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IN THIS ISSUE
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1. Feature Article
2. Quote of the Month
3. Your Question Answered
4. Special Offers
5. New Books from Truewealth
6. Latest News from TrueWealth
7. Disclaimer
8. List Maintenance

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EKUINOKS IS COMING…
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1. FEATURE ARTICLE: ALL YOU NEED TO KNOW ABOUT OPTIONS
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“Ahmad made RM25,000 in five days!”

“Lam grossed RM45,000 in ten days!”

“Muthu made RM78,000 in two weeks!”

The seminar adverts in the newspapers practically scream at
you.

And I have to admit that the numbers can light up a lot of
eyes. Some will no doubt ring to find out more. Some will no
doubt register themselves for these seminars in the hope
that they too can make this kind of money.

But what if I told you that the subject was options?

Now a slightly different picture emerges.

Firstly, I must admit that options are not illegal or
immoral. It is a perfectly legitimate business with billions
of dollars in trade.

However, this is the reality. Both futures and options deal
in short term trading. In other words, you are betting money
on short term price fluctuation. And folks, this is another
reality - no one can consistently tell where the price of
anything will go in the short term. While we all can be
right every now and then, to do it consistently is
impossible. And to my knowledge, the ability to predict the
direction of short term price fluctuation consistently is
not yet a skill possessed by any living or dead person!

Worse, the price of the commodity futures is controlled by
giant companies with thousands of very intelligent people on
their payroll and billions of dollars at their disposal. What
chance does an individual investor has against these giants?
Not even slim and none. The answer is none and none!

Now of course, some people will jump and point out, “Azizi,
that’s your personal opinion.”

Of course, that is my personal opinion. But that is also my
professional view as a Chartered Financial Consultant. It is
my professional view that futures and options are for people
who do not want to get rich slow; instead they are for
people who want to be poor as quickly as possible!

Incidentally, it is also the personal opinion of two other
individuals - Warren Buffet (the founder of Berkshire
Hathaway and also one of the richest men in the world) and
Peter Lynch, the legendary manager of the Fidelity Magellan
Fund. Now if two of the most celebrated names in finance
think stock futures and options ought to be outlawed (!),
perhaps the rest of us should take heed.

Further, reports from New York and Chicago, the twin
capitals of futures and options, suggest that between 80 and
95 percent of amateur “investors” lose money. That’s just
about all amateurs! And folks, if you have a day job, dabble
in options once in a while and if you are based in Malaysia,
you are an amateur player!

And who are you up against? Only giant companies with
thousands of very intelligent people on their payroll and
billions of dollars at their disposal, that’s who. Can you
beat them? Perhaps once in a hundred years.

But can you make money from options? Yes, of course. Once in
a blue moon.

Can you make big money from options? Yes, of course. Once in
a blue, blue, blue, blue moon.

Can you lose money dealing in options? Yes, happens every
day!

Can you lose lots and lots of money dealing in options? Yes,
happens every day. (Just be glad it’s not your money!)

Let me repeat the above questions with a minor addition.

Can you make money from options/gambling at the casino? Yes,
of course. Once in a blue moon.

Can you make big money from options/gambling at the casino?
Yes, of course. Once in a blue, blue, blue, blue moon.

Can you lose money in options/gambling at the casino? Yes,
happens every day!

Can you lose lots and lots of money in options/gambling at the
casino? Yes, unfortunately again, it happens every day!

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2. QUOTE OF THE MONTH
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“For here is the cold truth. Unless you have a wealthy
relative, the only way you are ever going to lift
yourself above the great unrich - absolutely the only
hope you have - is to take a risk.”

* Max Gunther, The Zurich Axioms *

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3. YOUR QUESTION ANSWERED
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QUESTION: I have one piece of land located at nearby one
major town in Malaysia, approximately 50200 square feet.
What should I do with my property because I share it with my
siblings, seven people include myself. The value for this
land at this moment is around RM1.5million.

ANSWER: There are PLENTY of things you can do with the land.
You can sell it, rent it, develop it, use it as plantation,
turn it into a resort, give it away or even leave it alone!

But I suppose you and your siblings want to know how you
can ALL benefit from the land. One straight forward answer
is to sell it and divide the proceeds among yourself.

Alternatively, you can develop the land collectively or JV
with a property developer.

Most importantly, all 7 of you have to give and take among
yourself. Otherwise, you can be quarelling among yourself
just for a few extra dollars which will not make a difference
to your lives in the long run.

* HOT TIP *

Baca “Wang, Anda dan Islam” oleh Zaharuddin Abdul Rahman