Bursa Malaysia market growing dynamically, many new companies are getting listed in it. The growing market requires updated and new profiting trading skill. Stock trading requires special skills that make a stock trader achieve his financial goal. A potential stock trader never stops learning and gaining more trading skill.
Investors generally assume stock trading tips are for a beginner of stock market traders but this overconfidence of pro traders sometimes take them to path where they indulge into poor stock market returns.
Top 10 Profitable Share Trading Tips For Bursa Malaysia
1. Consult a stock market expert:
It is very important to strategize your investments. Always try to look up for stock signals shared by stock market experts. Before making any significant move consult with your expert otherwise, you might end up selling at lower prices which means lower profits.
2. Look for equity stock signals:
The price movement in the chart and volume action lead the investors or stock trader to make smart decisions, whether to hold stock or sell it. Never miss those movements and if you get stuck anywhere, look for equity stock signals which will help you take the correct move.
3. Check your emotions at the door:
Personal opinions might misguide most of the time because it involves emotions, sixth senses (which is very dangerous if did not work), uncontrollable fear of losing or peer pressure! Thus analyze every change taking place in KLSE stock market, keep a deep eye upon stock trading tips, follow the latest stock market news and then take any further actions
4. Check the stock position regularly:
Regularly check the stock position because it might happen that your stop loss sometime may not work due to some of the other reason and you end up losing more than you ever thought! checking it regularly might end up saving your hard time earned money invested.
5. Value stock investor or growth stock investor:
Which type of stock investor you are?
Are you value stock investor or growth stock investor?
Because knowing this is very important for you and your stock market consultants.
Value stock investors are those who search for stocks, which have a low P/E ratio, and stocks that are generally undervalued.
Growth stock investors run after companies which are superior in terms of growth, revenues, earnings, profit margins, and generally has ROE above 17%.
The share trading tips and signals may vary for both kinds of investors, as they have a different objective of trading and investing in Malaysia stock markets.
6. Manage stock market portfolio Regularly:
If you are already having too many stocks in your stock portfolio and still want more to invest in, you have 2 options:
- Boost your capital appetite
- Do the analysis which stocks are delivering least return and least profitable, sell those stocks.
As per stock market analyst and profitable stock signals providers, the second option is a better choice because it will help you come out of something, which is not useful. Neither today it is giving more benefits nor can it give higher benefits in the future!
Just make sure the stock you want to invest in by selling current KLSE stock, must be holding higher capability of returning profits. Always take guidance from stock signals and portfolio management advisors.
7. Invest in companies making consistent profits:
When any Malaysian company is into business and is making profits for the last 5 years, you can consider buying shares of that company rather investing in a company who is in business but making a loss!
Also, beware of the companies who have the sole objective of making money from IPO and run away after that (keeping all your hard-earned money stuck).
8. Invest in a company which has PE<ROE:
Ensure checking the PE ratio as this simple ratio can help to determine the valuation of a company and low PE ratio is considered good for investment. However, the call should not be closed just considering PE ratio; rather you must also check ROE of the company as a higher return on equity (RoE) and lower price to earnings (P/E) ratios are key parameters to invest in a stock.
9. Do not invest in High Debt Stocks:
Check the balance sheet, investors should always be cautious of any off-balance debt statements. You must be careful and selective, the debt of the company should not be more than moderate for an unestablished business and especially for local companies. However, exceptions are given to the established companies like BAT or Nestle, or foreign-owned company as their objectives of the high debt mainly improve the Return On Equity.
10. Avoid trading over actively:
Check on stocks once per quarter, when you receive quarterly reports. But not keeping a constant eye on the scoreboard is very hard and this might leads to overreacting to short-term events i.e focusing on share price instead of company value and you feel the need of doing something when no action is warranted.
The excitement and desire for earning big money have always thrown stock trader into the section of failures in stock trading. But as already said making money in equities is not easy, You not only requires patience and discipline but also have to research a lot and possess a sound understanding of the market.
Hence,MMF Solution offers best stock trading tips for investment in Bursa Malaysia and following the above-mentioned steps can help investors to cultivate the temperament required for long-term success.