HOW TO INVEST

IN STOCK
MARKET FOR
BEGINNERS
Types of
Companies
WHY COMPANY GO PUBLIC

1. Expand business/
Growth
2. Need capital
3. No Financial help
from banks
 Buyer

Stock broking firm

How it works Stock Exchange

(Bursa Malaysia)

Stock broking firm

Seller
 Share Price

• Share price decided by

demand and Supply
(Buyer and Seller)

• Most of the time it

doesn’t reflect
company's value.
 REMINDER
Why do you buy shares?
1. To protect your capital

2. To earn capital appreciation

3. To earn dividend (passive

income) and bonus shares (if any)
Let's play a
Game
Speculation
Trading- Technical
analysis
TA

• You need

- Knowledge
- Skill
- Experience
- Time
 Let's Invest in shares :-

Stock/Date 9/8/21 10/8/21 11/8/21 12/8/21

MUIPROP 0.20

FINTEC 0.02

Kossan 18.92

BPPlas 1.47

Poh Kong 1.535

 Let's Invest in shares :-

Stock/Date 7/8/20 14/8/20 21/8/20 28/8/20

MUIPROP 0.40 0.24

FINTEC 0.125 0.115

Kossan 18.92 14.75

BPPlas 1.47 1.44

Poh Kong 1.535 0.925

 Let's Invest in shares :-

Stock/Date 7/8/20 14/8/20 21/8/20 28/8/20

MUIPROP 0.40 0.24 0.365

FINTEC 0.125 0.115 0.13

Kossan 18.92 14.75 14.40

BPPlas 1.47 1.44 1.71

Poh Kong 1.535 0.925 1.02

 Let's Invest in shares :-
Stock/Date 7/8/20 14/8/20 21/8/20 28/8/20

MUIPROP 0.40 0.24 0.365 0.355

FINTEC 0.125 0.115 0.13 0.17

Kossan 18.92 14.75 14.40 15.95

BPPlas 1.47 1.44 1.71 1.65

Poh Kong 1.535 0.925 1.02 1.01

Investmen
t
Power of Investment

• 1919 - 1 share USD 40

2020 value USD 10 M

 Power of Investment

• 1986 - USD 1000

• 2020 - USD 1.6 M

Issues in Investing

• What to buy
• When to Buy
• At what price to buy

• When to sell
• At what price to sell
Fundemental
Analysis
 • Dividend (D)
• Free Cash Flow (FCF)
• Cash
Key data • Current Ratio (CR)
for FA • Net Tangable Asset (NTA)
• Price to Book
• Year High
• Year Low
 FIND :
• Price
• PE
• Div
• DY
• EPS

FA in • FCF
• Cash
Action •Current Ratio
•NTA
•P/B
•Earning Yield
•Long term Loan
•Short term Loan
Strategies
Buying
stocks
 1. Determine amount (RM) for
each stock
• eg : total allocation is RM
10,000 ,you want to invest in 2
stocks each stock RM 5,000 or
RM 6,000 and RM 4000
respectively.
Buying
strategy 2. Divide the amount into 2 or
3 ( 6000/3=2000)

3. Buy shares with 2,000 first if

price goes down use another
RM 2,000 and again price goes
down use the last RM 2,000.
 1. Don't sell

2.Sell all when you think you

have enough profit

Selling 3.Sell half and wait - if price

strategy goes up sell another half

4.Sell a portion to take back

your capital and keep the
rest