Thursday, November 4, 2010

How to start trading at Bursa Malaysia

I started trading at Bursa Malaysia back in my matriculation years. As a young investor, I was eager to learn how to do investment and earn money such as Warren Buffet, my idol in investment. From I was in secondary school, I like to watch stocks price in newspapers. Then my dream is, to be success investor in Malaysia :P



To trade stock at Bursa Malaysia ( previously named KLSE), the first question I asked is:

How to have a trading account and start buying shares?

Do you qualify to trade at Bursa Malaysia?
You have to be at least 18 years old.

Step by Step Guide:

1. Open a Central Depository System (CDS) account:

you can do this by approaching an authorized depository agent such as stockbroking company and some banks.

* provide photocopies of IC (identity card)
*EA form or pay slip (if you are working)
* fee RM10

You will receive the account document by mail.

2. Open a trading account with stockbroker:this will be done simultaneously when you open the CDS account.

* need to provide income statement (as student, I dont have income statement that time)
* fill out trading account form
* the stockbroker will check your credit status at CTOS (Credit Tip-off Service) and stockbrokers’ defaulters’ list – in order to qualify you and set your trading limit

3. Get a remisier:

normally your stockbroker will appoint one to you if you don’t have any particular preference.

* remisier has to be licensed by the Securities Commission
* remisier helps you make the order: sell or buy at what price you want.
* get someone you like and trustworthy as your remisier
*here my remisier contact, 019-9350055, just wassap tell you interest to open account, he will guide you
*dont forget to mention you read the contact number from RINGGIT INSIDER

4. Buying and Selling Shares:

You can key in your order at online system provided by your stockbrokers, or call your remisier to make the order. If your buying order match a selling order, you will get a trade confirmation. The stockbroking firm will then send out contract notes to you specifying details of transaction.



5. Payment:When you buy share of company W, your CDS account will be credited with share W at 9am on T+3 (T=transaction date). The 3 days only include working days. Your payment had to be made on 12.30pm that day. If not, your share will be forced sold at a contra loss or contra gain.

Fees involved:

* brokerage fees – maximum 0.7% of the value of total shares traded, normal practise is 0.6% (online brokerage fees 0.42%)
* Clearing fees - 0.04% of contract value subject to cap of RM500
* stamp duty – RM1 for every RM1,000 worth of value

All I stated above just basic how to start in trading stocks. A lot more we have to learn in order to success in Bursa Malaysia since this is active type of investment vehicle. We know a lot of people become rich in stock exchange, but beware, a lot of people also go bankrupt here.

last but not least, here is my latest portfolio in Bursa Malaysia, the price may change when you read this post, I capture this on 9.30am, 4 Nov 2010


KFC I just bought few weeks ago, and my gain today 21.17 %

Dictionary

Average Price = Price I buy

Last Done Price = Latest transaction price in Bursa Malaysia

4 comments:

Anonymous said...

hey seringgit...
this is such a very nice article..
i would love to trade in Bursa Malaysia.
can u guide me..?

alan said...

hai, nice to meet you. This is a good information on how to open a trading account. Could you guide mw in how to open a trading account?

Anonymous said...

hai, can you guide me in how to opening a trading account? my email alan_jiawei@yahoo.com

fendi said...
This comment has been removed by the author.

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