Posted by kcchongnz > 2012-10-10 18:20 | Report Abuse

Go and look for another job. Serious.

Posted by ongtkong > 2012-10-10 18:31 | Report Abuse

if you are serious, start by attending some stock trading courses. Try chartnexus.com etc;
if you trade blindly based on info here and there, you are mostly going to get burnt one day;
good luck

Posted by kltrader > 2012-10-10 18:54 | Report Abuse

cklcolin10: it depends on the capital and experience you have. If you are practicing safe investment (i.e. no speculative trades) and targeting a return of about 10%-20% per year for a start, then you will need to have 600k capital to generate return of 60k - 120k per year in theory.

I'm sure you need more capital in real practical trades as you may not be fully invested at all times (risk management) and need the extras to cushion the losses at times.

Posted by CP TEH > 2012-10-10 18:55 | Report Abuse

Hi Colin

My honest opinions. Trading is a very difficult and enduring job. If oneis a novice, there is no way we should take trading as full time job. So, yes ... Get a job and learn to trade, say for 5-10years first. See if u r doing well, have the traits of good traders. Learning is very difficult too, so some courses might help to shorten your learning curves.

Do not fall for those software salesmen and those boasting around in forum. Think logically is very crucial in trading. Do not let greed overcome your sensible logic.

Think over it. Good luck.

Teh

Posted by King Kong73 > 2012-10-10 18:58 | Report Abuse

I am planning of quiting my job and do it full time when i have RM200000 cash and 2 years of living expenses covered (RM240k)(mortgage/rental/children expenses and etc).

Currently I am attempting to trade my way to build up my seed capital from RM5000 to RM500000. So far I have grown it up to RM17k. Hope I can reach my target of RM500k within 5-7 years time. Wish me luck! You can check my progress from my portfolio. My strategy is to focus on counters of up to RM1.00

Posted by King Kong73 > 2012-10-10 19:06 | Report Abuse

Yes Amedia is in my radar if it drops below 0.40

Posted by cklcolin10 > 2012-10-11 11:50 | Report Abuse

Thanks for the advice

I have prepared some 200K as seed for the trading.
Read lots of books and online tips on trading... Have even tried some simulation investing (without cash).. small success is here and there.. but cash flow seems very unpredictable ...

Divident counters is good for cash flow.. but assuming with 5-8% return, the most I will get is 10K per annum..

Does active contra trade good way to make profit? Say.. perhaps targeting 1K per month or so..

Posted by Fat Cat Tim Buddy > 2012-10-11 11:54 | Report Abuse

hahaha.. good luck

Posted by ongtkong > 2012-10-11 12:06 | Report Abuse

cklcolin10, heed CP TEH's advice. I am sure you don't want to pay tuition fee to learn the hard way. Perhaps TEH can recommend some good stocks for us to start with.

Posted by jacklew > 2012-10-11 12:07 | Report Abuse

Look for another job. Do not trade full time. The company i'm working is looking for new hire. Let me know if you are interested.

Posted by Mat Cendana > 2012-10-11 12:16 | Report Abuse

It definitely *is* more than possible. But I'd say not advisable. The better way might be to have a fulltime job to ensure the basic necessities are guaranteed. Only then will there be less pressure; and one tends to make better trading decisions when the mind is clear. Once the trading brings regular income, and when you have enough experience and the `right' temperament, only then should the fulltime trading be considered. Just my opinion.

Posted by tradersam 56 > 2012-10-11 12:18 | Report Abuse

Ha ha ! at first very interesting & exciting. A year& half ago I start wth 20K then slowly to 60K hoping to generate some income monthly! Now only left with 10K :( !!! So be v careful cklcolin!

Posted by KC Loh > 2012-10-11 12:19 | Report Abuse

colin, go invest in properties. hot market now. wait the shake out of shares now, then buy in! my 3-sens (with inflation setting in)

Posted by ctash > 2012-10-11 12:19 | Report Abuse

look for a job first to sustain your monthly need. Start trading small and learn, reading books is TOTALLY different from trading in the real world as you are dealing with alot of uncertainty & ambiguity. Once you are able to make enough return to sustain your monthly need, then you can quite your full time job.

my 1 cent

Posted by kcchongnz > 2012-10-11 13:06 | Report Abuse

"Read lots of books and online tips on trading... Have even tried some simulation investing (without cash).. small success is here and there.. but cash flow seems very unpredictable"

If reading lots of books and online tips on trading will make you a successful trader, then the richest people on earth would be the Liberians.

Serious, I don't mean to so direct to pour cold water on you (and many other people here). Read an a summary of a famous academic research below.

In their 2009 paper on “option trading and individual investor performance” , Rob Bauer, Mathijs Casemans and Piet Eichholtz examine the performance and persistence of individual investors trading at a Dutch online broker. Using a database consisting of more than 68,000 accounts and eight million trades in stocks during January 2000 to March 2006, they find that very few made positive alphas. The bottom tenth of performance lose more than 90% of value!

Do you just base what I have "read" above to form my opinion? No, I am old and long enough in the market to give my opinion.

Posted by necro > 2012-10-11 13:24 | Report Abuse

Go tanam Chili...
Chili in KL high price...
200k money u can grew tones of chili...

Posted by isseymiyake > 2012-10-11 13:26 | Report Abuse

buying in stocks/reits that pay good dividends quarterly when their shares price is low and enjoy capital repayment, dividends, income distribution every 3 months.

Posted by KC Loh > 2012-10-11 13:27 | Report Abuse

hehehe necro! u ni memang keje lain takde le

Posted by necro > 2012-10-11 13:31 | Report Abuse

Go into ASW or wat other AS(not ass)
RM200KxRM0.075=RM15K/year but if you buy now u will get at least RM5-7K for dividen..
I have see it..better you try..
SAFE n NO WORRY!!!
but drive carefully when go to POS office...

Posted by euscilyn > 2012-10-11 13:45 | Report Abuse

Physically & mentally must get prepared. For example :-

You have $5k monthly income + saving 200k in bank :
1) when you invest $5k (100% of your income) if the market is dropping you still have next net income on follwing month + saving in bank.
2) You could actually control your emotion when market is weak still can sleep & eat well.
3) With financial back-up, you mind-set still clearly and more forecast to justify those khabar angin was true or false.

But without monthly income you should ask yourself as below :-
1)Are you able to face the lost without refilled income?
2)Are you able to settle your commitment without earning?
3)How long your 200k can stand if market keep on dropping?

Pls think twice before further action. Wish you good luck.

Posted by bursabulltrader > 2012-10-11 13:50 | Report Abuse

Earning constant income by Trading Stock is Possible*. The important traits that you need to manage is your EMOTION MGMT. Even if you have learn all your skills or you have pile of cash to invest you will still fall to cave when your emotion out of control (greed, fears, hope, panic, external pressure, etc). The 2nd would be the MONEY MGMT, how well you plan and execute together with your EMOTION. This need years to build up and need proper discipline.

I would say, initially by practising on your real trading (not on paper trade, as this will not impact your emotion). Once your money and emotion put to test in real market live, you will know what exactly I mean.

I would like to recommend a book for your read - Trading for Living by Dr. Alexander Elder. It will be good guide on your way to achieve full time stock trading.

All the best!

Posted by Andrew Law > 2012-10-11 13:51 | Report Abuse

depending on what is your comfortable level of income per month

say you want RM10000/month. one year is RM120,000
i do not foresee KLCI much upside, my guess is you can make 10% per annum. not super normal profit like 20/30%. therefore 0.1/120000 = you need 1.2 million as capital to achieve RM10000
per month

Posted by wongcw60 > 2012-10-11 14:59 | Report Abuse

Just to share with you my 'journey'
My wife and I has been working in an oil and gas company for the past 30 years. On retirement day, let's say both of us are financially 'comfortable'.

Moral of the story :- I am a lucky man. Are you, Mr Colin???

Posted by chongkonghui > 2012-10-11 15:09 | Report Abuse

Nothing to add.... you have more than enough advice from above fellow investors.

Posted by ongtkong > 2012-10-11 15:09 | Report Abuse

wongcw, well said...hahaha

Posted by tonylim > 2012-10-11 15:10 | Report Abuse

Colin, its a no no if you are gonna looking at computer screen all day long. Learn to trade or invest casual manner.. same with property but must leverage up.
Be good to bankers.

Posted by Fat Cat Tim Buddy > 2012-10-11 15:12 | Report Abuse

Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.

If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.

Posted by tonylim > 2012-10-11 15:12 | Report Abuse

Wongcw, whats your story... Your retirement funds seems to dwindle faster by this thing called inflation.
Even with 10% returns, you might be worse off.

Posted by bursabulltrader > 2012-10-11 20:42 | Report Abuse

colin, your situation seem similiar to me when I was starting to trade in stock market. Hope it can refresh your mind for your decision going forward.

I did post some article at my blog @ http://www.bursabulltrader.blogspot.com/2012/10/stock-market-trading-refreshment.html.

Posted by herbert 456 > 2012-10-11 21:09 | Report Abuse

They used to say "no pain, no gain"; but I get all the pain in the share market ..... sigh!!

Another way to invest is probably choose a few unit trusts to invest by dollar cost averaging over a period of few months/ years. Then, slowly lock in the profits when the funds exceed the performance of the FD interest rates.

Good luck!

Posted by Ho Lee Man > 2012-10-11 21:37 | Report Abuse

Colin, My advice is look out for another job.
Making a living as a small trader is tough with much uncertainties.
Bursabulltrader ,say it all,need emotion and money management skills.
Besides that ,you also need luck ,discipline and strategy.
In an ocean ,its usually the big fish eats up the small fishes.
Go , look out for another job.

Posted by a_elder > 2012-10-11 21:41 | Report Abuse

Reading books and simulation is totally different from when you are trading using real cash. You will need to control your emotions- fear, greed, stress, etc.... Remember to stick to your stops. Stops are there for a reason, to save you from getting burn. If a stock drops 10% it will need to go up 11.11% to go back to your cost. That is not including the brokerage and the other fees. Start by trading small first. See how it goes. The bigger amount you trade the bigger the emotional stress is. Good luck!!!

Posted by wongcw60 > 2012-10-11 21:43 | Report Abuse

Mr tonylim,
True, inflation is a big factor. However I don't intend to throw my retirement fund into the share market.

Posted by tonylim > 2012-10-11 23:20 | Report Abuse

Wongcw, yes i can understand your situation. Somebody asked me what to do if one has a million in his pocket now. Honestly I got no reply to his question

Posted by cmlooi > 2012-10-12 00:25 | Report Abuse

Find a job man. Our Bursa is so dull, you won't be able to make a living doing day trading. If you are a newbie even worse. Before you throw your RM200k into other people's pocket due to desperation or itchy fingers, go take a course with Bill Wermine/Martin Wong or Asiacharts or Chartnexus or T3B or Miriam Mc William or Conrad Alvin or Fred Tam. Check out their introductory seminar first but refrain from swiping your credit card at the end of the free seminars until you are pretty damn convinced. Most important is do paper trading first to get your strategy right, position sizing, etc, etc. If paper trading also lose money, then you have to work & study harder. While waiting to attend their introductory seminar, do read Jesse Livermore, Nicolas Darvas, Daryl Guppy, Alexander Elder, Alan Hull, Marcel Link and Van Tharp books. You are likely to lose money in the first 2 or 3 years even after learning all that. Good luck man..... and go learn some gambling theories and also read Trading in the Zone by Mark Douglas. Most important is to avoid entering a casino.

Posted by foomeiling > 2012-10-12 00:32 | Report Abuse

yes,it is possible to make a living with stock trading, i did it, average 2,000 per mth, not much, but for the time being,should be okay.

Posted by tonylim > 2012-10-12 00:36 | Report Abuse

meiling, just curious, when did you got yourself started.
In first quarter of 2009 how did you manage to do ave. 2k per mth

Posted by ongtkong > 2012-10-12 00:43 | Report Abuse

meiling, how much capital did you pour in to earn an average of 2000 per month profit? thanks for sharing.

Posted by Michael Chee > 2012-10-12 02:31 | Report Abuse

Colin, to come to market to make money b'cos u hv just lost your job is not an ideal solution to replace your lost salary as the risks are high that u could loose your savings too. Go find income that don't hv to risk your savings eg. another job or commissions income. Once that taken care and IF u still interested to make stock market a business income then seek out a mentor to guide u if u can't find one then self taught yourself as there are good books out there...avoid those expensive seminar or systems.

Posted by hw0706 > 2012-10-12 06:06 | Report Abuse

possible. 200k after 6 yrs become 800k.must know how to search a good company and do less contra maybe 80/20. 20% contra.

Posted by kcchongnz > 2012-10-12 07:01 | Report Abuse

Echoing chongkonghui
“I have nothing to add.”
- Charlie Munger

Except highly recommend bursabulltrader's link above. And I hope foomeiling share with us her (his?) experience as requested by others, and also hw0706's fantastic compounded annual rate of return of 26%.

Posted by shirley1 > 2012-10-12 08:30 | Report Abuse

Colin, suggest don't take that type of risk just for 1k return per annum on 200k. not worth it.

presume for professional, trading base on probability, gambling also base probability. They are just using some methods to compute the probability. luck is important...

1k return per year on 200k is only 6%, the bond fund and ASM I buy already achieving almost there, with commission taken into consideration, and I need not constantly monitor the market reading chart every day.

Posted by shirley1 > 2012-10-12 08:35 | Report Abuse

Colin, sorry for the england, should be 1k per month return on 200k :)

Posted by isseymiyake > 2012-10-12 09:44 | Report Abuse

right after the share split of digi i bought 45 lot @ RM3.5, earning dividend of 2.5k+ each quarter. paper gain almost RM2 per share and still holding. consider less than 1k per month on RM160k.
so if 200k should be can get more than 1k per month ba...

Posted by cklcolin10 > 2012-10-12 11:31 | Report Abuse

Hi friends.. thanks for million dollar advice :-)
Appreciates all comments given.. and will surely adopt some of the advice and wisdom..

Eventhough I don't know anyone of you, but I felt your comments is helpful and encouraging.. thanks all

Never Walk Alone

Posted by kcchongnz > 2012-10-12 11:33 | Report Abuse

Colin, you are a smart guy.

Posted by foomeiling > 2012-10-12 11:51 | Report Abuse

my capital 100k, avg 2,000 ++ profit

eg. i made 4000++ and 3000 ++ from FGV and Airasia recently, but in may and june, my profit was 600++ and 200++ respectively.

do it slowly, no problem, just don't speculate if u r newbie.

Posted by euclid > 2012-10-12 11:52 | Report Abuse

It's possible to make a living with stock trading - IF you trade for other people and earn commission! Other than this I am not optimistic.

Posted by ongtkong > 2012-10-12 12:04 | Report Abuse

That's is the job of remisier......boring....what colin meant is to trade for himself

Posted by isseymiyake > 2012-10-12 13:49 | Report Abuse

can have a read on this
http://bursabulltrader.blogspot.com/2012/10/stock-market-trading-refreshment.html