Ok, after taking into account many factor like:-
a. brokerage fee
b. availability of existing account
c. strong background of company.

I have decided to open another broker with Public Bank online trading.
I will be operating both account at the moment, but i plan to phase out CIMB itrade in one year time.

I will do most of my buying in PB.

I believe the purpose of volume is not to drive the market higher. The ability to drive market higher is not an aim of the stock market.

The stock market's aim is to value companies as accurately as possible. There are many theories to this, but what all theories have in common is that you need volume to determine the price correctly. The more people buy and sell, the more accurate the price would be.

You want people to buy stock when they think it is underpriced and you want people to sell when they think it is overpriced. No matter how little or how many shares they can buy. This is done buy short term traders.

Actually, if only long term buyers are in the market, this is what will cause bubbles. Everyone buy and keep, nobody sells.

What I meant volume is those 'goreng' volume in the market which is artificially make up by those syndicate. Those volume is purposely drive up the share price only in order to lure people into it or as a bait which has nothing to do company fundamental.

PB have changed their minimum (recently?) to RM12 right?

Have you looked at their trading platform to see what its like yet?

Wow, now that is what I've never heard before. Long term buyers causing bubbles? Maybe commoddities but never share markets.

Only effect long term buyers will do is bring up to a price of a counter to where it becomes the actual price they deemed perfect for their share before they sell it. Long term buyers have no reason to keep a share once it reaches their target, and more long term buyers will not pay more than what they think the share is worth.

Bubbles are caused by speculation that something would be worth more tomorrow than what it is today, without any valuation of what the underlying principle of what the item is valuated at other than it's past price.

Ever heard of the village and the monkeys story? That is how a bubble is formed.

Long term buyers do not create bubbles.

This post has been edited by skiddtrader: Jun 20 2008, 04:14 PM

No, i have not seen their trading platform. Anyway it doesn't matter, because i got CIMB platform for any additional information.

I just do my buying in PB. Any analysis or news, i can get from CIMB

Also, i just subscribe to I CAPITAL research and economy update. Paid RM720 ringgit for that!!! anyway, nevermind la.

As i told u guys, this next few years is learning curve. When you learn, you have to pay ma. Nothing is free.hahaha


This post has been edited by Neo18: Jun 20 2008, 04:01 PM

It is the first time, I heard long term buyers are the one causing bubbles.

Historically proven, it is those speculators are the culprit for those bubbles making range from 2000 tech bubble, US subprime, China stock market bubble recently. Those bubbles are being created by greed of people/investor/speculators. Those speculators keep on buying because they anticipated price will go even higher so with buying continous pile up so does share price, commodities price etc. They don't care about fundamental or valuation as long as there are takers/buyers at higher price then they can make profit out of it. And with easy profit and this cycle role on, bubble become bigger and bigger until the bubble is too big and can't sustain then bursting, then all bloods across the street, just like subprime recently causing massive billions and billions of loss on banks and investment banks.

Long term investors don't mean they won't sell, but mean they intend to keep it for long term in the first place when initial buy. They are not the one going in and out of the market frequently which reduce the volatility of the market. In fact, they are the one cuhsioning the down trend effect and stablise the market.

Long term investors don't mean they are buying blindly also which create buying force that create any bubbles. They generally look for value as it is meant to keep for long term.

Another point is long term investors doesn't mean they fall in love with the stock forever, when profit is enough or see price way beyond the fundamental price then will sell to realise those profit.
Typically case would be Warren Buffett that everyone knew he is a long term investors, but he still sold petrochina shares he owns previously because he saw it is too expensive to hold on already.

It is my understanding that bubbles are caused by vegetable sellers, fish sellers, and rubbish collectors.

You know a bubble is happening when every time you see these people, they want to talk to you about buying shares, and only buying because no one is selling.



This post has been edited by howszat: Jun 20 2008, 04:16 PM

Oops, I think I have stirred something here.

I agree, bubbles are caused by speculators thinking the worth of the thing/share/commodity will increase in the future.

What I meant was, I do not agree with the government's action of increasing the minimum brokerage fee. This will only chase volume away.

The usual reasoning is: "We want to encourage long term investing and not speculation." Increasing the brokerage fee is not the answer to this. The answer is education. People must learn that the stock market is not a casino. Pick a number and hope the roulette ball stops there.

I apologise for saying long term buyer creates bubbles. I take it back.

I just disagree that low brokerage costs will excessively promote speculation. Speculators will always speculate whatever the brokerage costs are.

Btw, what is the story of the village and monkeys? Never heard of that before.

Actually I quoted the wrong story for an example of bubbles. It should've been the Dutch Tulip story found here.

While the Monkey Story actually relate more to syndicate play and people's greed. The story is here.

Sorry for the mistake of the story. ^^

jupiter started as jtrade I think, at that time they focus too much on IT technology and failed to surface out, then later when they started marketing as jupiter, things get better, by now they are an ok online trade ....

whats the online brokerage rate for public bank now? i know CIMB has the RM8.88 brokerage but then must put in cash RM10k into account at all times. Maybank still has the promotional RM8.

Public Bank's rate still at RM12?

Maybank's RM8 promotional rate is only for their Cash Trading Account. It doesn't apply for their Margin Trading Acc.

Means u need cash in the account before u can even queue to buy.

You mean 1 to 1 ?

yes.

Oh ya, on a different note, you can't purchase Maybank shares if you use the Margin Trading Acc. Can any1 confirm if this is true?

Yes, margin account cannot purchase Maybank shares, and at least also cannot purchase shares with an exclamation mark "!", eg PN13 shares etc.

With cash account, I think all shares can.

I was told by my friend too. It is strange why Maybank restricted te user to purchase teir own share!

Oh ya, and also certain type of warrants and derivatives too. Maximum lots you can purchase with margin acc is 500 lots (500x100) only. Is it the same with cash acc too?

Guys, I'm using Maybank E trading, they are holding shares for you at nominees basis if not mistaken

i do NOT receive annual reports (and not sure if i will receive the dividends as well) and i've missed one of the general meetings, do u guys share the same experience?

This post has been edited by PureGeek: May 4 2009, 12:29 AM

This is the screenshot of default transaction cost of Maybank eshare trading. Are these values still applicable or is it lower?