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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