How to invest in stocks in Malaysia: Best ways for beginners to get started | Stock Investment

Investing in stocks is a terrific method to develop wealth by leveraging the power of expanding businesses.

Getting started might be difficult for many newbies trying to get into the stock market despite the potential long-term rewards, but you can start purchasing stock in minutes.

So how exactly do you invest in stocks?

It’s really fairly straightforward and you have numerous methods to accomplish it.

One of the simplest methods is to register an online brokerage account and purchase stocks or stock ETFs.

One of the stock broker that you can consider is MooMoo, which is regulated under Singapore.

Currently moomoo is offering special promotion as below:

(1)Invest S$100 in Cash Plus or any fund in moomoo: Can get S$60 direct CASH

(2) New customer benefit（poster attached):

- Opening account: 0 Commission& 0 Platform fee(1Y) for US stocks Forever + S$40 stock/fund coupons+ Lv.2 Real-Time US Market Data

- Deposit $2700: Can get 1 FREE share. (around S$50 - S$150)

(3) Invest S$20,000+ and get a free Jay Chou Concert ticket.

Check out more details here: MooMoo Promotion

Another option is to engage with a professional to manage your portfolio, generally for a fair charge.

Either way, you may invest in stocks online and begin with minimal money.

How to Get Started in Stock Investing

Here’s how to invest in stocks and the fundamentals on how to get started in the stock market even if you don’t know that much about investing right now.

Investing in stocks: 4 simple steps to get started

So you want to begin investing in stocks? Here’s a four-step checklist to help get you going:

1. Choose how you wish to invest
2. Open an investing account
3. Decide what to invest in
4. Determine how much you can invest – then purchase

1. Choose how you wish to invest

These days you have various alternatives when it comes to investing, so you can actually adapt your investment style to your expertise and how much time and energy you want to spend investing. You may spend as much or as little time as you desire on investing.

Here’s your first important decision point: How will your money be managed?

A human professional: This “do-it-for-me” option is a terrific alternative for folks who wish to spend only a few minutes a year thinking about investing. It’s also a fantastic alternative for folks with less expertise of investing.

A robo-advisor: A robo-advisor is another good “do-it-for-me” option that has an automated software handle your money using the same decision process a human adviser may – but at much lesser expense. 

You may set up an investing plan fast and then all you’ll need to do is deposit money, and the robo-advisor handles the rest.

Self-managed: This “do-it-yourself” option is a terrific alternative for people with higher understanding or those who can commit time to make investment selections.

If you wish to choose your own stocks or funds, you’ll need a brokerage account.

Your decision here will define whatever sort of account you create in the following stage.

2. Open an investing account

So which sort of account do you want to open? Here are your options:

If you want a specialist to handle your money

A human financial adviser may assist you construct a stock portfolio and also aid with other wealth-planning initiatives such as arranging for college fees.

A human adviser normally costs roughly 1 percent of your assets yearly, with a high investment minimum.

One huge advantage: a qualified human counsellor can help you keep to your financial strategy.

A robo-advisor can construct a stock portfolio that suits your time horizon and risk tolerance. They’re often cheaper than a human counsellor, frequently a fourth of the fee or less.

Plus, several provide planning services that may help you optimize your wealth. 

If you wish to handle your own money

An online broker enables you to purchase stock and many other forms of assets, including bonds, exchange-traded funds (ETFs), mutual funds, options and more. The finest brokers provide no-fee commissions on stocks as well as a tonne of education and research at no extra cost, so you can amp up your game rapidly. 

If you opt with a robo-advisor or an online brokerage, you may have your account created in literally minutes and start investing.

If you decide for a human adviser, you’ll need to interview various applicants to discover which one would work best for your requirements and keep you on track.

3. Decide what to invest in

The second significant stage is deciding out what you want to invest in.

This phase might be frightening for many newcomers, but whether you’ve selected for a robo-advisor or human adviser, it’s going to be simple.

Using an advisor

If you’re utilising an adviser – either human or robo – you won’t need to determine what to invest in. 

That’s part of the value supplied by these services.

For example, when you open a robo-advisor, you’ll normally answer questions about your risk tolerance and when you need your money.

Then the robo-advisor will design your portfolio and choose the funds to invest in.

All you’ll need to do is contribute money to the account, and the robo-advisor will design your portfolio.

Using a brokerage

If you’re utilizing a brokerage, you’ll have to choose every investment and make trading choices. You may invest in individual stocks or stock funds, among many other things. The finest brokers give free research to assist with this process and offer a tons of materials to guide newcomers.

If you’re managing your own portfolio, you may also chose to invest actively or passively.

The fundamental distinction between the two is that you select how long you wish to spend.

Passive investors often adopt a long-term view, whereas aggressive investors may trade more regularly. 

Research reveals that passive investors tend to fare significantly better than active investors.

4. Determine how much you can invest – then purchase

The secret to developing wealth is to add money to your account over time and allow the power of compounding work its magic.

That implies you need to schedule money for investing frequently into your monthly or weekly plans.

The good news is that it’s incredibly easy to get started.

How much should you invest?

How much you invest relies solely on your budget and time period.

While you may invest whatever you can easily afford, experts suggest that you keep your money invested for at least three years, and preferably five or more, so that you may ride out any bumps in the market.

If you can’t commit to keeping your money invested for at least three years without accessing it, consider creating an emergency fund first.

An emergency fund may save you from having to bail out of an investment early, enabling you to ride out any volatility in the value of your assets.

How much do you need to start?

Most big online brokerages these days don’t have an account minimum (or the account minimums are really low), so you may get started with very little money.

Plus, many brokers enable you to acquire fractional shares of stocks and ETFs.

If you can’t purchase a complete share, you can still buy a fraction of one, so you truly can get started with nearly any amount.

It’s just as simple with robo-advisors, too.

Few have an account minimum and all you’ll need to do is deposit the money — the robo-advisor handles everything else.

Set up an auto-deposit to your robo-advisor account and you’ll only have to worry about investing once a year (around tax time) (at tax time).

Once you’ve setup your account, deposit money and get started investing.

How to manage your investments

You’ve opened a brokerage or adviser account, so now’s the time to monitor your portfolio.

That’s simple if you’re utilizing a human adviser or robo-advisor.

Your adviser will perform all the hard work, maintaining your portfolio for the long term and keeping you to the plan.

If you’re managing your own portfolio, you’ll have to make the trading choices.

Is it time to sell a stock or fund? Was your investment’s past quarter a cue to sell or purchase more?

If the market declines, are you buying more or selling? These are challenging considerations for investors, both new and experienced.

If you’re investing actively, you’ll need to remain on top of the news to make the best selections.

More passive investors will have fewer choices to make, though.

With their long-term emphasis, they’re generally purchasing on a predetermined regular timetable and not caring much about short-term fluctuations.

Tips for beginner investors

Whether you’ve created a brokerage account or an advisor-led account, your personal conduct is one of the largest variables in your performance, arguably as essential as the stock or fund you purchase.

Here are three crucial suggestions for beginners:

While Hollywood depicts investors as aggressive traders, you may succeed – even surpass most investors – by utilising a passive buy-and-hold method. One strategy: Regularly purchase an S&P 500 index fund including America’s top firms and hang on.

It might be beneficial to watch your portfolio, but be wary when the market drops.

You’ll be tempted to sell your investments and wander from your long-term strategy, damaging your long-term profits in order to feel secure today. Think long term.

To avoid from spooking yourself, it might be good to glance at your portfolio only at specified periods (say, the start of the month) or just during tax time.

As you begin investing, the financial world might appear frightening. There’s a lot to learn.

The good news is that you may move at your own pace, acquire your abilities and knowledge and then proceed when you feel comfortable and ready.

Best stocks for novice investors

As a rookie investor, it might be a sensible option to start things basic and then grow as your abilities improve. Fortunately, investors have a terrific choice that enables them to own shares in hundreds of America’s best firms in one easy-to-buy fund: an S&P 500 index fund.

This sort of fund allows you acquire a modest part in some of the world’s top firms at a minimal cost.

An S&P 500 fund is a wonderful alternative since it offers diversity and decreases your risk from owning specific companies.

And it’s a fantastic selection for investors – beginners to expert – who don’t want to spend time thinking about investments and want to do something else with their time.

If you’re wanting to extend beyond index funds and into individual equities, then it might be worth investing in “large-cap” stocks, the largest and most financially solid corporations.

Look for firms that have a stable long-term track record of generating revenue and profit, that don’t have a lot of debt and that are selling at appropriate prices (as defined by the price-earnings ratio or another valuation yardstick) so that you don’t acquire stocks that are overpriced.

Stock investing FAQs

Do you have to reside in the U.S. to create a stock brokerage account?

No, non-U.S. investors are allowed to create brokerage accounts and invest in U.S. firms, although they could encounter a few extra difficulties in getting started.

Investors located outside the U.S. may need to provide extra pieces of identification to establish their identity when creating an account and there might be even more documents on top of that to guarantee correct tax reporting. 

Be careful to check with the broker for advise on investing while residing outside the nation.

How much money do I need to start investing?

Not much. Most online brokers have no minimum investment restrictions and many provide fractional share investing for those beginning with modest sums.

You’ll want to make sure that the money you’re investing won’t be required for normal needs and can remain invested for at least three years.

Building up some funds in an emergency fund is a smart idea before getting started with investing.

Bottom line

The beautiful thing about investing these days is that you have so many opportunities to do it on your own terms, even if you don’t know much at the outset.

You have the choice to do it yourself or have a professional do it for you. You may invest in equities or stock funds, trade actively or invest passively.

Whichever technique you select, adopt the investment approach that works for you and increase your money.

Happy Investing! 😉