Our
Recommendations
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.
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!
Investors in
futures trading share common attributes and goals:
-
They are changing
with the times and have broadened their selection of investment alternatives
to take advantage of global opportunities.
-
They seek the
expertise of experienced brokers and traders, knowing this gives them an
opportunity for success.
-
They have recognized
futures trading as a legitimate investment and are aware of its features
and benefits, potential rewards, and inherent risks.
-
They have chosen
to invest because of its ability to complement their overall investment
goals.
-
As independent
thinkers, they make intelligent decisions based on facts and logic.
First
Thing First
Our first
recommendation is of course to ask you to understand that futures
trading is risky and only meant for speculative investments.
Our second
recommendation is to decide on the three alternatives suggested below as
it is impossible for us to access your 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.
If you should
not be trading [alternative (a)], we recommend you to keep reading for
knowledge is priceless.
Our third
recommendation is to calculate how much money you should initiate your
trading account:
Risk Capital
Decide
how much of the amount in (2) is your risk capital [money you can afford to lose that won't change your
lifestyle].
If the amount
calculated in 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. |
Account
Types
There are
two account types classified according to their trading purposes:
1) Hedging
purposes
2) Speculating
purposes
Hedging purposes
are meant for hedgers so let's concentrate on the second part, the speculating
purposes.
For speculating
purposes, we offer 3 types of accounts:
1) Individual
account
2) Partnership
account
3) Company
account
After deciding
on which account you prefer, let's go back to the previous alternatives:
1) Trading
on your own
2) We trade
on your behalf
Trading On Your Own
Our fourth recommendation
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.
Some of our clients who have their
own trading system but do not have the time monitoring the markets, under
strict confidentiality, they don't mind us trading their money through
their trading system. |
We Trade
On Your Behalf
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.
Which Market to Trade?
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.
| Account Trading Size |
Markets |
| Less than RM 10,000 |
MDEX Crude Palm Oil |
| RM 10,000 - RM 15,000 |
Yokohama Silk |
| RM 15,000 - RM 20,000 |
Chicago Bean Oil
Chicago Corn
Chicago Oats
Tokyo Rubber
Tokyo Azuki (Red Bean) |
| RM 20,000 - RM 25,000 |
New York Sugar
New York Gold
Tokyo Soybean
Chicago Soymeal |
| RM 25,000 - RM 50,000 |
Tokyo Corn
New York Cocoa |
| RM 50,000 - RM 100,000 |
New York Cotton
Chicago Soybean
Chicago Wheat |
| Above RM 100,000 |
New York Coffee
New York Crude Oil |
|
When to
Quit?
There are
times even any good trend-following system suffers drawdowns and basically
small accounts suffer tremendous reduction in percentage.
Our seventh
recommendation is to quit trading totally once the account equity reduced
50% from the original initiate amount.
Opening An Account
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. |
We are looking forward to serving you
in your investment. |
