Investor, Trader, Gambler

Nowadays there are lots of investment tools in our society. Stock and share is one of it. In every investment, some times it is not easy to differentiate invest, trade, or gamble. But different of it will have different result and risk. Before you make your decision to step into the field, you must evaluate the risk you are able to take for the result as a return. Similar to those drive in the highway, if you cannot take the risk to drive with speed of 400km/h, drive with the speed you can handle although 400km/h can reach to the destination faster. In investment, it is not how fast your investment capital appreciates; it is how sustainable your investment is.

Investor is those people who think on their investment from business point of view. They put in the money after doing lot of research and analysis that they are confidence that they can earn back the money with lower risk. Some times, investor has to analyze their investment top down or bottom up. They have to understand macroeconomic and microeconomic as well.

Trader is people have the characters of investor but some time they take higher risk. They can buy today and sell tomorrow once there is profit margin. They take opportunity in the company share that they familiar. They may use technical chart, or possibilities, insider information, psychology and so on to buy and sell in very short time. Similar, if they sense the problem, they will also sell immediately to lower their losses.

Gambler is easy to define and get in the market. They are greedy and take high risk. They might not know what is the company doing of their investment or just heard from other people that this company price will go up.

Just similar to lots of cases in the history in almost every stock market, lot of people loss huge amount of money because they misuse margin facility, borrow money, or so on. Always invest within the capability and take into the consideration of risk.

Apply to Initial Public Offering (IPO)

Initial Public Offering (IPO), is the first sale of the share of the company in primary market. This offer of the particular company share has not yet traded in the stock market before. Therefore, the data of the company can be obtain is limited. Since this stock never trade in the stock market before, the future performance of the company become a risk. The only source of the data is their prospectus come together with their IPO.

There are 3 methods to apply IPO for the company to be list in the Kuala Lumpur Stock Exchange (KLSE). First recommend is the fastest and easiest way, "Online e Share Application". Second method is "Apply via Bank ATM machine". The last is the traditional method which you have to get "IPO Application Form" from the securities firm to fill in and post.

Online e Share Application:

Available at : Maybank2u e-IPO, CIMB e-IPO, and RHB e-IPO.

ATM Machine:

Available at: Maybank, CIMB, RHB, (other no sure)

IPO Application Form:

Available at: Any securities firm.

The thing you have to prepare is your Central Depository System (CDS) account number. Total 15 numbers. You have to use this number when you apply IPO.

What is Stock and Share?

Share (also referred to as equity shares) of stock represents a share of ownership in a corporation.

Here is a company call ABC, “ABC Holdings Bhd.”. For example is company listed in Kuala Lumpur Stock Exchange (KLSE), and its total properties and cash worth $100. If this company issue 100 shares, that means every share of this ABC company worth $1 per share. When you buy 1 share, you are one of the shareholders of the company ABC. In other words you own 1% (1 share out of total 100 shares) of this company.

This ownership of the company, or call “share” is trade in the stock and share market (stock exchange). When you don’t want to involve in this company, you can sell out your share to other people or you can buy the share from other people. Of course, to trade the share, you need to Remisier do it for you.

From the previous example, you own 1 share of company ABC. You bought it last year. This year they announce their company result and they total earn another $200. This means company ABC now worth $100 + $200 = $300. Divided the value to its total share issue, which is 100 shares, each of the shares REAL VALUE is $3. Bear in mind your starting investment capital is $1 and now this company earn money and worth $3. You are shareholder and you earn $2. Your investment value increase 300%. BUT, the TRADE VALUE may not same as the REAL VALUE. This share can be trades in any price in the stock market depend on the share holder (seller) and share buyer.

The CEO of the company ABC gives his speech during the company result announcement. He says company performance will be better than this year for the coming result. He forecast the company earning can increase and earn total $300 in coming year. If his forecast is correct, company ABC will total worth $300 + $300 = $600. Each share will worth $6. Some of the investor believe, some of don’t believe. Now the share traded at price $4. You want to buy? Or you want to sell? With this price.

If you are confused with your situation, let me give you a summary here. From the latest result announce, company ABC profit improve and worth $3 each share, now buyer in the market offer $4 to buy from you. You want to sell at $4 or you hold your share or you buy more from stock market? If you think next year this company will lose money, why not sell now? If you are not sure the performance yet, you can hold. If you think the performance result will increase as the CEO told, why not buy more?

In stock market, there are different types of people. These people buy or sell has their own reason. Most of the time, they play the psychological games with you, little bit similar to the TV show call “Deal or No Deal”. You have a share on hand (the brief case), buyer offer a price you buy your share (the brief case). Deal or No Deal?

Remisier

Yesterday I post my first blog. Some of my friend suggest better further explain what does it means because last time they don't understand what is that when I told them I become a Remisier. They are totally no idea what does it mean.

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Remisier, formally known as Dealer's Representative in Malaysia. In USA, they call it broker. Since nowadays Remisier mostly deal with the trading of stock and share, they are stock broker.

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There is a history of the word "Remisier" come from. This word origin from French which means an intermediary. It was first appeared region during the colonial period in Malaya, where they dealt primarily in rubber and tin-related company that were listed on the London Stock Exchange.

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Now Remisier is a license intermediary person who help clients to buy or sell their stock and share which trade in the stock market. Besides help the clients to buy ans sell, their additional value is to monitor the counter, economy trend, news from the market, and help client to look for the information. Not every client is free to full time monitor their own stock everyday and have nothing else to do. They have their own job, the investment counter let the Remisier to monitor for them. If client have to monitor their own counter themselves, their working performance may affected.

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Another explanation for the Remisier according to my senior colleague is this term also come from those people simply buy, simple sell the share. For those understand cantonese, "乱买 Share". This is how Remisier come from. ☺