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How To Start Investing – A Guide

How To Start Investing? A Guide

Is the Bitcoin fuzz getting you interested in trading? Trading scares many people as it is high risk and potential high return. Yes, you heard it right. cfd trading . Even if you bet your money and invest it in a high-risk investment, there is no telling if you will ever get your money back in the same amount you invested, even more in a high return. You can start investing more confidently with these tips.

Start by reading up. Know your market. Who are you planning to invest in? Is it a start up or is it a Google stock that you know you will get returns from? In Malaysia, it’s Bursa Malaysia where you can get news about your stocks and returns. You can also read business papers such as The EDGE or The Malaysian Reserve to understand more about the financial news of the country. The challenging jargons can also be understood by reading sites such as Investopedia to boost your understanding.

You can then step into the investing world by creating an account in Bursa Malaysia or in any forex traders in Malaysia accounts to start investing. In Bursa Malaysia it’s standard that you should buy 100 units of a share. So if a share is RM 3.50, then you must buy 100 of it to begin investing in the company. So RM3.50 times 100 is RM 350. You need RM350 to start investing in that company. Not only that but you can only buy blue-chip stocks when you are investing via Bursa Malaysia.

Vex Trading is a bit more different. Normally vex trading is a bit more relaxed than the other forms of trading. For vex trading, you need an account which you can open via online means and then you need to deposit some money in the account to start trading. That’s about it. Trading is as easy as that. There are risks too. Vex trading is a lot more expensive than trading via Bursa Malaysia. Vex trading can also include foreign companies such as companies from the US or Europe but when investing in Bursa Malaysia, you can only invest in companies established in Malaysia.

Next up, prepare for inflation and recessions. These may seem insignificant to those who are not investing but to those of you who are eager to begin, this is your nightmare. When a recession occurs, it affects the stock market by a big margin. All stocks drop in value albeit they will rise to value in due time. If a stock used to cost 200$, in a recession it may drop by 10$ and now the same stock will cost 190$. So an investor who invested 100 stocks will lose about 1000$ in a moment’s notice during a recession. That is the reason why so many investors pull out of funds before a recession hits the market.

Now you know what can affect your dream to become an investor. Although the name might seem fancy, it does come with big risks. The last two years have been a nightmare to many investors as they close each day with the companies they invested in losing value. Lockdowns and soaring coronavirus cases have tested the agility of investors. When it all boils down, investing is fun to those who know what it means to be an investor.