Normally we save an amount of money for emergency purpose before we do investment. How much is the ideal amount for this emergency fund?

Some say 6 months. Others say 12 months of your income.

I'll take whatever figure just as a guide. More importantly, is to establish the amount that you feel comfortable with. I only put into investment what i'll be prepared to lose in the worst case scenario.

i read in some book they says that if u employee=3month, businessman=6 month

So, u lost half of ur savings on forex?
nway, im still verry confused here about making money even the price go down..
they say after u buy some lot, if the price goes up, u sell em..
n if the price go down, u buy a new lot(Sell new) where u can earn profits even the price drop coz u can buy close at the lowest price... is this true mr Dreamer101??
its like 10% chance of loss.. but when i read about forex, about 90% of forex investors lost all their money...
are the agent of the company tryin to hide sumthin from me?

Talk is easy and costless, in real trade, mistake might mean losing chunks of saving even for some go broke. Think twice and calculate how much you can risk before venture into this kind of risky speculation/investment particularly forex and futures. I am not saying forex and futures is not good, but bare in mind this kind of investment has bigger risk so return also looks hefty.

When you are actual trading, emotion, fear, greediness and unpredictable market sometimes lead to you make mistake.

yup, i know wut u mean there..
coz rite now, im investing in the stock market..
n its not as easy as it looks..
u cant juz buy wut u want, n u cant juz sell wut u have...

1) I lost half of my savings in Internet stock trading. If it was Forex, I would have been bankrupt.

2) It is very simple. You predict whether the exchange rate is going up or down. If you predict correct, you make money. If you predict wrong, you lose money. The problem is the movement is usually very small. So, you make very little money on each trade. To make real money, you either have to make a lot of trade (killed by commission) or large trade ( leverage 20 times = huge risk)

3) What people did not tell you is in stock trading, if you do not do margin and stock option, you only lose the money that you invested in. In Forex, because of leverage and you must do levarage to make real money in forex, you can lose up to 20 times the money you put in.

Dreamer

The question is if you lose your job, how long will it takes for you to find a new one. The emergency fund is what you need to keep you survive..

So, if you think you need 3 months to find a job, you needs 3 months of emergency fund. Or else, 6 months. And, if you think recession is coming and it is harder to find a new job. You need more emergency fund.

The same logic applies to businessman. What happen if your business is slow or no business, do you have enough cash flow to survive?? 80% to 90% of small business failed in the first 2 years because of cash flow problem.

Dreamer

This post has been edited by dreamer101: Aug 30 2006, 08:54 PM

If you are really interested in forex then try paper trading here OANDA. You will learn more with hands on than what anyone can explain here. Notice that you do pay commission in forex even though many brokers claim there are no commission. The commission is the difference between the spread, mostly around 3 to 5 pips.

This post has been edited by whtrader: Aug 30 2006, 11:19 PM

Hi guys,

from the kopitiam thread people are saying the goverment is issuing more ASW2020 tomorrow,the divident yield is 6.8%.

how true is that?anyone going to buy?

what is this FXCM?

btw i think this is a HYIP case in court

http://thestar.com.my/news/story.asp?file=...2060&sec=courts

yep its confirm...u can join the queue early on September 1....but the 6.8% dividend yield is this year punya maybe next year only 6.5% who know .....last year they pay us 7.1%

ASW2020 is a good fund, I think. This fund is issued by government and the dividend yield is quite high. However, I understand that there's quota for bumi and non-bumi. Normally, quota for non-bumi will be full on the 1st day issuing. Not really want to go there early morning and queue there to buy the fund.

There is no free lunch in this world.

what i am worried is actually the recession that might or might not be coming soon....currenty the trend is once in 10 years.next year is 10 years after 97crisis.

it's all about timing,if you invest now then next year or 2 and the recession coming,that you need to wait longer to gain profit from the lose.

or may be wait till recession had pass and the market refresh for another 10 years?

Ah_suknat,

Buy something that will survive the recession and do well..

Dreamer

Any examples for this?

David83,

Just check which stock survive and do well during 97/98 currency crisis. I think PBB did okay..

Dreamer

how many of you here fell for the asiatic trap?

can confirm or giv me d link where u all heat d news? coz i mayb wanna buy leh.....