Lady & Gentlemen & Senior Investors. I am a beginner who has a first step in the stock investment market. As I know that stocks investment has it own risk to care but with proper planned, then it probably will be no problem.
My questions:
- How much the capital people (poor people) will invest into a stock market.
- Which one will be the best recommended place for purchase and sell the stocks? KLSE or BANKs.
- If I got RM1000 only to begin my stock investment. What should I do? (Open an account in Bank? What the cost?)
Any other suggest will be appreciated. Thank you very much~
Joined: Aug 18, 2006 Posts: 3579 Location: somewhere over the rainbow :D
Posted: Thu Sep 27, 2007 10:25 pm Post subject:
try HLB online stock.. i guess u need to have an account with them...u can go and find out more details at their branches _________________ 24 Hours In A Day... 24 Beers In A Case…Coincidence? I Think Not!
i use Maybank2U. You can open an account at SS2 branch.
They will open 2 account for you, 1 is the bank current account and another one is share trading account.
You need to deposit your money in that current account before you can buy share via Maybank2U.
With RM1,000.00, You can buy.. hmmm let say AirAsia is RM1.85, min 1 lot = 100 share which is RM185.00 + those service charge = about RM200.00 per lot. Then you can buy 5 lots of AirAsia.
One problem here, you cannot buy Maybank Share at Maybank2U.
The software is pretty easy to use. Public bank online share trading also using the same software.
Posted: Sun Sep 30, 2007 3:36 pm Post subject: holding share
thank you guys. But I still got a lot of question to ask....
Does stock really make people bankrupt?
If one company suddenly state that their company will end the operating coz something like debt and no one to continue. Then will my shares be gone forever? Do I have to share the debt?
Can I hold a stock up to 40 years without commit any commission charge?
Buying stock is like investing in a business, just that since you are just holding a very small percentage of the investment, you have no say over the business operation.
Do you bear all the loses ? Yes, those loses will reflect on the share prices and only limit to that. For example you buy the share at RM15.00 and the company is not doing well, it becomes RM5.00 then you lost RM10.00. If the company go bankcrupt and the share only worth RM0.10, then you lost RM14.90.
So it really depends on the people who run the business, that is why corporate governance is so important. A lot or accounting tricks can make the company looks good in the annual report, so beware.
Posted: Tue Oct 02, 2007 5:23 am Post subject: to freefree
Thank you freefree, you must experiences long term in investing business right? You actually have given me a very important lesson to begin my investing. Yes, I agree with you, before buying any stock we should study deep through the company background operation rather than depend on their reports. The most important is the management of the company from lower level till CEO (mostly just depend on how the CEO making miracle). One single misleading can effect the whole company line and it final come to business failure. Need very careful.
Stock market indexes changed everyday. Can I buy the stocks and sell it right away because the price is good? Does this has to do with open index and closing index?
(in fact I not sure what is open index and closing index in the stock market), hope I can get the answer from the expert like you, any recommendation is appreciated.
first of all, i am not expect, just share my opinion. don't just listen to anyone, do your own study. The market is always there, it will not disappear, there are a lot of opportunity to make money in stock market provided you have the knowledge to do so.
Stock market is crazy fello.. when he is in good mood, he can sell you something worth RM10 at RM3, when his is in bad mood, he only offer you RM3 for item worth RM10. Basically it is very difficult to deal with fello..
Some believe in foudamental analysis where you look at the financial background of the business as well as the prospect of the business. They tend to buy and hold for onger team, it will be generally more then a year.
Some believe in technical analysis where he will look at chart to understand the market sentiment. Try to figure out if the market is in uptrend or down trend. Off course a lot more detail than this. This is usually much shorter term, it could be within a period of few days.
Both the above strategies are proven method and each have their own follower and please put some effort to learn before you start investing.
Please do not become the 3rd types where you just follow what others do without doing your own study. This type sure die 1..
For example, your friend tell you that insider information counter A will go up to RM3 and the current price is RM2. Wah.. tips wor.. don't even know what the company doing , whack 5 lot in the 9.15 morning, RM2 x 500 = RM1000 + 100 fees = RM1100. ( you don't need to pay because you have 3 days to settle the bill ). Now heart beat faster and cannot work, just keep looking at KLSE price..
10am, counter A is RM2.20. If you sell now you make about 10%, minus all the fees then may be about RM100. If you think this is good then sell it and pocket RM100 in 45 mins without putting any capital. People call it contra. Be careful, it will get addicted and you start to believe you are good in stock market investing. There is where the big trouble is waiting for you in front.
What if 10am the price go down to RM1.80, you scared and sell, you lost RM200 + fess about total RM300.00 within 45 mins. Don't even know what is going on. It will be good if you learn the lesson. Never listen to tips anymore. Thanks you friend for that lesson. Your RM300 lost will save you a lot more in the future.
Please be alert, where is the information come from ? Off course from the seller lar, only you rush to buy then only the seller can sell high.
As for the index, it just represent some stock but not all counter, the index go down does not mean some of the stock go down. There are a lot of information from internet, just search for it, don't be lazy.
Posted: Wed Oct 03, 2007 3:21 am Post subject: bull market trend
yes, thank you freefree. For those companies I'm not sure will not list in my investing plan, unless I going confuse and unconsciousness but, never.
Those investor had became rich from this risky three day investment are lucky, smart enough and must did studied the company for very long time. I'm the traditional type who can't take risk on my own. I always have a theory in mind that I want to follow the "Warren Buffet" way (safety first).
"Never covet wealthy life at short term investment, long term make things bright more". Of cause this is my quote, you all don't have to agree with my.
No one can expect what day come by bull market (up index) and what day rush in bear market (down index). Company just do part of their job and mumbler of the people are the other part of the job to cause the market unsteady.
I love investing, but I haven't get the whole picture of the idea of financial and investment, because no one surrounded me has interested in investing business. So I post it here for help and guideline. I did search online actually but sometime the information just got too much and I don't know where to start and where to end. By the way, while I post out here therefore all PJ people can learn from here too. It's good.
Just like this question:
Holding a stock may not only earn from selling in highest price, investor can actually share a small part of the company's profit from annual interest, these interest might be the money but most often company turn it to red shares and distribute to the shares holder. The red shares can lower down the price of the company stocks and increase the total shares for sell increase. Am I right? Please correct me if somewhere wrong. Thank you.
Beside the capital appreciation, company do pay dividend to reward their shareholder, in fact some dividen is higher then then bank fd interest.
One of the noteable company you are mentioning is Public Bank. I guess everyone in the stock market aware of this counter. It does not run like a train, but it give good dividen ( about 6% ) and over the years, they give bonus share.
When a company offer bonus issue, you will get more share and off course the price of the share will adjust as well.
For example, company A price at RM10. Give bonus issue 1 for 1. Then for every 1 share you have, you will get another share free. Off course the price will adjust downward to RM5 per share.
So what do you gain if the total value still the same ? When the price adjust downward, it is more attractive to small buyer who cannot afford RM10 per share, and more shares available in the market now. So more demand for this share and when the demand increase, obviously the price will go up again.
I am just sharing my knowledge, not recommended any company.
I will not go into share anymore. Let me share you what I have seen before.
My sister's ex company was at around RM0.70 per share many years ago.
Her boss told everyone to buy the shares at whichever the money they can have.
Her boss told her that they will submit something to the KLSE and the price will go up.
All buy the shares. I only has money to buy 1000 shares. which is RM700.00
The boss took few days to deal with KLSE.
After that, the price goes up to on the same day. And after few days, the price is over RM1.60.
I for first time buy shares and scare.. sold at RM1.20. My sister still hold the shares.
It went over RM2.00 in few days. After it reach RM2.00. It gradually goes back to RM0.70.
The thing is, the company doesn't have any breakthrough announcement or any new projects nor existing projects can have such impact.
From this experience,
The boss of the listed company is the one that actually dictate whether the price goes up or down or stay there.
They have their play cards to work with KLSE so that they approve the price goes up more than 100%.
Eventually the big bosses are the one that earn hundred thousands or millions just by playing their game card with KLSE and dictate their share prices.
How they do it? NO idea.
I have seen so many shares are like that. Going up to over 50% or 100% suddenly within few days and when it reach it's peak, it will come down within few days.
So, Unless I know the bosses of listed company (which I don't) that going to do such activity only will I invest in share market.
Posted: Sat Oct 06, 2007 2:53 am Post subject: thank you
Thank you yipck2003, your advice from the experiences has given me a very good lesson and it is valuable to me. I'm very appreciated that.
In fact, the adjustment of the company shares index was not totally controlled by the company bosses. It was actually investors doing such thing.
What I believe in your situation is the boss of your sister has passing some good news over the public to make them think his words are true, therefore all people who believe it will come to buy the company's shares. As such situation continuing, the price of the company's shares achieve a boost, so the price keep increasing. Until one day someone found that the company was playing a trick. After that, all investors sell all the company's shares back to the market immediately. This situation makes the company shares drop quickly. If my example is true, then that boss is playing a risky game which can ruin the company's reputation.
After all, each time before go to buy a company's shares. We must understand what the company is doing, not believe other people talk, we believe ourself. Never investing in risky market because it just not suitable for the junior investors. We can't expect what will happen next, don't even relay on the shares predictors because they just given a probability, not the exact number. So, we going to invest in our own way and learn from those experiences, not the follower.
Please correct me if I'm wrong... Thank you very much...
Joined: Nov 04, 2007 Posts: 23 Location: ARA DAMANSARA, Selangor DE
Posted: Mon Nov 05, 2007 12:33 am Post subject:
My friend.. You are trying to become a Fund Manager ( with limited fund ). These Fund Managers are expert in investment / actuarial science. They take years to be where they are. Having the experience, contact, skills and exposure in this line helped them develop the right aptitude to excel in investment.
If I were you, and I suppose you do have a regular job - I would trust my money with these Professional lot. How? By buy making regular cash purchases of Unit Trust ( employing the dollar cost averaging technique ). There are varied funds available with CIMB Wealth Advisors that you can choose from depending on your investment objectives / risk & return profile..
What is Unit Trust ? Read on below...
A unit trust fund is a collective investment scheme, which pools the savings of investors with similar investment objectives in a special "trust" fund managed by professional fund managers. The pooled monies in the unit trust fund will then be invested in a diversified portfolio of securities and other assets in accordance with the unit trust fund's investment objectives and as permitted under the Securities Commission's (SC) Guidelines on Unit Trust Funds.
The investment scheme of a unit trust fund can be illustrated as a tripartite relationship between the manager, the trustee and the unitholders. The manager is responsible for the management and operations of the unit trust fund whilst the trustee holds all the assets of the unit trust fund. The obligations and rights of each of the three parties are specified in the Deed, (a legal document entered into between the manager and the trustee, and registered with the SC). The Deed regulates the duties and responsibilities of the manager and the trustee with regard to the operations of the trust fund and protects the unitholders' interests.
In layman's term, with Unit Trust, anyone can invest - with as minimum as RM500 being the minimum initial investment for most funds offered by CIMB Wealth Advisors. Just imagine how much is needed if you are to invest in stock market - using the service of a remisier. And then, as investor you control your destiny as in when to buy, what to buy and when to sell... if NOT - instead of making money, U lose money.
In Unit Trust, the Professional Fund Managers are tasked to safeguard the investment process - making sure the investment objectives as set out in the prospectus is achieved. And all his while the investor is ridden of the needs to be overly worried with their portfolios.
You want to know more... do write to me. Use private messages as my email link is posted there. That email could be a the most important email you sent - in taking you closer to financial independence in the future..
What I can offer is quite complete ! Unit Trust to create wealth, Insurance to protect - and ensure your dependent can continue with their exising lifestyle and most importantly those money you set aside in the unit trust - you can rely on Trust Nomination to ensure wealth is preserved by ensuring your dependent ( named in the trust nomination ) will get their share on time as the situation warranted.
I have a lot more to say / advise. Do write to me...
Posted: Wed Jan 30, 2008 1:18 am Post subject: Re: holding share
jameste wrote:
thank you guys. But I still got a lot of question to ask....
Does stock really make people bankrupt?
If one company suddenly state that their company will end the operating coz something like debt and no one to continue. Then will my shares be gone forever? Do I have to share the debt?
Can I hold a stock up to 40 years without commit any commission charge?
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