Saturday, March 1, 2014

Trading - Full time job or Part time job or Hobby?

Before I quit Malaysia Equity industry, Phileo was the PIONEER introducing internet trading in the 1990s. This is never a problem given that I was sitting in front of the BFE (as we call it back then). During my tenure as a Remisier (Comm. Dealer Rep), I concluded that it is NOT necessarily to be full time in the market given than KLCI and stocks move in cycle.  

Over the years the economics and technology evolved so rapidly that the landscape of financial markets changed completely.

The introduction of FX platforms attracted me completely on the responsiveness and flexibility of placing my trades. I am used to the "physical trades" with the bank and limited avenues available, FX platform was a miracle where most bank involve high spread and costs. With FX platform, I was able to hedge my positions instead of physically readjusting my portfolios. Not to mention the small trades for coffee money. With my own fond for charts, this impressed me completely. It was one of my student that prod me to analyze FX platforms. 

The free availability of real-time quotes for Commodities, Futures Index etc... fascinated me while study each different markets. This has totally challenge many opinions that market are for "retired" or financially capable people.

Depending on one's intent, if you trade within a regular basket of stocks in your portfolio than you do not need to be full time. During a down cycle you will need to wait for bargains or low risk probability to accumulate stocks. It is boring while waiting for this period.  This is a one-way game ... BUY or ONLY LONG positions. Unless you keep looking for different stocks to game daily.

IF one is active in the FUTURES market, than it can be a full time job depending on the time frame you are trading. I do less of intra-day and more on daily or weekly, again I do not need to be full time.

Where in the past one need capital to trade the futures market, with leveraging, the entry is now miniscule requirement. I have been trading international markets for sometime, Bursa does not appeal to me except when there is super bargain that is worth for me to take positions.

I can trade any of the grains and oil internationally at anytime Monday to Friday ...24 hrs. One of the rule of being a trader is you must choose a turf that has time flexibility and not restrictive. Bursa has a long way to go.

I will keep to my FX, Grains and Index futures where I can either LONG or SHORT the market and back to stocks when I am hngry  

   

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