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The POWER of
INTRA-DAY
TRADING
1997 :
• Started trading the futures market in 1997.
• Was against the trend, Lost heavily
1997 – 1999 :
• Worked in a Recruitment Agency (Need to pay back debts!). Benny Lee
• Started to study about trading. Discovered and learned mistakes
• Developed trading strategies and traded lightly.
• Learned about Automated Trading Strategies
1999
• Started trading privately. Stocks and Futures, Malaysia and Singapore.
• Started learning TradeStation and Omnitrader.
• Training Consultant to a Software Company. (This was when my training experience
started)
Copyright © 2008 by NextVIEW Investor Education (www.thenextview.com)
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• Uncertain price direction in the following day. Large gaps are common in
the futures market.
• Short term profits, suitable for those who wants to trade full-time.
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The Kuala Lumpur Composite Index Futures (FKLI) is an index futures instrument which the
underlying instrument is the Kuala Lumpur Composite Index, traded in Bursa Derivatives Exchange.
The Crude Palm Oil Futures is a commodity futures instrument which the underlying instrument is
the physical crude palm oil price, traded in Bursa Derivatives Exchange
The Nikkei 225 futures is an index futures instrument which the underlying instrument is Japan’s
Nikkei 225 index is trades in a few exchanges , including Singapore.
Call and put options can be traded in exchanges or over the counter…
Over the counter derivatives- contracts that are traded (and privately negotiated)
directly between two parties, without going through an exchange or other intermediary.
Forex trading (or currencies)– is done between banks. Retail traders can also trade forex with
forex trading providers (or brokers).
CFD (Contract for differences) – These CFD providers trade directly with their customers and offer
many types of instruments including stocks, indices, futures, forex, options, etc and is normally
done online.
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Price
Stocks – no opportunity
Time
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Price
Futures –
$$$$$$$$$$$$$
Short!
Time
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The Daily Average Range for KL Composite Index futures price is between 20 to 40
points. That translates to RM1,000 to RM2,000 money making opportunity trading
only 1 contract.
The Daily Average Range for Nikkei 225 price is between 150 to 300 points. That
translates to RM2,250 to RM4,500 money making opportunity trading only 1
contract.
The Daily Average Range for USDJPY price is between 0.6000 to 1.000. That
translates to USD600 to USD1,000 money making opportunity with USD1000
deposit and 10% margin.
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Say you can only profit 50% from the daily range. You can make RM600 to RM1000 on
CPOF or RM500 to 1000 on FKLI.
2. You do not make money everyday, even if there is an opportunity to make money
everyday
A trading plan with a winning edge will have more winning trades than loosing trades,
with a profit to risk ratio of at least 2 to 1.
Say you make 20 trades in one month. You win 12 trades and lose 8 trades. You make in total
RM6,000 and loss RM2,000 and net a profit of RM4,000. This is only 1 contract. If you trade 5
contracts, you have an opportunity to make RM20,000.
Copyright © 2008 by NextVIEW Investor Education (www.thenextview.com)
YOU!
Copyright © 2008 by NextVIEW Investor Education (www.thenextview.com)
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iii) Charts – A charting tool that is flexible enough to help you to implement
your trading strategy
iv) Discipline – Crucial when implementing a trading plan. The trade have
to consistently follow the trading plan.