Trading Discipline: Steps to Buying Stocks in Malaysia
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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As a trader and investor in the world of stock investing, we need to have discipline to trade. This is because stock investing is not a get-rich-quick scheme.
To trade in the stock market, we need to start learning the basics of stocks. Therefore, as traders, we need to have the discipline to begin learning about stock market knowledge.
Start learning the basics of stock investing. You need to learn and understand fundamental stock knowledge. For example, What are Stocks, the Purpose of Investing in Stocks, Shariah-Compliant Stock Rules, and understanding the Types of Stocks on Bursa Malaysia.
At Mahersaham, you can join the Stocks for Newbies class for free and attend Mahersaham''s daily live sessions. You can gain a wealth of beneficial knowledge when you join Mahersaham''s free classes and live sessions.
Therefore, you will gradually learn stock market knowledge bit by bit. This is because stock investing is a step towards being financially savvy and literate.
Open a CDS account. A CDS account stands for Central Depository System.
A CDS account is used for buying and selling shares, and it is regulated by the Securities Commission. A CDS account can be opened with any investment bank or broker company registered with Bursa Malaysia.
Conduct stock research. Stock research is a crucial step as a trader. Traders need to determine their stock research based on their investment preferences.
Whether they want a short-term, medium-term, or long-term investment strategy.
This is because every trader has their own appetite for enjoying stock returns and risk. In other words, a trader is either a risk avoider or a risk taker.
Stock research requires a trading plan based on technical analysis, fundamental analysis, and observing market sentiment.
In technical analysis, you will be introduced to the basics of stock technical knowledge, namely:
EP / entry point is the price at which you buy shares by entering the market at a low share price.
TP / take profit is the price at which you sell shares by exiting the market at a high share price or taking profit on a stock.
CL / cut loss is the price at which you sell shares if your strategy does not work out. CL will be below TP.
In this situation, the trader needs to make the decision to sell those shares even though they are experiencing a loss. This step is important to prevent further losses when the share price drops even lower.
Buy stocks. After conducting your stock research, you should use the EP, TP, and CL indicators as a smart approach to enter and exit the stock market for a particular counter.
Additionally, on the Mahersaham app, you can try the Mahersaham paper trade feature. This helps stock beginners to easily learn how to identify good stock counters.
Sell stocks. After following your stock research timeline, whether for short term or long term, you can sell your shares. Especially if you believe it will generate a handsome return.
Remember, after you buy shares of a counter, the best practice is to set a TP based on your expected price increase for that stock counter.
There is still much more stock knowledge you need to learn, both technically and fundamentally, to identify the best counters for your investment.
Post-mortem. This is the final step and one of the most important for refining your strategy. This helps identify weaknesses and improve your stock research for the future.
You certainly want profitable returns from your stock investments. Smart financial management can help generate money in the long run by starting to learn stock market knowledge.
Stock investing is a form of high-risk investment. However, you can enjoy handsome returns from your stock investments.
Therefore, you need to be smart and take the first step to start learning stock market knowledge with Mahersaham. Mahersaham will always help you become an outstanding trader.
You can read related articles about learning stocks on the Mahersaham blog for more information.
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Trading discipline is the ability to follow your trading plan consistently, including entry points, take profit levels, and cut loss points. It is important because stock investing is not a get-rich-quick scheme — it requires patience, continuous learning, and sticking to a well-researched strategy to generate consistent returns.
The basic steps are: (1) Learn stock market basics, (2) Open a CDS account with a registered broker, (3) Conduct stock research using technical and fundamental analysis, (4) Buy stocks using EP/TP/CL indicators, (5) Sell stocks according to your trading plan, and (6) Perform a post-mortem to refine your strategy for future trades.
EP (Entry Point) is the price at which you buy shares, ideally at a low price. TP (Take Profit) is your target selling price to lock in profits. CL (Cut Loss) is the price at which you sell to limit losses if your strategy does not work out. CL is always set below TP to manage risk effectively.
A CDS (Central Depository System) account can be opened with any investment bank or broker company registered with Bursa Malaysia. The account is regulated by the Securities Commission and is required for all stock buying and selling activities on Bursa Malaysia.