Beofre i can do online trading, do i need to open any account?
Heard from ppl that CDS acccount and online trading account?
How much the payment?
Can anyone tells me what these 2 accounts function as?
Please guide me into the right channel.
Thanks in advance

A CDS and a online trading account will do.

CDS account opening is RM10 if not mistaken.

Online trading account charges can be varied depends on broker house, some none, some do charge but won't too much Rm10-20 for admisnistration charges.

Move to stock market section.

now the charges for buy and sell of a share is how much?
Let say the share is RM5.00 in stock market list(RM5000?)

apart from paying the RM5.00
you still need to pay the following

- brokerage rate
- clearing fees
- stamp duty

which would make up to RM 5000++

Currently, the minimum standard lot trading is 100 shares/lots, if the share price is Rm5.00 then you can buy as little as 100 shares x Rm5.00 = Rm500. But you have to pay the mininum commission of Rm12 (next year Rm40) + stamp duty + claering fee.

PS: commission rate can be varied, mostly online trade will get 0.42%.

Look at the online trading portal side FAQ, there are details explaination and information.
There are plenty of online trading link website at the 'Useful link' section. Google it.

Cheers.

Hi,just want to ask any of you guys.Say if I want to do dollar cost averaging and invest RM1000 per month.Is it possible to do that without buying them in lots.For example I buy a company's stock at RM1 per share in January.That would leave me with 1000 shares right?So if the price decreases to RM0.70 in February, I would have 1428
shares. 1000 shares equals to 10 lots. 1428 shares would be 14.28 lots (Is this possible?).I hope you guys can understand my question.

You can buy 14lots at the open market and 0.28lot (28 shares) from the odd lot market if you really want to. Why so hassle about? 1400 cannot? need 1428? 14 lots will do the job already. Odd lots generally are trading a slight discount compared to open market price.

I meant doing dollar cost averaging.Because DCA involves buying shares regardless of its price. I know you understand the concept.Just invest RM1000 per month and doing it automatically. I didn't mean I purposely want to buy odd lots.

Theory is theory when come to practical side, can twist or rounded up a bit lah. So in your example case, buying a 14 lots will do fine for the DCA already.

I see.Thanks anyway.Can DCA be done automatically by brokers? Or I have to do it myself?

No, generally for stock market trading as remiser won't have so easy time to do it for you.
There are some online trading portal that allow you key in a particular order for a period of time, but not amount of money.
Eg. you want to buy ABC stock at Rm1.00 but it currently trade at Rm1.05. You can instruct the site to auto-key in for you everyday until a specified period until it matches.

UT, can, as one can do standing instruction to invest on every month at fixed amount.

This post has been edited by cherroy: Dec 19 2007, 11:57 AM

Thanks for the advice and tips. I really appreciate your help.I think I just going to stick with DCA because investing in lump sum for me is too much to stomach due to volatility. I'm afraid next year would be an inevitable bear market. For your information I'm new to stock investment albeit I am willing to learn and improve my skills and knowledge. I hope you could help me more in the future.

This post has been edited by amirbashah: Dec 19 2007, 12:07 PM

I really don't believe in strict following of the Dollar Cost Averaging method because during a volatile period in the stock market, you'll probably end up paying too much for a counter when it is peaking and not keeping the cash until the price goes down a little. So if you are using that method, try not to keep to strictly to it and be flexible as the market to get the best bang for your buck.

And since you're new, don't go for online brokers for now, instead try to get a normal broker/remisier where you can call them and chat with them. Since most broking firms has their own online viewing systems, you won't be left behind in terms of market updates. Learn from them how the market ticks, how the brokers themselves view the current conditions, change brokers when you aren't happy or get a different opinion. Only after you get the hang of the market, then only go solo for your online trading.

Actually, I have opened an online account at OSK but haven't started investing yet due to financial constraints. Now I just do paper trading to improve my trading skills but so far I've not yet gain any profit. Can I just do both, meaning invest via online and a remisier as well?I think it's much easier and better that way.

if funds are a problem, have you thought of investing in unit trusts - a bit safer and less money needed, and of course DCA is a bit easier there

i think u probably want to consider buying unit trust first until u feel comfortable and confidence with yurself in handling those online stock transaction.

The reason why I recommend a remisier/broker for your stock market transactions instead of online transactions is because if you are about to do something stupid that you aren't aware of, your remisier or broker will at the very least have a tendency to ASK why you want to do that? Trading online only need your input, and whether or not you are doing something wrong or stupid, you don't have someone telling you that you are.

At least when you call a broker to buy/sell something, the broker will tell you the market conditions, recommend you some stocks, and will ask you why you are buying something if it's funny, like buying Loan stocks which is about to expire the next day.

Thanks for the advice you guys.As for now, I haven't started anything yet albeit I am currently accumulating knowledge on investment right now.I guess there's a lot I have to learn and fortunately I'm still young.The important thing is I just don't want to concentrate on stocks alone,unit trust too would be a good choice of investment. I would definitely diversify rather than just relying on one particular investment alone.And one thing I'm also into agriculture.

About unit trust,do you think RHB unit trust is good for the long term (Especially their Goldenlife funds)or is it untrue?

This post has been edited by amirbashah: Dec 19 2007, 04:18 PM

If you use DCA, do you have to pay RM40(next year) for each transaction? Meaning if you invest 1k/month, you will have to pay rm40+stamp fee+etc/month too?

There is no actual "plan" in the stock market to do the DCA for you. You have to do it yourself without an system to help deduct from your bank every month.

And yes, all transactions costs are charged for each transaction. So to be honest, the less transaction the better in terms of costs.

all gurus...

i am a newbie to the stock market...how can i start trading?like with a remisier and also online?

which online trading provides the best functions and low rates?

thank you...soli 4 bumping sumthing dat is not relevant

You need to open a CDS account which a broking house will help you do, and also an account with the brokers you want to deal with, like OSK, CIMB, etc.

It's hard to say which online trading portal provides the best functions because not many people have used every kind of portal out there.

Rates of online trading or even through a remisier really depends how much of a trader you are. If you trade in hundreds of thousands, definitely you can negotiate a better rate for yourself. But most of us small 'ikan bilis' tend to get a rate of 0.6% for remisier trading and about 0.42% for online trades. Day trading rates are similar at 0.15% I think.

Try to trade via a remisier since you are new, to learn something new and hear what the 'analysts' have to say. Unlike online portals, remisiers or dealers can point out mistakes and wrong assumptions to you before you make it.

Anyway, read up more on the market and good luck.

For everyone's information

1 Lot = 1000 shares
Odd Lots = anything less than 100 shares i.e. 99-1 share

Open Trading Account
1. Open CDS account pay Rm 10
2. Open trading account (Free)
3. Open Online trading account (Free)
4. Start Trading

Commission Rates
0.6% - 0.42% standard
Intraday (Day Trade) 0.2-0.15% (conditions attached)
Preferential 3%

---

Added on January 2, 2008, 1:37 amBefore Trading Checklist
1. How much capital do you have?

2. How much can you lose up to?
i.e. say you have RM 5000, can you lose Rm 5000 and still go on living a normal life?
- do you need the money urgently?

3. Investment Strategy
- Defensive
- Investment
- Aggresive

4. Read news, books, research and do your homework

5. Will it affect ur lifestyle?
- Glued to the monitor from 8.30 to 5pm, worried about price flactuations?

6. This isnt Bursa Pursuit, real money is involved have you factor that in?

7. Bankruptcy at age of 18 ?

This post has been edited by aurora97: Jan 2 2008, 01:37 AM

1 lot suppose to be 100 shares for now not 1000 shares. Previously anything less than 1000 shares is odd lots.

hehe I revived an old thread.. checking all the thread for info and some question again, hope u guys don't mind if i ask too much..

what does the quote mean in the "he buy 1000 shares at rm1" but when decrease to rm0.70 he said he got 1428 shares.. umm isn't it will go to 700 shares instead? confuse here :-(

if you buy 1000 share at RM1 , you get 1000 shares, your cost is RM1000 + misc trading fees
and if the price drop to RM0.7, you share value stands at RM0.70 x 1000 shares = RM700

if the price of share drop from RM1.00 to RM0.70, then you use RM1000 to buy share at RM0.70, then you get 1428 shares.

The number of shares that you have bought will remain same unless you sell. Only the price of the share fluctuate with the market. your share holding DO NOT fluctuate with the market.

ok i get it by 1000 / 0.70 = 1428 shares

so the 1428 shares is value at RM 700 right at that moment right?

Hi, I'm new here, just want to learn about stock exchange. What is bursa pursuit? and how can involve in stock exchange can lead to bankruptcy?

1428 shares exist because you use RM1000 to buy share worth RM0.70 each.

This post has been edited by ante5k: Jun 18 2008, 03:51 PM