Online Trading or Use A Broker?

Which ways are you prefer when enter a stock trading? I shall go through some advantage and disadvantages of these 2 options.

Online Trading

Advantages

-         Speed and Time Saving

-         Pay lower brokerage fee (Maybank /CIMB only RM 8- RM 8.88 per transaction)

-         Allow enter the trade orders at night

Disadvantages

-         Easy to make mistake when enter trade orders

-         Network Connection / Server Down

Use A Broker

Advantages

-         Opinions / Advice on what to buy and sell

Disadvantages

-         Advice given not guarantee for good return

-         Time waiting may causes you loose on profit

-         Pay less attention on your account when handle too many accounts

-         Pay Higher brokerage fee compare to online trading

Whether you are choosing the online trading or broker, you should also do your own research on the particular stocks and pay attention to related market news. For me, I will using both ways, when I am not convenient to do online trading, I will use broker to enter the trade orders. I would prefer to use online trading when a large amount transaction or frequent transactions has been carrying out.

Check out below websites if you would like to look into online trading.

-         CIMB Securities Sdn Bhd – www.itradecimb.com

-         K&N Kenanga Berhad – www.kenwealth.com

-         Mayban Securities – www.maybank2u.com.my

-         OSK Securities Bhd – www.oskl88.com

-         SJ Securities Sdn Bhd – www.sjsec.com

Types of Securities Traded in Bursa Malaysia

What is security’s definition? According to wikipedia definition, “ it is a negotiable instrument representing financial value”

It categorized into:-

a) Share Capital – Ordinary shares –  i) consumer

                                                         ii) industries

                                                         iii) trading / services

                                                         iv) construction

                                                         v) finance

                                                         vi) hotel

                                                        vii) property

                                                        viii) plantation

                                                         ix) mining

b) Fixed Income Securities – 

i) Preference shares (have preferential position on dividend payment & division of company’s assets over ordinary shares.

ii) Non-convertible loan stocks – 1) secure – debenture -  2) unsecured

iii) Convertible loan stocks (loan provided by investors with fixed interest rate)

c) Others – 

i) Warrants / TSR (these are rights but no obligations given to holders to subscribe for new ordinary shares).

ii) Call warrants (these are rights but not obligations to buy a fixed number of shares at a specified price within limited time period.

 iii) Property Trust (REITS, only invests its funds an landed properties)

iv) Closed-end Funds (invests only in shares and price is determined by market forces and net asset value.

v) Electronic Traded Funds (ETF) (tracks an index, will not be fund manager to repurchase the ETF)

These are basic forms of securities categories of securities we can found in Bursa Malaysia.

The RIGHT TIME to Buy Shares?

For the past 3 weeks, the stocks market has been in slow trading volume, may be is the CNY season, most of the investors rather take out the money with them, this has causing most of the stocks price dropped, I myself have taken this opportunity to increase the quantity of stocks at the low price. TA and TAGB are 2 of the stocks I had taken in my portfolios, I have confidence that the company would make good earnings with their strong fundamentals background and experience especially in the hotels investment.

There is always a reason for us when we Buy or Sell a particular stock. I personally agreed and most important for me is we need to know the maximum price we should pay for good stocks. Therefore, we need to make valuation estimation realistic. Some calculations need to be done like EPS, P/E ratio, growth rate…etc.

Intrinsic value (real value of a company) is very important as well.