Hi, i am new into stock market investment, I am thinking on making investment on FKLI , do any1 here invest on it ? Any guide on it ? Izzit a very risky investment ? any idea on lowering the risk of lost 2 the minimum ?

This post has been edited by flamming: Nov 6 2007, 10:48 PM

em,i dont invest..

i would suggest do paper trade 1st...

yes, its vry risky.... how much u prepare to lose??

some market makers use fkli as hedging purpose...

fkli is not really for investing
it's for trading

It is very risky trade. Only trade when you know what it is about.

1 point = Rm50/contract.

You need at least 6k plus to trade one contract (for initial margin which varies for different investment house)

cherroy, do u mind to explain further what above mean?
thanks

as what i know, one contract is rm 1000, 1 point is rm 50, haif point 25, have the choice of short or long on either spot month ot next quarter month.

You need money in the account (or bank in afterwards) before you trade and to maintain the contract.
The initial margin is varied, some cheaper some higher, I don't know others but currently my investment house impose near 6k for a contract, so if you trade 2 contract, you need to bank in about 12K for it until you have settle (or complete the transaction) the contract.

Back 2-3 years ago, it is about 1K plus but after recent so volatile market, the intial margin increase from 1K -> 2K -> 4K now about 6K. Investment can change it anytime according to the market condition.

1k is not enough at recent market condition, it just means 20 points movement only, which by then you will face margin call from time to time if market turns against you, so investment increase the margin so that the margin call issue is lesser.

This post has been edited by cherroy: Nov 7 2007, 02:50 PM

that's called margin call..

this is useful in the case if the market move againts your position, this margin of urs will be used to cover the losses made..

any strategy to earn in this type of trading ? Ya , 1 point = RM50 is quite risky ....tats y need opinion here.....

strategy? maybe some advices..

stick close to your broker.. and do own research on local market as well as other foreign futures indexes ..

and market now is so damn volatile..do u knw where to short n when to long..?

Volatile = prepare more funds for your margins..

oh ya, why not go for CPO or CPKO futures, hehe...

This post has been edited by myintbiz: Nov 8 2007, 12:42 AM

You can have all kind of strategy but sometimes market turns without much notice, only trade until you can lose. There is once FKLI plunged more than 100 points in one day Feb28. So 5k/contract win/loss in just matter of hours.

There are plenty of advertisement of seminars/talks in the newspaper claimed to be sure win in the futures market, if their strategy work 99% of the time, then they don't need to give seminar/talk already, they are better to trade themselves, still need to earn from the talk?

Having said so, a good technical analysis and fundamental will help a lot, <-- this is where talks and seminars will help sometimes if the speaker is good enough to explain about it but don't be fooled by them if they said it is surely win strategy, if the speaker said it can surely win or 90% of winning chance then you can walk away, don't need to listen the bullsh*t already)
But it won't spare you from losing, just you are trading with more direction/clue and increase the odd chance of winning through technical of fundamental analysis. Also in futures market, one must be informative, need act fast to the news around the financial world, monitor regional market, financial issue around the world, if can't do it, people already got the news already run, you still being left in unknown situation then most probably will be slaughtered.

OK, flamming, normally we don't invest FKLI, we trade FKLI. just like what cherroy say, those 99% strategy seminars can not pakai.

To minimise risks:

(1) You have to be more skilled than other traders - Plain and simple, it requires your hardworks.

(2) You have to manage your capital well - A RM500 loss is 10% of your capital if you have RM5000, but it is only 1% to RM50000. So, your game plan depends on your size of capital.

(3) You have to manage your own emotions - Gamblers hope to win, and that's why many of them borrow money to gamble. If you trade and hope for quick bucks, be prepared to lose like most gamblers. You have to stick to your game plan, and not let your emotions affecting you.

PLease proceed to http://forum.lowyat.net/topic/494353/+60