How to Profit from Stocks with the 5T Formula
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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In the Bursa Malaysia market, there are more than 1,000 stocks to choose from.
The common problem for beginners is that they do not know which stock to buy and how much capital is needed.
There are probably many more questions when first venturing into the stock market.
Here, I would like to share an easy way to profit from stocks in the Bursa Malaysia market.
But which stocks are good and can generate profits?
Here are the tips you need to know for selecting quality stocks:
Before you throw your money into the stock market, first identify what category of investor you are.
Are you a day trader (intraday), mid-term or long-term trader? Why do you need to know this?
If you do not know what type of investor you are, you will find it difficult to control your emotions later on.
If you yourself do not know who you are, how can you understand the behaviour of the stock market later?
Before buying any stock whatsoever, investors must know the correct Trading Plan.
This means you must know these 3 things: Entry Price (EP), Take Profit (TP), and Cut Loss (CL).
Entry Price – The price at which you buy the stock
Take Profit – The stock price at which you take your profit
Cut Loss – The stock price at which you reduce your risk of loss
For example, before buying any stock, know those 3 things. Malaysia Stock Biz shows how to determine EP, TP, and CL by referring to the Technical Chart of your chosen stock.
Then determine the Support and Resistance as shown in the example below:
If the stock price has already risen significantly, do not be greedy and wait for it to go even higher.
Instead, follow the Trading Plan that has been set. If you do not, the loss ratio may exceed the profit.
So, follow the Trading Plan that has been established.
In our Supertrader class, we also teach about Support and Resistance.
If you are interested in learning more about Technical and Fundamental analysis, do not miss the opportunity to register for our Supertrader Class immediately!
If you open your trading platform, you can click on the Indices section, and select Listing.
Then look at the Chg% column to see which sector has moved the most.
You should also know that among the sectors that are usually actively moving are Energy, Technology, Construction, and Industrial Products.
So you can observe among these 4 sectors, which one has the highest Chg% movement.
Then go to Search by Sector to view all stock options by the selected sector and find which stocks have potential based on your capital.
This approach also helps narrow down your stock selection scope.
If you want to learn more techniques that can help with stock selection, our Supertrader Mahersaham class teaches 2 powerful techniques: MILO and MENJAHIT.
Places are limited, do not miss your opportunity!
By setting a target to buy 10,000 units or 100 lots of your chosen stock.
It can provide consistent returns for every bid increase. Remember to also take into account the fee for each buy and sell transaction.
For example, if the stock price is RM0.105 and you buy 100 lots, the estimated capital to purchase the stock is RM1,060 including fees.
Then with a 1 bid increase to RM0.110, the estimated profit obtained is around RM30 after accounting for selling fees.
So, if you aim to win 10 times in a month, you already have the opportunity to earn supplementary income from the stock market with an estimated RM300 every month.
If you want greater returns from the stock market, you yourself need to be diligent and persistent in analysing or reviewing stocks.
This is because 85% of your actions determine your success.
Whilst only 15% comes from external help.
Failure is not an obstacle; rather, it is the beginning of success.
Therefore, believe in the capabilities within yourself as an investor.
The 5T Formula refers to five essential elements in stock investing: Technical (chart analysis), Trend (price movement direction), Timing (entry and exit timing), Target (price targets), and Taking Action (execution discipline). Combining all five elements helps investors make more systematic decisions.
With capital as low as RM1,000, you can already buy 100 lots of penny stocks and generate profit from 1-2 bid increases. However, larger capital provides more flexibility in stock selection and safer position sizing.
Yes, but it requires discipline, strong analytical knowledge, and strict risk management. Investors need to set realistic targets, cut losses quickly, and not be greedy when targets are achieved. Consistency comes from having a system, not luck.
Among the main mistakes are buying without analysis (following tips blindly), not setting a cut loss, being too greedy when in profit, and investing money you cannot afford to lose. Investors also often fail due to impatience and changing strategies too frequently without giving the strategy time to work.
The key to profiting from stocks is not just luck — it requires knowledge, discipline, and a consistent system. The more you learn and practise, the higher your chances of success in the stock market.
Open a CDS account to start investing in stocks on Bursa Malaysia and put the 5T formula into practice.
Download the free stock basics ebook to master the fundamentals of stock investing before you begin trading.
Further reading: