What a day,

Seems to be the survey was still showing a likely Bremain few days ago,

And then against all odds, the result show that Brexit has won.

The factors involved in leading to Brexit are somehow complicated for us, who are far away from EU, to understand.

But every time when such a big event takes place, its shockwave is definitely sensible in KLSE.

Yes, you are experiencing a bloody Friday now.

The impacts from this Brexit still remain unknown to KLSE, but why money are fleeing away from KLSE?

Why a good company that is still performing well suddenly gets sold down by market?

One of the main reasons is because of uncertainties.

When we are dealing with probability, we tend to stay still when we have a ratio that is close to 50:50.

The best practice is avoid, so to prevent from exposing ourselves to higher possible risks.

Holding cash instead of shares, as uncertainties might bring a stock price south.

The vote outcome was beyond expectation, where most people think a Brexit may not happen.

This U-turn alone is impactful enough to trigger investors' nerves.

This Brexit could possibly signal a further segregation of EU, which is something undesired for investors.

Scenarion 1: Waling away now may cause your profit to stay around 5%~10%, but walking away later may cause you to lose.

Scenraio 2: Walking away now may cause you to lose 10% capital, but walking away later may further cause you to lose 30% capital.

Under such circumstance, what will you do?

Furthermore, EU referendum is not legally binding in the UK.

If David Cameron against people’s will and go for Bremain, it could also trigger emotion of those who voted for Brexit and leads to more arguments within the UK.

So until the ripples caused by this Brexit stone settle, we may see more downward movement coming.

But, not everything is so pessimistic.

During this volatile period, market usually becomes irrational.

When irrational takes place, value of good company in KLSE will also be underestimated, and this could be a good opportunity for those who believe in fundamental.

If your strategy is to cut loss to wait for a lower entry, it’s absolutely fine.

If your strategy is to average down, it’s absolutely fine.

If your strategy is to hold, well…fine.

If your strategy is to go for shorts, why not.

As long as you know what you are doing and you are responsible for all the actions, that’s all that matter.

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P/S: To sharpen my skill, I do share some stock watch in Invest for Life and facebook https://www.facebook.com/investforlife.com.my/.