[?]: Seeking more info on pakying shares

[whatdamn]

[?]: Seeking more info on playing shares (KLSE)

hi all,

i know 19 may be a little young (maybe not) to start learning about the klse...but i am facinated by it and how it can be a revenue for generating cash as well as losing it if not done right.

so here i am, trying to seek info or maybe a 'how to-' of the stock market here in malaysia.

any advice is welcome :)

*already visited klse's website but too many jargons*

 

[BenWang]

I am also interested, can anyone point me to a step-by-step guide relevent to Malaysian conditions?

 

[trex92]

well, good to see people so young such as yourselves interested in the share market. Basically there are a few main rules if wanna invest in shares:-

1. Share speculation is illegal. Speculation meaning buy the share in the morning and sell it in the afternoon coz u suspect/know it would go up. Yes, this is actually illegal but shares speculation is hard to prove, so one has been caught for this so far.

2. Never borrow money from banks to invest. Schemes offered by banks such as margin financing is really bad. Just look at how the share market deteriorated when banks withdrew their margin financing scheme. Lots of people los money due to it.

3. Wanna invest, invest for the long term. As long as u invest for long term, you can never really lose out, unless the company u invest in goes bust. Best rule of the day is invest in blue chip companies (meaning companies that would never fail, such as Maybank, Genting, TNB etc). The prices for their shares might be high, but at least it is minimal risk. In the long term, u earn income from their dividend and u would also profit from the definite share price increase.

4. Look at how the interest rates are going. Basic economic understanding of share prices are if interest rates go up, share prices would come down and vice versa. Benchmark the Base Lending Rate (BLR) and look for possible trends that BNM might take, such as if u read in the papers that govt wanna fight inflation, means that the interest rates are soon to be increased.

5. Look at how other major foreign share markets are performing. NYSE, Nikkei, Times are all relevant to the performance of our share market. If they go down, most likely Malaysian share market would follow suit.

6. Do your homework. Current share prices reflect the future prospects of the company. So you have to know more on the future performance or outlook of the companies u wanna invest. Look also at their dividend policy. Some shares have high prices is not because of good outlook but rather than that company has a high dividend pay out policy. So it the short term, it might be worth investing, but in the long term, it tends to be a bit risky coz the moment that the dividend pay out slows down, the share prices for these counters are going to plummet down.

7. Lastly, if you have not studied economy as a subject, I would suggest you do so. Read up on particular topics such as Portfolio Theory.

Well, best of luck and hope my info here is relevant.

 

[kapitan]

19 young?
I already know how to play stock by 12... always watch my parents watch the stock and therefore learn a bit about how to make money from trading stock...

The basic knowledge for stock trading...

1. traded in a lot and a lot = 1000 ordinary shares
2. when u buy or sell shares, subjected to about 1% charges off the shares prices for broker commision and stamp (i dont know what stamp charge was for)...
3. for those moneyless investor, they must sell whatever stock b4 exceeding maturity date... ie. like i buy 1lot of maybank share today, and if i dont have enough money to own the share, i must sell it on the 7th trading days... or i must pay my broker the money to buy the share... dont ask whats the penalty for not selling after 7 trading days coz i dont know...
4. you must have/open a CDS account to trade or else you would haf to borrow someone account to buy/sell stock...

basic knowledge nia... dont know how to see market one...
but malaysian usually buy stocks with rumors/gossips hoping that it will rise 20-30% in short period of time...

 

[whatdamn]

trex92,
thanks for some really good info on shares. also, what is the minimum ammount of money i should have if i wanna invest? i was wondering if i set aside rm1k to play the shares and another 1k as backup incase i need to pay back if i lose or something (is that true? if the price of the share drops below what i bought for, then i've gotta pay the broker back the difference?) and normally the prices shown on bloomberg and all usually indicate as per lot or per unit? still blur...would you recommend any other bussines courses i should take in or out of uni/during my summer break.

thanks.

kapitan,
i'm not so fortunate as my parents do not play shares. they only own some from maybank and telekom because they've worked there before. anyway. would like to gain moer knowledge from ppl who are active in trading shares.

anyone else wanna share?

 

[Para]

now, officially 1 lot means 100units of shares but still there r a lot of ppl in the market that r used to the old system as 1 lot = 1000units. Because of that i personally like to use units rather than lot. That will eliminate the confusion.

prices of share that u c on the news or wherever always indicate prices per unit.
e.g : RM1.68. it mean RM1.68 per unit. therefore 1 lot = RM1.68 x 100 units = RM168
total price of 1 lot = RM168 + broker fees.

When u sell ur shares, there will also be some fees as well.
e.g : sold at RM2. 1 lot = RM2 x 100units = RM200.
What u will get = RM200 - fees = <RM200.

i suggest that u start off with just trading shares on the main board.
also always try to look out for IPO.

Try this site out.
www.swingprofit.com (goto Bursa Malaysia/Stock Quotes Live for update of share prices).

cheers.

 

[whatdamn]

para,
thanks :) already found the mybursa.com site for the live updates. but i need to do more hw before even investing a ringgit. are there any fees to open a CDS account...or could you summarize the miscellaneous fees for a beginner.

thanks.

 

[kapitan]

hahaha... damn funny...
why they changed to 100unit = 1 lot hor...
purposely wanna make transaction capacity look huge issit??

 

[whatdamn]

anyone can explain/share their trading experiences? like what happens when u decide to buy a stock, the procedures you go through and then when u wanna sell, do u just call ur broker at that instant and tell him to 'sell' or do you have to place a order to sell and then wait or what?

thanks. :)

 

[whatdamn]

anymore info anyone? pls share. thanks.

 

[Para]

there is a small fees to pay when u open a CDS account.
It varies with different brokerage firm. Mine, i paid RM10 oni.

when u buy or sell, u have to inform ur broker by phone or online (if they provide).
Then the broker will key into the system the price that u wanna buy or sell. Then u have to wait in a queue n c whether u manage to buy/sell at the price that u wanted. Once u manage to buy/sell, ur broker will inform u n u have to pay within 7 working days.

 

[Para]

hahaha... damn funny...
why they changed to 100unit = 1 lot hor...
purposely wanna make transaction capacity look huge issit??

it was freaking confusing when they change that.
sometimes i still think that 1 lot is 1000units, which is not.
Now i already give up, i just tell my broker in term of units.

 

[trex92]

hahaha... damn funny...
why they changed to 100unit = 1 lot hor...
purposely wanna make transaction capacity look huge issit??

they changed 1 lot = 100 units in order to improve the share market performance. That's because if 1 lot = 1000 units not so many people can invest and when ppl trade, they would have to trade in terms of 1000units share, so share market would fluctuate a lot. If 100 units, it would be more affordable to ppl.

 

[g13b]

Procedures:
1) Find a strong remisier and broker (i can intro you)
2) Open a trading account and CDS account you have to pay RM10 for a CDS A/C thats all the cost
3) Start trading. call your remisier and place order in lot size of 100units i.e. buy 1 lot maybank at RM11.10 means 100 shares of maybank for total cost of RM1,110 plus brokerage.

Trading techniques:
1) Investor or long term: buy and hold, put some cash in your trust account and pay for trhe purchase when due. Now its T+3 meaning the third market day is due (not 7 days as quoted here). The shares would then be held in your CDS A/C until you sell it.
2) Contra trader: you buy in larger quantities and expect a price increase in next 3 days. if it does you sell it off and make the difference btw the buy and sell price. if price goes down you make a loss.

Advise:
1) Be careful. malaysian market is based a lot on sentimental and a lot of syndicated plays. so start off slow and slowly increase your value of purchases when you are more confident.

cheers bro. anything can pm me. btw i am a Company dealer in a stockbroker

 

[Joeker]

I think local share market is DEAD and DRY. Play it at your own risk.

Gone are the days when you get an IPO was like striking lottery. In some cases IPO price plummet on 1st day trading.

If you guys thinking of investing surplus money, I think landed property is the way.

With interest at all time low (LOL! BLR + 0.10% and in certain cases just BLR oni LOl!!), buying landed propert for later disposal would reap higher returns.

Turst fund is also not bad. But like as shares, you have to know the market and the players.

 

[whatdamn]

wow, thanks guys for all this info.

right now i'm not financially capable of investing in real estate. although later on in life, i would when i'm more financially stable.

for now, i just want to learn the ways of the share market. i've been monitoring a few shares that have gone up one day but gone down the next day so fast...or some didn't even change but still got so many ppl trading them. hmmm.

also, i don't have insider or fast enough info on companies that are on the board, so once i read the news online or in the papers, it's usually too late for purchasing the shares because i guess the quicker u get the info on board meetings and such that will affect the market, the better ur chances of selling at a higher price right?

what reading material would you guys recommend?

i'm an engineering student (2d yr) so i don't think i can just jump to business just to learn on shares or financial planning. so any good reading material out there on the particular subject?

thanks :)

g13b, could you PM me ur broker info pls. thanks.

 

[Mandrake]

Okie, I've opened the CDS account, and a current account at the bank. On monday I'm gonna buy 2 lots of magnum on my father's advice. Any other good share tips to look at?