Buying and selling as trader in Malaysia is a very profitable business if you are keen to learn about it. Be a trader in Malaysia’s stock market, as it is one adventurous ride to be on. The share prices are always rising or falling, this can make the beginner fear to take the risk. The process of trading in the stock exchange is not really difficult to understand, once you have gained enough understanding of it. Here is the guide to work on Malaysians trade market step by step.
Evaluate Your Risk Potential
You have to check whether you are able to digest risk or not. Stock trading is all about risks, you have to have a big heart to do this business. Evaluate your stocks very carefully, before buying any stocks. When you are young, you have the tendency to tolerate the risks. Evaluate the time before investing in your stocks, because the time frame also controls your rate of success.
CDS Account Opening
Investors should first open their accounts with CDS, before indulging in stocks game. With CDS account, you will get ownership of moving your stocks here and there. For opening a CDS account, you need to have RM10 and copy of your Malaysian national identity card. For buying and selling securities of Bursa Malaysia, you need to have a CDS account. With help of this account, you can track your shares and move your securities. Along with CDS, you need to open a trading account as well. The securities you are going to sell will be debited and the bought ones will be credited to your CDA account.
For more information about securities and their trade, you should visit Bursa Malaysia or Securities Commission Malaysia website.
Hire A Broker
Once your CDA account has been made, you need to hire a broker. The broker can be of your choice, he is the licensed person from security companies. The minimum fee for any broker is 0.05% to 0.40%.
Online Trading Account
Online trading is trending in the market, with the lowest brokerage fees and ease. Do make an online trading account and buy and sell your shares. Another benefit of online trading is that there is less chance of errors. Delays by your brokers or security agents are not involved in online trading. Trading online has the real records, where a trader can see the actual rise and fall of the stocks. The traders can always check the history of stocks anytime, and from anywhere around the world.
For new investors, the market might be very lucrative and they might end up investing in some stocks which may not be beneficial, as they seem to be. To know about stocks, a lot of experience is required.
Acquire Vast Knowledge
For those people who are looking for an easy way out, trading might not be their best fit. To get the best out of the stock market, you have to research deep down in the market to check which companies, if they are worth investing or not. Always dig deep on companies’ operations, management, relationship with customers and quality insurance. Always keep an eye on newly announced stocks in the market and do read their reviews.
Here are some of the tips which experienced traders give to new entrants:
Do not invest in one company, always invest in multiple companies. When you have invested in different companies around the globe, there will be less chance of loss. The reason behind this is; sometimes you will gain and sometimes you will lose. A single lost investment will put you in trouble.
Decide For Yourself
Never ever trust someone else’s decisions. You are going to invest your money; you should be very keen on spending it on right stocks. Be extra careful in this regard, and do not waste money on hearing anything from someone else. Your own research and market analysis should be the motivation behind your investment.
Always think about the bright future of your investments. Do not freak out with the volatilities of the market. Always be confident about your decision and do not fear the fluctuations of the stocks. The stocks are always fluctuating, do not worry about that. You will earn your reward, just look at the bright side.
When buying and selling as trader in Malaysia, you have to gain enough knowledge about the rules and regulations. First of all, you have to be a brave person, to bear the rise and fall of the stocks. All you have to do is to invest your shares wisely in well-reputed companies, to avoid the risks. Do not invest all of your capital in one company; invest it in multiple companies to ensure that you will gain from some of them. Do not hesitate to invest, be brave to invest and the income will always be good.