Trading Futures is like starting a business. There is always a risk that your business venture might lose money. But if you dont try it, you will never know. As such, you have to save enough money first as a start-up capital and once you see a steady and positive result, you can slowly increase your capital...
The minimum amount you need to start trading FKLI is RM4000. Some of the attractions of FKLI are :-
1. If you are not experience in the stockmarket, its not easy to decide what shares to buy since there
are so many Companies out there and you have to do a lot of reading to find out about each
company. Not everyone has the time to do this. So trading in FKLI saves a lot of time as you only
need to know about the general outlook of the global and local market since FKLI is based on
KLCI. This is a good start to learning about the stockmarket.
2. The Leverage for FKLI (1 point = RM50) is higher compared to FCPO. That means, if you gain 20
points trading FKLI, you make a profit of RM1,000, but the reverse is also true
( ie, huge profit, huge loss).
The minimum amount you need to start trading FCPO is RM6000. Some of the attractions of FCPO are :-
1. Its a consumer product and our biggest buyers are China and India, both with very big population.
So, the demand will always be there.
2. The market for bio-diesel is growing due to environmental concerns and rising price of oil. So, more
demand for CPO in the future.
3. High volatility. In the futures market, its easier to take advantage of price fluctuations if the market
is volatile since you can buy or short-sell.
4. Risk is lower compared to FKLI since 1 point = RM25. So, if you lose 10 points trading FCPO, your
loss is RM250, compared to RM500 for FKLI.
5. Malaysia Boleh ! 100% Made in Malaysia! Support Malaysian goods ! ;p
Thursday 29 September 2011
Wednesday 28 September 2011
Is this for you ?
If you are looking to make huge profits in one day, then I am probably not the right person to guide you.
If you have no money and you hope to make money from Futures, then this is probably not the right way to go about it either.
My trading idea is basically short term trading with a long term outlook. In other words, making small gains every day is better than risking more than you can afford to lose in one day.
So before you start trading, please make sure you are aware of these two things :
1) Understand the risk involved - when you trade futures, stocks or even Unit Trust, there is always a risk of losing money. So,
the question you should be asking is not whether
- will I make Profit/ Loss ? ; but
- will my Profit be higher than my Loss ?
2) Minimum Risk Capital - you must have additional income which is used for investment purposes
only and which you can afford to lose. As such, before you start trading, make sure you have saved
up enough Minimum Risk Capital in excess of your daily expenses, emergency cash and savings.
If you have no money and you hope to make money from Futures, then this is probably not the right way to go about it either.
My trading idea is basically short term trading with a long term outlook. In other words, making small gains every day is better than risking more than you can afford to lose in one day.
So before you start trading, please make sure you are aware of these two things :
1) Understand the risk involved - when you trade futures, stocks or even Unit Trust, there is always a risk of losing money. So,
the question you should be asking is not whether
- will I make Profit/ Loss ? ; but
- will my Profit be higher than my Loss ?
2) Minimum Risk Capital - you must have additional income which is used for investment purposes
only and which you can afford to lose. As such, before you start trading, make sure you have saved
up enough Minimum Risk Capital in excess of your daily expenses, emergency cash and savings.
Why Trade Futures ?
With the current gloomy economic outlook, shares and commodity prices are on a downtrend and this includes Gold prices.
By investing in Futures, you are able to adopt trading strategies which will allow you to take advantage of price fluctuations despite the current economic slowdown. Below are some of the attractive features of Futures compared to other investment tools :-
1. Short selling - Traders are allowed to short-sell to take advantage of a bearish market and thus are able to profit from an uptrend or a downtrend.
2. Leverage - Higher returns with a small outlay of capital. See also my posting on Leverage and FKLI/FCPO.
3. Low Transaction cost - the cost for trading Futures is much less compared to investing in shares or property market.
4. Trading Strategies - Due to the flexibility of Futures trading, there are many trading strategies that can be adopted to maximise profit and minimize loss, such as scalping, spread trading, etc.
By investing in Futures, you are able to adopt trading strategies which will allow you to take advantage of price fluctuations despite the current economic slowdown. Below are some of the attractive features of Futures compared to other investment tools :-
1. Short selling - Traders are allowed to short-sell to take advantage of a bearish market and thus are able to profit from an uptrend or a downtrend.
2. Leverage - Higher returns with a small outlay of capital. See also my posting on Leverage and FKLI/FCPO.
3. Low Transaction cost - the cost for trading Futures is much less compared to investing in shares or property market.
4. Trading Strategies - Due to the flexibility of Futures trading, there are many trading strategies that can be adopted to maximise profit and minimize loss, such as scalping, spread trading, etc.
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