The margin deposited is rather small amount. Compare to the contract value. The transaction may lead to quick and substantial profits. But the reverse is true for losses too when the price do not move in your directions.

How does it work? Example

Bull day: STI oct future contract value is 2000 points.

Contract value = 2000 x $10 x 1 contract = $20,000

Margin required is $1625 per lot this amount is fix. For per contract.

End of the day: sti raise to 2025 points:

Profits is= 2000- 2025 points is $10×1 contract = $250.00

You have gain paper value of 250$

Your account margin is 1625+250= 1875$

This is if you closed your position on the day itself.

It’s the same goes for bear market calculations.

Cheers

Have you read or know any of this counter call the STI future ?

STI Future still can give Retial investor a chance to profit even if the market is plunging.

Why trade counters. If you do not even know that the counters or shares is plunging or flying?

This post here I share here the points and knowledge of understanding Future of STI which consist and made of STI which is the Straits Times Index of Singapore. This is long. So if you do not have time please bookmark it and read till you can understand for fans.

  For Months ever since June 08” a lot of stocks investors have been caught in a roller coaster, well Thanks to the much aided current financial TURMOIL.

   Its now common to hear investors how much they have sunk in to the stock market when the market was good. And to see the value of  the portfolio now on the values as of the amount invested. Check your portfolio now most investors will be having RED marks figures, Vs the beginning of the year. There is actually two things which I share you can do now.

1)      Cut your losses now, Meaning sell your stocks now and bare all the losses

2)      Pray and Hope for the best to turn up.

  There is a rather quick money stuff which you may have misses.  Begin having to sit and wait and pray. There is this counter call the STI Future which consist of the top 30 companies which form STI based on capitialisation. For information of what are the companies that creates the STI future. You can do a study on this. Its basically some like SPH, SGX, semb mar etc if am not wrong.

What are STI future?

  Futures are contracts or agreements between buyers and sellers to buy or sell the STI of the 30 stocks at an agreed price, which is the Index figure to be settled at a date. Actually a lot of retail investors do not know about or even heard of this tool.

  Its quite a useful tool for investors who wish to take a position on the local market. That is whether is going up or down, Rather then naked short selling counters or stocks now. Which was made officially illegal to trade. One thing for sure as of now. The future of STI index is way easier to trade to make money, Rather then the stocks of any counters. Why? Simple, cause what market is it now? BEAR MARKET. What cause it? The TURMOIL. As you can see its rather perfect to make money from it now due to the roller coaster. Why? Cause the market Falls Much More then the Bull. Even if you sell , make and closed your position everyday. Minimum making we talk about in terms of index points is about negative 20-128 points. During the days when market is in positive now. Whats the index gain positive? Max is about 20-30 points. So even if loss you loss the days in gains. When per week now we talk about now is. 5 days a week for trading days. 4 days are in RED and only maybe one day is posistive.

 All right now. Questions to answers.

How to trade the futures of STI? And the Value?

The value of STI is the future contract price per point of $10 multiplied by the current index trading level. Example: if the index traded now is 2000, The futures contract will be $20,000.

How are the STI futures transacted?

Do not be understood that you have to cough up the full amount required to the contract value which I initially though it might be. But I was wrong till I tried it. Its actually base on margin trading, which you have to deposit with the broker to secure your contract value. The margin require to trade is fixed by SGX which is only 5-15% of the contract value.  So what happens is that if the contract value during the trading time falls below the margin of your value. Then you have to top up the difference.

How to profit from trading STI Future, and how it works?

  Its almost the same like trading stocks, buy low sell high, sell high buy low. Future is flexible of buying and selling officially. You have to remember this though, that each point is $10. meaning if you win 20points means is $200 per contract.

Hi readers

I have actually received quite a nunder of emails and some of the traders actually Addes me to MSN and ask me. Think alot still do not understand what and how this system works. And some i even scolded them online. If you want to learn. Please listen, do not think that you are so smart and out think and out do. I even gave out some of the counters to some of them to look at in the begining of the week. Let me explain again. My system is not a perfect system. Just that the probabilities of losses is lower by almost half thats all. But you have to rember that there is no GRANUATEE as to sure win. If you think that there is , Then this is not the place for you. Cause there is no such formula in this world. I do not want you readers to later loss money and blame me. just because you do not understand how it works.

First, You must have market depth to know about this strategy. If you do not have, then dun even think and anticipate that you know. By just telling me that you can see. Cause you cannot see like what i said. You have to do maths by adding up all the quing buyers vs the quing sellers.
Also, important is that this strategy its not advisable to look at speculative counters. i have this reader who ask me. Am looking at rowsely and oceanus and etc. I wonder why do you wanna look at all this counters when all this counters has such high volume of sellers and high vol and buyers. In the end the price will never move. fir me its just a simple thinking. Let me just share my though of view. And hope that you all will understand eventually. i have a student who ask me. i saw the papers that japan land Oii hong leong is buying and taking over.can i buy???
Ask your self this very question dude. Do you have the chance???
Simple. All this big boys in the market. When they buy and accumulate. Its way back time. By the time the news comes out or announce. They are the ones who are SELLING you. And you guys are the ones who are buying up all his shares that he is selling. In the end he just annouce that the bid to buy is not successful. Right? So why do you wanna do all this and get yourself trap.Its just a game of understanding readers. If you can just stand in the point of view. then you can win. example again. one student ask me. when the couner halt means have news. And i saw that alot of people are quing to buy. Can i go for it??? For me i will not even look at it. Simple again. if there is halting for news. Means that there will be alot of buyers. of course. But ther will also big big sellers. Why…the people who bought before the news will be waiting for this day and time to make money. So why do you wanna just in the dead line game???

Now. Lessons begin. One student ask me. so many counter. Which one to look at???
I tell her. Me too don’t know dude. But i always do my own reseacrh for the week. How?
Lets say on fri nite there is news on banking in USA DJIA. Banks rates fall or interest rate affected etc. This will affect the DJIA. Then i will forcast on bank shares counter related couner in SG. Its the same. Let say fri nite there is issue on property in US again or freedie mae. then Look at property counters comming week. Thats why i do. As always. I wil also always have my own fav list of counters. Like On monday. I gave out closed to 13couners all on property. Just this week alone i make closed to 5k. without any capital. I dun keep anything or counter overnite. Why. Simple. I dun know whats gonna happen tommorrow. So why keep. Unless am able to tell that tonite DJIA or News in DJIA. Will make the market fly. If not why should i take the risk of it.Like wheelock. its one of the counter i gave out also. I made closed to 2k from it just in and out morning and in and out in the noon time. Its so simple.
Why all this counters are the best? Cause it expensive and no speculation on all this. Second,
I can easily move the price up or down.Why? cause there is not much sellers and there is always buyer on this kind of counter.You ahve to understand before you can trade. And dun think that you know before you understand what i taught. you can email me again to ask. But for heaven seek. Read and understand my training before you go in and wack. Like one student. She is very clever. She fully understand what i mean. And she went in and out with no problem and make closed to 10cents. just that she broke the rules. She kept it over nite. I hereby say again.
This step of entering the market is very important.
I have been using this techq in US market on options and also gaping to trade.
You always listen to people saying its so simple. And yet you do not know where to enter eve after the seminar. Well. This techq is one of the best. Why?
For example, i read a chart and know that this share is gonna move. And also i know that in the usa this counter has lots of inisder trade and also having earning announcment that nite. Do you have problem with the entry and what price to enter the market??? this is the basic problem that you are facing and alot of traders are the ones that is facing. Am trying very hard to explain again and again. For US market i can enter trades very fast and easy. Simple. cause i know what i am looking at. and the timming is very important. So i went in before the price start flying and i move the price up by one. Then i wait. Suddenly it will moe all the way. If there is news. then wait for the annoucement. then GApp…all the way…and sell back then take the cash and RUN man to your bank and keep it for spending. You have to master this techq before you can trade. Cause you guys all are having all this kind of entry which nobody in this world can teach you. and share with you. Or even seminars can teach you. Cause you will realise that all seminars are teaching you may be true about all kinds o indictors. But in the end. You still lost out to the market. Why…cause you do not understand.
afew ask me. Sms me when you trade on the counter i follow, I tell them No way. Why??? cause it not possible. reason begin is that if i do it this way, I will be the one sure win win. I just buy in and then tell you guys to buy , later then i start selling you it the same old theory. if you think you wanna be like a baby begin spoon feed. So to the nusery. Am not a nurse. You have to be able to stand on your own feet to trade for a little living.Doing a home work is a must. Knowing what is going to happen is a must too. Rember

Hope that i made myself clear and hope that you guys can learn for better,

Cheers
tradingworld is here

Hi readers….

I was actually very glad that some readers actually added me on MSN. And spoke to me personally what they are facing. Like entries etc,Do not worry,,,
i will cover all those later part. Cause its not the time as of yet.

i will start posting when i have finish up some of my stuff…
And do rember to leave some comments for me.

Emotions in trading is very important. Understand why emotion is the main factor in trading is very important. You see, if you dare to trade you must be first prepare yourself to lost. If you cannot take losses…I would rather say…dun trade. Simply why.
Reason begin. Its the human nature. You will tend to panic in trading. You have to understand this. when you buy whatever counter. You must first set your losses. Ever woner why automatic trading is begin used? Simple also. Because is there to take your emotions away. To keep you away from looking at it. Do you think its just a simple system for you to just walk away.No No NOOOOOoooo….. Its for you keep your emotions away. Not to take your profit unless its hits your target. And to help you not to get your feelings in it so that you do not panic if its not in your directions. All traders always say that oh no problem..I can do it. let me tell you. Its not possible. Why…??? Cause its all hard earn money. right. Frankly till today after years of training. Am still not able to even say that i can overcome. But why am i able to trade. Ever wonder why you see those funds managers and Hegdefunds can trade so well…Simple….Its not their money. You try and see if its their own cash. Will they be able to perform so well??? They dun have to be resposible for the money in losses…Thats why if emotions are not involved, then you can do it very very well. And make tones of money. But its your blood and sweat money. So you think that you do it….????Ask yourself this. Is this the facts that am saying….

I always used automatic trading. Why. I always want to keep myself free and i always prepare myself to losses of what i can affort. And to take profits minum 3 folds or 4 folds or my investment. if i cannot. I leave it. Why? There is a reason…. cal yourself.
if you can lost 3 games and winning 1 game can win your losses. If you do not take min winning of 3x investment. Then you cannot even lose a single time and you are out of the game.
for example. you have 10k
spread it. 5k for reservse.

Trade on 5 k. Then spread it again. every trade i risk 200. for gains of 600. if you hit losing 1k contiously…you have a problem right. Did you get the system work??? Check it again. Do you research again…..Study again. After which you risk again. Spreading it can let you risk 5 times. of 1 k each. and each 1k you risk it into 5 times again. Simple…

thanks for reading…will keep posting and see if you guys love this blog….

enjoy
Tradinguide.blogspot.com is here to help

Hi guys

This morning is a good morning. I have notice that there is trend in the market now… Bt it may not be true. Just take for example. Cause DJIA may fail you. On closed to every weds of the week. The DJIA will bounce for the last 1 month aready.. And true enough…DJIA last nite rebounces. Today will be a good market to trade in STI which is sg market. I too have notice a few couners of stocks.
Manhatten resources
yangzijiang is todays counter that is a look at…. Lots of queing up if you can see from market depth. Does this applies strategy can be used in al market? Yes …but do rember…
This strategy that i taught is only for few cents takers…Never be greedy with it. If you have earn enough for it….Take the money and run. Wether is is 20 or 200 or 2000… calculate your winnings vs your commissions then sell off when the buyers side is running low of people….

Cheers.
today later i will share more on options and stocks trading….

Hi guys

If any of you caught what i was talking about. Did you manage to get the fish manhatten resources. It fly all the way from opening 0.85 all the way to 0.94 early in the morning. Well i did of course. Cause i went in at 0.9 and holding now. At 0.935 am in the morning now. The counter is always worth looking at. Today i will cont to update where i left off yesterday later in the evening. Cheers

Hi all

Hope you guys can keep up with me. now where did i left off with the strategy.
Ok now. After you get all those market depth.
And one day in advance you keep track of the stocks.
Like today…i notice that manhatten resources has a gain of about 9 cents. Did not manage to catch any today. As i am looking at it today. Maybe tomr will be a good chance at it. Cause i check the charts. this counter has always got the strenght to fly all the way kind. if you dun belive me. Check out the history. Sometimes it moves in 10-20cents.
What you do is this. Tmr on your account. check on the counter manhatten. check the market depth. If there is alot of buyers on the buyers side. dun ever forget this
buyers always wants to buy lower in price. So in the end they may end up buying higher. Why? Cause they later chase the market. So once you see that there is lots of buyers queing at the buyers side. And sellers only alittle, Its a good chance….
How to calculate it. Simple. I always do this. calculate the buyers queing to buy vs the sellers.
If buyers has more then double the vol of buying then the sellers. Then go in and buy at what the now price for buying. Dun wait. Why simple. If you wait then thats it. you will end up buying higher. how to enter the market. Key in the vol you intend to buy says 20lots. now….Wait….wait for the buy vol of the price to go down all the way to last 30-50 lots for selling. Before you grab it. So you can move the price to the next price. Says for example.
Now the trading price is 80 cents and queing to sell is only 40lots. you intend to buy only 20 lots …You wait… says later hit about left only 30lots. You enter the market. So that the next person who buy or you who buy will move the price up. Then the good chance you gaining will be very high aready…. Am i right… now you digest and see if it really make sense. Even if you lost and people start backing out. The max you lost is maybe commissions etc….
thats it for now

Hi guys

lets cont with where i parted off the last time. OK now lets start from having a Accounts with poems. Go to www.poems.com.sg to get a online account. Then after which you appy for this service call market depth. From here….watch this magic or trick
Rember…. Only do this in the morning and after lunch. This is my trick
Look at some shares that you took note of the day before. Says like today i noted KS energy etc. under the top gainers and top vol. Look for some counters over there…
Then what you do the next day morning.
1) before the opening always rember before 9am
2) open your account and login.
3) go to some stocks or counters that you have noted the day before that has some gains on it.
4) lock them under your Fav section 1 or 2 so that you can have easy access to
5) now before you do anything. right click on the couner name and select market depth
6) now you try and think and see what am gonan teach you in the next post.
7) Do not do anything rush as of now. i only wan you guys to think first before acting.
whats gonna happen and what do you see. And what can you do with all this kind of information.

Cheers lets wait for some reply

Hi

Did anybody happen to take down and notice this following stocks today.
Early in the morning opening i aready made some money from it.
But please do not try anything before you know how to used this strategy.
caught fishing today:
KSenergy buy at 1.90 and sold at 1.95 for 20lots and made 5cents on it
Straitasia i did some as the price is way too high for me to buy much
So i just did a simple game on it
buy at 2.56 opening and sold half hr later at 2.90 as there are alot of sellers at the point
better take the cash and run man Made 4 cents
Today making is enough for me aready. I will not be looking at any more counters but instead i will be sharing more on trading with you guys here.

also took note of this counter call global ariel… will take note only

All this counters is not by any chance that i have news on. Rember….
So if you wanna know more on how i trade …read on as i will cont with my jornal