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Lesson 1: Getting Started

Part 1: What is Stock Market

stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

Part 2: Getting Started

Many books will tell you to register and open a account from any broker firm or banks, But for me the first most important thing to get started is:-

a) Invest on your mind, Buy books and read everything about stock psychology, trends, strategy, news, guide, and many more

b) Must make yourself to believe 100% and dream that stock can earn you a better life. Because if you don't believe in it you will surely give up half way after few bad trades, after losing money, or nag by your family member even friends.

c) Do alot of paper trade until you are confident enough to enter the real market. Do not immediately jump in with real money after learning a few tricks or strategy ( Because i did not do paper trade it cost me to lose half of my hard earned money in 1 hour), So DO NOT follow my path. Is a painful and idiotic way of trading as a beginner.

d) Do not believe in rumors no matter good or bad about stock, do your own research.

e) Ask yourself are you buying stock for the purpose of Trading or Investing. This is a very important question you must ask yourself before you start trading and learning on stocks.

f) Ask alot of question of things you don't know and don't understand at forum or from experience people in stock. here are one of the link i think is very useful for beginner

Part 3: Online Trade or Direct Call Trade

For malaysia they are many Stock Exchange broker and all of them have different rates on charging. Usually broker fee will be much cheaper when you trade online compare to direct call broker trade.

So online trade or direct call trade here are the difference:-

a) Online Trade:-

- Cheaper broker fee
- Suitable for full time trader or investor
- Up to date stock price.
- Fast buying and selling action can be made

-Not suitable for beginner because easily miss look the Qty and Price if not careful. here ill show you the screenshot of how a trading platform looks like.

(Click on the picture to enlarge)

Below here are some of the online rates i know:- (update me if I'm wrong or outdated)

a) OSK INVESMENT BANK - Charge 0.42% on each trade and minimum charges is RM 12
b) Affin Invesment Bank Berhad - Charge 0.42% if not trading with cash upfront, 0.2% trading with cash upfront and minimum charges is RM 12

c) RHB Investment Bank Berhad - Charge 0.42% if not trading with cash upfront, 0.2% Trading with cash upfront.

                                            Next Lesson >> Lesson: 2 Broker Fee