us to make profit by
using fundamental and technical analysis to identify how the company gain profits. Within
3 month of trading game, all of our group members managed to obtain the most profit from
Trive Property Group Berhad.

Trive Property Group Berhad stock was the highest profit obtained into our profits.

Chart : Technical chart of Trive Property Group Berhad

Based on the chart above, it shows the technical chart for Trive Property Group Berhad for 5
month, January until May. Our group members used trend line to indicate and analyze stock
chart by viewing the price of stock that led us to obtain our profit. As the chart above shown,
there is downtrend line occurred that indicates us to buy the stock in a short term perspective.

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Moreover, there is also an uptrend line occurred which indicates signal sell in a short term
perspective also. By doing the technical analysis, our group member Luqman had analyzed the
stock chart and informed other group members about the signal either buy or sell the stock. So
after done doing the analysis, all of our group members were able to obtain most profits from
this stock.

Unprofitable stock (Petronas Dagangan Berhad)

‘High risk, high return’ is a sentence that we often heard but in trading stocks reality, sometimes
the traders will probably facing losses during the trading instead of gaining profits. Even
though all of our group members had no significant losses from the trading, but Petronas
Dagangan Berhad stock is the most unprofitable stock to our group members which our
member failed or unable to gain returns from this stock.

Chart : Technical chart of Petronas Dagangan Berhad

Based on the chart above, it shows the technical chart for Petronas Dagangan Berhad for 3
month, March until May. So as the chart shown above, there is a certain day that the price
movement of the stock went sideway which there are no significant signal or strong signal for
our group members to sell the stock. At first, our group member Hanif as the technical analysis
told us to hold the stock and wait for it to rise. But then to avoid from having negative

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consequences in the future or facing losses for us, he decided to tell us to sell the stock when
once it is risen to the first bought price. This situation is not good for traders when they decide
to hold the stock for long time as it could waste the traders’ time to make sure they gain profits
from their investment.

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Group member’s profit
The total amount of profit earned by all 5 members are RM 153,630,502
1. Luqman Syaffiq

2. Imran Azizi

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3. Mohamad Nazri

4. Muhammad Amien Shamil

5. Muhammad Hanif Aiman

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10.0 STRATEGIES THAT CAN BE APPLIED IN FUTURE
Difference that we will make if we have the chance to play Bursa Market Place trading game
again, below are the changes that we would like to make;
1. Include Fees

In real trading world, there are several fees that investors need to make for a transaction of
buying and selling stocks to be done for. For example, brokerage fees and transaction fees.
2. Number of Stocks Understanding

In this game, we can buy as many stocks as we want as long as we have the money without
taking into consideration about the number of stocks available in the market. We need to follow
the availability of stocks in the market to trade.
3. Do not Overtrading

We must have only 7 or less stocks to follow in order for us to trackdown the price movement
and do not be overconfident about certain sector of stocks. The excitement of trading need to
be reduced and the patience need to be increase.
4. Reduce the trading count

The higher the trading count, the more we get excited to trade without thinking thoroughly
about the consequences of failure to stop loss.

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11.0 CONCLUSION

In conclusions, one of the primary benefits of investing in the stock market is the chance
to grow your money. Over time, the stock market tends to rise in value, though the prices of
individual stocks rise and fall daily. When it comes to investing in stocks, it is important that
the investor is capable of conducting technical analysis and fundamental analysis of the chosen
stock. Investors must capable to make financial decisions of buying, holding, or selling stocks
and analysing the stock charts by using technical analysis.
In Bursa Market Place, the trading game have help the student to implement every
technique and analysis to be more efficient in order to reduce investment risk and gain profit.
We must be aware of the historical and current stock trends and price fluctuations which are
all provided in Bursa Market Place. And with the help of technical analysis knowledge, we can
analyse all the information given to make a sound decision that can avoid the investor to incur
losses.
Thus, investor must set a goals because it is very important in order to channelize all
your strategies to the best of result. It helps in bringing the right strategy such as selecting
suitable and profitable stock, past trading activity, price changes as a signal to buy or sell the
stocks at the right time for the right move in investing. Investments in stable companies that
are able to grow tend to make profits for investors. Likewise, investing in many different stocks
will help build your wealth by leveraging growth in different sectors of the economy, resulting
in a profit even if some of your individual stocks lose value.

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12.0 APPENDIX
STOCK TRADED TRANSACTION
Mohamad Nazri

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32


33


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Imran Azizi bin Zulkifli Transaction Traded

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 36
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 38
Muhammad Amien Shamil Bin Ahmad Transaction

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 40
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Muhammad Hanif Aiman Stock Transaction

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 45
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Luqman Syaffiq Stock Transaction

48


49


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