meaning i will take back all my cost....sorry if i spell it wrong

What's this?investment scheme or trading techniques?please post more details.
....................................................
More details on trading of SSF:

1. ten stocks initially,

2. minimum movement is 2 sen per tick,

3. all open positions will be cash settled on expiry,

4. brokerage

underlying stock price and brokerage per roundturn
................ .........................................................

below Rm5 , Rm30

Rm5 to Rm10 , Rm40

above Rm10 , Rm50

5.Initial margins is around 20% of the underlying stock price.




Base on the details,you need a least 3 ticks to make money if you trade in Genting.Anyone knows other details on different brokerage rates and the rate for day trade?

double post

This post has been edited by xtorm: Apr 25 2006, 04:05 PM

i think the split around 8 points. (buy vs sell)

comision they take is 120usd per transaction.....

more details i dun really know. still learning, but i when to 2 of tis company with the same amount needed but the 2nd 1 i when hav lower comission

Introduction (jump to my 2nd post if you boring reading these)

Ok, now you start working, earn some money, and trying to make some good use of your hard-earned "blood sweat" money. So what would you do? But yourself some good gudget from lowyat of course and then you are thinking about investment.

First of all, your saving account, is not considered as investment, its interest is so tiny and it is solely for you to ATM your money and pay to lowyat model shop or hardware store.

Many people invest in Fixed Deposite, good and steady, you put in as monthly basis you will get 3.1% per annual. Sounds great, so if you put like 100k in FD you will get 3100+ more per annual. Really great rite? But the truth is, for example, our inflation rate for March 2006, is estimated as 4.8%(feel like 16% if your charkueyteoh increase price 50cents), ie you paying 4.8% more to buy stuff, or your money lose value for 4.8%, that means you are still losing money if you put money in bank.

So, people are thinking about other better solution thou. Stock Market! You might say, thou i am not too familiar with stock market, but i do know there is a risk to bear with much higher potential return. You can make 20 times more then FD or lose 90% of your money in one week. Plus, you have to study which stock you want to buy, track them yourself, etc. And you need to buy a few kinds of stock to diversify your risk, say one of your stock lose money, the rest might earn money and still can let you earn net profit.

Buying property like house or land require money, so not suitable for fresh starter to 1+ years working people, unless of course, you say your father or grandpa is rich and willing to buy you a house or land. Property is a good way(if not best) of investment thou, which usually its value will appreciate after years, usually many times much higher then FD, EPF even if deduct the loan(assuming you taking loan to buy property) interest.

(note: buying cars is not buying property, it is just pure expenses, or pure debt, you need to pay for fuel, maintanence, and your car value depreciate like hell especially if you buy certain brand)

So, tata! HeRe comes the Unit Trust! 2b continued...


☺

thanks for the great info...looking fow hearing 2nd part

as I know,

unit trust is a fund of investment.

investment there not 100% got profit, so there might loss also.

unit trust usually long term investment compare like stock are short term.

there got many type of unit trust,

some is income type, some are growth type.


BTW, I thought inflation rate was only 3.6% this year ? thanks for the info !

As far as I know, unit trust is pretty slow. You might need to invest couple of years to see the return. If you have those patient, it might suit you

slow and steady wins the race? once we play this stimulated stock game in coll.we had to pit out each other and then found out that if u just play the same amount all the time even stock up and down u will surely get returns end of the day(long theme)

yeah unit trust has slow returns. Its like something u invest for your old age too. Unless you're a sesoned financial consultant or what and knows about when there will be a rise in unit trust. Then u can sell it with a bit of profit.

well, I can say is

it depend how the fund manager put his/her strategy.

for example, if is a income fund which invest in fixed income / bond

then it will gain matter of time. but the return maybe a little bit higher than Fixed
deposit only. (it also subject to change depend the fund manager strategy).


else, like equity fund which invest to stock exchange. It maybe going up and down

form time to time. which different from you play in stock is.

- your investment been manage which stock you manage your self
- long term compare stock
- fluctuation rate are lower than stock

Ok here comes the part 2

I will just talk about what should you know about unit trust, not going to touch too much on the inside(who manage the money, who approve, etc, i am not too sure)

Tata! Here come unit trust! Some people(agents) said it is just like FD, you put in money, lump sum or monthly(you want weekly also can), and you earn interest. The concept is somewhat similar but actually there are differences(of course).

Firstly, unit trust (UT) company will charge you service charge, which is a one time charge. Also, there will be an annual fee, something like annual management fee. All these charges is what the unit trust company lives on, they are not doing charity you know.

Service charge = (sell price - buy price)/sell price x 100% = ~6% ('cept bonds cheaper)
Annual mgnt charge = usually 1.5%, depends, bonds usually lower

Wowowow, so many charges, and still say just like FD!? Told you liao mah, its different one, becoz the unit trust companies are not doing charity, they need to support their wives to buy cosmetic and their kids to buy transformer. But wait, dun run away first, let me tell you why the heck you should pay these people rather then put in you hard earned money to bank and let them to shark other people.

And also, UT have risk also, doesn't mean you sure sure get double or triple of EPF interest everytime, you might also lose money in short term. But, usually(note, usually only, not always), you earn more with UT in long term. As long as M'sia grow, your UT grow So, if any agent tell you that garentee got so and so return(eg, garentee 300% return in 15months ) you tell him go back eat oat. Remember, no such thing is easy peasy speedy money.

Firstly, there is a company of expert to manage your funds, you dont have to go study the stock market to invest in unit trust, nor you have to have first hand news to ever able to earn anything. They will worry this for you, and they will decide which area(stock, bond, equity....) to invest, surely they can decide better then you(sure a UT company wont hire a monkey as their fund manager?). And you, just have a peace of mind, put in money and wait, just like FD

Remember the risk diversify i mentioned when investing stock? You also dont have to worry about this, the fund managers will worry about this, your UT fund is nicely diversified into a range of stock or bond(depends on the type of UT you buy) and even some in FD as well. So you will have a well diversified risk profile. Remember, diversified risk doesn't mean no risk, you still have risk, but minimum risk, it also depends on the risk profile your UT is. But you wont lose like you lose in stock market la, as someone has mentioned, UT is very slowww, so thats the point, you lose money also slowly lose

And also, you can start invest in UT for as low as 1000, and you get all the benefit of UT, like diversify risk(what else you can diversify with 1000 only btw, you cant even buy 1 lot in stock!), fund manager, good interest... blahh. And can top up in any UT you invested for as low as 200. So thats a very good point, you dont hv to work for 10 years to save enough money to invest

And for this little bit of money you are contributing in developing our beloved M'sia economy as well! Becoz your funds will be used to invest, not shark loan

Next i will touch about UT trust risk profile, which to choose and how to monitor, etc. Part 3 tbc

(wooo, gosh, got works 2do, brb)

(edit, another benefit of UT is that you have a liquid asset. Thats means it can help you whenever you need money. Not like property like house or land, you have to sell it to get cash. You can cash UT anytime if you urgently need money)

This post has been edited by rexis: Apr 26 2006, 12:07 PM

Indeed slower then stock, because UT is invested in a diversified range. So if cant be fast, there will be top losers and top gainer everyday, unless a war happened and the stock market collapse la.

So, lets say that a unit trust has a "rippening" period, this is the period that it need to earn enough interest to cover up its service charge(~6%) and annual fee(~1.5%), so after cover up the charges, then you considered earning net profit. This will take sometime(~maybe 1 year) and thats why people say it is slower.

So after your UT "ripe" it is "fruiting" liao, you will start earning with your UT. Just like you plant a fruit tree, you need a few years to enjoy its fruits. But when the fruits come in it is sweet

In some case, UT can still 2x or 3x of FD and EPF in the first year, covering the service charge and so on. But thats not the usual case.

I hv edited my part 2, forgot to add in another advantages.

Also a bit about myself, I used to be a UT agent, during my time of unemployment. The meaning of being a UT agent means i passed the UT agent exam, but didnt really go and sell any UT, even thou got follow leader to whatever dinner and meet client... i still couldn't get my own client wahhwoo..

Imagin, getting hp contacts and calling them and ask for their money to buy UT. Not really my type of work. Lisense already expired long time ago.

But i get to know about UT in that way.

My agent doesn't bother constanntly to top up my investment.

Haha, my agent ask me to check internet myself when i ask for more information about newly launched funds from her. Haha, i nearly prepared the cheque to buy liao, she should have come and just collect my signature and cheque rather then asking me to check internet myself.

The UT agent exam isn't cheap ... >RM100. I also wanted to take the test.

Hi,

You miss one more thing that you can do. Pay off you car loan. Car loan is around 4% simple interest. Which means it is actually around 6% compounded. Saving 6% in interest is as good as earning 6% on your investment.

Dreamer

I guess the simplest idea about investment is to get rid of your liabilities first, then. Slowly work up from there?

Yes and no. The first priority is to have an emergency fund. Make sure that you have enough money to cover 3 to 6 months of your living expenses. Then, after that, you can talk about investing.

Dreamer