How do I start investing my saving?

[Nanzhan]

Have seen lots of topics here.  Btw, what is the suggestions of the expert panels here for me to start invest.  Btw, I'm quite young in investment.  Got RM5K in saving.  Thanks.

[Maxforce]

Find out your personal style/preferences - investing or trading. Timeframe? Active, passive, dividend, scalping, contra, turtle, etc??
Learn the associated techniques and form your trading plan/strategy.
Master the emotions and discipline part.
Learn Money Management techniques.
Follow your trading plan.

Keep a trading journal and do post mortems.

Back to the drawing board if necessary.
Trade and post mortem
Repeat process.

[booffett]

Have seen lots of topics here.  Btw, what is the suggestions of the expert panels here for me to start invest.  Btw, I'm quite young in investment.  Got RM5K in saving.  Thanks.

oh, 5K only, suggest all go in warrant...

capital too small to invest, should go speculate...

but warrant play, as its elegant name... make sure u are experience enough as a professional gambler

[AndrewChia]

Fuiyoh!!!  RM5k is a couple of months' salary to some people.  That's a respectable amount, don't look down on it.  Imagine, for some guys, if they lose that kind of money they will have to go work without pay for a few months.


My advice is, whether 5k or 500k, put it into FD locked away safely.  Meantime, learn first before investing.  Be patient, investment IQ is not learnt overnight, the sifus say it usually take couple of years.  Learn from books, seminars and from friends at Investlah.


If very gatal, or if you feel that you need to lose some money to relieve some stress, or if you think that you really need to pay to learn, by all means put in some money.  But make sure that is only 10 or 20% of your investment portfolio.

[booffett]

Fuiyoh!!!  RM5k is a couple of months' salary to some people.  That's a respectable amount, don't look down on it.  Imagine, for some guys, if they lose that kind of money they will have to go work without pay for a few months.


My advice is, whether 5k or 500k, put it into FD locked away safely.  Meantime, learn first before investing.  Be patient, investment IQ is not learnt overnight, the sifus say it usually take couple of years.  Learn from books, seminars and from friends at Investlah.


If very gatal, or if you feel that you need to lose some money to relieve some stress, or if you think that you really need to pay to learn, by all means put in some money.  But make sure that is only 10 or 20% of your investment portfolio.

to tell some truth.. even to buy books on investment (of coz, i never encourage pirated products, particularly book), RM5000 also not enough...

actually, as the long run goal, pay tat 5k as tuition fees to go attend CFA or CMT will be better.

[uvirra]

I agree with Andrew. RM5000 can do alot of things. In fact I started to trade futures a year ago with RM5000. That was my only savings I had. Now I managed to multiply it by 4, which is quite a lot for many people.

As for Booffett suggestion to take CFA or CMT, its not a bad idea either. I actually currently taking CFP. I pay them one shot using my credit card, and finish off the balanced within 3 months.

CFP is actually a good place to learn to managing your money. Eventhou they do teach something on investment, but it is not up to my appetite.

IMHO, find out your risk level first, then try to find what investment instrument suits your risk level.
Maybe you can start with Unit Trusts, or some defensive stocks.

Don't ever put your money on those get rich quick scheme available online. One of them were just closed down.. E-Barrel.. Pity those who joined late..

[Maxforce]

Unfortunately, I would have to agree with booffett.
Uvirra, you re of exception, your achievements is one of the rare cases, I offer you my congratulations.

RM5K is a lot to some. Hence, emotional turmoil would be an enemy.
If one invest the 5K into a stock and then the stock keep dropping, one may not know what to do.
This is especially if one is new to the market.

At same time, RM5K is little - in the sense, you cannot trade futures with the kind of risk that one could take in 2006.
Volatility is so high. One wrong move, you re dead.
As for investment books, yeah originals are expensive.
But unlike booffett, I encourage pirated copies 
I have a whole library of it 
Best things are free things 

CFA, CFP is good.
CFA may make path for one to be fund manager.
CFP will help a lot of ppl to plan finances so at least they ll have retirement fund.
However, doubt it would help much in real life trading.
No amount of books, seminar, or courses could replace the actual experience - yeah tuition fee to the market.

[Nanzhan]

I regreted not joining to ask these question earlier.  Was reading all your postings before this.  Anyway, I appreciated all the suggestion from the sifus here.  Btw, I shall learn stocks and warrant and of course the financial planning part as a hedge.

Thank you very much.

Btw, how much is CFP?  If interested, should I join the company or study my own better?  Thanks.

[booffett]

Unfortunately, I would have to agree with booffett.
Uvirra, you re of exception, your achievements is one of the rare cases, I offer you my congratulations.

RM5K is a lot to some. Hence, emotional turmoil would be an enemy.
If one invest the 5K into a stock and then the stock keep dropping, one may not know what to do.
This is especially if one is new to the market.

At same time, RM5K is little - in the sense, you cannot trade futures with the kind of risk that one could take in 2006.
Volatility is so high. One wrong move, you re dead.
As for investment books, yeah originals are expensive.
But unlike booffett, I encourage pirated copies 
I have a whole library of it 
Best things are free things 

CFA, CFP is good.
CFA may make path for one to be fund manager.
CFP will help a lot of ppl to plan finances so at least they ll have retirement fund.
However, doubt it would help much in real life trading.
No amount of books, seminar, or courses could replace the actual experience - yeah tuition fee to the market.

you doubt becoz u haven't study the course yet...

i strongly, feel, very relevant for ppl who want to be investor to study CFA, not to pass the exam, but go though, seriously, the process, and find a mentor that able to explain the true spirit of the course to you. Not many ppl understand the complete spirit of the CFA course, that is why many ppl see it so impractical... I am, despite looking at chart, would believe, in the long run, it is either growth and value investing than can sustain. (of coz, combine value and growth with tech is more powerful, although CFA seems strongly this idea)

CFA just provide the tool, so is CMT... experience definitely counts.

ultimately, teachers open the door, you have to enter it yourself.

[KatFish]

Hi Nanzhan,

To start investing, first build your fundamentals. No matter how much you have, plan them out. Have an EF (Emergency Fund). Depending on your lifestyle, few thousands up to tens of thousand. For full time /steady income employees, I'd recommend 2-3 months of your monthly expenses. For business owners, you'd need more buffer. Again, pls consider family emergencies unique to your own situation, etc. Invest the balance.

Split balance of the money like a pie. For young starters that is aggresive and aiming for long-term growth, I'd invest 100% of the balance in aggresive/risky investments. Do not put all eggs in one basket. If the amount is too small to buy direct into stocks, start with unit trusts. Continue to save. Few months or a year down the road, you may have saved a decent amount for direct stocks investing while keeping a balanced diversified portfolio at the same time.

Everybody's financial situation is a unique case that needs studies and understanding. To an extend, it does not matter how much money we have, it does matter what we do with it. Good luck 

[AndrewChia]

Everything that you guys say I concede, of course, is true.  Very good advice.


Investing in learning is much better than "investing" in the market, pay to learn.  Speaking from experience, I have watched my own "investment" disintegrate but like boofett will say, the more painful the better you learn the lesson...


Yes, 5k is little to pay.  I myself invested 1k attending property seminar with Renesial Leong (I heard now costs RM3,500), RM3,980 learning options trading with Foong Mun Keong and RM2,980 learning internet marketing with Dechen Lau.  I was not aware of any course teaching stock market investment so I invested many, many hours of study reading up Buffetology and Ho Kok Mun.


After this process, which took just a couple of years, I daresay I'm better prepared to take on the market compared to before.  And tapping on the experience and guidance of my friends here at Investlah I hope to make some more informed investment decisions.


So, to all our friends who are starting out to make money from investment, be generous to invest in education.  And also, bear in mind that TIME is your most expensive investment, not money.  You have the full blessing of all the gang who are slightly ahead in the game.  Good luck!!!   

[Nanzhan]

Hi Nanzhan,

To start investing, first build your fundamentals. No matter how much you have, plan them out. Have an EF (Emergency Fund). Depending on your lifestyle, few thousands up to tens of thousand. For full time /steady income employees, I'd recommend 2-3 months of your monthly expenses. For business owners, you'd need more buffer. Again, pls consider family emergencies unique to your own situation, etc. Invest the balance.

Split balance of the money like a pie. For young starters that is aggresive and aiming for long-term growth, I'd invest 100% of the balance in aggresive/risky investments. Do not put all eggs in one basket. If the amount is too small to buy direct into stocks, start with unit trusts. Continue to save. Few months or a year down the road, you may have saved a decent amount for direct stocks investing while keeping a balanced diversified portfolio at the same time.

Everybody's financial situation is a unique case that needs studies and understanding. To an extend, it does not matter how much money we have, it does matter what we do with it. Good luck 

Thank you KatFish.  This is indeed a sound advice.  But then, I'm still skeptical on buying unit trusts coz the fees are not logic to me.  Any opinion on unit trust?

Thanks.

[earwax]

Invest in Unit Trust is too long term and doesn't teach you much. And now market very high, it's risky to buy Unit Trust.

In my opinion you should start by researching the stock market and other business opportunities thru forums like this (like I am )

[Salahdin]

I feel that Unit trust lacked liquidity.  Coz there is a 6% fees that we bought.  Let say, suddenly we needed the money after investing in 13 months but the trust funds only increase 6% during the period.  Die die have to come out.  So after a year, the fee you pay is 7.5% (initial fee + annual fee).

Well, if I come out, I shall loss 1.5% (7.5%-6%).  That happen to me few years back.  But looking at the positive side, unit trust still help those who can't find time for investing and don't mind paying the high fees just to participate.

Just my personal opinion...

[Maxforce]

Invest in Unit Trust is too long term and doesn't teach you much. And now market very high, it's risky to buy Unit Trust.

In my opinion you should start by researching the stock market and other business opportunities thru forums like this (like I am )

Agree with earwax especially on the part - Invest in Unit Trust is too long term and doesn't teach you much

[booffett]

Agree with earwax especially on the part - Invest in Unit Trust is too long term and doesn't teach you much

opps, for those not in finance line, i still think they should inevst in mutual fund...

else, might better donate the money to charity

or if u dun know stock, but have a lot money, hedge fund also not bad...

[Maxforce]

There are people who are non finance who are doing better than those in finance line.
Hence, I would conclude that finance may help, but does not necessarily gurantee success in investing/trading

[Nanzhan]

I think it was the interest to pursue financial knowledge that counts.  I got one finance friend who is working with UOB who did not have time for stocks.  So, he bought Trusts.  Sometimes, I think he spend 3 years in local varsity for nothing.  Huh....

[venven81]

i don't understand why people would want to invest in unit trust if liquidity is their concern?
they should know that UT should cater for mid to long term planning and not short-term.
if everyone of us only want short-term gain, what will happen to our long-term plannings? does it mean we do not need to plan for mid-long term? shouldn't a prudent investor take everything into consideration to cover all the holes as much as possible? hmm...

[Maxforce]

i don't understand why people would want to invest in unit trust if liquidity is their concern?
they should know that UT should cater for mid to long term planning and not short-term.

Agreed. I think many who are concerned abt liquidity would not invest in UT.

if everyone of us only want short-term gain, what will happen to our long-term plannings? does it mean we do not need to plan for mid-long term? shouldn't a prudent investor take everything into consideration to cover all the holes as much as possible? hmm...

Invest in education and own ability to invest. Then one need not have UT.
A prudent investor should invest in education. Not invest for someone else to take care of your investment.

[limpeh]

If u wan to invest in safe place. Just buy bond fund. Annual return average 6% per year. Don buy equity fund, historical result saying that bond fund always outperform equity fund in long term.

[rayns]

After consistently profitable or +- = more ++++ in the stock market... i definitely sell back all my unit trust.  anyway what is CFM or CFP

[earwax]

If u wan to invest in safe place. Just buy bond fund. Annual return average 6% per year. Don buy equity fund, historical result saying that bond fund always outperform equity fund in long term.

There are "balanced" unit trusts that claim to invest portions of their money in bonds or equity depending on the market. Is this better than invest 100% in bonds?

[caseymusic]

I have Rm100k free cash to invest,may give some opinion how to arrange in investment plan

[Maxforce]

Wait for Mega Sale buy Genting and Resorts. 

[limpeh]

All equity fund or balance fund return is about 5% to 6% in long term. Bond fund is about 6%. If equity fund n bond fund return is about the same. Why u need to risk ur money in equity fund? just buy bond fund n let the money work 4 u. Unless u know the market timing to do switching, then u might get 20% anual return per year.

Remember, all the fund manager are running monkey business, they get 1.5% management fee anually from ur investment.

[DenLee]

limpeh,
         Which bond funds you recommend?

[limpeh]

U can buy any bond fund from any fund manager. If u wan to save ur initial charge, u can try public mutual becauce they only charge initial fee 0.25% which i tink is quite cheap.