Risk Disclosure Statement
About Us

Resam Padi Trading System
Humility  Self-Discipline Willingness to Yield
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Human ... we get into this world ... we cry ... we laugh ... we play ... then we die.
Welcome to Our Web Resam Padi Trading System
Frequently Asked Questions Market Analyses
People's Summary Our Recommendations
People's Summary

Prologue
A number of factors have been responsible for the growth in futures trading:

  • Sophisticated investors have long sought more effective methods of diversification. With practically a zero correlation with stocks, futures trading can be an ideal asset class to profoundly diversify an overall securities portfolio.
  • The tremendous expansion of futures to encompass stock indexes, debt instruments, currencies, and options as well as conventional commodities has created new categories of profit opportunities. The global nature of today's futures markets also has expanded the scope of investment possibilities.
  • Studies have shown a portfolio of stocks and bonds performs less and is actually more volatile without, than with, futures. Simply put, the addition of futures can increase performance and reduce volatility when added to a portfolio of stocks and bonds! 
The Mechanism of Futures Trading
1) Futures are financial instruments whose value is derived from an underlying physical commodity or financial instrument. In such, their prices is based on the price of the instrument on which they are based - crude palm oil futures are based on the price of palm oil traded in the commodities market. 

2) The main reason for the evolution and existence of futures is the fact that prices of commodities and financial instruments fluctuate, often rapidly and over wide ranges. Produces and uses of commodities and financial instruments, wish to avoid the uncertainty that this price fluctuation brings. The futures market brings buyers and sellers together in one place, where, through their brokers, they agree on a price at which those commodities and financial intruments will change hands at given future dates, thereby limiting their exposure to price change. Thus, the primary purpose of futures is to manage risk. 
The Advantages of Futures Trading
3) The primary attraction, of course, is the potential for large profits in a short period of time. The reason that futures trading can be so profitable is leverage. Leverage means that the return in investment exceeds the return on the underlying instrument. In the futures market, leverage is made possible because of the system of margins. For a small initial outlay ( the margin), a trader has exposure to a much larger sum and can make huge profits/losses from small variation in price.

4) Another advantage of futures trading is much lower relative commissions. 

5) Futures trading is not particularly complicated. Unlike the stock market where there are over ten thousand potential stocks and mutual funds, there are only about forty viable futures markets to trade. 

6) In futures trading, it is as easy to sell (also referred to as going short) as it is to buy (also referred to as going long). In other words - it's a two-way market. 

7) It is economic-proof.

Making (or Losing) Money in Futures Trading
8) When you BUY a futures contract, you essentially make a binding promise to acquire the commodity at a certain time in the future. This time occurs at or around the expiration of the contract and may be several months down the road. 

9) When you SELL a futures contract, You essentially make a binding promise to deliver the commodity at a certain time in the future. Again, you’d be expected to deliver the commodity at or around the expiration of the futures contract which may be several months down the road.

10) Profits are derived when buying positions are off-setted by selling positions at higher prices and when selling positions are off-setted by buying positions at lower prices. 
Trading System
11) Most successful traders use a mechanical trading system. This is no coincidence. 

12) A Complete System covers each of the decisions required for successful trading: (1) Markets - What to buy or sell (2) Position Sizing - How much to buy or sell (3) Entries - When to buy or sell (4) Stops - When to gget out of a losing position (5) Exits - When to get out of a winning position (6) Tactics - How to buy or sell. 

Resam Padi Trading System
13) Our trading system is Resam Padi Trading System (RPTS).

14) RPTS is designed based on historical data that market adjustments sometimes form trends. The models have revealed that there is an inherent return in participating in price movements that reflect those trends.

15) RPTS does not predict trends nor predicts any future market movements.

16) Prices is the foundation of the analysis.

17) RPTS is more focus into sound money management and risk control rather market analysis.

18) RPTS is designed to be harmony with both the user of the system and the markets. 

19) With RPTS, low analysis accuracy is expected. RPTS is into trading strategies rather analysis accuracy. 

20) RPTS is designed to be harmony with the market. Expect to go long when the market is going up, and short (or out of) the market when it is going down.

21) RPTS is a long-term trading strategy - trading with the objective of making money in the long run (6 - 12 months) and consistently that the straategy will make money given enough time.
Money Management
22) The number one cause of financial death among beginning traders is trading too much with too little. In other words, using a lot of leverage - much more than they should.

23) Risk capital is the amount of money you decided to invest in futures trading where, if you should loose it all, it won't affect your lifestyle. 

Trading Disciplines
24) Confidence and Consistency is two most important disciplines in applying any trading system.

25) Cut losses short and let profits run are key ingredient in successful trading.
Technical Analysis
26) RPTS uses technical tools for trading decisions.

27) These technical tools measure market behaviors which are divided as : 
(1) Trending (2) Congesting (3) Ranging (4) Retracing (5) Sideways 

28) RPTS trade markets according to market behaviors through trading sub-system :(1) Trend-Following Trading (2) Swing Trading (3) Counter-Trend Trading and (4) Range Trading.

Trading Plans, Trading Logs and Trading Performance Report
29) RPTS shall not resume trading without a trading plan.

30) Trading plans are used as pre-decision to trade before markets open to identify where and when to take positions, cut losses and take profits.

31) All trading activities are recorded in Trading Log.

32) Through trading logs, Trading Performance Reports are produced, usually semi-annually.
Our Recommendations
33) It is our goal to offer our clients alternative investment in futures trading, that are appropriate to their risk tolerance, investment goals, and investment experience. Not all of the products we offer are appropriate for all prospective investors: various futures trading are available only to persons who meet specific financial requirements.

34) Our first recommendation is of course to ask you to understand that futures trading is risky and only meant for speculative investments.

35) Our second recommendation is to decide on the three alternatives suggested below as it is impossible for us to access anyone's personal profile:
a) Never even think of trading futures.
b) If you should trade, better have the knowledge and the skills (the right disciplines, mentalities and 
    analysis abilities)  in trading.
c) If you should trade but you don't have the knowledge and the skills, better ask us to trade on your 
    behalf and you continue doing whatever you do best. 

36) Our third recommendation is to calculate how much money you should initiate your trading account through calculating your risk capital where:

Risk Capital
1) Calculate your net worth where:
    Net Worth = Total Assets - Total Liabilities
2) Calculate 10% of your Net Worth.
3) Decide how much of the amount in (2) is your risk capital [money you can 
    afford to lose that won't change your lifestyle].

Hence, amount in (3) is the amount you should initiate your trading account.

If the amount calculated in (3) does not exceed RM 5,000.00 then, SORRY, you are not qualified for trading futures through Okachi (M) Sdn. Bhd. We still recommend you to refer to other brokerage firms for your investment goals. You can refer through SC or MDEX or MDCH for a start.

37) Our fourth recommendation (if you should trade on your own) is for you to have your own trading system be it through fundamental analysis or technical analysis or the combination of both. Your trading system should suit your trading style, your financial goals and your personal profile. 

38) Our fifth recommendation is we trade on your behalf using our trading system - Resam Padi Trading System which emphasizes on (1) Money Management (2) Trading Discipline (3) Technical Analysis.

39) Our sixth recommendation is choosing which markets to trade. Which market to trade has a lot to do with your trading size or your trading equity and market volatility. 

40) Our seventh recommendation is to quit trading totally once the account equity reduced 50% from the original initiate amount.

41) Our last recommendation is to open a trading account.

You will be asked to fill and complete some forms. These are: 

1. New Account Information. 
2. A Customer Agreement Form. 
3. A Risk Disclosure Document. 
4. A Letter of Authority Form - Only if you need someone else (non-broker) to 
    trade on your behalf. 

You will want to sign the relevant documents only after you have thoroughly read through them. To be eligible to trade, you will need to place a 'margin' or cash or bank guarantee.

42) We are looking forward to serving you in your investment.

For More Inquiries:
Our e-mail : [email protected]
 
 
 
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