The financial market of investment and exchange is an independent industry that functions in its way. However, many other factors affect the way it operates. These reasons include economic trends, inflation, deflation, and many others.

Meanwhile, these changing factors drive the way for several existing trading stages that a trader must experience.

Here we specifically focus on KLSE or Bursa Malaysia trading stages.

What is KLSE?

KLSE stands for Kuala Lumpur Stock Exchange, which is popularly known as Bursa Malaysia stocks at the current time. It is based in Malaysia, with its headquarters in the Federal Territory of Kuala Lumpur, Malaysia. This stock exchange is one of the largest in ASEAN (Association of South Eastern Asian Nations).
The many KLSE listings include:

● Exchange Traded Funds
● Equities
● Offshore Islamic Assets
● Other Securities

The services provided by KLSE include:
● Listing
● Clearing
● Trading
● Depositary
● Settlement

The trading mode of KLSE has been completely automated since 2008. With this brief, yet practical understanding of KLSE stock tips, let us look at the five stages of trading here.

Five Stages of Trading in KLSE

1- Bottoms

It’s the first trading stage where shares find a ground after facing a declining trend. The good thing is that it can be a point where price improvement can begin. Traders usually prefer buying stocks in this stage as they are underpriced to trade.

2- Uptrend

Regarded as stage 2 of trading, this is the time when participants can buy in bulk aggressively. There are two critical things to consider in the phase:

●In the early phase, a smaller group of committed share buyers shall be attracted.
●The later stage would draw more weak-handed followers and chasers.

3- Breakouts

In the breakout stage, the stock price goes away from a precisely defined support or level of resistance with a larger volume. A trader in the breakout phase has two options:

●They can enter the long phase after as the security prices rise beyond resistance
●Join a position when securities break below support

4- Tops

Tops is when the securities reach the peak price before it starts to decline. The cost of shares starts to fall downwards immediately after this stage.

5- Downtrend

A downtrend is when the prices of the securities start to fall, and traders hold a chance to benefit in this stage. The trader sells the shares and can hope to repurchase them later at much lower prices. The investor should understand two things in this stage: lower swing highs and lower swing lows.

These were the five stages of trading in KLSE that an invested trader is likely to experience. However, no matter how much you read, nothing can beat the practical experience of trading experts.
At The Learning Art, our experts help you build profitable trading and also provide recommendations on where you are making mistakes so that you can improve them. Reach out to us to get advisory and technical help (FOREX signals) services.