A Share Trading Resource for Beginners
Share Trading Resource for Beginners
Shares Trading is easy and all you really need to know is learn some basic information about it. Luckily for you, I happen to have all the information that you need. So read further to get educated about the world of stock market trading if you are interested to get involved with any of the stock broker sites in Malaysia.
1. Where to Start?
As a beginner, you would have to set up an account. There are plenty of ways you can do this. One option would be to use your investment accounts like an IRA or your retirement fund.
Second, you could open a brokerage account by going to a stock brokerage firm, sign up to their platform, and they will be the ones to do the rest.
2. Find Out the Stockbroker’s Fees
Different stockbrokers have different pricing schemes. There are some that charge you a commission per transaction and there are some that you have to pay daily, weekly, or monthly.
Aside from that, if you’re going to ask them to do all of the trades for you, ask them how much you need to pay.
For instance, if they’re going to conduct trades via phone, they might charge you $15-$25 instead of the average price of $5. Trading online can also affect the prices as well. All I am trying to say is that these brokers can increase their prices depending on the type of service you want from them so be sure to ask them about their entire pricing model.
3. Start an Initial Deposit
Stock brokerage firms will ask an initial deposit from you and they will put that money into your account so that you can start trading.
4. How to Do the Actual Trades?
To actually do the trades, you need to find a company you want to buy shares from. If you’re interested in buying some, you will be given a price quote, after which, you will then be asked to pay it accordingly. You will have only 15 seconds to finalize the deal and after that, the corresponding fees will be deducted from your account automatically.
Yes, there is actually a stamp duty reserve tax that you need to pay and that is about 0.5% of your total shares purchase and profits.
6. Avoid Hot Stocks and Scams
A hot stock is a freshly made stock that has a promise of high gains. But, do note that because of its highly volatile nature, you could potentially lose your investment in this type of stock easily.
When a random investor calls you and sells you some shares, avoid them at all costs. It is most likely a scam because they will tell you that it is going to give you more profits, but in reality, it is one of those stocks that will fall dramatically in a short period of time.
7. Look for More Information
The good thing about share trading nowadays is that you can find a lot of free resources online that can help you. You could visit BBC’s Market Data pages, Motley Fool, and Morningstar for valuable information about stock market trading.