When you make stock trading, you become one of the owners of a corporation. Stock represent ownership shares, also known as stock shares. Whether you make or lose money on an stock depends on the success or failure of the company, which type of stock you own, and what’s going on in the stock market overall and other factors.
Stock and stock mutual funds often can be an important component of a diversified investment portfolio. Learn more about different types of stock and how to assess whether a given stock is right for you with Prolution.
Return on Stock Trading: 10-15%
Minimum Cap: US$100k
Investment Period: Lock in period for 1 year minimum
We’ll communicate our requirements to you so that you can make an informed decision.
Discover how you can create a source of profitable income through investing in the stock market. Learn our beginner-friendly, effective and proven strategies.
• Learn Stock Trading Methods
• Develop A Successful Investor’s Mindset
• Investment Risk Management
• Join A Strong Investor Community
Sign up for an stock trading account and allow our investment team and experts to do the rest. All you have to do is to earn returns on your assets, and pay a nominal fee to Prolution for actively managing your funds..
Returns are sustained by strategic investments into profitting industries and companies with a niche offering and competitive advantage amongst its peers.
By holding on to our portfolio of agggresively-managed funds, our investors report high returns on their capital and high satisfaction on the transparency of the process.
There are several things to consider before you start stocks trading in Malaysia:
With stocks Malaysia, we will help you answer all these questions. Below is a brief overview of how we can assist.
Forex trading is a high-risk activity and most traders will lose money – the best way to avoid being one of the losers is to develop a good trading strategy and have a good understanding of risk management in forex trading. The principal risks of trading:
Trade Risk: A trade risk is what you put on the trade. For example, if you put $1000 on a trade, that is your trade risk.
Market Risk: The market risk is different from the trade risk. The market risk describes what can happen to the market. For example, a war may break out in Greece or Spain. Or there may be a catastrophic event that affects the debt ceiling. Something that happens to the global economy, your current country, etc. all represents the market risk
Margin Risk: Margin risk only happens if you’re borrowing money – if you’re borrowing money on margin. If you’re trading and putting on a regulation account and using current funds you have available, that is fine and dandy. However, borrowing money from a broker (ex: buying a house) and not paying back the money in a set amount of time leads to margin risk. Eventually these debts will catch up to you, and you will have to pay the money back and close your positions. Otherwise you will be forced to do so.
Liquidity Risk: If you are trading heavily with very liquid companies like Public Bank, Petronas, etc. in the current time – you’ll be fine. However, if you’re trading penny stocks (stocks trading for less than a couple dollars a share), you may have liquidity problems. That’s why the hedge funds, the money-makers, and the big institutions don’t trade low-dollar stocks. They need liquidity – they need to be able to get in and out of companies quickly. If you’re not able to get out of companies quickly when needed, the stock is not liquid which makes it difficult. You may be forced to hold on to a position that is tanking.
Overnight Risk: If you’re a day-trader holding that stock from the morning of the opening bell to the closing of the opening bell, you do not have overnight risk. However, if you’re a long-term holder, investor, or swing-trader – you may have overnight risk if you hold a position overnight or for multiple days. You don’t know what will happen overnight. You don’t know what will happy to the company, what news will come out, what will happen overseas, etc. For example, a company that sells car products may have an engine explosion in China causing the stock to crash the next day (your stock would change overnight).
Volatility Risk: Volatility is the range or magnitude the stock is moving in. For example, larger companies that are priced at $300-$500 per share might move up or down $7-$10 in one single day. It shakes people out! For stocks that are only $20 per share, it may only move up or down $1 in a day’s time at most. Many people feel safe with this option because it doesn’t scare them. It’s less volatile. Think of volatility as the range, not the direction. It implies the magnitude of the move (up or down).
When you’re a beginner trader, it will take you some time to evolve your skills and see what kind of trading you really want to focus on. If you end up trading only stocks, there are hundreds of brokers…if you’re trading stocks AND options, there are a lot fewer choices.
Beginners, I recommend you start out with a big standard brokerage company, like Prolution, etc. Get it and immerse yourself so you can develop your skills.
It could take you a month, three months or even a year to get past the beginner stages. At this point, you’ve figured out what’s happening with your trading and what your strategy is and what I’m looking to do.At this stage you may decide to shift to a different broker to get better commissions, lower rates, different tools, etc.
As you advance and improve, you should begin to explore what types of platforms will work best for you and the specific type of trading you intend to do. Again, as a beginner trader, it doesn’t make a big different who you decide to start with. You may even decide to use more than one broker, to split your assets between your long-term and short-term investments.
What is a Dividend?
Money paid regularly to shareholders by a company. People like steady income and investors see it as a sign of strength – making the company more attractive.
How Much can You Make with Dividends?
Every company pays a different yield, and payments are based on per-share basis. The more shares you have, the more you make.
The Power of Investing in Dividend Stocks
One thing to remember is that your earnings are not just from dividends, you have a stock appreciation. So as that company grows, so will your profits. This is how the rich get richer. This is how wealthy people make a lot of money. Instead of keeping their money in the bank, they put it into stocks or things that appreciate and pay them back dividends. So think about the bigger picture. It’s not just about a return this year. It about returns this year plus next year plus taking that money reinvesting it and builds on that.