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.....

http://forum.lowyat.net/index.php?showtopic=333833&st=0

i think u're late....finish already as they says

wow...they really sell like hot cakes....
only 2 to 3 transaction in each bank then sold out??lol

is there a quota for bumi?

http://pages.stern.nyu.edu/~adamodar/

The above URL bring you to a web site Professor Damodaran. There are class lectures, archived web cast, book on PDF format and so on. He is the current expert on valuation aka how to value a stock.

Dreamer

what trap is that?

lol, 2.75 sen and 27.5 sen is huge difference !!