And you think this "bigger crash" than March 2020 will come in 2021?

Same question to you.. N what extent will you call a crash?


This post has been edited by Cubalagi: Dec 27 2020, 10:17 PM

When do u think is this "coming crash" which is worse than the March 2020?

You can't even answer directly a simple question.

You are pretty much like Icermanfx.

This post has been edited by Cubalagi: Dec 28 2020, 08:47 AM

RSS can't push price down. RSS can only key in at best sell price. RSS makes hard to push price up.

Long sellers, margin calls are the ones that push price down.

0820EA is a crappy ETF.. Avoid.


Out of this, I can only recommend the Affin Hwang etfs.

The Leverage/Inverse ETF are interesting but not everyone can play.

The bond ETF by AmInvest is also not bad. But at current interest rate level, I don't see much upside, unless the economy gets worse.

2 main things are liquidity n expense ratio.

For ETF, usually trading volume is low, so we have to depend on ETF market makers to put in buy sell quotes for liquidity. (btw a structured warrant is similar). Unlike structured warrant where IB is the Issuer, the ETF issuer itself is a fund manager, they are not brokers and not allowed to put in the buy sell quotes. So they will appoint 1-2 brokers/IBs to provide liquidity.

You can check next week: during trading hours, please compare 820EA with one of the Affin ETF, say the Gold ETF (0828EA). Look at the buy and sell quotes, how much volume are on buy sell side and how narrow is the spread. The Goldetf is much superior, you can execute a few hundred K order in one shot. Don't think you can do that in 820EA.

The second is expense ratio. The 0820EA expense ratio is high for such a simple ETF. Some ETF, the more exotic ones, are understable to have high expense ratios. For eg. a goldetf is higher because it has to include the costs of storing and insuring gold in a vault. But 0820EA is a simple ETF.

(tbh haven't looked at 0820EA for a while, but I believe things haven't changed. If it has improved for the better, I will amend my post.)

The reason for this weaknesses is simple. The fund manager simply doesn't care enough about this product. For eg. If they care enough, they will give the right incentives for the market maker to do a good job and provide high liquidity.

In fact, you can easily tell which fund managers care, just by looking at the effort they put on their ETF website.

Aminvest ETF website
https://www.ambankgroup.com/sites/fbmklciet...es/default.aspx

Affin etf website
https://tradeplus.com.my/

0820EA is not good, but another Aminvest ETF is not too bad. That's 0800EA, the only bond ETF in Bursa. I made pretty decent returns from the bond ETF in 2018-19 when interest rates started falling.

Disclosure: I currently holds Bursa Affinhwang etfs in my portfolio. I have already exited from the Abfmy.

This post has been edited by Cubalagi: Jan 1 2021, 04:46 PM

Rakuten doesn't allow you to buy the 2x etf.

The reason is the regulation. The regulation only allow the ETF to be traded by HNW clients or client who has passed a course (available on bursa marketplace website) to trade.

Rakuten doesn't want to bother with the extra operational process of checking whether you are HNW or pass the course. So they just dont allow.

But this regulation shows how silly the regulators are. I think the 2x etf is less dangerous than the goreng stocks out there on bursa now.

As for USD, Rakuten also doesn't allow trading in USD. P/S Just buy the MYR etf. It's the same thing anyway.

This post has been edited by Cubalagi: Jan 1 2021, 04:47 PM

Robo advisors charges are per annum based on value of your holdings. And their charges are on top of the ETF management fees. Long term and with big amounts invested, that will cost you. (but still better than conventional unit trust).

Brokerage is by transaction. The bigger amount invested the cheaper. If u use a Bursa trading cash upfront it can be ike 0.1% per transaction, depending on value. Also there is no stamp duty charged for ETF transactions.

My style is I'm my own robo advisor and buys etf by brokerage. So I buy big amounts to minimize brokerage n don't trade frequently.

Even if there is a suitable ETF, I don't think this is a valid strategy. 20 years time frame to passively invest in Malaysia equities? Malaysian economy doesn't have the comparative advantage to grow. That's my opinion.

Need to be more active and diversify globally n in different asset classes.

This post has been edited by Cubalagi: Jan 2 2021, 10:00 AM

It's weekend and new year.

Anyways, RSS only starting next week. It will only start to get a bit more interesting then.

This post has been edited by Cubalagi: Jan 2 2021, 10:08 AM

Fuuu... For every losers there are winners..

I guess winners are exiting shareholders then..

Then u should consider robo advisor such as Wahed..

This post has been edited by Cubalagi: Jan 2 2021, 11:58 AM

What is this research? Robo advisers are not hedge funds. Different model.

RSS have to borrow via SBL, have to pay fees. U willing?

Not easy to do put warrants.

Most important thing for IB when doing structured warrant is the hedge. For call, hedging is easy just long stock's.

For puts, need to short stocks. None of the IB's currently have a decent capacity to short (they just do RSS for others).Without shorting, they are limited to only their own books which then limits the number and size of the put warrants they can offer.

Things are changing however, especially with the new PSS framework which came in Dec last year. I know a few IB's building up their capabilities. Expect more puts in 2H21.

This is outdated I think.

Uptick rule. Is now can only key in RSS order at best offer or higher.

RSS can't cross the spread.

This post has been edited by Cubalagi: Jan 7 2021, 10:40 PM

Good explanation..

Now I put another way..

short selling is opposite of Margin trading.

Margin trading is u buy shares with money u don't have (i.e u borrow money)

Short selling, is u sell shares with shares u don't have (i.e. U borrow shares).

Waa.. This weekend will see many Glove Lovers havig nice seafood dinner with family..

1) U probably don't understand shortselling. Shortsell is selling a stock one doesn't own. Bursa is T+2 market. But since one doesn't own the stocks, how to settle at T+2? Get buying in? That is super expensive. To avoid buy in, short seller execute SBL to borrow. Use the borrowed SBL shares to settle at T+2.

P/S one can shortsell without SBL. But need to buy back on T Day. This is called IDSS.

2)Nope. Sbl does not push price up..what can push price up is short covering. Meaning short seller buy back the stocks to take profit or cut loss. The short seller then return the borrowed stock earlier via SBL.

3) No comment

This post has been edited by Cubalagi: Jan 8 2021, 08:27 PM

Hahaha..

50 pages back it was the IB Call Warrants...🤣.