I am a kid in stock exchange, and i am keen to learn. When we are researching a counter, which step shall we take ?

For me, i only do this

1) Look for those familiar one

2) Look for the personality of the counter , whether it is main or 2nd board, or which sector the counter is in (will be glad if it was plantation or oil and gas)

3) Look for the yesterday price, and also today high and low

4) Look for previous month price , and key in the counter name in google and hear what others say

5) Read bursa.com about their latest announcement

6) login to the company website and see their properties, make sure it is not an empty company but with something to hold (eg , for plantation , got many lands, for industy, got many machine ..... )

Is the step i am taking correct ? I know this is just something very common when researching a counter, any more advance method like watching those ???? graph

Feel free to ask any comment, as we all are learning from mistakes .

i think for a newbie in stock market should focus on fundamental analysis of companies.....

dun focus too much on daily price movement ..

May i add some points here for newbies :-
1) Should only confine yourself to BlueChip stocks only for start.
2) Next step filter out all relatively high PE stocks and concentrate low PE and good future projection earnings company.
3) If can't find any, then wait till market crash and reassess the overall BlueCHip stocks again.
4) Repeat step 1 - 3 again.
THis assure you won't risking your money in low prospective stocks. Is hard to find i agree but is a good way to start for newbies.

3) not much useful, don't serve much purposes.

4) Look at long term chart with 3-5 years, not one month old.

6) The more important is look at profitability issue, you buy a company share to become a shareholder not because primary they have asset, but you want to 'enjoy' the potential profitability.
After all, investment is about using your money to earn money. One company can have tons of asset but company is not making money, then is it worth to buy?

Company can be 'empty' (not actually empty lah, just having minimal asset)' like BAT, Bjtoto Carlsberg, JTinter, but their business is highly profitability which generate healthy cashflow every year which enable them giving out generous dividend consistently which investors also like to have which sustain its share price at high level.

For starter, study the fundamental issue like company EPS, cashflow situation, balance sheet, PER etc of the company to determine their potential worth/ability to generate return to the shareholders.

This post has been edited by cherroy: Apr 11 2008, 11:19 AM

May i know where can i get those info ?

Your online broking software should be able to provide you all those data.

But you should know how to calculate it yourself as well.

This post has been edited by skiddtrader: Apr 14 2008, 04:28 PM

i suggest you to try out www.bursamalaysia.com. Should be sufficient for you and mostly pro investors.


I do suggest you look into Fundamental Analysis. Most ppl preach FA but dont know how to apply them. That is why they keep on complaiing that FA is useless and TA is better.....hahahhahaha


you under to understand your what is your business and read up a lot. Try researching on RATION ANALYSIS

P/E
D/P
ROE
ROA
Profit Margin
D/E

it can be confusing at first but in long run you will know how to apply it. Read up blogs and forum for more info.


As FOR TA.... i could say most of the time FA will do fairy well. I dont go agaist TA ... it does have its pros and cons....



buy the following books
The Warren Buffet Way
Stock Investing by Morning Star
Security Analysis
Intelligent Investors


hope this help.

I'd sugggest that you look at counters in dow jones..i.e american counters as they are more transparent as compared to our malaysian counters which is full of inaccurate data and manipulations.

us market also allows you to short whereas in bursa it's not allowed and can be punished for it. I consider such laws as stupid because the market will never be developed further.