Most people want to invest in order to create wealth. It is relatively painless, and the rewards are plentiful, if you do your homework right, that is. By investing well in the stock market, you will be able to create passive income from your extra funds or savings. That will lead to a more comfortable and enjoyable live, especially when you are able to reach financial freedom through income generated by your investment.
Bursa Malaysia Investing Guide
There are many good articles and sites in the Internet that discuss the various aspects of investing. This article present some of the basics of getting started to investing in Bursa Malaysia.
Know your goals
What are you saving for? A new house? A luxury car? Kids education? Retirement?
It is important to set your goals so that you know your time horizon or how long you need to save or invest (assuming a specific return rate). Here is the 3 key advice that will work you:
Now you have the understanding of the risks and rewards of investing, you may be keen to begin investing. Firstly, you need to identify a broker to open a trading account before you can trade in Bursa Malaysia.
Check out the Brokers Comparison page to find the broker that offer the best deal to suite your trading style.
Next, it is always a good idea to research on a stock before you buy into the stock. The following is a list of useful pages in i3investor.com to help you with the research on a stock:
Once you've make your first purchase, set a target price on when to exit (sell) your stock, whether its a gain or loss. Record all your transactions in an Online Portfolio to monitor its performance.
You should continue to keep yourself updated with the company performance and growth, as well as market condition in general, as those will impact the price direction of your stocks. If you chose to adopt the Buy and Hold investment strategy, you should ignore the noise and the short term volatility of the market, and focus on the long term growth of the companies you invested in.
Whichever strategy you chose, do stick to it for a while, continue to read, and treat every transaction as a learning experience.