I hv not read the book mentioned and don't think I can give u a straight forward answer.

If you look back the KLSE for the last 10 yrs,the Index has tested low of 300 and a high of 1300.It is around 900 at the moment.(I don't hv the actual figures with me and am speaking from memory)
Whereas if u look at individual stock prices over the same time horizon,some stocks appreciated by leaps and bounds,but some stocks r trading at a fraction of it's price 10 yrs ago.

So,whether the mkt is on a uptrend is individual's perception.

Hi there,

Just wanna ask your opinion why is it the derivatives market in Malaysia being so illiquid ? Other than FCPO and FKLI (or maybe FKB3) the others are so dead, even the OKLI has had no trade for almost two-year period. What could be the factors leading to this ? Is it investor's education or the product itself is simply not good enough to meet investors' demand?

Thanks

Wha is derivatives market and how does it work? I don't have any idea... I hope we can promote learning here.

My clients stopped trading in the futures market few years back.I'm just renewing the license everyyear to keep it .
I will try to give some reasoning as to why the Malaysian futures market is illiquid other than Crude Palm Oil and KLCI.

1.The concept of hedging is relatively unfamiliar in Malaysia,There's fear and stigma relating to futures trading and is frown upon by many producers and consumers,this resulted in poor liquidity and if the retail client find that there is not enough liquidity ,they will shy away.This really is a chicken and egg problem as the hedgers also will not participate unless there is enough liquidity.

2.As mentioned by you,investor's education ,one of the important link,is lacking.The education process should also be extended to include the producers and consumers that hv not been using the futures market to dispel their fear and to start hedging in futures.The bond and klibor futures are very good products where banks can actually used to come out with new lending instruments where interest rates can be pegged and the borrower know exactly their cost of borrowing over the tenure of the loan.Unfortunately,the futures contract did not take off.

3.There's perception by some retail clients that there is unseen forces interfering in the price discovery mechanism which I tend to concur.Look at the divergence of prices in the cpo and klci and the cash mkt that occured so often especially towards expiry/maturity of the contract.Retail clients hv been bitten too many times.

4.With due respect(if u r a FBR),there r some FBR(Futures Broker's Representative)that r not very ethical ,they only care abt their commission income and either churn the account or advise the client to trade freqently beyond their financial abilities.I think FBRs should take a long term view of their career and put client's interest abv all others including FBR's own.I may sound holistic but that is the only way for us to survive in the industry.

5.There were many many futures contract thst did not succede,tin,cocoa,rubber,palm kernel oil,just to name a few.many of them did not succede due to no demand.I think the exchange has learn some lesson and is launching less new contracts now.

6.The govt must leave the running of the exchange to pure enterpreneurs and not bureaucrats.Commercial decisions should not be overuled,eg.the single stock futures was vetoed the last minute by Dr M (hearsay only but quite reliable)

Sorry.some are out of topic!


Pl feel free to give your views and feedbacks,lets learn together.

In your opinion, do you think it is possible to time the market and gain from short term trading? There are so many seminars advertised daily in the newspapers claiming to teach people to time the market. They even show the pictures of those who successfully did it. I am really sceptical about this. Anyone been to such seminars before?

Hi, i just wanna ask how to know where n who need investment to their company?
im not rich, but small investment?is there any small investment?
i mean every1 who not rich sure start with small investment rite?if no borrow $$ or loan?

As invester, is it if the company u invest lost some money u also needpay back more to it?or v just lost the $$ v invest?

how v know there is any small investment?how to reserach the company is gaining or losing?
how to know by not cheated?

I believe you invest in a business by buying % of the share within the company ...

You lose your money when you bought the % share at the company drop ... For a small sized non listed company, you lose your money when the networth of the company drops... For example, you own 50% of the company and the company's net worth is RM100,000 ... But soon, the company suffer losses and the networth dropped to RM50,000 ... So even if you bought 50% at RM50,000, you can now only sell it for RM25,000, hence, you lost RM25,000 ...

I don't think you're liable for any debts of the company (depending on the type of small business you are referring to)...

I have no idea how to find small investment, but to research a company's financial profile, you can best look at the balance sheet of the company within a time frame say for example 5 years ... By digging through the balance sheet of this 5 years, you can tell whether the compnay is growing or losing ...

*How do you know not cheated... Erm, I don't quite get this question, sorry ...

Hopefully what I said is correct and please correct me if I made some mistake

cheated mean there is lot online company is cheating investment $$.....how v know those are not cheat?

r u currently working in investment related?

im not in business field, im IT field...so i m not so familiar with business thing, so how can i know more n experienced more on it?


if wan involve in that, of course v need very experience in protecting business n our own right ,rite?
is there any contract between invester to define theri right n loseslike policy?

This post has been edited by samantha: Oct 29 2005, 11:23 PM

No ... I'm actually still doing my final year now in engineering...

I like investment/financial stuff alot so I spend some time reading books related to these areas (though sometimes I still get my facts wrong...haha )

About online company, are you referring to those autosurt or things like that? As far as I know, they termed these sites as HYIP which I think, is too risky

There are some online investment (mutual funds and etc) website like Vanguard which is verified and trustable ...

Most of the time, people would invest in a company by buying a share of a particular company listed over the share market index board and most of the time, they would keep the share for quite a period of time like a few years and sell the share when they achieve an increment in turnover rate such as around 20% ...



Can you be more specific in your questions? Sorry, I don't really get what you meant by involving in that ? You mean in your investment or involving in a business of a company?

involving in the investment........

oh, I see ...

Well, basically every investment has it's own risk and there is no risk free investment (even FD also has risk, but really really really small risk) ..

I don't have much idea what is the right protecting an investor investing in a company, but as far I'm concerned, there's no policies which are protecting an investor from losing money .... However, a partner in a company will not be liable to any of the debts the company has ...

Perhaps someone more experienced can enlighten us?

hmmm.....mean v r not tight up to their debts la..the worst is v lost the $$$ v invest rite?

where can v get more infor on investment?the knowledge?

This is a good place to start with ...

http://investopedia.com/

I think what they mean by "timing" the market is using some sort of mechanism to figure out when a particular counter is overbought/oversold. They call this "technical analysis" IINM. As for whether it works, why not try what they call "paper trading" ? at the very least it'll get you some experience

Yes, what they called timing the market is to use various technical analysis (candle stick, bar, pivots and etc) to determine whether the market is going bull or going bear ... From there, they'll time their entrance and exit in the market

Yes, there's quite a number of paper trading website like Oanda or metatrader (both of these are forex trading) ...

yeah right I lost my chances to earn 10K using my 5K when I know that share is drop below market value I didn't buy because some stupid broker advice me not to buy.

One question, do you always go with what the advisors/brokers says or your own guts? This is a general question that is directed to all of you.

Personally, my experience with these people is that they dont really want to give you advice as they are afraid of giving the wrong information. Most of the time they just tell you that's its your decision and they arent's gonna say anything to affect that. So most of the time they are just afraid of being sued. If its possible that is. Not sure about malaysian laws regarding the presentation of information.

So on the one hand, its your money and ultimately your decision. On the other hand, you may not have the expertise needed compare to said advisors.

So guys, what do you'll think?

er.. my question is a bit out of the flow..

anyone know anything about investing in gold in malaysia??

i was told by a fund manager that there's a cyclical trend - equities & bonds will be trading well, then commodity will trade well.

anyway, he believes that the cycle now is for commodities and i've heard that gold is a good thing to invest it ( if got war, gold is still valuable).

oh, i also heard from a jeweller that diamond is a good investment as well.

Diamond is a girl's best friend.

wat do u all think abt gold & diamond investment??

Hmmm, personally for me, I would research on a stock myself, talk to my broker about it and see what he thinks, take into account his opinion and look at the stock again ... Then I'll decide whether to buy or not on my own...

I'm thinking like this is because there are some unethical broker whereby they want you to trade as much as possible so that they can earn they money from your turnover each time ... However, some of the broker they refuse to give you tips because they do not want to risk losing their big time customer ... Let's say out of so many nice advice he gave you, he screwed up one or two and you lost your money, what are you going to say ?? Of course you'll spread rumors saying that this broker sucks big time by giving you false tips and etc ... IMHO, name and reputation in this field is rather important ...

(A perfect example is how one of the forummers who is unhappy about his broker, this is how all of us human will react, we tend to put everything on others instead of realizing we ourself has made some mistake too )



Haha... I never thought anything about diamond or gold before ... However, I did heard that some ladies tend to invest in all these commodities like for example, my sister's fiance's sister tend to collect diamonds, well, IMHO, it's kinda true as these items doesn't really fluctuate that much and they doesn't depreciate in value over time ... Unless one day someone found a huge reserve of gold mine, than it's a different case ... However, alot of fake and imitation items are on the market today, so I guess we must really be very very careful ... Besides, these items are "hard" items and imagine you have RM100,000 worth of diamonds ... Where are you going to store it? As I remembered sometime back, there was a lady where RM80,000 worth of jewellry she stored at the bank's safe was all gone ...

Isn't the price of an ounce/gold at an all time high? Wonder if nows the time to be buying?
Just my 2cent.