Tuesday, April 3, 2007

HOW TO GET STARTED?

I have been asked so many times by enthusiasts and friends who wanted to get started and take a plunge to the stock market. I have posted why we should invest in Bursa Malaysia in 2007.It is not just for 2007 only that we will invest but it is rather forever as long as there is a 'peredaran of bulan, bintang dan bumi mengelilingi matahari'. The reason why I said 2007 is because our nation economy is in a good track plus most probably next election year in 2008 plus several other reasons that I've listed.

Ok so how we should start?

First we need to register for a CDS account.You can do this by visiting any brokerage available almost at any town in Malaysia.For example, I have accounts in Affin Securities (Affin Investment Bank) at Menara Boustead, Jln Raja Chulan, OSK Investment Bank (JB) and K&N Kenanga (now known as Kenanga Investment Bank). Why 3 accounts? All because of several reasons in brief: Affin the brokers are 'aweks..& cun..'OSK the broker is very kind with insider news & Kenanga is the boutique of all securities..no lah actually Kenanga provides me with a lot of latest research carried out by foreign funds such as Merill Lynch, CLSA, Goldman Sachs etc.

You need to fill up the CDS registration form, give them your copy of IC and RM10 for fee.
Wait for about 1 week and if you are clear from being a bankrupt, Bursa will send a letter with your CDS account no.
Call your broker, ask for your trading account no. Ask for any collateral required i.e.some brokers might want you to deposit a sump of money first in your trust account before you proceed with any buying or selling of shares. Besides that, the collateral will be used in case to cover the huge losses that you might incur during your first trade (hopefully not). The amount may range from Rm1K to RM5k. However, without the collateral you can apply for new IPO which nowadays you can apply via Maybank2u, RHB online banking etc. or at the ATM machines of selected banks rather than the old fashion ways of filling up forms. You just need to enter your CDS acoount no. that you obtained from Bursa/ broker. IPO is the best way to start for freshies.Personally I feel IPO is more secure and 8 out of 10 IPOs will create a wealth rather than disaster for your first day of trading.It's like giving your child a taste of honey during the first hour after they are borned (ini petua nenek aku, alasannya supaya anak kita dah dapat rasa manisnya dunia bila dilahirkan tapi since I am a smoker I can hardly feel the sweetness of honey nowadays, I only feel the joy and pleasure haha).
Ok..How to make a trade? Buy or sell: this is the most best part of all. Frankly, I am so nervous, my hands and voice were shaking when I first called up my broker to make my first trade (ye lah nak cakap dgn perempuan..maklumlah budak koleq mana biasa bergaul dgn perempuan..gigil beb)No seriously, because I feel that I am going to jeopardise my money into a new venture. So my advise is, look for the nicest broker which can guide you through the process.
Before you decide to buy anything, study first. Do some research. Few guidelines before you buy anything:
1. Do not be greedy. Remember this always: Jangan tamak. Always remember that you're not a pro in this.For most of us, trading or investing is a part time job. Whatever we achieve from this line is like a bonus to us.
2. Always instill discipline.
3. Do not buy shares that you cannot afford. Let say, you have only RM2000 to spend, so just buy the shares within the RM2000 limits. Eventhough you are so goddamn sure the share price will go a doubler within a week. Have discipline.
4. Check the history of the company. Who is the owner, directors, what kind of business they are dealing with. As muslim, I try to avoid anything that got to do with what people call as "sin stocks" eg: Genting, Guiness, Magnum, Berjaya, Tanjung PLC and even DGATE. Ha..nobody hear about DGATE kan ..Dreamgate (DGATE) is a company that produce softwares for casino games. The stock is so lucrative since Genting been awarded with Singapore casino contracts and analysts had a buy call which they say the stock can go more than 100% by year end. Almost got DGATE but I managed to hold the horses or else be burnt in hell instead of got my money burnt.
5. Check the history of the stock price. In almost all newspapers, there is a column of 52 week hi & low prices. Theoretically, and most recommended, and I practice it once in a while, is to buy stock that is nearing the lowest 52 week price. For example: 52 week hi: RM1.00. 52 week low: RM0.50. I will advise that if the price is nearing RMo.50 buy the shares..because even the price slid further down how bad can it go?Unless the company gone bankrupt. However, nowadays Bursa and SC (Securities Commision) have raise the statutory controls and will designate any counters that is badly performed or managed.In other words company that 'takda untung punya kompeni'. They will be labelled as PN17 counters and further PN4 for even worse companies.Those companies can be checked at Bursa website.
6. Do not invest in any PN17 companies. Companies that are in 'dire straits'.
7. Do not buy counter that has PE more than 15. I will explain this later. PE you can check in the newpsapers column as well.

So once you made up your mind, call your broker. Talk nice especially to a lady..be a gentleman even you don't know whether you are making a good decision or not, have control and be confident.
Tell her that you want to buy the share that you want for example:
'darling, I nak beli UEMWRLD at RM4, 1000 units'. please make sure the price and units are right, sound clear and crystal.
Always que (beratur untuk beli atau jual) at lower price to buy or higher price to sell. Let say UEMWRLD now is at RM4, don't simply buy at RM4. Go to que to buy at RM3.99 or below. Unless you are so goddamn sure and don't want to miss the boat to happiness, you may 'up' the price to RM4.01.
If you are confirmed that you sucessfully got the shares that you wanted, the broker will confirm it to you say that is done. Please double confirm with him/ her whether you manage to get the stocks or not. Sometimes it may take a while for you to que, and most of the time you might also miss the boat, didn't get the shares you want at desired price.
What they actually do is when you call to buy is that the broker will key in the price you wanted in the terminal. Once the share price reaches your target, they will be highlighted and they will call you to confirm.
For example, if you call your broker to buy UEMWRLD at RM4 before 9 a.m. i.e. once market open, but the price does not drop to RM4, your que will be there in the line until 12.30 p.m. where the market is close for 'chow'- as what American for 'makan'. Your que will then be erased from the line unless you give a new instruction to your broker to continue the que after 'makan' that is 2.30 p.m. until 5 p.m.
For selling the same procedures apply.

Ha..so that is how it should work folks..

For Kude: frankly, kalau ada duit, instead of unit trust, baik laburkan dalam ASB. Gunakan duit EPF shj untuk unit trust. Kalau ada duit lebih, duit terpijak atau terjumpa - baik pulangkan semula..hahaha.

2 Comments:

At April 3, 2007 at 9:08 AM , Blogger zaki said...

Good infos for starters....Aku pun masih byk kena berguru dgn ko ....

Besok lusa nie,, aku hold je la....tunggu TP, baru jual....ntah biller la

 
At April 3, 2007 at 10:37 AM , Blogger TheKudz said...

good tips bro..tak lokek ilmu..ko memang jadi the next azizi ali lah lepas ni..kalau tak pun anuar ali..

 

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