Sorry for jumping into this "interesting" discussion late. Anyway, I only read from page 16 onwards...so what I am going to say might already being said.

First, about Technical Analysis. If one were to go into investing that require usage of TA, I must stress that TA is a very powerful tool if you know how to use it properly. Combined with Fundamental analysis, it can become a complete skillset for share investment. Theorically, one can actually invest by only using TA. It is quite possible to make money this way. Because most TA methods took years to evolve and those trends usually do not deviate. Deviation would happen only in certain cases like certain announcement or natural disaster and so on. For cases like natural disaster, nobody can predict. Not even if you took all method of analysis into consideration. These are risks that everybody have to take in investment business. So, don't tell me crap that TA doesn't work. It does work if you know how to wield it properly.

Second, don't waste your time with Malaysian stock market if you plan to pursue full time share trading. TA doesn't work that well in Malaysian market because of the way stocks are traded here. Most of the TA methods derived from US/UK market which already see a very established market with very strong backbone. Malaysia market have so low trading value compared to US. Anyone with enough money can easily manipulate Malaysian share market because of it's low trading value. Also, we have lots of uneducated aunties and uncles who play shares purely based on speculations. Most of the time, professional market players can easily relaase some speculations and you see those aunties/uncles start panicking. If you do want to play local stock market, play long term. Short term margin based method is just not worth the risks.

Third, you have money and really interested in share investment? They best one I see so far is "Options". This is something like futures but it's based on real stocks. You can read more about it at

http://www.optionetics.com/
http://www.cboe.com/
http://www.optionsxpress.com

If you are interested there is a local person teaching options trading method. His site is

http://www.celestialoptions.com

I do know this person and I can tell you he is very technically incline with ways of trading options. There are a few other options trading lecturer in the market but most of them are not as technical as this guy. One speaker from Singapore only teach of you one easy weasy method and aims for making quick bucks for himself. Anyway you can survey around by going to their introductory seminar which is free.

BTW, not many countries have options trading. Even if some have, the volume is not high enough. Only in the US that the volume is volatile enough for trading. Depending on the method you are applying into your options trading strategy, you can make lots of money (more risk) or less money (less risk). If you ask me, I think this is a better investing method than Malaysian share trading. Options and Futures both rely a lot on TA and less on speculative news. Therefore, you don't need to waste time listening to news and stuff. But that doesn't mean you don't need to. Sometimes, some important announcements do play important role on the share.

Once you are into these things, you will know how to position yourself in the share market world.

Goodluck on your investment.

This post has been edited by abubin: Dec 29 2005, 12:20 PM

Hi,

For introducing options here. A must have arsenal for serious traders
IMHO.
First.
I have mixed feeling about TA, I find that TA tend to lag behind price movements. Integrating or using many TA signals produces conflicting signals some buy and some sell. TA can't be used in every market type. These are my observation and from testing(Underlying QQQQ. Currently in range). I use parabolic sars and bollinger band for a 6 month period. I am curious what are you using? Care to share There are many TA backtesting software but I have not explore this yet. But still the best TA I found are support and resistanse.

Second.
I believe this is very true regarding our share market. And besides on the subject of options , Malaysian are European style and the volatility is low.

A great website for beginners, highly recommended for paper trading
http://www.optionsxpress.com

IMHO keep your hard earn cash and head on to http://www.thinkorswim.com/tos/client/index.jsp. There are online session that you can read in pdf files. The cover greeks ,strategies and many stuff. If you read them all then you can jump to intermediate .And also they have a very powerful software platform. The only thing I can complain are their commisions but it is worth it.

Ya abubin I know which singapore guy you are implying . Did you attend his seminar?

And in the immortal words of Max Ansbacher(The New Options Market) "No matter how much you know about an option the success of a trade depends on the subsequent movement of the underlying.

Abubin,Maybe we can start an option trading group.

Until next time

why do so many people fancy trading options?

Because you can use lots of strategy depending on how greedy you are. There are all type of strategy for making quick money, risky money, stable money, big money and so on. Once you are experience enough, you can mixed them according to stock signals and by this time, I am sure you can make at least 10% return per month. That's 1,000 for 10,000 you invested, in USD!!

Once you know what options is, you won't be bothered with Malaysian market anymore.

I am saying you won't lose money but it's not as easy as losing money in share trading. You can make money if share go up or down or even sideway!!!

Hey, QQQ is one hot index among options traders!!! It is especially stays very true to TA charts.

On the type of charts to use, it really depends on your strategy. Parabolic sars is not commonly spotable and it's rare. The results also not very reliable. You have to look at other analysis to get more accurate picture. Usually parabolic sars comes with some sort of news announcement.

On bolinger band, I find it quite interesting. It can help a lot with predicting turnaround of a share.

Anyway, I have stopped trading options for sometime now. Will continue back later...really no time lah. I am in some sort of hibernation mode....

what about forex?
is options better than that?

I had forgotten malaysian market a long time ago,futures and forex ftw for me.
But i was forced to invest it for the sake of other people,it is the most boring market i ever seen in my life,i just sit infront of the computer whole day,and the price just move sideways all day,providing me the opportunity to spam in LYN.

see? i got to top 10 today lol

wow your a licensed person btw u working for which securities?
anyone here who is really trading and not just talking ?

You mean won't or could?

UGPM

he means could la where got something that won't lose money if got tell me i go do it

Cheaper but cheap does have it drawbacks.

You project options trading like picking money from trees.

TA is more an art than science. Lets leave at that.

You mean commision wise?
What do you mean by top ten today?


I am paper trading.

What is UGPM? And what are the perks getting a licensed? What it is for? How to get it?

Get a job.

UGPM =you got private message.

The licence refers to Investment Adviser's representative or Dealer's Representative licence under the Securities Industries Act.Dealer's representative is the term used in the SIA for Remisiers.

With the current stock market condition,these licenses are,in my opinion and without offence to anyone,worthless.

paper trading? no cash involved? u can earn 1k a day ma?

*applauds


btw..did you take the license test directly or study other stuff about stock market and investment 1st?
because i going to study these kind of subjects too,but i cant find a decent college that has these subjects.

trade ourself better than reading all their analysis

Are you also a Dealer's Representative?which firm are you from?

nope,i'm still not old enough to sit for the license test.

I did once in paper earn more than 1 k from HPQ not in 1 day though.
OX.
HPQ
8/17/2005 O STC .HPQHE-HPQ AUG 25 Call 10 1.35 15 1334.94
8/12/2005 O BTO .HPQHE-HPQ AUG 25 Call 10 0.25 15 -265 $1,069.94
Total Realized Gain/Loss for HPQ $1,069.94

And FYI I have achieve what those Gurus always trumped in their seminar on my own. The only difference is those 500% or more profit don't come often, quite rare in my case sometimes just pure luck . I am now working on consistency of profitable trade + huge profits. And just to add I have been wiped out in my paper account a few times with a USD 5k starting capital. I am thankful I heed some good traders advice not to play with real cash first because like all profession you need to educate your self before you can have the skill and experience to go work.

IMHO the current market lacks the volatility to generate huge profits in one day.
I do have an account in ThinkOrSwim but don't have the courage to dive in yet. I am testing the dynamics of various strategies. Currently I am testing covered calls and some event driven trades. Are there anyone out there currently trading either paper or real cash?

This post has been edited by whtrader: Jan 4 2006, 08:57 AM

sifu, wut us TOS?

your trading paper means no cash involve rite? like if i buy 10k PBB stocks today and sell in the same day no cash involve can consider trading paper ma? with real cash i do it b4 also cos couldn sell it in time

I am no sifu, what I have learnt and read can be acquired online. Just put in the neccesary effort.

Are you implying liquidity?
Don't really understand your point.