Stock Trading For Beginners

So you have been thinking a lot about earning money from the stock markets. Going through all the dilemmas and risks associated with investing in the stock market – fret not! It is true that investing in the stock market has its risks but it also has its own perks.

This article will mainly talk about how you can start your investing experience in the stock market but most importantly – how you can get a great start!

To start off, we will go through the basics.

Here is the first one!

1. Choosing your trusted remisier/dealer

Who’s a remisier?

He’s like a middleman between the investor and the company you want to invest in. A remisier earns commision from every transactions of stock trading that takes place.

These are the things you need to ask before choosing your remisier:

a) Are they licensed?

b) Do they have wide knowledge of stocks investments?

c) Can they advise you well in stock investments?

d) How experienced are they in the stock trading field? 10 years? 30 years?

If you think all the 4 questions above gives you a confident nod then you are good to go!

Do check on the link below to ensure that your business representative/ remisier are registered with the Securities Commision Malaysia > https://www.sc.com.my/

This is to help avoid unnecessary losses or scams at the start of your investing journeys 🙂

2. Registering your Central Depository System (CDS) Account

A CDS account is just like your bank account but a CDS account keeps the shareholdings of companies you invested in the form of stocks.

How do you create a CDS account?

Here are the general things (or at least applicable in Malaysia) :

a) A copy of your identification card (IC)

b) RM 10.60 to open a cds account with the Malaysian Central Depository Sdn Bhd

c) Finally, that is, opening a trading account with your trusted remisier

Normally you can just inquire your remisier and they’ll guide you through the whole registration process – it’s really simple and straight forward.

3. Don’t trade stocks yet – join a class!

That’s right, you don’t want to put in $10,000 and end up with a loss – you will need reliable coaches to teach you how and which stocks to invest. You can start by looking into the social media (facebook, twitter, or instagram) for reputable classes organized or ask your friends who have traded stocks before and how they go about it.

However, most classes may require you to pay – just make sure its not a scam!

Here’s some tips before you decide to attend any paid classes:

  • Attend the free classes initiated by Securities Commision known as the “InvestSmart” series, check this out > https://www.investsmartsc.my/index.php/
  • Better yet, you can also get free basic stock trading knowledge from Bursa Market Place, have a visit at > http://www.bursamarketplace.com/mkt/learn
  • Or, you can try and find great mentors/coaches that have been in the stock trading industry in a long time – people like Faizal Yusup or Dato’ Dr Nazri Khan are corporate people who are still working in investment companies and at the same time still organize classes.

Also, a great advice I received from a good friend of mine,

“Avoid trading stocks using your bread money”,

meaning – invest using the surplus money that you have and not the money you use to run your daily routine. What I would advise is to invest using money that you are willing to lose. Also note one of the benefits of stock investing is that you can accumulate cash faster than investing in properties due to its liquidity characteristic.

With that said, you will be able to accumulate your capital faster with stock investing to proceed with purchase of a much stable investment which is property investments. Have a look on 7 steps guide to buy a house – the complete guide, 5 things you should consider before buying your first house or 5 Traits of a good property to invest and get good rental for starters.

Now that you have read until the end, I believe the above should suffice for you to have a general idea on how and where to start. Have a great investing exploration ahead!

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