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.

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