Hi, guys,

I'm 25 year-old and would like to begin investing in stock.

I have absolutely zero ideas. I only know "buy low sell high", "don't bother with penny stock", "stock split", "day trader".

I think Im going to be a day trader.

What account do I need?
What procedure should I follow?
CDS?
Best brokerage rate from established firm?
How to trade on international market?
What is the safest way to trade on international market?
Let's say a stock is now priced at RM5.00. Does that mean I can buy a single unit of that stock at a price of RM5? Or must I buy in bulk?
What is the best mobile app-based trading platform?
Maybank, CIMB, bla bla bla, all offers stock trading services and you can find their apps as well on IOS/PLAYSTORE?

What what and what?

Am I dreaming thinking I can buy few tens of unit of MAYBANK STOCK with RM500?

Any veteran care to share their experience?

Zero idea but want to be day trader
Day trading is not the way to build wealth.

Heavy day traders earn gross profits, but their profits are not sufficient to cover transaction costs. Moreover, in the typical six month period, more than eight out of ten day traders lose money. Despite these bleak findings, there is strong evidence of persistent ability for a relatively small group of day traders. Traders with strong past performance continue to earn strong returns. The stocks they buy outperform those they sell by 62 basis points per day. This spread is sufficiently large to cover transaction costs.

Since 80% lose money over 6 months period, do you think you are that 20%?

... You need to do your own homework. Lazy Google but want to day trade?

Minimum is 1 board lot (i.e. 100 units). If Maybank stock is RM8, you need minimum RM800 (RM8 x 100 units) to conduct transaction. Subsequent purchases is in multiples of board lots (i.e. 2 board lots which is 200 units).

There is odd lot market (<100 units) but the spread is very high and often nobody buys from there because there is an additional fee for buying and selling.

You mean I cannot trade a single lot each time? I have to trade =>2 lots onwards?

U can trade 1 lot. 1 lots is 100 share for Bursa Malaysia. So for Maybank that is ne RM788 based on yesterday closing price.

Age is no guarantee of efficiency and youth is no guarantee of innovation. It doesn't matter about age.

Welcome to the jungle. Seriously. Know that the market is not your mother. It's merely a tool to transfer money form impatient person to the patient investors.
Majority of traders lose money. True fact.
Bring a trader means you will be price sensitive. Every movement in market price will make you nervous. There will come a time where you can't focus on work. Know that when you are starting, power of saving > investing.
Know that if you attempting trading, you need to know the odds are not in your favour. Why?
1. you are up against big boys which can get on the ground info faster than you.
2. some big boys use robot to trade.
3. if you know nothing, how to trade? To be a day trader, you need to study stocks movement, graph and charts.



https://stestocksinvestingjourney.blogspot....-of-saving.html
First thing first. Know your risk level and know what type of investor you want to become. Read this if you think you want to be day trader.
https://www.mrtakoescapes.com/farmers-hunte...l-independence/
Not trying to scare you. Maybe you are good at it, I don't know.

Second thing, think where do you want to start and focus on it.
Pick either Malaysia or overseas market. Until such time when when you have enough money and experience then you decide to venture into another market.

What account do I need?
A: Brokerage account obviously.
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What procedure should I follow? Best brokerage rate from established firm?
A:
If malaysia go find a stock broker and open an account with the, CDS and brokerage account.
Recommneded ones are mplus, HLebrokerage, rakuten (rakuten being fully online). I favour more of mplus and HLebrokerage. Then again I will never buy/touch malaysian stocks.

If overseas, obviously you need an international brokerage, international bank account. Whatever you do, do not use Malaysian brokerage to buy overseas stock.
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How to trade on international market?
What is the safest way to trade on international market?
A: Make up your mind where you want to start. There is no safe way. It's a jungle out there with wild animals. You need to prepared to mentally to take huge loss as shown in the market recently. Can you stomach if you see your portfolio gets wipe out 10%/day. Not a month. A day. The recent crash in US and global markets have shown people are not ready. Everyone is running for the exit. They will sell anything. Especially those traders, those living on margins

For international market
Best broker is interactive broker. Period. Super cheap commission. You cannot find a international stock broker cheaper than them. You get access to spot exchange rate (real time forex rates, no markup rates). You can use it buy anything.
Cons:
1. There's a USD10/month fees if you don't trade USD10 worth of commission
It's difficult to get USD10 as they are so cheap until it cost a few cents per transaction. Keep in mind if you trade say USD1.00 worth of commission, you get charged only USD9.00 (USD10-USD1)
OR
You don't have USD100k cash or worth of stock with them. You can get around by using a whitelabels.
https://forum.lowyat.net/topic/4744515

2. Most malaysian banks will not let you transfer USD to interactive broker. They tell you they cannot transfer to interactive broker. Hence I said you need an international bank. Are you willing to open one?

3. Even if you can get Malaysian banks to transfer to interactive broker, get ready to lose like 5% on the spot. Banks markup their exchange rates. COmbine that with multiple layers of fees by banks. Are you ready to use fintech to get around Malaysian banks?

4. Complex interface. Interactive broker is known as a broker with ugly and complex interface.
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Let's say a stock is now priced at RM5.00. Does that mean I can buy a single unit of that stock at a price of RM5? Or must I buy in bulk?
A: Yes if you are buying US, UK market. No if you are buying Malaysian stock. Malaysian, HK, SG all have lots. Malaysian, SG all minimal 100 shares. HK varies. sometimes 100-2000. Depending on company.

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What is the best mobile app-based trading platform?
Maybank, CIMB, bla bla bla, all offers stock trading services and you can find their apps as well on IOS/PLAYSTORE?
A: Don't know, don't care
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Am I dreaming thinking I can buy few tens of unit of MAYBANK STOCK with RM500?
A; Yes and no.
Yes if you use margin. You can levarage. It is considered a double edged sword because it increases winning and losing positions equally.
It magnifies gain and magnify loses. Eg you have only RM1k. You tell your broker you want to leverage RM1k. They give you RM1k. Now you have RM2k.
Say if you were to buy a stock worth RM1.00 per stock. Price went up to RM1.10. Without leverage you make 10% With leverage you make 20%. Same goes with losses. If it drop to 0.90, Without leverage you loss 10% With leverage you loss 20%.

Now if losses reach a certain limit, your brokerage will call you to add more cash (margin call) within say 1-2 days. If you fail to topup, they will force sell your holdings at any market price. Even your unleverage position to get their money back. How do you like that? So how do you like that? Every minute worry that you will receive a call and if you have no cash stand by, they will sell your stocks away.

Now what happen if they cannot get back their money even after they get the money back from you? They will initiate court proceeding against you.

No. if you are not using leverage.

So back to your question, Am I dreaming thinking I can buy few tens of unit of MAYBANK STOCK with RM500?
Last closing price of maybank is RM7.88 per share. Because malaysian markets need min 100 shares purchase, you need >RM788 (RM7.88 x100). >RM788 to include all the fees.
So if you don't have leverage, you cannot buy unless you have >RM788
If you have leverage you can buy 200/300 shares also no problem. The downside is how much you leverage.If you leverage by 4x, your loss increases by 4x as well

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PS kindly read more. You are not ready for market as you are not doing your homework. Sorry if I sound harsh but I can see from your questions. If you disagree with me, then by all means be gung-ho and charge into war without gun, bullets and protection and we will see who's right after a year. When I was starting out, I read and read for 6 months plus. Only after I have read everything I can find on blogs, forums, then only I asked questions.

There are no shortcuts in investing.

Some useful site
https://dividendmagic.com.my/stock-investment-malaysia/
http://singaporeanstocksinvestor.blogspot.com/ (see all the link at the side, read all of them)

Hope this helps.

This post has been edited by Ramjade: Mar 14 2020, 09:16 PM

Anyone tried short selling? I learnt this from a tutorial. Feels ridiculous to me.

What happens is that you anticipated a certain stock price is going to fall and you borrow shares from stock broker and sell it at says 30 dollars per share.

The stock price then fall to 25 dollars per share.

Let's say you borrow 100 unit shares, so now you buy back 100 unit shares at 25 dollar per share and return the share back to the broker.

So, in the end, you earn the 5 dollars difference per share.

Feels WTF to me.

Is this real? Can we do this?

Yes it's real. The losses are real. If you are shorting, and price goes up, your losess are practically infinite. This is American favourite shortlist stock. See losses are infinity as you don't know how high price will go.
https://electrek.co/2020/02/04/tesla-tsla-s...0-short-sqeeze/
https://www.wsj.com/articles/investors-bet-...eks-11581284236

If overseas, obviously you need an international brokerage, international bank account. Whatever you do, do not use Malaysian brokerage to buy overseas stock.
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WHy dont use malaysian brokerage? too high commission fees?

1. Markup exchange rate sometimes up to 5%. + additoonal forex fees.
2. Markup commission rates (they are charing like USD20-30 vs what you can get a USD few cent or 4.95%
3. Additional quarterly platfrom fees, dividend fees. About 1% of your total amount each time.

I won't touch using malaysian broker unless you like to pay so much fees.

If I do not hv an international banking account, I don’t think I can hv access to IBK right.

You can. But you need to find a way to get the money into IBKR.
Opening a sg bank is what most to us here do to get around Malaysian banks restriction on transferring money to IBKR.

No blockage will come from Singapore banks if you intend to deposit money into Interacrive broker unlike if you are using Malaysian banks.

To get around high forex rate markup by Malaysian banks and the fees most of us
1. Exchange and bring old hard cash down.
2. Use fintech to transfer our money.

I read from the S&P500 thread , some ppl mention

I'm not asking how to make a lot of money. I'm asking the best way to setup my accounts and what procedures I need to follow. Local I already understand. But what about International?

Could share me your past experience? As to where to open an international bank account? It sounds stupid but whatever. I ask anyway.

Go read the Link I posted.
Again as I said if you have knowledge don't bother with trading unless you wish to burn free money. :S

This post has been edited by Ramjade: Mar 15 2020, 07:11 PM

I use this method.
MY Bank (MYR) > Instarem > SG Bank > TradeStation

For bringing money back to Malaysia, I don't bother. Considered it a one way ticket. Money is not coming back to Malaysia for me.. There are ways using fintech but I couldn't be bothered.

Hi bro why u need to go thru SG bank then only into tradestation but not instarem straight into tradestation

Because I don't mind holding SGD. Not all currency you can use instarem. Like USD. So far only EUR works. Other currency not sure.

This post has been edited by Ramjade: Mar 15 2020, 08:32 PM

Is this one of the way to trade on international market?

No. Is one of the way to get your RM overseas. Once your ringgit is overseas, it is very easy.
Kindly read the links provided. Have you read them?

Anyone tried a trading platform named Robinhood? It's said to be completely free?