http://en.wikipedia.org/wiki/Blue_Chip

Thanks

Another 2 questions, what's future and options trading?

Haha! Personally I feel there's no politics involved directly in the share market. Note the word "directly".

Can politics influence the economy? Certainly yes! Politics directly determine the economic policies of a country which will influence the economy. Since the economy affects the share market, you can say that politics indirectly influence the share market (note the word "indirectly").

It's something like this...

Politics--->Economic policies---->Economy---->Share market

lklatmy,
Thank you for contributing here. I hope you will be posting more often so that we can continuously learn from you, the experienced one.

Since you have years of experience, do you know what is the long term trend for KLSE from historical data? Is it on an uptrend?

Past performance are not an indication of future performance.

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??

Trading short term in the market is normally accomplished  with the aid of charting,aka technical analysis.There r many different charting  techniqs but the final aim is to try to determine the best opportunity to enter and exit the mkt based on past history of price and volume.

I consider my self a long term trader and seldom trade shortterm .

Trading in any market is an art,not a science,so,a techniq that worked now may not work in future.

In short term trading,you may get it right 9 times,but when u get it wrong 1 time,the losses may well exceed you cumulative gains.Of course,if u r part of the syndicate ,then the reverse will be true.

Again,the various breakouts and indications can actually be "manufactured" in a illiquid mkt.This is especially true if there is no proper enforcement.

So,I leave it to u to ponder whether u want to trade short or long term

In short term trading,you may get it right 9 times,but when u get it wrong 1 time,the losses may well exceed you cumulative gains.Of course,if u r part of the syndicate ,then the reverse will be true.

If you were interested in gold, you could try opening a brokerage account in the US/Aus/Canada ...  there are alot of quality canadian /aus gold mining/exploration company worth buying into..

or you could try gcitrading.com which you can speculate on gold with leveraging ...
in times of inflation, gold/diamonds are good hedge against your paper currency losing its value.

Malaysia is slowly suffering from the ringgit peg as inflation is starting to bite.  If the gov doesn't change anything, the ringgit will just slowly lose its value...

If you wanted to talk about long-term stock market trend, alot of stock markets are uptrend in the long term ...  you just gotta have patience and ride out the bad times as well..if you are thinking of investing, you should consider learning how to read a company's annual report/etc.

derivatives = futures/options/swaps/forwards/warrants .. etc ... google it ..

I'm an advocate of short-term trading ... so I do believe in it.  It is all about risk management, position sizing, and discipline ...

Im not familiar with the Malaysian sharemarket, so I can't comment on it, except I do believe there's not enough disclosure, too much insider trading, and the 30% bumi equity rule on the companies will just hurt the KLSE in the long term.
JUST MY OPINION.

Malaysia is slowly suffering from the ringgit peg as inflation is starting to bite.  If the gov doesn't change anything, the ringgit will just slowly lose its value...

Im not familiar with the Malaysian sharemarket, so I can't comment on it, except I do believe there's not enough disclosure, too much insider trading, and the 30% bumi equity rule on the companies will just hurt the KLSE in the long term.
JUST MY OPINION.

Appears to be many questions .. I shall try my best ..

1. Ringgit peg
At the start, it was probably good because it provided stability ... but now?.. I'm not so sure anymore ...
A managed float, is in effect a 'dirty float' and in reality really is no difference than a peg... I could go on and on about this, but this comes down to Malaysia not developing its economy and reforming its policies and keeping the ringgit artificially low and remaining a predominantly low-skilled manufacturing economy.  when it should be moving up the services chain...
Uncontrollable inflation is the direct result of the peg...
Inflation is already rearing its head, have you noticed things have been getting more and more expensive?

2.Investing ...
Investing in anything is good, doesn't matter how much $$ you have as long as you've done your research, and have a LONG term time frame for your investment to materialise ... some ideas such as bio-tech/healthcare, islamic banking, gold/silver, uranium, etc ...  I can see Islamic banking booming hugely in Malaysia, as Malaysia's ties with the Middle East grow...
As for overseas investing, that's something you have to work out and find out, unfortunately I can't help you on that dept because I'm not based in Malaysia.

2. RE: About trends in a market ...
http://www.seykota.com/tribe/TSP/Trends/index.htm
may be hard to read, but summary is, a trend can be what you want to see at a time frame that you pick ... So is the KLSE in a long-term time frame? That's for your interpretation....

3. Short-term / Long-term trading / technical analysis
There is such a thing as long-term trading, but its more like 'investing'.. Too many definitions here ..  You can be 'trading' for the long term when you intend to get a position in something for a longer time frame say 5 years .. you can then use technical analysis to enter into positions at 'price dips', think the lowpoint of a sine-wave that's moving upwards...

When you talk about trading, it becomes much more specific .. you can enter a trade for a few hours to few days to a few months ...  Trading can very much become a job in itself.. if you're not willing to commit, then you should stick to 'investing' for the long-term.. 

Yes you can make money with technical analysis, I hang out with a lot who do, as for me I'm barely breaking even, but I'm giving it time and intend to make it work..  If you think its a skim-cepat-kaya, its not ...  but as with everything in life, if you give it time,effort,energy it will be rewarding.

If anyone would like to discuss anything I've just said in private, you're welcomed to PM me ..

Bottom line for all the negativity and 'No' and 'Can't and 'not for me' ... Here's a line for you to ponder ..

YOU ARE WHO YOU THINK YOU ARE, AND WHO YOU THINK YOU ARE NOT
Ken

As for overseas investing, that's something you have to work out and find out, unfortunately I can't help you on that dept because I'm not based in Malaysia.

When you talk about trading, it becomes much more specific .. you can enter a trade for a few hours to few days to a few months ...  Trading can very much become a job in itself.. if you're not willing to commit, then you should stick to 'investing' for the long-term..

I think we still need to time the market even if we are investing for the long term, am I right? This is because you'd rather buy when the market is low and let it grow to its peak. Sell it off at its peak and wait for another "low". Errr... now this sounds a little bit like short term trading...

So do you actually time the market if you invest in long term? I feel there is still a need to time the market...

And do you believe in "dollar cost averaging"?

I think we still need to time the market even if we are investing for the long term, am I right?

This is because you'd rather buy when the market is low and let it grow to its peak. Sell it off at its peak and wait for another "low". Errr... now this sounds a little bit like short term trading...

And do you believe in "dollar cost averaging"?

Wow!this topic is getting very interesting and I can see many sifu such as whtrader and khoong25 giving their learned views ,I believe some r based out of Malaysia and is trading actively in the futures market.

In Malaysia,u can't short a stock without first having bought the stock earlier,ie,no short selling.That's why IMHO,Malaysia still lack the depth for sophisticated traders.

omg the your totally wrong they calculate dividend base on the par value for stock market if not then why dun u get maxis? their dividend is 300+% if i remember correctly la .... like that means we get almost 30 ringgit per share  liao!

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.

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!!

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?

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

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

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

is own business considered as investment?

i invest in futures market alone,a lone wolf.
btw...anyone here can elaborate the difference between loan stocks and warrants? these stuffs are playing jedi mind tricks with me

CI futures,cpo is a bit volatile for me,the risk of my account getting wiped out in the price fluctuation of the cpo market is high,so i decided to stay away from it temporary.

what about loan stocks?
buying something in the future with the current price.A great place to trade,since our local stock market is equivalent to poo.

http://www.investopedia.com/university/futures/futures1.asp

anyone heard of DrStevenLee?
claim that his Power System can achieve ROI 250% annually, in stock market?
250% is very tempting...
what do you all think?

CI futures or kloffe in short,yes...CI is the composite index

1%-3%...not much

RM50
stock market very very volatile?
the market moves slightly faster than a garbage truck reversing,and i think the second half of the description fits into the futures section.

and the futures's description fit into the money market..forex?

futures is volatile,but not as volatile as forex