For the very first time, I had activated / funded a foreign trading account on 31 Jan 2020. Like what Dato Dr Nazri Khan had said earlier, if you want to make big money, you gotta think big. Big market, big money. So must become ‘Pelabur Global’ or Global Trader. Think Wall Street. Dari Malaysia ke Wall Street lolll….
The funding of the account is very small onli. Just USD2,500 (to be precise, USD2,480 – about USD20 off for transaction costs for TT). The funded amount is slightly more than minimum funding of USD2K as required by the foreign stockbroker.
So why I want to setup a foreign trading account?
- Liquidity – more volatile / active
- Diverse asset class – more things to look at
- Diversification – quite true especially how Bursa is doing right now
What is my expectation with my initial funding of about USD2.5K?
Not much. Given the market now is so negatively affected by Wuhan corona virus. SARS took about a year to recover. This one may be longer given the fact that it appears to be more contagious. With such prevailing pessimistic sentiments, I would hope to make some small net gains in the remaining 11 months for 2020.
For illustrative: Say out of USD2.5K, only USD2.0K is freely available to trade. I would like to target per annum return of 8.0% for a start. That will translate to a net gain about USD160 per annum or ~USD15 per month
Did I make the first trade?
It was a blood bath for global markets on 31 Jan 2020. Nevertheless, due to my over eagerness, I made my first trade in Activision Blizzard, a game publishing company famous for hit games like Call of Duty. Based on its weekly trend, Buy signal has been triggered on my indicators. The chart pattern appears to be a rounding bottom. Expect some resistance around $67-68 whilst support may be found around $51-$52.
Fundamentals / analysts recommendations appear ok:
Well, for my first trade, due to prevailing negative sentiment in the markets, I suffered a bit of unrealized loss. Hopefully things will improve in the next few weeks.
Anyway, won’t be too active at this juncture with global markets. Wait-and-see how things turn out for the corona virus.
This post is not an investment advice or endorsement. Please refer to general disclaimer of this blog.