Knock knock, Mr. Eugene Tan. We do not see any posting from you lately, busy with options, election hangover, MSN or Facebook?

We wish you and your family a very happy year ahead.

Hello Sun, ha-ha..going through some reorganisation and planning and selling more options ! Elections hangover, yes that too! Thanks for the happy thoughts. Will post again soon.

Eugene Tan

Welcome back, we thought you are a Member of Parliament now. Busy drafting your country's future policy..

If you are a member of parliament, please kindly push for options awareness in Malaysia market. How we wish we could sell options non-directionally for all the Bursa Malaysia blue-chips.

Thanks for all the posting. S$0.30 as the welcome gift!

Etradehome.com

Hi Mr Eugene and Sun,

I am back again. Making profit in the recent roller costar US market ? Have not option for a year or more cause not much funding. Maybe have to resit for Sun class again to recall all the butterfly.

Welcome back Mr. Timothy Low,

How are you doing? How are the residents in the beautiful Langkawi doing?

Yes, you really have to pick up those nice non-directional short guts, iron butterfly and non-directional options writing strategies if you have not done so for some time.

Here are our programs for this month:

11 April 08: 9am to midnight: Pulai Spring Resorts, JB
18 April 08: 9am to midnight: Raffles Place, Singapore
28 April 08: 9am to midnight: Shah Village Hotel, Petaling Jaya

Resit fee is RM80. All meals included.

Thanks a lot.

Etradehome.com

Welcome back Timothy ! Nice to hear from you again. Thought you left us high and dry..

Eugene Tan

Langkawi is beautiful as always but the weather is too hot!!

Today one friend come from penang introduce me to invest in forex. He said i can invest in the poll and every month he will give me 5% return. 60% a year sound too good!! What do you think Mr Sun and Mr Eugene about this offer ?? should i join the poll ?

Dear Mr. Timothy Low,

I just wanted to post and asking where have you been after the recent posting. It seemed you went into Forex!

I can not provide any comments on this because we afraid we will be biased on certain aspect.

Anyone to comment?

Hi Timothy!

5% per month seems like the options writing strategy, or rather non-directional trade.

60% is achievable, but what happens to the head of the forex pool? If he gives you all 60%, he is getting nothing.

As far as I know, and I do not know, how to apply options on Forex to go non-directional. I heard it is not liquid (options on Forex) because directional play dominated the daily trades.

If 5% per month is the promised return, then go for it.

Another question is, why they need to pool money to trade forex? Forex is not expensive to trade nowadays.

Hanz

Ha Hanz, that was what Sun said, your comments were a bit 'bias'.

Hi Timothy, just my personal opinion, it is no harm to pump in small amount of money in any 'opportunities', say USD5000 to USD10000.

The rest, you could trade yourself by selling options non-directionally on equities, index or commodities.

I guess Forex trading is mainly directional. That is the part which is hard. But recently some people are bullish on US dollar, even though the fundamental does not support it.

JK

Hi Mr Timothy,

I seem to have been asleep when these posts were made-haha. Before I learnt options, I traded forex for few months and learnt a lot. Before you invest with your friend, maybe you should look at these points first.

What is your friend track record in trading forex? How many years he been trading and how profitable is he so far? He need to be experienced to survive the mkt.

What is the strategy he used to trade forex? Is he buying or selling forex or options on forex? It's better if he explain to you and you decide if this is risky or not.

5% pm is not guaranteed. In these types of investment 5% is guaranteed as long as he makes a profit overall.

5% pm is good sitting around doing nothing and getting passive income! But if you do it yourself it's better since the money is in your control not someone else.

Hope this is helpful.
Eugene

Have you guys heard about Sunshine empire system? They have this monthly payment when you put in a certain amount of money. The return was so astonishing and a few of my friends pumped in quite a lot of money.

Now, the company is under investigation of Commercial Affairs Dept of Singapore. I heard they stop paying monthly rebate. I almost wanted to pump in USD10K, luckily I have no money at that time because I just opened an acct with US broker.

Sory, I am not sounding pessimistic or biased, just my personal views. I hipe your forex pool is doing well.

JK,

I think what Timothy meant is a private investment pool between his friends and relatives. Sunshine and Swisscash are international money scams out to cheat people so its' different. But I will be careful about who is doing the investing, worried that he/she might not be competent and experienced and there goes all the money !

Eugene

Mr Eugene and JK,

The friend that came to me about forex he also invest in sunshine empire with his father, they have put in a total of RM200K! He ask me to invest before but i find it fishy so i didn't, lucky i didn't. Now they are very worried that they cannot get back their money.

Now he with another friend came to introduce me forex. It could also be another scam. I read in www.consumer.com.my there are a few forex scam so i ask him better to be more careful.

Actually if we want to go out cheating people this forex things can also be use as sunshine empire scheme ask people to invest for 5% monthly return, after a year tell them gomen didn't approve and we can run with all the money. I wonder sunshine has been around for few years why only now that the gomen stop it, they should have act much earlier, maybe they give gomen some benifit ??

What 200k?!!!!!?

Only I realise Malaysians are more wealthy than Singaporeans.

If I use RM200K, which is us62k, with ITM options writing or short guts, say minimum of 2% a month, I still get USD1240 per month. Which is near RM4000 a month.

If I am not wrong, this Sunshine empire started in July 2007 but got this investigation in Oct 2007. Quite short time, how long does it exist in Malaysia?

JK

Binary trading:

Binary trading allows you to bet on discrete financial events that have only three mutually exclusive outcomes; Win, Loss or Draw.

Prices on such financial events are quoted in various Odds and are quoted during market trading hours of that financial instrument ("in-running").
You do not need to wait on the outcome of the financial event and can "close out" to take an early profit or cut loss if the events are going against the bet.

Using a real-life example (time is 18.26pm China time, date is 18 Apr 08):
At that time, spot price of AUD/USD is 0.9364. The binary odds for AUD/USD Daily bet, strike price 0.9373, odd for "over" is 0.43 and odd for "under" is 0.65.

Translate the above statement into simple english:
If you think AUD/USD will close at over 0.9373 by 5am (21:00 GMT), your binary odd is 0.43.
If you think AUD/USD will close below 0.9373 by 5am (21:00 GMT), your binary odd is 0.65.
Say you are placing a bet of S$100, a binary odd of 0.43 means that if you lose, you lose $43 or 43% loss; When you win, you gain $57 or 57% gain.
Compared to margin trading, to achieve a gain of 57% is so much tougher, and the risk level is so much higher.

In the above trade, you will know what is your maximum loss if your view is wrong, and what is your gain if your view is right. What's more, there is never any commission to pay: any profits you make are yours to keep in full.

Hence looking from a risk-management perspective, binary trading looks more favourable compared to conventional trading.


Events driven trading:

Every other day, there is at least one US economic data. And some of these data can move the market wildly. Some of the impactful data includes: Non-farm pay roll, FOMC interest rate decision, Jobless Claims, CPI, PPI, etc.

Say Non-farm payroll data is going to be announced at 11pm. A positive data may push USD higher, and a negative data will resulting in weaker USD. If you are negative on the data, you can place a hourly bet on the "over" trade. So if the data is indeed a bad data, EUR/USD is expected to rise higher, resulting your "over" trade to make money.


Discipline trading
Say your initial capital for today is USD300. Set yourself a target how much return you would like to achieve, say 50%. Place your bet on the 5 min game. Stop your betting once you gain 50% profit of your capital.


Other benefits:

a.Low capital outlay.
Unlike futures trading whereby a huge capital is required. You can place a bet for an amount as small as USD10.
b.Traders do not have to worry about margin call.
c.No interest charge.
d.Downside risk is capped, unlike leverage trading where you can lose more than you can afford.

[Actually if we want to go out cheating people this forex things can also be use as sunshine empire scheme ask people to invest for 5% monthly return, after a year tell them gomen didn't approve and we can run with all the money. I wonder sunshine has been around for few years why only now that the gomen stop it, they should have act much earlier, maybe they give gomen some benifit ?? ]

The gomen is too busy politicking and making money for themselves to bother catching these people. The people shouldn't depend on gomen to help them for problems they got themselves into. Warren Buffet, the world richest investor make 20% per year using conservative and safe investing methods so if you can get more that this there is sure some risky trading involved ! I am not against risky trading as long as you know what you do and have steps to mitigate risks if problems arise.

Eugene