Friday, January 21, 2011

What Trader Wish?

It's always nice to see the trade that we entered is going in our direction. How I wish I can trade the Live account just like the Demo.

Monday, January 10, 2011

6%

It's like a silent fart, 6% service tax is here. It is inauspicious yet deadly. An increase of 1% from 5% to 6% means, if one family spend RM100 a week at restaurant, the government makes RM1 extra. 10 000 families will pay RM10 000/week to the government in additional to the existing RM50 000 week. It means the government will have additional of RM520 000 in YEAR 2010 from the rakyat. The reality is, we go to restaurant more frequent than that, that are more than 10 000 families in Malaysia and restaurants are not the only place service tax is imposed. Details on the tax scheme is available here: http://www.nbc.com.my/malaysia-budget-2011-tax-proposals.html

Yes, there are some good news. Handphone no more tax…YAY… err wait, how often do we buy phone? People with household income less than RM3000 may buy 1st house and borrow 100% loan. 100% loan means we pay more interest to the bank. In the long run, we are poorer. At the same time, we pay more for everything thing that we eat or use every day because service tax has increased. Brilliant!

I was damn shocked when recently I had to pay 6% service tax. All the while I thought the government dare not impose since many gruesome voices protesting this idea but since it's already reality, there's nothing I reckon we can do. All in all, at the whole big picture this is what happened in Malaysia: Despite the increasing inflation that is burdening the people, the government says "reduce tariff on stuff they buy once in awhile, only if they can afford hahahahahar….ahem….increase the tax on everything else". "And impose immediately!".

 

Saturday, January 8, 2011

Dilema over Breakfast

No idea why but feeling really pissed while having breakfast this morning and it with something petty. It all started from paying RM1 for Kopi "o" peng. I was really annoyed that I was charged RM1, not like I paid 99c yesterday or 50c suddenly it increases to RM1. It's been priced like that for quite a few months already. I was like "what the fuck? RM1 for this cup of shit?". Yeah, things are getting more and more expensive, …. It's gonna be like that from now on. Kopi "o" peng used to be 40c when I was little. A technician's wage in the factories was probably RM2k back then (I know, my father was one of them). They could afford a family, decent house, meals, in short, simple sufficient life. Today, a technician's salary is probably RM2.2k. And Kopi "o" peng is RM1. Inflation has won the race by leaps and bounds.

So I pulled out my crappy phone and went to calculator mode. The figures struck me that the amount of taxes I paid is almost equal with the amount of money I spent for food and entertainment (several movies and karaoke sessions) for the whole of last year! For fuck sakes it was hefty to pay. And what the fuck did I get in return. Nothing significant mentally tangible to me. After paying so much taxes, tomorrow I'll still be driving on such bumpy roads. Few months down the road I will still feel sore with some racist politicians uttering offensive words. And worse, his salary for being an MP comes from our taxes. And for that, we do not belong here and do not deserve the same like others. I'm not trying to dig muds and start throwing at any party but that's what I personally feel. I'm sure some do feel the same as me. Even though I work harder and pay more taxes and contributes to the EPF system, sugar prices rose, so was petrol, and situation can only be worse. If everyone stop paying taxes, will the reverse happen? Heck was I confident that EPF was a force saving system which money contributed will be invested smartly for the benefits of the shareholders (us) and nation. Instead, I heard rumors about the money spent of bailing out failing companies. Why would we want to save companies which don't contribute? Why didn't invest into those with more potential? One on the negative end and one on the positive end, and money was dump into the negative end. Do the math.

At the same time it occurred to me that we have to pay for electricity, water, internet and even rubbish collection. On top of that, all the bills are taxed. I'm quite sure some of the companies which we are paying bills made some money. Where the fuck did all the money go? I think it all went to salary and pockets of people which could deduce a person could die even though "he was not murdered" and "didn't committed suicide" and found dead due to fall impact. I thought creator of superman had good imagination but obviously not as good as him. Lol

Being lived here the whole life, I always think that this is the best nation in the world. If only certain sanction could be improved, I'm sure the whole country would propel at an insane speed. Where is the logic in limiting the economy? It's almost as if saying "I want to score only 75 in math". When the teacher award 76, start annoying him/her to get the marks deducted. Lol.

The saddest part is, besides continue paying taxes and feeling sore, there's nothing I can do without looking trouble for myself. The only sane thing I can do is to cast my angry vote when the time is due. I can only hope that my vote is significant enough.

That was breakfast.

 

Thursday, January 6, 2011

Why trade Malaysian Stocks?

Notice I say trading market but not market trading? Despite the mess and excruciating process we need to get through in setting up an account in a foreign country, many active traders still prefers the "gold rains"; from a Malay quote saying "Hujan Emas di Negara orang lain, hujan batu di Negara sendiri, baik di Negara sendiri. It's not the gold that everyone is after. Why trade stocks that we've never heard off? Why not local company which we know about what they do, how much is their worth and products of which we're buying everyday? There are several reasons;

  1. Many governments apart from our own are having less restriction in their stock market hence it is more liquid. More "opportunities" and faster movements.
  2. Paper trade is available elsewhere but not Malaysia.
  3. Brokerage fee is damn cheap if we trade online. It is also damn cheap here but nobody is shouting about it so, it's unheard.
  4. Less instruments or worse, less counters to trade.
  5. Malaysian traders are more conservatives and some even sees technical analysis as bull.
  6. Trading in currency superior than the ringgit is like having leverage. Currently there is no leverage in Malaysian stocks.
  7. Overseas trading allows shorting before buy. It's prohibited in Malaysia.
  8. Forex and Gold trading is prohibited in Malaysia. Common, hottest market but not allowed over here? Opportunity for more tax la. Do away with GST, legalize forex and tax heavily.
  9. Educational courses are limited or expensive. There are limited local softwares to aid our trade.
  10. Many parents do not encourage their young ones to trade. Too risky they say.

So these are only few which I could think of. Do the math, if there are 10% of the total M'sian population trading (about 2.6mil), and each of them trade about RM10 000 monthly (which awfully little), and 10% of them prefers to trade at foreign country, that's about RM2.6 billion outside Malaysia which is supposed to be in the KLSE. As of today total trade in the KLSE is RM3,141,797,088, let's imagine what RM2 600 000 000 per month can offer to the local market. Which that amount of money, companies will have extra funds to invest, which means more job, better products, advancement of technology, more tax for the government, more schools, more hospital so forth and so on. Of course the figure is only hypothetical.

Come back to the topic, why trade Malaysian stocks?

  1. Because we know them.

Technical Analysis

Trading using charts is so simple when you're out of the market. But when you're finally into it, hell seems close. How to see the market like a by-passer watching a cat fight? I think EQ is more important than ability to spot trends.

Ironic

It's so easy to trade. All we have to do is to decide whether to buy or to sell. And yet 95% of the traders loss money. So when they say "it's as easy as ABC" I doubt they are really appreciating the meaning of the words….