I know that trading is simply buy low sell high and earn the gain. That is what we call stock trading which is normally short term. I know that a lot of article mentions trading will incur higher cost such as the fees and very risky. A lot of articles suggest to go for investing using fundamental approach.

As for investing, meaning that we put our money in a stock/company for long term and earn from the dividend as well as the gain. Investing is more like Warren Buffett style using Fundamental analysis.

So, to all gurus and pros, I need your opinion and your experience.

1) Investing or trading is better in Bursa Malaysia?
2) Anyone here is pro trading? Why?
3) Anyone here is pro investing? Why?

Please share some thoughts and opinions. Thanks.

very hard to answer that question. it is purely depends on your risk/gain appetite.

for me, sometimes day trade, or super short term <1mth.

anything can happen, world-war, the company collapsed/bankrupt (ENRON, LehMan, CIT) etc etc.

Totally depending on your style n mood. For KLSE - hard to do day trade, because of liquidity.

You are right. It is hard today trade in KLSE. It would be possible for people with large amount of money.

it is also up to your conditions. if you can stare the monitor every minute without interrupting your work, then it is fine if you trading.
for me, I cannot do it, so I'm more on medium term and using more fundamental than technical.

One cannot used the Western investment gurus approach in KLSE - maybe 1 or 2 rules applicable here only. KLSE common problem is liquidity real low compare to STI or Nikkei. In the absent huge cash by foreign fund managers, investing much more proper manner. In trading U need volatility to gain a reasonable fraction of price for bid & call in a day. Good luck.

That is true. I find that a lot of books teaching people to trade and invest is from the west. Sometimes, I find those books are not applicable in our market.

Robert Kiyosaki and Sun Tzu will advise you to have a plan before u goto war, and trading is like war,u need to have a plan then only you will have direction where u are suppose to be heading. And they also emphasis on the passive income too. Share trading should be part of your overall plan for income. Maybe u should also try invest in other stream of investment like property. I am still learning,just sharing a bit.

This post has been edited by Tohsan: Nov 5 2009, 11:37 AM

Property is not an easy investment.It requires much more knowledge and skills. I suggest you to read Azizi Ali's books, Millionaire Landlord. It is not easy.

I am planning to use stock market to collect money then I will invest in property.

i) Leave the trading to the professionals (Fund Manager, Syndicate etc)

ii) Retail investor / common man in the street should just invest.

Xuzen

I think this should go back to the individual personality. There is not right or wrong answer to this question, just which suit you better. Also taking into consideration are the time you can allocate to invest or trading and your passion on it. There are successful investor and trader and at the same time there are failed people also. Up to you

I agree. There are no correct way. Just find a way that suit you and stick with it.

Actually, it's depend on how much capital you owned. For me, I have no any preference, as long as the method can make me earn money. Earn more or earn less against a specific time frame is another matter.

Hi,
Try to read this blog. They are gurus of trading. They are just normal people like us.
http://wealth-trade.blogspot.com/

In my opinion, trading is mean for those with more than 10k because of the brokerage fee when you buy/sell a stock and willing to stare on the computer screen throughout the trading hours.

I personally prefer to invest rather than trade because I rather spend time doing other meaningful stuffs in life than staring at the computer screen throughout the day. Also, I don't have to worry about the short term volatility of my shares as I will be holding my shares for the long term, that is 5 years and beyond. I only sell my shares if they are extremely overvalued.

Thanks. I prefer to invest too. Now, I am trying to buy based on technical charts and if the charts are correct, I can earn short term. If the charts give wrong signal, I use it as long term investment.