Stock Overview

What is stock？

In short, stock is ownership of a company in the form of equity, which can be owned by a private or public。The shares the public can own are companies listed on the Bursa Malaysia。

What are the types of stocks?？

• Blue Chip
• Income Stocks 
• Speculative Stocks 
• Growth Stocks 
• Seasonal Stocks (Cyclical Stocks) 
• Defensive Stocks

Stock Investment Process

Invest in related research

Before trading stocks, complete fundamental research and technical analysis to consider price movements。If you want to make short-term investments, you need to focus on technical analysis.。

There are two methods of investing in stocks, namely fundamental analysis and technical analysis。

Fundamental analysis is an analytical method that uses economic factors to study the background of a company.。Typically, this analysis is available through company financial statements, news sources and industry statistics and is suitable for investors looking to make long-term investments。For example, return on equity (ROE), return on assets and discounted cash flow, etc.。

Technical analysis, on the other hand, uses charts to study the movement of stock prices, from only charts and stock graphs, suitable for short-term investments.。Trend line reversal patterns and overbought are examples of technical analysis concepts。

Build a portfolio

Investors use portfolios to diversify and reduce risk, and there are many combinations recommended by equity investment experts。

Portfolio diversification is more resilient for investors。If one industry is affected, investments in another will not be affected。

Get stock gains

In stock investing, there are two types of returns。The first is capital gains, where investors buy at low prices and sell at high prices。The second profit is the dividend profit.。In addition, if the company is profitable, there will be dividends, and the company's performance determines dividend income。

So you have to make sure that the company is right for your portfolio。

Before buying or selling shares of the Company, you should thoroughly analyze the intended business and review publicly available information such as revenue reports, SEC reports and the Company's financial documents。

In addition, you can see if the selected company is included in the list of problem companies。Listed companies in PN17 or GN3 status on the Malaysian Stock Exchange are financially distressed companies.。

How to trade stocks in Malaysia？

Malaysia's Best Stocks

Related research shows that there are 6 amazing stocks in the market in 2020。These companies either provide a stable source of income, grow steadily over an extended period of time, or grow capital over a 12-month period.。

Blue-chip RHB has proven to deliver steady growth over a longer period; Magnum provides a steady stream of income, while other stocks have seen capital growth over 12 months。

Best in MalaysiaStockBrokers:

Tickmill: regulated by FCA
IG: More than 16,000 shares tradable
HFM (HF Markets): Leveraged Trading Is Risky

Opening CDS and trading accounts

CDS (Central Depository System), CDS accounts are accounts that hold shares.。Whenever you buy shares of a listed company, the shares are deposited into your CDS account。

On the other hand, for a trading account, you should open an account with a stockbroker or participating institution registered with the Malaysia Stock Exchange。Malaysia Stock Exchange website publishes list of stockbroking firms。

Conclusion

In general, there are many resources to help you invest in stocks, including educational resources on personal and third-party broker websites, market analysis, online and live courses, seminars, and stock demo accounts。Before you start investing, you need to learn how to invest in the right stocks。No investment can be 100% risk-free, so you need to be rational and look for resources and companies with a good business base.。

It should also be noted that when formulating a trading plan, several basic factors should be considered to meet personal needs and achieve investment goals in the long run:

Risk tolerance
Investment term preference
Personal tax situation
Long-term investment objectives

Following the steps above, take the time to learn terminology and understand the market before making a large investment and are likely to benefit from investing in stocks。The key is to take the time to learn and start with small investments to reduce risk。In addition, investors should continue to seek more guidance and expert advice to improve their strategies.。