Whether you are a beginner or a savvy investor or a millennial, you can make mistakes anytime in investment. When you invest return and risk comes hand in hand and if you are not aware of grand mistakes which you can make while investing in Bursa Malaysia you can end up losing money. But do not worry this blog is not to demoralize you from investing, it is about how you can be a smart investor and how you can make sure that your money is working for you.
Here are 5 major mistakes which you can make while investing in Bursa Malaysia.
What can be the best suggestion you can get for investing in Bursa Malaysia?
As Warren Buffet says
“Rule No 1 Never lose money, Rule No. 2 Never forget Rule No 1”
And how can you make sure that you don’t lose money? It is simple; By using Risk Management. In share market return always comes with risk, higher the return mean higher the risk. If you want to earn money rather than losing it you have to check your risk tolerance capacity. In Risk Analysis we devise a methodology in which we identify this kind, assess, reassess and treat the risk. Risk can be mitigated by considering:
1.BY SETTING STOP LOSS POINTS
4.TRENDS OF MARKET
If you are not thinking about risk management you are just relying on luck and that is not very smart.
It’s not always about luck as Robert Kouk of Kouk Group (Top in Forbes List 2018) says “MORE THAN 90% IS THE HARD WORK THE REST IS LUCK”
Let me first tell you what is fundamental analysis. When any company shares its expenses, capital, net worth, profit, loss it has done over the quarter or year this is called fundamental analysis. Not everyone can understand the jargon of technicality of the stock market but an investor can surely understand the fundamentals. Fundamentals are the foundation of your investment if you avoid this, your building may fall down. So before investing do some fundamental analysis about the company you want to invest like. Investing is not rocket science as Investing Giant Warren Buffet says,
“You don’t need to be a rocket scientist. Investing is not a game where the guy with 160 IQ beats the guy with 130 IQ”
“Failing To Plan Is Planning To Fail.”
You must have heard this quote many a time in your life but how many times did you apply when you were hovering over Bursa Malaysia and when you were thinking about investing in it. Planning your investment is very important,you need to plan how much return you want by the end of this month, this year;you need to know which company can give you a higher dividend,you need to know how many lots will be enough to buy where you can avoid maximum risk;what is best time to trade and for that you need to know to trade in Bursa Malaysia.
This is the time of abundance of information in your fingertip. You can go to the internet and learn about investment from unlimited websites. But how will you know whatever you are learning——- and from where you are learning is authentic or not. You have to know better and for that, you have to invest time in research about the authenticity of the website.
I know we are human and we are prone to get emotional doing anything in our life. But can you make emotionally driven decisions when it can cost you thousands or sometimes millions of ringgit? No, you cannot.
The two big emotions that affect the investing are GREED AND FEAR.
Suppose you invested in Top Glove in 2018 and you earned bonuses and high dividends. In 2019 you invest again in the same company without doing any of your homework because you are being greedy and you lost. There are many reasons that can affect the Malaysian Economy and you should be aware of it. Same goes for fear if you lose in certain transact you avoid doing the same transact again. Here also you should learn about the current market.
Final takeaways from us are, be careful while investing and be aware of the above mistakes. Plan before you invest in Bursa Malaysia; be aware of risks, avoid greed and fear in decision making, do your homework by using authentic sources and do not ignore fundamental analysis.
To enhance your knowledge about the market trend in Bursa Malaysia you can learn from the link mention below-
Here you can know about advice service: Financial advisory service in Malaysia.
Here you get point to consider before entering Bursa Malaysia:Important Points to Consider Before Entering the Malaysia Share Market.