Hi, Silveru, thank you for contributing towards this section ..

Anyhow, I find that it will be very confusing in the future if there's too much similar threads ...

Therefore, I merged your topic and edited the current title

Thanks. I'm in the learning process as well. Do hope I can help you out. Well, are you looking into the cash index aka Kuala Lumpur Composite Index (KLCI). I'll give you a brief overview of KLCI. Everyday, you should be observing from the news, that the Index is up 3 points... blah blah blah. Everyone will be wondering how does this come up. Basically, our index consists on 100 shares. These 100 shares are known as the bluechips as well.

Some news might quote heavyweights. Heavyweights usually refers to Maybank, MISC, Tenaga and Telekom. Reason being is of the 100 shares, these shares has the highest weightings. Say if Maybank drop 10 cents, our KLCI index will drop 1 point. If PBB drop 20 cents, our KLCI might only drop 0.5 points as the wightings are lower. I will post up the weightings of the top 20 bluechips so you can have a rough knowledge. This is the same for other countries as well. But Malaysia BOLEH! Have the most stocks wan. Haha... Hong Kong's Hang Seng on has 30, Singapore's STI has 50 and Japan's Nikkei also has very little only la. Can't remember

Also becoz we have so many, our index don't move a lot. This is because volume traded already low. Back to your question, you cannot trade in the KLCI. You can do so by buying the 100 shares based on the weightings but no one will do that. The easiest way is through futures. Do look into my FUTURES posts.

Look into this URL so you have some rough overview on how KLCI news is being reported: http://www.bernama.com.my/bernama/v3/news_...s.php?id=163546

Indeed, for currency, very very easy to get burnt. You can only trade online. You can look into http://www.fxcm.com/ or http://www.xpresstrade.com/. They have something called mini account whereby you don't need to be rich to trade. Only a small amount of USD300 is required to start an account.

Why get burnt easily:-

a) You are trading in USD. Meaning more money is used.
Depending on which currency you are trading, some fluctuations are very big. Especially if you are trading the Great Britain Pound (GBP) or Japanese Yen (JPY). Take for example you think GBP will go down. So you sell GBP and buy USD. Do bear in mind the mechanism of currency is whereby you need to buy one and sell one currency. So after you sell GBP, say it went up. then you think it might come back down, in only a matter of 30 mins, it might go up 200 pips. For the mini account, say you only buy 1 lot, that costs you USD200. Then you think it will go up. But it doesn't until 3 days later. Maybe by then you deposit with them already finish and they will automatically close out your position. So you can lose all easily.
c) High volatility of currency is because everywhere around the world is trading currency 24 hours a day. Some banks want to hedge their risk. Big big petrol companies are constantly buying or selling currencies to hedge their business risks. Compared to a small potato like us, we are nothing. This is the reason for the danger in currency trading.

Their is a simulation given on http://www.fxcm.com/. Download it and try using it. It's free. You no need to pay anything. They will like give you money and you just use the money and play for fun. Like a game. Try it and you will know roughly how trading of currencies work

Hope this helps

silveru, its a good explanation of why people get burnt. Which is why you need to study properly and have good risk & money management.

In your example, if your account size was only USD300, you would never open 1 lot. Instead you would open 0.1 lot and 1 pip would cost you USD1.

High volatility is the reason why you trade. How would trades earn money then?

There is danger in everything that is traded. People lose their shirts because they are greedy. Enough said.

Ken

how much to open a CSD account?

If i'm not mistaken is jusr RM10

I will open one from my friend

Hi there, just to make the list complete you missed out FMG3 (3-year government bonds)
Great to know a dealer online BTW, I work for the Clearing House

whut is clearing house?

Hi,

There is an alternative way to play property. It is called Real Estate Investment Trust (REIT). You can buy and sell unit in REIT in small quantity. There are small number of REIT (3, I think) in Malaysia but more are coming out.

Dreamer

why don't you read books written by expert[s]...
i.e what kind of investments you're into..
i suggest books written by Azizi Ali. You can
learn something from him. It's not that
technical and quite easy to understand but the
investment fundamentals are there. At least
you know what to do and make your own
decision wisely...

Hi, perhaps you can have a look here
http://www.mdex.com.my/mdch/mdch.htm

yeap 3 types..
i`m interested how this REITs...err wats it future in the malaysian market?
besides add on the mesdaq part.

add on,About azizi ali part, tats another topic for ppl who r alredy half way in career.Azizi Ali is much more for those who alredy making quite a money and wan to make more..to me he is like RDPD of Malaysia
If you r talking about securing personal finance while you just started ur career, i might recommend The Money Book, by CAP of penang ..it is worth reading about how to manage your way up so dun ended up debt section ...(IMHO)

This post has been edited by Geminist: Nov 6 2005, 11:15 PM

Yeah, there is a lot of 'sifu' here. I need time to digest all this info. Even some of the terms and abbreviate i don't understand.

All this 'sifu' can guide me on where to invest.

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It's great seeing such a good participation in this topic and moreover, this topic is something which I like ...

However, because of this reason, please kindly refrain from posting things such as "thank you" or "wow, it's great, hope I can learn from you all" and etc, so that more information can be posted instead of single one liners holding no information (This is because if there's too many one liners, this section would extend quickly and alot of information will be buried under the earlier pages ... Of course, questions and information are welcome here

This makes life easier for ppl who wish to scroll back up to read more about what is being said previously ...

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KVReninem, please kindly use the edit button if you wish to add in more information and when there's no one posting below you the next time

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Lastly, thank you very much for everyone here who's contributing and keep all the infos coming

AFAIK,unless u hold a private banking a/c,individuals hv no direct access to Govt Bonds.Nevertheless,investing in Govt bonds only give u slightly better interest compare to other interest bearing instruments available in the market.There is no capital gains.

There is an alternative,the Ambank group recently launched a Bond Fund listed in Bursa which can be bought and sold in quantities of 100 unit(Stock name ABFMY1 and stock no. is 0800EA).This bond fund invest in Malaysian Govt bonds which is what u r looking for.But mind u,this instrument is very thinly traded and there is unlikely to be any capital appreciation.

This post has been edited by lklatmy: Nov 7 2005, 09:14 AM

By looking at the current market, what is the recommended investment between bond and equity? What I know from my friend is that bond is depend on the bank interest rate. When the interest rate goes up then the bond price will drop and vice versa. He also mention that bond is a conservative investment that more stable than equity.

Volatility can work for you if you r right,it work against u if u r wrong.

Futures trading is a zero sum game,every dollar made,there's a loser.

If u(I mean other forumers) are new,I would advise you to refrain from short term trading until you hv gain enough experience and build enough guts.and yes, never be greedy.You can't fight the big boys.A case in point is the CAO case that happened recently in Singapore.

This post has been edited by lklatmy: Nov 7 2005, 12:01 PM

I agree with your saying besides investing also involved philopshy of war, and not easy to understand.
Iklatmy, Whut is the CAo case happened in singapore?do mind to tell wuts the story about it?

I read an article in The Star business section today about a bond that is indexed to the inflation rate. The value of your principal will appreciate according to the inflation rate plus another interest rate (which is not very high, I think). The attractiveness about this type of bond is that your purchasing power will remain the same while you get to enjoy the benefits of an interest rate.



For all the "sifu" here, do you think this bond is attractive? I think it can serve a very good purpose to place our emergency fund, right? If we withdraw our money from the bond before the predetermined date, are we going to get any interest? Wait, is there a predetermined date for withdrawal to start with?

(http://biz.thestar.com.my/news/story.asp?file=/2005/11/7/business/12444972&sec=business)

Silveru, i think i need to ask you this
CIMB is offering CIMB-principal fund...
lots of list under it..
UT stuff i think..
how do you see either it is worth it or not?

Hi All,

I have recently joined Alliance Unit Trust called MoneyPlus Fund.
Anyone have any idea about it's potential?
Thank you

Vincent