Hm..just came across this thread.

Dreamer, i do agree that most people failed in stock and forex as they do not understand the term of margin and leverage, and what kind of double edge sword are they. Though i'm still learning on forex trading while trading on a demo account, upon understanding how does the leverage and margin system work, it's not that difficult to avoid a margin call. A lot of forex brokers offers a 200:1 leverage, but to anyone who did some homework on forex would understand it would be crazy to even go for a 10:1 leverage. I've been speculating the stock market for quite awhile. Comparing to forex, getting profit through stock market is definately slow, insecured, with highly arbitrary sentiments.

Forex trading wont lose big money. It's just like any other business, you need to know what you're doing. If you dont know what you're doing, you'll lose big money in what ever it is you're doing. It's not a guessing game of whether to buy or sell (but somehow most people tend to do that). In addition of Forex, it's rather impossible to lose more than what you initially put in. To most, you'll lose about 90-95% of your initial capital, due to margin call. But that's the worst case scenario.

p/s, Mahathir didnt call them (currency traders) crooks, if they were just merely "gambling".

This post has been edited by small-jeff: Mar 24 2008, 05:40 PM

bump up for good topic from dreamer

I want to put my money in an investment which can give me annual return between 7% to 10% which is save one . Any suggestion ?

I'm very interested to know how is dreamer doing now? Did he burn his finger since US stock plunge like crazy?

darkknight81,

PBBank. BTW, it is SAFE not SAVE.

gogo2,

1) I am down about 16% from last year but considering that the US market down about 30%, I am doing quite well. I am diversified.

2) Actually, stock market outside of US drop even more.

3) Among all my asset classes, US REIT is doing the best.

4) As I told people REPEATEDLY, I have a VERY BAD feeling about the coming recession. So, I am keeping 2 years of living expenses in the bank. So, I do not have to touch my investment even if I lose my job for 2 years.

Dreamer

is it? how bad is it? I don't have any feeling at all. I feel very happy that stock plunge coz I thought
of buying some.

US REIT is related to mortgage/property also. How come u still earn? That's weird...

Which market you are refering to? As i do aware US market now is really in deep sea crisis & government planning to bail out another 500 billion to help the US crisis.....Strong countries likes japan, china & etc get the hit impact from US due to they also involve heavily invest in US market....These countries are trying to help out US & if not will sink both ships....

gogo2,

http://finance.yahoo.com/q?s=VEU

2000 stocks outside of USA

YTD = -9.48%

http://finance.yahoo.com/q?s=VTI

2000 stocks inside USA

YTD = -10.44%

http://finance.yahoo.com/q?s=VNQ

All US REITs

YTD = -2.88%

The question here is how much staying power do you have??

If you lose your job / business, can you live off your savings for a few years??

Dreamer

Thanks dreamer. I don't think about staying power. That's my mistake. I still got house loan. Not sure I want to repay almost half with my liquidity or should I have liquidity in my hand. Coz if I were to pay it off, I won't lose 5.95% compounded loan interest. If I don't pay it, then I still have liquidity to go through recession or to buy stock. Help! Thanks.

---

Added on October 7, 2008, 4:11 pmIt's fixed interest loan at 5.95%. RM7xx per month. Very low.

This post has been edited by gogo2: Oct 7 2008, 04:11 PM

gogo2,

Right now, keep your money / cash around until the economy settle down. You do not know how BAD or how LONG that this will last.

Dreamer

Liqudity situation is the most important aspect to look at. Not making profit or money.
It is the liquidity that enable one survive through bad time.

Current credit crisis serve the good example, banks collapse not because of not making enough profit, banks collapsed because of liquidity problem. one may have billions of asset, not if one had not enough cash (liquidity), then if those asset cannot be sold right away, although it worth billion, one also will run into problem.

Thanks guys. I'll make sure I have enough liquidity to survive.

Dreamer , I'm going to study in UK next year. Could u suggest me should I buy pound sterling now , as it seems quite low now.

dreamer, a simple question, would you say placing your bet on the USA economy a bad move or was it because you think USA economy was strong or at least stronger than malaysia,

anyway, Malaysia's economy is going to hell soon, so I guess everybody will loose something...

Why didn't this thread of dreamer's continue?
zzz...

this thread was awesome!!!

Dreamer, continue this thread plssss...

stupidbump,

You need to ask some questions if you want to learn more stuff from me.

Dreamer

dreamer,

do you think is a good idea to apply for the government bond 5% which will be issued out in conjunction with mini budget 2009 for those above 21 years old? i've some FD with the bank and now the rate for bank's FD is so low.

smile888,

1) What kind of money that you are talking about?? Emergency fund??

2) Do you TRUST the government?? I don't. With another 50 to 60 billions stimulus, RM will went down again.

Dreamer

So are you suggesting investing/preserving in something which in no denominated in RM?

sportivo55,

1) Read all the posts in my threads and you will know that I do asset allocation across the whole world.

2) I ONLY invest on one counter in Malaysia.

3) I keep my emergency fund in FD and spread across multiple banks.

Dreamer