Friday, October 3, 2008

Basic requirement to be a normal Equity Investor

In fact, a lot of young teenage want to be an equity investor, but they are worries: -

a) In hand capital/saving not enough
b) High risk
c) Bad return
d) Choose the wrong counter/company’s shares

Actually in my point of view, the above problems are “nothing”. Because: -

1) At present the minimum buying volume is 100 shares. Hence, the minimum capital for investment can be as low as RM100, if the market price for the said company is RM0.10 per share.
2) High risk is in life journey, because you and me do not know what is the last date of ours life. The equity investment, is one of the games in your life, if your investment is RM100, the maximum lose is limited to RM100.
3) In your life, bad return is happen in everyday. There is not such game providing you have guarantee good yield. People will claimed that Fixed Deposit is a guarantee return, but honestly the rate offering by bank is not enough to cover the yearly inflation. You just pick one of the food prices at 5 years ago compared with current price. You can fully understand what is bad return.
4) In the world, that is not any company can forever is survived. There is due to the technology and environment rapid changing in every minute. Today you may choose the right company but does not means that your are ultimate winner. (Example: - Lehman Brothers in USA and Transmil (stock code:7000) in Malaysia) Hence, regular make adjustment on you investment portfolio to fit the current environment situation is necessity.

No one can fully understand entire the business sector in this world. But the basic accounting theory and business law force the listed company fulfil certain condition. Base on this guide, you may obtain some important information to build up your investment portfolio.

The important on investment attitude is “You must always ask why?”

3 comments:

test said...

1) o.1o really @ @! could u show some example, stock and plus is there extra fees involved ?

2)Correct.Correct.Correct like wooing girls XD

3) Fixed account is too way low not enuf to buy anythingy. Even ASW 2020 is better choice.

4)but what is the real major difference between mutual fund and online stock ! which is better for newbie?

5) what is the basic thingy u need to start trading at the stock market because i see people just look at the monitor for change all time

Josh said...

Stockname!!! I love this entry!

stockname said...

To, spec,

1) There is a lot of shares is standing 0.10, some other lower than that, if u wanna see the price for every counter, pls goto http://www.klse.com.my . For brokerage fees, every securities firm offering for online trading is difference, now the lower is RM8.00 per contract. Through reminser is RM40.00 per contract. The fees will charge both way, that means buy or sell also need to pay brokerages fees, that is a small charges on stamp duty and cleaning, it represented .015% only.

4) Mutual funds means u employed a fund manager to buy shares for u. Online purchase is doing by you personally. So, u must select u investment stock.
Hard to identify, just like u driving car or call taxi. If ur greedy type person, play you own better than mutual funds.

5) This is a wide topic to discuss , but i normally tell ppl is , u must dare to take risk.
Those ppl is day trader, means buy in and sell in on the same day.