All you need to know about Investing in Stocks in Malaysia
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As an interested investor, you might be wondering, "What's the minimum cost for me to start investing? Actually, there's no minimum dollar value to investments, apart from other charges applied by brokers and the authorities to be covered in a while. The only minimum is in the form of the quantity of shares you buy, which is 1 Board Lotwhich is Shares. Multiply this by the price of the share you wish to buy, and you have the minimum amount you need to invest in that counter, plus other charges.
To get yourself into the game, you'll need a trading account with an investment bank or brokers. Most of our local banks offer these trading facilities. For the convenience of account management, you may wish to go to one closer to your home or a place you patron often.
Stock market trading for beginners malaysia make sure you have a Savings Account please don't tell us you don't have one. Then go to the investment bank or brokers and Open A Trading Accountpreferably with the one you have your savings account to make things easier for yourself.
You will usually be requested to provide a photocopy of your Identity Card and to fill up a form. While most investment banks and brokers do stock market trading for beginners malaysia impose fees for opening a trading account, some do come with a fee of RM Use your Username and Password to login to your account.
This PIN is required for every transaction. Without this PIN, you won't be able to trade even if you're logged in. Keep these information safe from others. If both accounts are with the same bank, doing an online transfer will debit and credit the accounts immediately.
If the accounts are with different banks, you'll need to get the Investment Bank's account number from your brokers, and deposit money into the Investment Bank's account. Take care to ensure that you're banking the money into the Investment Bank's account and not someone else's account. Once the transfer is complete, keep the receipt or reference number, fax or email it to your brokers, who will then validate the transfer and credit the funds to your Trading Account.
This process can take from a few hours to 3 working days, depending on the validation process. Remember to transfer the funds from your Trading Account into stock market trading for beginners malaysia Savings Account if you wish to withdraw them. The funds stays in your Trading Account even after you've sold your investments.
Common practice for funds withdrawal will be to contact the brokers and ask stock market trading for beginners malaysia brokers to make the withdrawal for you. To do so, first you'll have to make sure that all your transactions are already done and cleared, and the funds from the transaction are already credited to your account.
Call the brokers, and request for the withdrawal. You'll have to go through a validation process, and a bank cheque will be issued and banked into your Savings Account.
This can take from a few working days to 1 week. Another way would be to fill up and sign a withdrawal form, and fax it to the investment bank. The stock market trading for beginners malaysia bank will validate your signature and bank it into your Savings Account. This transaction can be completed immediately if your Savings Account and Trading Account are with the same bank.
Study the Counter you wish to invest in. To get complete information about the company, you may visit the Bursa Malaysia websiteor the company's own website.
Public Stock market trading for beginners malaysia Companies PLC should have an Investor Relations IR section, which serves stock market trading for beginners malaysia communicate company information to and interact with investors and shareholders.
Investment banks usually provide basic market data to its customers. Some even provide research done by their analysts. Of course, other media like websites and newspapers also provide basic market data and sometimes insights. There are also Information Vendors that provide market data in a more comprehensive manner, and with additional tools that could help investors read or analyze the information.
The Young Investors team prefers BursaStation. There are certain columns in your trading platforms and it's in your best interest to at least Understand What The Numbers Mean.
Volume — This is the total transaction quantity that has been completed during the day, in terms of Lots or Board Lots? Turnover — The total value of all trades that have been completed during the day, in terms of the stock market trading for beginners malaysia currency.
High — The highest price that the counter achieved that day. Low — The lowest price that the counter went to that day. Last Done — The last price that the counter was traded for. Open — The price that the counter started with that day.
Close — The price that the counter ended with that day. Of course, there are a lot more other numbers if you wish to learn more. But these are the basics that you should know at least so you know what's happening to the counters. How you trade or invest depends very much on your strategy and risk appetite. Stock market trading for beginners malaysia are two strategies:.
This selection depends on the time and effort you can consistently put in to your trading, and also on personal preference. Your Risk Appetite will help you decide your investment portfolio. If you are more willing to take greater risks for greater profitsyou may wish to invest in Penny Stocks. If you prefer take less risk for lower returnsyou may wish to invest in Blue Chip Counters or more stable counters. Do remember, there's no right or wrong, and there's no guarantee that an investment will be profitable however safe you are.
Generally there are two methodologies:. This should give investors an idea on what the counter should really be worth if it's Undervalued or Overvaluedor what the counter could be worth in the future, and Set a Stock market trading for beginners malaysia Price the price the investor feels the counter should really be worth.
If investors find the counter to be undervalued and see potential growth in it, investors will then Buy Into the Counter and Wait Patiently for the Counter to Achieve the Target Price or close. Technical Analysis Technical Analysis normally involves stock selection through one of two methods, and requires constant monitoring of the counters as Technical Analysis rides on Trends, which could change anytime.
For retail investors or traders, the minimum Brokerage Fee is 0. Minimum Brokerage Fee is 0. There is a special rate called Cash Stock market trading for beginners malaysia Front Rate, which is lower than the standard Brokerage Fees, and is dependent on your trade volume.
A Cash Up Front Account is when you trade only with your own cash with no credit facilities. Another way to make your purchases would be to call your brokers to execute or key in the order for you, which will levy higher Brokerage Fees normally RM40 or 0. Maximum RM per contract. Remember, the three charges above are levied both when you buy AND sell, so always take into consideration the three charges above twice to acquire a more realistic view of your profits or losses.
Your profit would be RM1, After each trade, you will receive a letter mail or email with your transaction details and charges within 2 — 3 working days. If your Trading Account is registered under your own name Direct Accountyou should also receive a monthly letter from Bursa Malaysia that states your account status and stock portfolio. However, if your Trading Account is a Nominee Account, you won't receive this letter because your brokers is the one that is trading on your behalf.
Also, whenever the Public Listed Company you invested in the counter calls for a General Meeting, or has released its Annual Report, you will receive the material and details via posted mail. Remember the Savings Account that you linked to your Trading Account? That is where you will receive your Dividends, if any. On the payment date, Dividends will be paid directly into your account.
Well, now that you've got enough information, it's best to start investing. While reading all this is good, the best teacher is still experience. So go out there and start investing for your future! Thank you for your subscription.
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The Free Monthly Investment Newsletter. Capital Requirements As an interested investor, you might be wondering, "What's the minimum cost for me to start investing? Then let's move on.
There are two strategies: Active Strategy This involves the active trading and monitoring of counters and frequent change of portfolio. Passive Strategy This involves buying into counters and holding them for a longer period of time before selling.
Generally there are two methodologies: Each indicator has its own areas of focus, hence each has its own strengths and weaknesses. Brokerage Fee For retail investors or traders, the minimum Brokerage Fee is 0. Maximum RM1, per contract. Aftermath Well, now that you've got enough information, it's best to start investing. Please read our General Disclaimer carefully.
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