proposal

PROPOSED CAPITAL                 :     USD 5,000.00 ( RM 19,000 )

CONTRACTS                               :     HONG KONG MARKET SPOT INDEX

AMOUNT REQUIRED TO TRADE ( ONE LOT )

DAY TRADE                               :     USD 1,000.00 ( AVAILABILITY 5 LOTS )
OVERNIGHT TRADE                  :     USD 2,000.00 ( AVAILABILITY 2 LOTS )

TRADING STRATEGY

TRADING PLAN:

Trade 2 lots per day on a day trade basis and the balance will be used as a back-up support.

An overnight position will only be opened in the event that the open position is having a floating profit.

MONEY MANAGEMENT:

Use not more that 50% of margin to trade.

The balance of margin will only be utilized for the purpose of :

Add new open positions to maximize profits in the event should your initial positions be having a floating profit.

Add new open positions to average up your buying / selling positions in the event should your initial positions be having a floating loss.

ASSUMPTION :

TRADE SPECIFICATION.

Contract                          :
Contract Value                :
Price Quoted                   :
Min. Price Movement      :
Brokerage Fee                :
Trading Hours                 :

Hong Kong Market Spot Index
Index Point x USD 10.00
US Dollar
One Index Point
USD 100.00 Per Lot
09:45 a.m - 12:30 p.m - First Trading Session
02:30 p.m - 04:15 p.m - Second Trading Session
( Malaysian Time )

-   Trade 2 lots a day on day trade basis for 10 trading days
-   No of trading days : 20 Days ( Monday - Friday )
-   Total lots for the month : 10 Days @ 2 lot = 20 lots
-   Risk : Reward ratio = 1:3 ( 50 Point : 150 Point )
-   Percentage of profit / loss : 50% - 50%

FORMULA FOR PROFIT AND LOSS CALCULATION

[ Diff. in index point x USD 10.00 +/- Brokerage = Profit / Loss ]

CONCLUSION

Trade 20 lots a month [ 10 lots profit / 10 lots loss ]

POTENTIAL PROFIT

150 Index points x USD 10.00 x 10 lots - USD 1,000.00 [ USD 100.00 @ 10 ]
= USD 14,000.00 [ RM 53,200.00 ]

POTENTIAL LOSS

50 Index Points x USD 10.00 x 10 lots + USD 1,000.00 [ USD 100.00 @ 10 ]
= USD 6,000.00 [ RM 22,800.00 ]

RETURN ON INVESTMENT

USD 14,00.00 - USD 6,000.00 = USD 8,000.00 [ RM 30,400.00 }

PERCENTAGE OF RETURN ON INVESTMENT

160%