Today’s KLCI Tracker:- (14/05/10)

Overall medium technical readings say positive run is intact.
- Expect KLCI to climb higher to test 1,350 – 1,370 band again soon. Range 1,400 – 1,410 is the next resistance.- 1,325 – 1,330 range is the immediate support; 1,300 – 1,305 is the next.
- Any pullback presents us with buying opportunities.

Momentum tracker for the day:-
Unisem- Medium – term positive money flow still intact and will continue- Stock is retesting the RM3.50 – RM3.60 range, eventually reaching the RM4.00 – RM4.50 band. The stock is consolidating positively in RM3.00 – RM3.20 range support.- Current pullback is a buying opportunity.

Today’s Fundamental Highlights:
– Banking (OVERWEIGHT, maintain) - 2nd round OPR hike*
- Company Update – Sime Darby (ADD, maintain) - Negative impact of RM964m in 2HFY10*

- Outside Malaysia-
- U.S. stocks fall as banks, retailers decline; Cisco retreats- U.S. import prices increased 0.9% in April on oil.
- U.K. trade deficit widened in March on import jump.
- Thailand’s confidence falls a third month on protests- Oil poised for second weekly drop on dollar’s rise against euro.

Today’s KLCI Tracker. (13/05/2010)
Overall medium technical readings say positive run is intact- Expect KLCI to climb higher to test 1,350 – 1,370 band again soon.Range 1,400 – 1,410 is the next resistance.- 1,325 – 1,330 range is the immediate support; 1,300 – 1,305 is the next.- Any pullback presents us with buying opportunities.

Momentum tracker for the day.

MRCB- Medium – term positive money flow still intact and will continue- Stock is retesting the RM1.70 – RM1.80 range, eventually reaching theRM2.00 – RM2.30 band. The stock is consolidating positively in RM1.35 –RM1.50 range support.- Current pullback is a buying opportunity.

Company Update – Berjaya Sports Toto (REDUCE, downgrade)

Results Note – Dialog Group (BUY, maintain) - A satisfactory set of results.

* Outside Malaysia-
-U.S. stocks advance, erasing S&P 500’s loss from May 6 plunge.
-U.S. trade gap widens as growth rebounds.
-Europe’s economy grows at faster pace than forecast.
-Philippine exports rise the most in at least 29 years.
-Oil trades below US$76 after falling as U.S. stockpiles increase.

How To Make Money On The Stock Market.

The fact was this: 80 percent of private investors lose money in their direct investme

This is the secret that Wall Street does not want you to know. I guess it could be worse. I remember reading some years ago that 97 percent of all gamblers in the UK lose over time.

There are several reasons for why the majority of investors lose money. The main one is almost certainly due to knowledge. Whilst it is not my intention to suggest that insider knowledge is used, it is hard to imagine that some unscrupulous traders are not involved.

What is more important is that many or most private investors simply do not conduct enough research into the firms in which they plan to invest. Company accounts are not looked at or only briefly. Competitors are not assessed thoroughly.

The stock exchange is a very competitive place to make money. All those red braces wearing investment banker types take the game very seriously and so should we private investors if we plan to win.

In fact, the stock exchange is so competitive that at times even some of these investment banks fail to make a profit, despite all the advantages they hold over the rest of us.

Therefore, we private investors need to work very hard to compete. It is possible. The markets are so large that many private investors can earn a comfortable living online.

It is also vital to be disciplined and to follow investments and companies of interest very closely. If you need to sell out at a moments notice, the discipline to do so is required immediately. Failure can cost you your profits and potentially your initial investment as well.

As prices change, so must your goals. Using a stop loss or some variant can help your selling strategy, but when it is time to sell, you must.
Before you start on your own private stock exchange odyssey, you need to invest time and effort to learn the basic (and some more advanced) skills. These will help you for years to come.

You then need to commit to continual improvement in your knowledge and skills. This is what will keep you up with 'the game'.
You may also find that you need some form of computer monitoring software. Many of the services allow real time price data. This will help you to accuately track your performance over time and alert you to any important news about your companies. For medium to large investors, such software is worth its weight in gold.

As time passes, you will need to understand the basics of asset allocation. This will help to prevent you from having all of your net worth tied up in company stocks and thus will help to provide more stability to your personal finances. As your net worth grows, it becomes ever more important to be diversified so that your future is tied less and less to the results of the stock exchange.
In conclusion, the stock exchange is a place where fortunes can be made and lost, but only the hard working are likely to prosper.

Good luck.

TRADING SECRETS OF A SUCCESSFUL TRADER.


The first and most important thing a trader must have is a “TRADING PLAN”This is a “Written PLAN” which you can refer to from time to time.

The reason for this is that it will keep you on track and on the right path to becoming a “Successful Share Trader.

It should comprise of several steps which will become a constant guide to each trade that you make.


1.OBJECTIVE.

Of course the main idea is to make a Profit.This is regardless of whether you are a “Long Term or Short Term Trader.”

Surprisingly enough quite a few Traders don’t make a profit. This usually is brought about by NOT planning in the first instance.They are actually trading “BLINDFOLDED.” Not a very desirable state to be in. But funny enough Traders are doing it all the time.

2. RISK. There are several types of risk to be alert for.Firstly there is “Overall Market Risk.” What is the current “MOOD” of the Market “RIGHT NOW?”Is it a “BEAR or BULL” Market?Now depending on what type of Market it is, this should/could influence you on whether or not to enter the Market now or later.

If everything is heading downwards, a little delay might mean that you purchased that stock a little cheaper.A bit of advice here, “NEVER TRY TO PICK THE VERY BOTTOM OR THE VERY TOP OF THE MARKET.” If you happen to it is luck and nothing else.Even the so called “EXPERTS” cannot predict the top or bottom. As much as they would have us believe they can.Another “RISK” is speculative Risk. This can be found particularly in the Mining or Oil sector. Sure the stock price can go skywards, BUT it can go the other way just as quick if not quicker. Only put a small proportion of your capital in this area. Unless of course you are willing to accept the Risk involved. ONLY YOU can decide what level of Risk you are comfortable with.

3. ENTRY. This where you have decided at what price you are going to pay for your share.As to when we will cover that in “TIMING.”What ever you do, “DO NOT” leave an order in overnight particularly if the stock is VOLATILE that is to say that the stock is going up and down like a yoyo.You could pay more than you bargained for.If you must leave in overnight put a “LIMIT’ to what price you want to pay. Not a “AT MARKET ORDER”. At least you won’t get any nasty surprises that way.

4. TIMING. A very important part of your trading Success will be in your timing.If the market is going downwards a little patience could mean a better entry price, which will reflect on your profits.As I have quoted before don’t try to pick the exact bottom or the top. Waiting to long might mean the difference between a small profit and a larger more desirable one. The best advice is to get the “BEST” price possible at the time you decide to trade.

5. EXIT. Not enough attention is paid to this area. Timing is important, but a good “TIP” is “Have a “PRE SET” exit figure already prepared. This has the advantage of you knowing already how much Profit you are going to make.

Now DON’T BE GREEDY!!! This is a “TRAP” that many traders fall into very regularly. More than I care to mention, Small profits taken on a regular basis build very quickly into quite large amounts.

6. STOPLOSS. This can mean the difference between “SUCCESS OR FAILURE”A stop loss is a price that is set either ABOVE or BELOW your share price. This has the effect of stopping a substantial loss or a “BIG” one. A good guide is to have no more than 2% of you total portfolio at risk. You can decide what% you are comfortable with.

A “TRAILING STOPLOSS’ is what you place just behind your rising share price, this effectively “LOCKS IN” those Profits so near and dear to you and me.


7. PAPER TRADING. This is a wonderful idea to practise and To “LEARN” and to “FINE TUNE” you’re trading skills without endangering your hard earned cash. Plus it is “FREE” which is another advantage.

Remember if you fail to plan, you are planning to fail. I sincerely hope that someone has gained some knowledge from this article and it improves in some way “THEIR TRADING PROFITS”

Stock Trading Online E*Trade

The choice to trade stocks online is made by many independent investors that no longer seek the help or advice of the traditional stock broker. Instead, these investors are opening online trading accounts with discount brokerage firms and take control of their stock trading. While the technological advances have created numerous online trading software of which many specializes in stock trading online, there is still a need from potential stock market investors for online trading education.

When an investor is trading stocks online, he makes choices based on his own research and there is no human broker on the other side to confirm his order. Consequently, it is extremely important that investors and online traders alike take a long breath before they press the buy or sell button on their online stock trading software. We have heard many stories in which investors have pressed the buy button instead of the sell on their online trading software by mistake.

There are definitely advantages to stock trading online, but the casual investor will have a learning curve if he wants to turn into an online trader. In addition, an online trader needs more than basic computer skills if he wants to excel in trading stocks online. In fact, some of the online stock trading software may be quite complicated if a trader only has basic knowledge of computer operation. However, it is a logical course of action to face the stock trading online beast rather than run away from it.

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The Advantages of Online Shares Trading.

Online brokerages make it easy to trade stocks.Prior to the spread of the Internet, individuals who wished to engage in stock trading would call a broker/remisier and make a stock order. The proliferation of online services opened a new world for investing and gave full control of the process to individuals themselves.

Online brokers do not require human interaction to process an order. This system has created many exciting advantages for those interested in trading stocks.

Quick Order Execution

In traditional brokerage firms, and before the spread of the Internet, a considerable delay would occur between your desire to buy or sell a stock and the actual moment the order was executed. Transactions would be called in to your broker.

Sometimes, additional calls were necessary until your order arrived on the floor of a financial exchange to be handled by a floor trader representing the broker.

By contrast, online brokers offer instantaneous execution. If you wish to buy a stock, it can be yours within seconds. There is no contact with humans, thus any delays caused by conflicting schedules or human error are removed from the environment.

Accessibility
Online brokerage accounts provide the ability to interact with your portfolio from anywhere in the world. All that is needed is an Internet connection. This mobility is a considerable advantage over calling a conventional brokerage to process an order. With an online broker, you can process orders quickly from anywhere. Many online brokers provide their services right over a mobile Internet device, such as a smart phone. This accessibility has revolutionized the trading industry.

Record Keeping
Online brokers keep a strict record of all transactions on an account. Clients may log in at any time and view their order history, overall profits and losses , percentage returns and any interest payments, debits or dividends that have affected the account. Additionally, many online brokers provide a full tax center online for clients to view their exposure to different trading and investing taxes that may affect them. This level of detail is not as easily available for traditional brokerage accounts. This makes online broker services particularly appealing to those who desire the most information on their accounts.

HOW ONLINE TRADING WORKS

Now, plenty of "common" people own stock. Online trading has given anyone who has a computer, enough money to open an account and a reasonably good financial history the ability to invest in the market. You don't have to have a personal broker or a disposable fortune to do it, and most analysts agree that average people trading stock is no longer a sign of impending doom.
­The market has become more accessible, but that doesn't mean you should take online trading lightly. We'll look at the different types of online trading accounts.

The Broker Dealer

One of the simplest ways to understand electronic trading is to imagine that you want to buy some stock/shares .

Before you can buy, however, you have to open a brokerage account. There are dozens of companies that allow you to do electronic trading, including E-Trade etc. These companies are called broker dealers, and they give you access to the stock exchanges (Bursa Malaysia).

Without a brokerage account, you can't trade stocks.
So, as the only entry points to the stock markets, remisier play a critical role in the process. As such, they're highly regulated by the SC in order to prevent fraud and mismanagement.

Here are some of the things that broker dealers do:

Make sure you're allowed to trade stocks when you sign up for an account. That is, they check to make sure you're old enough, you have money in your account and you understand the risks of stock trading. This is part of the regulatory nature of broker dealers./remisier.

Provide the servers that allow you do your web-based trading.
Provide the computers systems that keep track of all the accounts. Like a bank, the broker dealer /remisier knows how much money every account has. He also keeps track of all the stocks you own and may make loans by offering margin accounts.

Keep track of your trading to make sure you aren't doing anything illegal and aren't buying more stock than the balance of your account allows. They also make sure that appropriate tax records are kept.
Provide stock quotes. The broker dealer /remisier knows exactly how much stocks are buying and selling for with up-to-the-minute accuracy.

Interface with the different stock markets to make the actual trades.
The broker dealers provide a very useful simplification process for the stock exchanges: Since the dealer handles all the money, all the accounts and much of the regulatory and tax activities, the exchanges don't have to worry about any of these things. All the exchanges have to do is trade stocks, and they do so with complete assurance from the broker dealers that the traders are legitimate.

Making an E-trade

So let's make a trade. Since we're talking about electronic trading, the first step is to sit down at your keyboard and log in to your brokerage account. Once you log in, regardless of the broker dealer, you'll be able to do several things:

Look at your account to see how much money you have and how many shares of stock you have in your portfolio.

Pull up stock quotes to see the current buy and sell prices of any stock.
Enter an order to buy or sell a stock.
The systems that make this Web interface possible are Web servers very much like the servers for any Internet site. There may need to be hundreds of Web server machines -- a large broker dealer can have millions of customers. And the Web servers need to be operating with secure connections to protect privacy. But beyond that, the servers can be fairly ordinary.

So let's imagine you want to buy 100 shares of the ABC company. You check the price of that stock on the quote screen and see that it costs RM20.40 to buy it at this moment. You enter in an order to buy 100 shares at RM20.40 a share.
Your broker dealer will transmit your order to a stock exchange/Bursa Malaysia. If the ABC company trades on the Bursa Malaysia, the order goes there. Inside the BURSA MALAYSIA, there's a computer that's dedicated to handling all the orders coming from your broker dealer. (Since there are several hundred broker dealers dealing on the BURSA MALAYSIA, there are several hundred dedicated broker dealer machines.)

Having received your order from your broker dealer, the BURSA will try to match your buy order up with a sell order from someone else. If it can find a match, you'll have executed a stock trade. If not, your trade will sit on the exchange waiting for a matching order.

Now, the BURSA sends a message back to the broker dealer saying the trade is complete. He updates your account information, withdraws money from your account and changes your portfolio to reflect your new stock.