Learn Stocks With 5 Easy Steps - The ABCDE Technique
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
Loading...
Before we dive deeper into this simple technique, make sure you have fully understood what stocks are.
With This Easy ABCDE Technique, You No Longer Need to Worry About Your Direction in Stocks! No Need to Attend Expensive Classes Just to Start Learning
Still new to the world of stocks and searching for a guide to investing? Use this simple A-B-C-D-E method as your guide.
The Central Depository System (CDS) is an account you must have before you start buying stocks.
Think of it like a bank savings account where all your stock buy and sell transactions are recorded.
The minimum age to apply for a CDS account is 18 years old, and you can have more than one account.
For example, if you already have an account through the Maybank Investment broker, you can apply for another account with the M+ broker.
Want to know the advantages of the M+ broker compared to its competitors? Further reading here.
A CDS account has a validity period before it is declared dormant. If there are no transactions for 3 years, the account becomes inactive and you will need to resubmit an application to reactivate your CDS account.
Once you have a CDS account, you will also have a trading account to carry out the process of buying and selling stocks.
Before that, you need to have starting capital to purchase stocks.
We always remind investors to start buying stocks with surplus money.
Never invest with borrowed money or invest before having emergency savings of at least 3 months'' salary.
If you do not yet have sufficient capital, start setting aside 10% to 20% of your monthly salary to save for investment.
For example, if your monthly salary is RM3,000, set aside RM300 to RM600 according to your budget.
At the same time, increase your stock knowledge through reading books, blogs, or attending investment classes.
We provide trading classes at a reasonable price — guaranteed not to disappoint.
For further reading on capital, refer to the article How to Trade Stocks With Small Capital.
"Which stock should I buy?" is among the most frequently asked questions. To answer this, you first need to determine your goal — whether you want to invest for the long term or short term, as the criteria for stock selection differ between the two.
If you want to invest and hold counters for a long period, detailed research needs to be done on the financial fundamentals and the company''s growth potential.
Conversely, if you are only looking for short-term profits, you need to analyse stock price movements.
We share more about market screening in the articles How to Find Potential Stock Counters Using a Screener and How to Conduct Stock Analysis Through the StockHunter App.
Also check out the list of best trading apps for Malaysian investors.
Once your research is done, it is time to take action! I still remember the first time I bought a stock counter. I felt nervous pressing the buy order because I was afraid my setup would not work out.
Emotional interference is normal for all beginners — even experienced traders sometimes let their emotions get the better of them.
Hold firmly to the concept of effort, initiative, prayer, and trust in God.
If you have done thorough research, have a trading plan where you know your entry price, target price, and cut loss level, and have good intentions to seek additional income through the stock market, In Sha Allah there will be results.
Finally, consistency in stock investment profits is gained through experience. The experience of painstakingly analysing each stock counter, the experience of tasting the sweetness of profit and the bitterness of loss.
If you get the chance, try reading the book Stock Market Wizards: Interviews with America''s Top Stock Traders by Jack D. Schwager.
All the world-renowned traders listed in the book have experienced significant losses — they never admitted defeat and rose again to succeed.
You need to understand that investing is a marathon, not a sprint. Set realistic profit targets, manage your money wisely, and enjoy the process.
So, do you have a CDS account yet? Before you can invest, you need to have a CDS account first.
Then you need to deposit money into your trading account.
Only then can you start investing.
What are you waiting for? Register for a CDS account with Mahersaham and you can join exclusive classes for Mahersaham clients.
A CDS (Central Depository System) account is a mandatory account for buying and selling stocks in Malaysia. It functions like a bank account that records all your stock transactions. You must be at least 18 years old to apply, and you can have more than one CDS account.
You can start with as little as RM300 to RM600 per month by setting aside 10% to 20% of your salary. The key is to only invest with surplus money — never use borrowed funds or money earmarked for emergencies.
The ABCDE technique is a simple 5-step framework: A (open a CDS Account), B (Build your capital), C (Choose stock counters using screeners), D (Decide to buy based on research), and E (gain Experience over time). It provides a clear roadmap for beginners.
Successful investing starts with solid knowledge.
Investment Basics:
Download our free ebook for a complete guide.
Open a CDS Account:
Ready to start? Open a CDS account now.