Tuesday, October 09, 2012

Why I Started Murasaki ts

I have mainly been an employee for most part of my life in the financial industry. There were a couple of times I went into business ventures with partners. One nearly got listed on ACE back in 2000 but suddenly the rules changed and caused the company to be shuttered. For the past few years I have had the pleasure of not being "employed" but still allowed to do whatever I wanted. I have had opportunities to start some business ventures but they never really caught my passion as making money for money's sake seems too frivolous. I rather spend my time on something that actually will make money, and something people really needed. Then its also important that the business must be easily leveraged, i.e. you can replicate in other markets with minimal capital investment.

I looked at what I am supposedly "good" at, I may not be good but I like the markets a lot. When I was in my late 20s, I played the markets like everyone else and lost more money than I could afford. People nowadays lose 30% of the capital and they scream bloody murder...  Pussies! Have you ever lost more than your capital with no way of repaying back? Thanks to the go-go 90s, you can do that, you can get RM100,000 or RM200,000 limits with your remisiers with actually zero deposits. Suffice to say, you don't just have one account with one remisier, so technically I was able to buy up to RM500,000 with almost less than RM50,000 deposit, and I did back then, just like almost everyone else.

To do that, basically you can only go contra, i.e. 7 days holding period, you sometimes may be able to contango some of it and go another 7 days but thats pretty much the end of story. So, when you have wiped out your RM50,000 (so easily) and find yourself owing still another RM70,000 when you are not even 30, and your monthly salary was a wonderful RM7,500 then, you know you are in deep trouble.

I decided that I better get better at this or just go do something else altogether.

For the next 5-6 years, I studied diligently on what cause prices to breakout from a slumber. What were the patterns that caused share prices to move out of their "range". Over the years I have tested and retested many formulas, looking at various moving averages, standard deviations based on volume, volume velocity etc... I believe I managed to isolate some very good early indicators that would help me do that. 

However, I still did not feel that was sufficient, I needed to know about the fundamentals, I needed to know whether money was moving in or out of a stock as well. So I took what was widely available and tweaked those other factors to come up with 3 pillars solid information to aid my investing decisions. 

The fourth pillar is the only one technical indicator that I firmly believe in, breaking out of the 52 week highs. However the systems out there only advocate a buy when a stock break out convincingly. I thought that was myopic and silly, you would watch a stock move up 20%-30% towards its 52 week high and do nothing until it breaks the high, then jump in ??!! The 4th pillar helps me to track stocks moving towards the breaking high, we can buy when the uptrend is confirmed with just less than 10%-15% to its 52 week high, if it fails to break - sell, if it breaks, then double up. Seems like a no brainer to me.

Armed with the 4 pillars, I spent the last 7 years talking to various tech nerds and programmers to get this onto a web based solution. All said it was very difficult, you can do that easily with end of day prices, which I blatantly refused as that is so inferior. The system needed to be live to extract the earlier info in the quickest manner.

Two years ago I met my business partner for this venture, he was the original chief software architect for Tong Kooi Onn, and he basically created Phileo Allied's internet banking and internet broking systems single handedly back in the early 90s (not plug and play stuff). Needless to say, it looked like a no brainer to him.

For far too long, the markets have only favoured the few with the better information flow, the better networking. Murasaki equalises the platform for everyone, with it you don't even need to hear from the horses' mouth, you don't have to kiss anyone's derrier to get the extra information.

I am very excited that after 10 odd years from ideas germination to fruition, I have something which I believe will be a big game changer for investors. My team of 6 will be going around the country in the coming weeks and months to broking halls and holding information sessions on our product. You have nothing to lose, you can even sign up for a free 5 day trial, no obligations. 

As always when I mention my business plan to people, the unvoiced hurdle in their minds would be "something like this coming out of Malaysia or by a Malaysian, sounds ludicrous". Maybe I should migrate to Switzerland, and set up this company and let it be called a Swiss product, what do you think? (Off on a tangent, the recent jv announced by Vincent Tan's MOL with Soft Space is a good example. Soft Space is founded and run by a Malaysian, his mobile payment system is a huge game changer and there are only 3 companies in the world that can do what his system is doing. The one based in Switzerland is already worth more than $3bn. Its like a mobile charger to your handphone, only it is not, it can accept your credit card as transactions and you can sign your signature on the phone. It revolutionises payment systems. Now, hawkers at night markets can accept credit cards, people doing insurance sales or MLMs can accept credit cards ...). Malaysia Boleh, but its not from shouting stupid slogans. Go and find something you like passionately, try and find things people would need, or improve on the status quo ...

What about back testing? In my mind for the past ten years I have been using the same system but because I am not a computer, I miss out on many things. I can only gather maybe less than 30% of the required database to make my decisions, something a live web based system would help eradicate. Now that its all uploaded, I am confident it will improve anyone's investing decision making by a huge quantum. My staff of 6 were just as skeptical, but for the past 2 months, they have been back testing and most of them were novices in the stock market. Now all of them are buying one or two shares a week and hitting the spot. Just talk to my staff on Saturday, they bought Scomi at 29 sen, Golsta at below 80 sen and Great Wall Plastic at 93-94 sen. When they told me they were going to buy Scomi, naturally I scoffed because I know the company, they said it matched all the rules of thumb I have set, so I said you go ahead and buy (I didn't) ... they bought, they now laughed at me. Sigh, its funny cause sometimes we are "crippled" by the old knowledge we have.

The official launch is this Saturday but some smart people noticed the website and started signing up already for the free trial. I would like to remind all users that we are still doing some patching work every now and then till Friday so the service may be slightly interrupted now and then. Do note that we will be launching for Singapore market in January/February 2013 and Jakarta market in June/July 2013.

28 comments:

LFY said...

Hi Dali, i am just wonder that you advise people do not trade shares previously but y now you are selling this kind of system?

Ciki said...

All the best!!!

Newbie said...

Great job Dali!

But I don't understand why you would want to do this.

Why not borrow a million or hundreds of million and invest using the program you have created.

Wouldn't the return be better?

jackofalltrades said...

Thanks for the great product. Please update us the schedule for product information sessions.

Salvatore_Dali said...

LFY,

Haha, I do not really advise ppl to trade shares UNLESS they are better equipped. Its like drivers license, you want to drive a car, you have to get a license. It seems, for smthg even more dangerous like trading shares, there is no need for license. Thats why I will warn ppl not to touch shares unless they somehow got some form of "license". LOL

Newbie,
Been debating this for sometime. My other route was to start a hedge fund to do this. But I think this is too important to keep all to your self, anyway, I should still make money from this. I will roll out Singapore and Jakarta. If they are as successful as I think they will be, I might start a hedge fund then when I have the system for HK/Shenzhen markets ... we will see.
I don't just want to help the rich get richer .... a hedge fund would only be able to accept in multiples of RM500,000 per investor.

bruno said...

Dali,do what you enjoyed doing and making money at the same time.Myself,I am what you can call computer illiterate.I only used the computer for trading and reading Malaysian news and being a busybody giving comments.

The Aussie is still hanging tough.A charmed cat this should be a profitable trade.I will be adding during European trading if it still hangs over 1.0170.

Hope you do well in your new business.All the best.

bonny b said...

Its wonderful to know that such entrepreneurship can still thrive in Malaysia despite all the pessimism and political 'noise' bombarding market participants. Great work, and very best wishes for a fantastic effort. Proud to have you.

steve said...

I don't understand why your hedge fund MUST BE multiples of 500k when you actually willing to also benefits the NOT RICH people. Please elaborate. Thanks!

Salvatore_Dali said...

steve,

yes, those are the rules ... for hedge funds, which are only for sophisticated investors .... can check with SC n SGX sites

Andrew said...

@steve

Hedge Funds are investment vehicles for Qualified Investors only, meaning you have to have lots of spare cash to lose in the event that the fund tanks. It is a norm for QI to invest USD500k minimum.

lai said...

I believe Kong Heng have some stall to rent out. I'll be the first one to try drunken chicken.

Anyway, congratson your new bz venture.

bruno said...

I am long USD/CAD at 97.72 with stops at 96.98.

Aussie stops moved up to 1.0215 for breakeven after add on.I am beginning to have doubts about this charmed cat,because of it's reluctance to bouced convincinly as daily scohcastics are in oversold territory for almost two weeks.

bruno said...

Closed all trades.Plus 30 pics on Aussie and plus 20 pics on Loonie.Can go for a nice dinner and some shopping again.

bruno said...

Aussie has dropped to 1.0210 down 25 pics,early Asia trading.Having another shot at 1.0215 with stops at 1.0170.Small risk for big gain if we are correct.

Andrew said...

I remember well over a decade ago when a friend of mine (famous HOR/Fund Mgr) started Malaysiastreet.com to provide retail investors with institutional-type research but that did not survive and we all know why. Generally Malaysian participants are punters.

That said, I think you are on to something, Dali. After all this time, someone may have found the key! LOL.

Good luck.

Andrew said...

@bruno. Piggybacking on Dali's site to provide trades? LOL.

Start a blog. I am sure you'll do well.

sky said...

Do you have a reseller programme?

bruno said...

lets take profits in Aussie for 60 pips profit.For half a days work I will take it anytime.

bruno said...

Andrew,

it is just to make the blog more interesting and for Dali's readers to see how simple it is to make calculated trades and pocket money,if you know how to do your homework.Things like this people like you do not appreciate besides you wouldn't understand how easy it is to make money and take the trade anyway.

Besides the trades I provide is only for the brave.Conservative investors or traders who follow every rules in the book might have sleepless nights if they follow me.

I might have to charge you double if I start my own blog.Special rates for you only.Hehehe.

WenJune said...

weird that there were comment on forex trades on this post, were it related?
anyhow, visited murasaki web and trial to have a look. according to the system, Zhulian should be under watchlist at the moment. ^^

Hurstian said...

Hi Dali,

I've been reading your blog for a few years now. Less lenglui pics but still attractive.

Congrats on your product launching this Sat. I am a software developer and market investors my self. My business website is at http://www.xlpert.com

Speaking from experience,its not easy to sell investment software. Hopefully with your market expertise and informative software you can made a splash in the market today

All the best!!!

Choong

WenJune said...

scientex, ruberex --> double up bet?! hold till MFI turns overbought.

bruno said...

WenJune,

it may sound weird to you.But by being weird at least you learn something today.

Nowadays,many if not most fund managers used the fx markets as a barometer in placement of trades.

Just as China once was,soon it will be Vietnam,Cambodia or even the Pigg's nations.

My self,I trade anything that can help fatten my trading account.From pork bellies to the stock indexes.And the first thing I do every morning is to check the fx markets.

JuneTan said...

wow. i see zhulian and scientx are flying. mura"h"sakit"s" = best system. hahaha!!!

JuneTan said...

wow! i see Zhulian and scientx are flying!!! mura"h"sakit"s" = best system!!! Cheers

jackofalltrades said...

I took the "leap of faith" and bought Alam last Tuesday. The M-index wasn't astounding and BrH% was like 30% off the 52w high. I still bought into it somehow as I believed the best way to learn the system is to "play" with real money. It turned out to be a good buy with 10% gain within a week. By the way, thanks for the Masterclass training last Saturday. I do hope that a forum for paid subscribers to be set up as soon as possible so that subscribers can share tips and discuss how to use the different indicators.

MarkEvans221 said...

What kind of financial industry job did you have in the gogo 90s that paid someone in his late 20s a salary of RM7500?

Kingsmen said...

NO murasaki will beat my gold investments ...or so it seems according to the 'gold' consultants that is trying to sell me this unbelievable scheme....