What is Stock Market?

From my understanding, Stock Market is a marketplace that allows Businessman to share their ownership of the business at a willing buyer willing seller price. It is a platform for investors to grow a small sum of money and create bigger wealth with less risk compared to starting own businesses. Stock Market provides investors a variety of companies and sectors to invest in, at the same time serves as an alternative channel for company to raise more capital.

There are few types of Stock Market investment channels that are accessible for Malaysian /Foreigner residing at Malaysia:

•       Bursa Malaysia – Including Equity, Derivative, Islamic Market, ETF, Bonds and etc.
•              Foreign Market – Including Singapore, US , Hong Kong , Japan , Indonesia , Thailand , Australia , UK ,Switzerland , New Zealand , Canada ,France , Germany and etc.

Pros and Cons of Stock market

Pros	Cons
ü  Anti-Inflation	RISKY when you gamble
ü  Income	RISKY when are lack of knowledge
ü  Liquidity	RISKY when there’s major bad news/ events happened in the industry, company or even country
ü  Diversification	RISKY when you do not remember what you had bought and invested
ü  Tax free on capital gain
ü  Wealth accumulation

What you can do in Stock Market?

You can invest like Warren Buffet and accumulate your wealth throughout your investing life. You also can Trade like George Soros to capture the short term capital appreciation. Basically investor are categorized into six which are –

·         Passive vs Active Management

·         Growth vs Value Investing

·         Small Cap vs Large Cap

How can you get into stock market?

First of all, you will need a trading account and CDS account before you get into the stock market. Once your account is ready, you are allowed to Invest / Trade at any exchanges that are available. To understand how to open the account, you can refer to the previous post on How to Open Share trading account?

How you can better understand the stock market?

First of all, you can consult your dealer / remisier to help you understand more on it and learn the basics of stock market. Besides that , there are plenty of websites with free information that you can access easily. As most of us are using smartphone in day-to-day task, you can also access to some free Apps in your Smartphone. Please do let me know if you notice any good Apps via the feedback form so I could add into the table below and share to the rest (as sharing is caring J).

Websites	SmartPhone Application
www.Bursamarketplace.com	Bloomberg (Android)(IOS)
www.Investing.com	Investing(Android)(IOS)
www.Bursamalaysia.com	Homily Chart (Android)(IOS)
www.Klse.i3vestor.com	KLSE Screener(Android)(IOS)
www.Investalks.com	CNBC Real-time(Android) (IOS)
Broker Webside / Report (MBB , CIMB , RHB & ETC)

In summary, Stock market is one of the vital financial products to assist you in growing your wealth as it gives you the most freedom. Furthermore, the entry barrier is low (Almost to no min amount). The scariest weapon to destroy our wealth is not accident, not currency weakening, not war BUT inflation. Inflation will decrease our purchasing power and slowly wipe off our wealth.

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What is investing?

What is investing?

As investing is part of our journey to accumulate our wealth, we have to take it seriously and understand what we are doing and how it will help in our wealth accumulation. By simple street definition, investing means putting your money into a product that can give you return. Below are some brief ideas for the product that I can think of.

What are the product available for a Malaysian / Foreigner residing in Malaysia able to invest?

• StockMarket – Including Equity and Derivative market
• Bank Structure product – Paper commodity ( Gold , Silver)  / Equity link note       Dual Currency Investment
• FundMarket – Including Foreign or Local , mutual , Islamic ,hedge Fund
• Property Market  - Including landed, Condo, Resort, Shop
• Insurance – Including Investment linked, Saving plan, Cash back insurance
• Fixed Deposit – Including conventional or Islamic ,Cash money management Fund
• Joint Business –Including all startup business, Venture Capital ,Private Equity

All the above Products have their own specification and characteristic, it is not necessary to have all of them in your portfolio but it is better to have a few in your own portfolio designed to your personality and desired goal.

Who should you look for the respective product?

•         Stock Market – Licensed Dealer / Remisier 
•      Bank Structure product – Licensed Dealer /Personal or Premier Banker
•             Fund Market – Licensed Fund advisor / Bank Personal Banker
•             Property Market  - Licensed Property agent and agency
•             Insurance – Insurance agent / Bancassurance
•            Fixed Deposit – Banker / Investment Banker
•            Joint Business – Find a solid partner or franchise or Manager

How should you go for each product?

There are no shortcuts for all kind of investment. Knowledge is the first thing that you need to acquire before you get into a particular investment product. Strategy should come next. People who have knowledge and understand own personality will succeed in investment. People with strategy will also be able to get return in long run even though sometimes they might get caught in wrong market cycle or investment decisions.

Why should you go for each product?

•             Stock Market – Low Entry barrier, Full access to the product
•             Bank Structure product – Variety of investment, Diversifications
•             Fund Market – Low Entry, Managed by professional
•             Property Market  - Best hedge product to Inflation
•             Insurance – Best protection product, hassle free on potential total loss
•            Fixed Deposit – Safest Product to preserve capital
•            Joint Business – 100% self decision making and make sure everything toward your vision

In summary, we should understand each of the products by consulting the professional (Shall always do this as this is the responsibility of the professional). Beside that, invest what you can afford and set your goal before you commit to it.

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