Stock Market: Bull and Bear Markets.

When we talk about bull and bear stock markets reminds me that it's a zoo out there. And, like any zoo, there are quite a few wild (?) species to be found!
The first two are the bulls and the bears. We do know that a bull market is when stock prices are climbing strongly and a bear market is when they're languishing.

One common myth is that the terms "bull market" and "bear market" are derived from the way those animals attack a foe, because bears attack by swiping their paws downward and bulls toss their horns upward.

This is a useful mnemonic, but is not the true origin of the terms.
Long ago, "bear skin jobbers" were known for selling bear skins that they did not own; i.e., the bears had not yet been caught. This was the original source of the term "bear."
This term eventually was used to describe short sellers, speculators who sold shares that they did not own, bought after a price drop, and then delivered the shares.

Because bull and bear baiting were once popular sports, "bulls" was understood as the opposite of "bears." I.e., the bulls were those people who bought in the expectation that a stock price would rise, not fall.

Both bull and bear markets are inevitable!

Smart investors try to anticipate both events to profit from their eventuality.
Bear markets are generally shorter in duration than bull markets. To avoid being hurt by bear markets you must recognize the signs early and move part of your assets into cash equivalent investments.

We do recommend that you invest for the long term. Don't let the bears get you down!

Abraham Lincoln (1809 - 1865) once said: "When you have got an elephant by the hind legs and he is trying to run away, it is best to let him run!"

The same thing is true of bears - don't panic and sell low. Let the bear market run its course, which history tells us is likely to be short.

On the other hand, a bull market can leave many investors feeling pretty good about their ability to prosper.

Their confidence bolstered by the good times ...
Some even find themselves swept up in "Bull Market Myopia" and forget the basic tenets of smart investing, like asset allocation and portfolio diversification.

Holding good stocks through bull and bear markets is a prudent strategy. However, many investors feel that they do not want to be in the market during a bear market. It is difficult to predict when to move in and out of the market.

When a bear market ends, a strong upward move can occur in a short time. If you are not in the market you will miss the move. The probability that your timing will be wrong is very high.
Unlike slow-starting bull markets, bear markets may start with a mini-crash - a major drop within a few days when investors least expect it.
Many investors are afraid to get out of a bull market for fear of missing "big profits" at the top of the market.

This is a recipe for disaster!

It is also known as greed!

As a bull market continues to increase, investors should start to decrease their stock holdings and move them into cash or money markets accounts.

Now, besides bulls and bears there are two other animals in our zoo to keep watch for!

Ostriches:

Are investors who stick to their old strategies, oblivious to changes in the world around them.

And then there are the Hogs:

Bulls can make money ...

Bears can make money ...

But hogs are investors who are too greedy and usually get slaughtered!

THINK ABOUT IT!...

STOCK ANALYSTS

Stock analysts see choppy trading, then turnaround..

Some stock analysts peer through string of gloomy headlines to see market higher for the year.

Jobs are hard to come by, debt problems are hobbling several European countries and oil is spreading across the Gulf of Mexico. With news like that, it's hard to see how the stock market can pull out of its slump.

Many traders expect the market to keep falling, especially with no obvious catalysts to stop its six-week slide. But some pros predict that stocks will end the year higher.

Here's what could make the market stabilize and turn around:

1.) Traders should get an initial sense in the coming months of whether cost cuts by Europe's debt-strapped governments will, as many investors fear, slow the global economic rebound.

2.) They'll also get a better idea of what the financial overhaul bill being finalized in Congress will mean for bank profits.

3.) The market should have a sense of the economic fallout from the oil spill. And investors will be getting more economic numbers to determine whether the U.S. recovery is continuing.

4.) Still, a comeback won't be easy, as Friday's stock plunge showed. The Dow Jones industrials fell 323 points to a four-month low after the government's May jobs report missed expectations and more questions arose about Europe. The Dow is now down 11.4 percent from its 2010 peak of 11,205, which it reached April 26.

5.) That means it's back in a "correction," a drop of more than 10 percent from a recent high.

Many analysts predict that trading will remain choppy while investors wait for answers about the economy.

Here come the bulls

Now is a smart time to buy stocks....

Historically, on average there have been two particularly auspicious times to buy stock each year. Right now is one of those times.

We are very bullish on shares, and for the following reasons:

We do not believe that the economy will experience a double-dip in the remainder of 2010.

A typical bull market does not end after just one year, but averages between 2-3 years, depending upon the measurement technique used. It would be unlikely for the bull market to end now after just a one-year advance, especially after the severe and lengthy onslaught inflicted by the 2007-2008 bear, whose wrath has left many groups undervalued by historic measures.

Many stocks are forming sideways price consolidation areas, known as bases. Subsequent to an intermediate-term correction or bear market, this has been our most reliable indicator of an impending intermediate-term advance for the past 20 years.

In fact, during this period, we have only encountered one other instance in which the market fell apart and moved to new lows despite the presence of many stocks building bases. Especially bullish is the fact that more stocks are forming bases at present than at any time since 1999, or before.

In particular, we like the fact the stocks are building, and breaking out of, sideways areas of consolidation, known as bases.

Maxis: 04/06/10 (RM5.24) Buy, target price RM5.90
Alam Maritim (RM1.65) Buy, target price RM2.40
Wah Seong: (RM2.08) Buy, target price RM3.40

EURO SQUEEZE

The euro resumed its slide as a recent short covering bounce faded. Traders said with liquidity in the foreign exchange market showing signs of drying up, investors were likely to shelter in the relative safe haven of the dollar.

The euro slipped to around $1.2300 from $1.2376 late in New York on Monday, when it lost more than 1.5 percent. Against the yen, the euro fell 1 percent to 110.53.

"Investors have started to sell the euro, believing that there'll be more banks in trouble, particularly in Southern Europe," said a foreign exchange trader at a European bank in Tokyo.

"The euro's fall has not run its course."

The South Korean won fell 2.8 percent against the dollar, its worst daily loss since March 2009, amid a sharp rise in tensions after Seoul accused its communist neighbor of sinking one of its warships.

The U.S. dollar and the Japanese yen tend to gain when there is a spike in volatility and loss in risk appetite. The dollar was up 0.7 percent against a basket of currencies

The Australian dollar extended its fall, dropping nearly 1 percent against the U.S. dollar and the yen at one point, as hedge funds and investors took profits on the higher-yielding currency's rally this year.

The fears of another financial crisis boosted the safe haven appeal of gold and U.S. and Asian government debt, with Japanese government bond futures hitting a two-year high. U.S. Treasuries also rose in Asian trade.

June 10-year JGB futures rose as much as 0.37 point to a two-year high of 140.62. The benchmark 10-year yield fell 3.5 basis points to 1.215 percent.
Ten-year Treasuries rose around 9/32 in price to yield 3.165 percent, down about 4 basis points from late U.S. trading.

U.S. crude futures fell 1.9 percent to below $69 a barrel, erasing the previous day's gains, on concerns the European crisis will choke off the nascent economic recovery.

NYMEX crude for July delivery was down $1.36 cents at $68.85.

Gold weakened in Asia due to the rising dollar, which makes the metal more expensive for holders of other currencies, after a rally overnight.

Spot gold was bid at 1,192.10 an ounce by 0610 GMT versus $1,194.95 an ounce at 1804 GMT.

Shares and euro fall as debt fears rattle markets.

Asia stocks fell to multi-month lows, the euro slid and oil and higher yielding currencies weakened on Tuesday on fears that Europe's sovereign debt woes will trigger a renewed crisis in the continent's banking sector.

Heightened tensions and talk of war on the Korean peninsula also jangled investor nerves in East Asia.

Europe's fumbling response to a Greek debt crisis and bulging deficits in other euro zone countries have unnerved markets over the past six weeks, and the central bank takeover of a small Spanish lender at the weekend stoked fears of a wider meltdown.

"This situation with the Spanish bank makes investors nervous because it raises suspicions that something else may be smoldering behind the scenes," said Hiroichi Nishi, equity division general manager at Nikko Cordial Securities in Tokyo.

European stocks looked set to dive, with futures for the Stoxx Europe 50 down 3.5 percent.

Funding conditions for banks have been tightening, with institutions in the United States increasingly reluctant to deal with firms with large exposure to Europe.

"Investors are selling into every rally in the euro," said Jonathan Cavenagh, currency strategist at Australia's Westpac.

"Worries about the euro debt crisis are showing signs of spilling over to the banking sector with funding costs rising, albeit from very low levels. All this will only see more demand for U.S. dollars."

Money markets have seen an increasing reluctance to lend, particularly for longer terms, raising fears that dollar-funding strains could further hobble troubled banks.

Report that North Korean leader had told his military it may have to go to war -- but only if the South attacks -- also prompted foreign investors to sell.

A trader at a European brokerage house in Tokyo said the slide in equities was at odds with macroeconomic fundamentals and earnings trends, and was likely part of moves by investors to cut exposure to risk, with one market player's stop-loss selling forcing another to cut positions as well.

"I don't think things will get to the point of a financial crisis, but the price action is similar to what was seen after the Lehman shock," the trader said.
Credit markets seized up and stocks tumbled after the collapse of Lehman Brothers in September 2008, marking the most dangerous moment of the financial crisis that roiled the world's markets and economies in 2007-2009.

Today’s KLCI Tracker: (21/05/2010) Friday

Overall medium technical readings say positive run is intact and but will ease a bit this week before up again.

- Expect KLCI to climb higher to test 1,350 – 1,370 band again soon. Range 1,400 – 1,410 is the next resistance.- 1,300 – 1,305 range is the immediate support; 1,275 – 1,280 is the next.

- Any pullback presents us with buying opportunities

Momentum tracker for the day:

MRCB- Medium – term positive money flow still intact and will continue- Stock is retesting the RM1.70 – RM1.80 range, eventually reaching the RM2.00 – RM2.30 band. The stock is consolidating positively in RM1.40 – RM1.55 range support.- Current pullback is a buying opportunity.

Results Note – CIMB Group (BUY, maintain) - Lower credit charge-off under FRS 139 adoptio

* Results Note – UMW (ADD, maintain)

- Inline* Results Note :

– Kossan (BUY, maintain) - A strong start to the year.

* Results Note – Nagamas International (Cease coverage) - Below expectations*

Flash Note – Kencana Petroleum (BUY, maintain)

- Outside Malaysia- U.S. stocks plunge on Europe as S&P 500 loses most in 13 months- U.S. leading index signals recovery to cool.

- Singapore economy grows more than forecast on exports- Philippines posts budget surplus amid spending freeze- Taiwan outpaces China as growth accelerates to 30-year high- Oil extends decline on euro debt crisis, U.S. recovery concern

Today’s KLCI Tracker:; (20/05/2010-Thursday)

Overall medium technical readings say positive run is intact and but will ease a bit this week before up again.

- Expect KLCI to climb higher to test 1,350 – 1,370 band again soon.

-Range 1,400 – 1,410 is the next resistance.- 1,300 – 1,305 range is the immediate support; 1,275 – 1,280 is the next.

- Any pullback presents us with buying opportunities.

Momentum tracker for the day:-

Tebrau Teguh- Medium – term positive money flow still intact and will continue.- Stock is consolidating positively in the RM0.55 – RM0.70 range before retesting the RM0.95 – RM1.00 resistance.

It has strong probability of breaking it with RM1.20 – RM1.40 levels eyed.- Current pullback is a buying opportunity.

Company Update :–

-YTL Power International (ADD, maintain)

– Media Prima (BUY, maintain) - Earnings in line.

Flash Note – Kencana Petroleum (BUY, maintain) - No go for Global Offshore* Flash Note – Alam Maritim (BUY, maintain) - Proposed 1 for 2 bonus issue*

Economy :

– World Competitiveness Yearbook 2010

- Malaysia is ranked 10th most competitive nation* Outside Malaysia- U.S. stocks drop on German trading restrictions, foreclosures.

- U.S. consumer prices unexpectedly decreased.

- Australia consumer confidence falls most in 19 months.

- Crude oil extends gains after euro climbs from a four-year low.

Today’s KLCI Tracker:- (14/05/10)

Overall medium technical readings say positive run is intact.
- Expect KLCI to climb higher to test 1,350 – 1,370 band again soon. Range 1,400 – 1,410 is the next resistance.- 1,325 – 1,330 range is the immediate support; 1,300 – 1,305 is the next.
- Any pullback presents us with buying opportunities.

Momentum tracker for the day:-
Unisem- Medium – term positive money flow still intact and will continue- Stock is retesting the RM3.50 – RM3.60 range, eventually reaching the RM4.00 – RM4.50 band. The stock is consolidating positively in RM3.00 – RM3.20 range support.- Current pullback is a buying opportunity.

Today’s Fundamental Highlights:
– Banking (OVERWEIGHT, maintain) - 2nd round OPR hike*
- Company Update – Sime Darby (ADD, maintain) - Negative impact of RM964m in 2HFY10*

- Outside Malaysia-
- U.S. stocks fall as banks, retailers decline; Cisco retreats- U.S. import prices increased 0.9% in April on oil.
- U.K. trade deficit widened in March on import jump.
- Thailand’s confidence falls a third month on protests- Oil poised for second weekly drop on dollar’s rise against euro.

Today’s KLCI Tracker. (13/05/2010)
Overall medium technical readings say positive run is intact- Expect KLCI to climb higher to test 1,350 – 1,370 band again soon.Range 1,400 – 1,410 is the next resistance.- 1,325 – 1,330 range is the immediate support; 1,300 – 1,305 is the next.- Any pullback presents us with buying opportunities.

Momentum tracker for the day.

MRCB- Medium – term positive money flow still intact and will continue- Stock is retesting the RM1.70 – RM1.80 range, eventually reaching theRM2.00 – RM2.30 band. The stock is consolidating positively in RM1.35 –RM1.50 range support.- Current pullback is a buying opportunity.

Company Update – Berjaya Sports Toto (REDUCE, downgrade)

Results Note – Dialog Group (BUY, maintain) - A satisfactory set of results.

* Outside Malaysia-
-U.S. stocks advance, erasing S&P 500’s loss from May 6 plunge.
-U.S. trade gap widens as growth rebounds.
-Europe’s economy grows at faster pace than forecast.
-Philippine exports rise the most in at least 29 years.
-Oil trades below US$76 after falling as U.S. stockpiles increase.

How To Make Money On The Stock Market.

The fact was this: 80 percent of private investors lose money in their direct investme

This is the secret that Wall Street does not want you to know. I guess it could be worse. I remember reading some years ago that 97 percent of all gamblers in the UK lose over time.

There are several reasons for why the majority of investors lose money. The main one is almost certainly due to knowledge. Whilst it is not my intention to suggest that insider knowledge is used, it is hard to imagine that some unscrupulous traders are not involved.

What is more important is that many or most private investors simply do not conduct enough research into the firms in which they plan to invest. Company accounts are not looked at or only briefly. Competitors are not assessed thoroughly.

The stock exchange is a very competitive place to make money. All those red braces wearing investment banker types take the game very seriously and so should we private investors if we plan to win.

In fact, the stock exchange is so competitive that at times even some of these investment banks fail to make a profit, despite all the advantages they hold over the rest of us.

Therefore, we private investors need to work very hard to compete. It is possible. The markets are so large that many private investors can earn a comfortable living online.

It is also vital to be disciplined and to follow investments and companies of interest very closely. If you need to sell out at a moments notice, the discipline to do so is required immediately. Failure can cost you your profits and potentially your initial investment as well.

As prices change, so must your goals. Using a stop loss or some variant can help your selling strategy, but when it is time to sell, you must.
Before you start on your own private stock exchange odyssey, you need to invest time and effort to learn the basic (and some more advanced) skills. These will help you for years to come.

You then need to commit to continual improvement in your knowledge and skills. This is what will keep you up with 'the game'.
You may also find that you need some form of computer monitoring software. Many of the services allow real time price data. This will help you to accuately track your performance over time and alert you to any important news about your companies. For medium to large investors, such software is worth its weight in gold.

As time passes, you will need to understand the basics of asset allocation. This will help to prevent you from having all of your net worth tied up in company stocks and thus will help to provide more stability to your personal finances. As your net worth grows, it becomes ever more important to be diversified so that your future is tied less and less to the results of the stock exchange.
In conclusion, the stock exchange is a place where fortunes can be made and lost, but only the hard working are likely to prosper.

Good luck.

TRADING SECRETS OF A SUCCESSFUL TRADER.


The first and most important thing a trader must have is a “TRADING PLAN”This is a “Written PLAN” which you can refer to from time to time.

The reason for this is that it will keep you on track and on the right path to becoming a “Successful Share Trader.

It should comprise of several steps which will become a constant guide to each trade that you make.


1.OBJECTIVE.

Of course the main idea is to make a Profit.This is regardless of whether you are a “Long Term or Short Term Trader.”

Surprisingly enough quite a few Traders don’t make a profit. This usually is brought about by NOT planning in the first instance.They are actually trading “BLINDFOLDED.” Not a very desirable state to be in. But funny enough Traders are doing it all the time.

2. RISK. There are several types of risk to be alert for.Firstly there is “Overall Market Risk.” What is the current “MOOD” of the Market “RIGHT NOW?”Is it a “BEAR or BULL” Market?Now depending on what type of Market it is, this should/could influence you on whether or not to enter the Market now or later.

If everything is heading downwards, a little delay might mean that you purchased that stock a little cheaper.A bit of advice here, “NEVER TRY TO PICK THE VERY BOTTOM OR THE VERY TOP OF THE MARKET.” If you happen to it is luck and nothing else.Even the so called “EXPERTS” cannot predict the top or bottom. As much as they would have us believe they can.Another “RISK” is speculative Risk. This can be found particularly in the Mining or Oil sector. Sure the stock price can go skywards, BUT it can go the other way just as quick if not quicker. Only put a small proportion of your capital in this area. Unless of course you are willing to accept the Risk involved. ONLY YOU can decide what level of Risk you are comfortable with.

3. ENTRY. This where you have decided at what price you are going to pay for your share.As to when we will cover that in “TIMING.”What ever you do, “DO NOT” leave an order in overnight particularly if the stock is VOLATILE that is to say that the stock is going up and down like a yoyo.You could pay more than you bargained for.If you must leave in overnight put a “LIMIT’ to what price you want to pay. Not a “AT MARKET ORDER”. At least you won’t get any nasty surprises that way.

4. TIMING. A very important part of your trading Success will be in your timing.If the market is going downwards a little patience could mean a better entry price, which will reflect on your profits.As I have quoted before don’t try to pick the exact bottom or the top. Waiting to long might mean the difference between a small profit and a larger more desirable one. The best advice is to get the “BEST” price possible at the time you decide to trade.

5. EXIT. Not enough attention is paid to this area. Timing is important, but a good “TIP” is “Have a “PRE SET” exit figure already prepared. This has the advantage of you knowing already how much Profit you are going to make.

Now DON’T BE GREEDY!!! This is a “TRAP” that many traders fall into very regularly. More than I care to mention, Small profits taken on a regular basis build very quickly into quite large amounts.

6. STOPLOSS. This can mean the difference between “SUCCESS OR FAILURE”A stop loss is a price that is set either ABOVE or BELOW your share price. This has the effect of stopping a substantial loss or a “BIG” one. A good guide is to have no more than 2% of you total portfolio at risk. You can decide what% you are comfortable with.

A “TRAILING STOPLOSS’ is what you place just behind your rising share price, this effectively “LOCKS IN” those Profits so near and dear to you and me.


7. PAPER TRADING. This is a wonderful idea to practise and To “LEARN” and to “FINE TUNE” you’re trading skills without endangering your hard earned cash. Plus it is “FREE” which is another advantage.

Remember if you fail to plan, you are planning to fail. I sincerely hope that someone has gained some knowledge from this article and it improves in some way “THEIR TRADING PROFITS”

Stock Trading Online E*Trade

The choice to trade stocks online is made by many independent investors that no longer seek the help or advice of the traditional stock broker. Instead, these investors are opening online trading accounts with discount brokerage firms and take control of their stock trading. While the technological advances have created numerous online trading software of which many specializes in stock trading online, there is still a need from potential stock market investors for online trading education.

When an investor is trading stocks online, he makes choices based on his own research and there is no human broker on the other side to confirm his order. Consequently, it is extremely important that investors and online traders alike take a long breath before they press the buy or sell button on their online stock trading software. We have heard many stories in which investors have pressed the buy button instead of the sell on their online trading software by mistake.

There are definitely advantages to stock trading online, but the casual investor will have a learning curve if he wants to turn into an online trader. In addition, an online trader needs more than basic computer skills if he wants to excel in trading stocks online. In fact, some of the online stock trading software may be quite complicated if a trader only has basic knowledge of computer operation. However, it is a logical course of action to face the stock trading online beast rather than run away from it.

Stock Trading Online - Learn to Trade Stocks Online via our Multimedia Stock Trading Course

CLICK https://www.affintrade.com/gcAF/flash/demo/Demo.jsp

The Advantages of Online Shares Trading.

Online brokerages make it easy to trade stocks.Prior to the spread of the Internet, individuals who wished to engage in stock trading would call a broker/remisier and make a stock order. The proliferation of online services opened a new world for investing and gave full control of the process to individuals themselves.

Online brokers do not require human interaction to process an order. This system has created many exciting advantages for those interested in trading stocks.

Quick Order Execution

In traditional brokerage firms, and before the spread of the Internet, a considerable delay would occur between your desire to buy or sell a stock and the actual moment the order was executed. Transactions would be called in to your broker.

Sometimes, additional calls were necessary until your order arrived on the floor of a financial exchange to be handled by a floor trader representing the broker.

By contrast, online brokers offer instantaneous execution. If you wish to buy a stock, it can be yours within seconds. There is no contact with humans, thus any delays caused by conflicting schedules or human error are removed from the environment.

Accessibility
Online brokerage accounts provide the ability to interact with your portfolio from anywhere in the world. All that is needed is an Internet connection. This mobility is a considerable advantage over calling a conventional brokerage to process an order. With an online broker, you can process orders quickly from anywhere. Many online brokers provide their services right over a mobile Internet device, such as a smart phone. This accessibility has revolutionized the trading industry.

Record Keeping
Online brokers keep a strict record of all transactions on an account. Clients may log in at any time and view their order history, overall profits and losses , percentage returns and any interest payments, debits or dividends that have affected the account. Additionally, many online brokers provide a full tax center online for clients to view their exposure to different trading and investing taxes that may affect them. This level of detail is not as easily available for traditional brokerage accounts. This makes online broker services particularly appealing to those who desire the most information on their accounts.

HOW ONLINE TRADING WORKS

Now, plenty of "common" people own stock. Online trading has given anyone who has a computer, enough money to open an account and a reasonably good financial history the ability to invest in the market. You don't have to have a personal broker or a disposable fortune to do it, and most analysts agree that average people trading stock is no longer a sign of impending doom.
­The market has become more accessible, but that doesn't mean you should take online trading lightly. We'll look at the different types of online trading accounts.

The Broker Dealer

One of the simplest ways to understand electronic trading is to imagine that you want to buy some stock/shares .

Before you can buy, however, you have to open a brokerage account. There are dozens of companies that allow you to do electronic trading, including E-Trade etc. These companies are called broker dealers, and they give you access to the stock exchanges (Bursa Malaysia).

Without a brokerage account, you can't trade stocks.
So, as the only entry points to the stock markets, remisier play a critical role in the process. As such, they're highly regulated by the SC in order to prevent fraud and mismanagement.

Here are some of the things that broker dealers do:

Make sure you're allowed to trade stocks when you sign up for an account. That is, they check to make sure you're old enough, you have money in your account and you understand the risks of stock trading. This is part of the regulatory nature of broker dealers./remisier.

Provide the servers that allow you do your web-based trading.
Provide the computers systems that keep track of all the accounts. Like a bank, the broker dealer /remisier knows how much money every account has. He also keeps track of all the stocks you own and may make loans by offering margin accounts.

Keep track of your trading to make sure you aren't doing anything illegal and aren't buying more stock than the balance of your account allows. They also make sure that appropriate tax records are kept.
Provide stock quotes. The broker dealer /remisier knows exactly how much stocks are buying and selling for with up-to-the-minute accuracy.

Interface with the different stock markets to make the actual trades.
The broker dealers provide a very useful simplification process for the stock exchanges: Since the dealer handles all the money, all the accounts and much of the regulatory and tax activities, the exchanges don't have to worry about any of these things. All the exchanges have to do is trade stocks, and they do so with complete assurance from the broker dealers that the traders are legitimate.

Making an E-trade

So let's make a trade. Since we're talking about electronic trading, the first step is to sit down at your keyboard and log in to your brokerage account. Once you log in, regardless of the broker dealer, you'll be able to do several things:

Look at your account to see how much money you have and how many shares of stock you have in your portfolio.

Pull up stock quotes to see the current buy and sell prices of any stock.
Enter an order to buy or sell a stock.
The systems that make this Web interface possible are Web servers very much like the servers for any Internet site. There may need to be hundreds of Web server machines -- a large broker dealer can have millions of customers. And the Web servers need to be operating with secure connections to protect privacy. But beyond that, the servers can be fairly ordinary.

So let's imagine you want to buy 100 shares of the ABC company. You check the price of that stock on the quote screen and see that it costs RM20.40 to buy it at this moment. You enter in an order to buy 100 shares at RM20.40 a share.
Your broker dealer will transmit your order to a stock exchange/Bursa Malaysia. If the ABC company trades on the Bursa Malaysia, the order goes there. Inside the BURSA MALAYSIA, there's a computer that's dedicated to handling all the orders coming from your broker dealer. (Since there are several hundred broker dealers dealing on the BURSA MALAYSIA, there are several hundred dedicated broker dealer machines.)

Having received your order from your broker dealer, the BURSA will try to match your buy order up with a sell order from someone else. If it can find a match, you'll have executed a stock trade. If not, your trade will sit on the exchange waiting for a matching order.

Now, the BURSA sends a message back to the broker dealer saying the trade is complete. He updates your account information, withdraws money from your account and changes your portfolio to reflect your new stock.

Online Trading.

Online Trading is an electronic client ordering system which allows you, as a client, to place orders electronically online via the Internet to company/broker.

It provides you with hassle-free and convenience in trading in shares listed on the Bursa Malaysia Berhad.

It also allows you to have 24 hours on-line available of research material and other relevant information pertaining to your investment decisions on your mobile PDA and personal computer.

Trade orders that you placed will be routed by your remisier or dealer’s representative to the exchange for trade execution.

In return you will receive confirmations of your trade orders which are automatically routed back to you.

Online trading is specially designed to make Internet stock trading an efficient, convenient, reliable and enjoyable experience for you.

Features and benefits include:

*Online real-time Bursa Malaysia quotes and indices
*Technical Charts
*Stock Scoreboard
*Trade Order Placement
*Trade Order Status Enquiry
*Intraday Stock Movement Tracker
*PDA and Mobile Trading
*Portfolio Management
*Equity Research
*Bernama News
*Bursa Malaysia News and Company Announcements
*Online Statement and Contract Note
*SMS Alert Order Confirmation
*eSettlement

For trading online, just sign-up form online and you will experience a new and convenient stock trading environment in the comfort of your home, office or any place of your choice at any time, all with just a press a button or click of the mouse on your mobile PDA or personal computer at your convenience.

How to Trade MALAYSIA Stocks Online ... Trade shares online ... Day trading

When it comes to stock market trading it PAYS to have more knowledge than the rest of the pack. Pure gold can be harvested in each profitable trade that you accomplish.

But when you don't know what you are doing stock trading can become a very difficult and life consuming business. You can lose a lot of money and time.

Valuable time of your life. Stock trading can resemble the closest thing to a get-poor-fast system when you don't implement a proven stock trade strategy.

Even when there are traders that can make more than RM5,000 on a single trade, it's not unusual for a novice stock trader to lose RM1,000 in less than 3 minutes from the comfort of his own home, or waste a lot of family time thinking about the stock he should trade for tomorrow "according to the charts and the stars" and other confusing technical analysis trading indicators.

As an online stock trader your homework is all about learning and testing different online trading strategies that can help you take advantage of stocks and at the same time protect your profits.

Just always keep in mind that a good stock trading strategy is simple and practical.

Complicated stock systems will always make you slow in your decision making process or confuse you right from the start.

There are some very good sites on the web where you can access practical stock trading strategies that are easy to implement.

They focus on momentum stock trading strategies that can help you identify and handle hot stocks while reducing your trading risk.

All in all, online stock trading is all about picking the best stock opportunities and following your buy and sell signals with ease and simplicity.

Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

Buy Penny Stocks.

You must have heard many stories on how people make money from these stocks. I buy penny stocks if I'd EXTRA money to 'play with'.

Because, you can gain as much as 300% return in ONE WEEK with penny stocks, but in the same time, you can be selling your own shirts.

The reason is Penny stocks are not that cheap.


When it comes to stock investment, the business valuation determines how much the stock worth, not its price tags alone, this called, calculate intrisic value.

The simplest and easiest valuation method would be looking at individual price earning to ratio (P/E). The higher the P/E ratio, the more ‘expensive’ a stock is.

Though P/E ratio is not that accurate, it very handy when it comes to stock’s valuation. You can simply spot which stocks are overvalued and which are not. From there, study if the undervalued stock is really ‘cheap’, or its price went down due to some other fundamental reasons.

However, the P/E ratios for penny stocks are normally much higher than the other stocks, blue chip stocks for example.

This happens as penny stocks have much less historical earnings but many investors are betting on the expectation of ‘greater’ future profits.

As you are aware by now, the higher the P/E ratio, the possibility for the price to increase further in months (or even years) to come is less.

Penny stocks are manipulative in nature

As the penny stocks are very cheap in price, stock investors and traders can easily manipulate their stocks by putting in large buy or sell orders.

This especially true if 50% or more shares of that particular stocks’ are floated in the stock market. After all, penny stocks have very low market capitalization.

Speculative investors and hedge fund managers are normally the major players for this kind of stocks.

They form a syndicate team and agreed themselves to buy bulk of the share to pump up the share price.

Then, they make a statement claiming this stock is the ‘hot penny stocks’ or ‘the next Microsoft’ through any business media.

How Stocks and the Stock Market Work.

­The stock market appears in the news every day.

You hear about it any time it reaches a new high or a new low, and you also hear about it daily in statements like "The index rose 2 percent today, with advances leading declines by a margin of..."

Obviously, stocks and the stock market are important, but you may find that you know very little about them.

What is a stock?

What is a stock market?

Why do we need a stock market?

Where does the stock come from to begin with, and why do people want to buy and sell it.

Let's say that you want to start a business, and you decide to open a restaurant. You go out and buy a building, buy all the kitchen equipment, tables and chairs that you need, buy your supplies and hire your cooks, servers, etc. You advertise and open your doors.

Let's say that:

• You spend RM500,000 buying the building and the equipment.
• In the first year, you spend RM250,000 on supplies, food and for your employees.
• At the end of your first year, you add up all of the money you have received from customers and find that your total income is RM300,000.

Since you have made RM300,000 and paid out the RM250,000 for expenses, your net profit is:

RM300,000 (income) - RM250,000 (expense) = RM50,000 (profit)

At the end of the second year, you bring in RM325,000 and your expenses remain­ the same, for a net profit of RM75,000. At this point, you decide that you want to sell the business.

What is it worth?

­One way to look at it is to say that the business is "worth" RM500,000. If you close the restaurant, you can sell the building, the equipment and everything else and get RM500,000. This is a simplification, of course -- the building probably went up in value, and the equipment went down because it is now used. Let's just say that things balance out to RM500,000. This is the asset value, or book value, of the business -- the value of all of the business's assets if you sold them outright today.

Selling Shares

­ If you keep the restaurant going, it will probably make at least RM75,000 this year -- you know that from your history with the business.

Therefore, you can think of the restaurant as an investment that will pay out something like RM75,000 in interest every year.

Looking at it that way, someone might be willing to pay RM750,000 for the restaurant, as a RM75,000 return per year on a RM750,000 investment represents a 10-percent rate of return.

Someone might even be willing to pay RM1,500,000, which represents a 5-percent rate of return, or more if he or she thought that the restaurant's income would grow and increase earnings over time at a rate faster than the rate of inflation.

The restaurant's owner, therefore, will set the price accordingly. You might price the restaurant at RM1,500,000. What if 10 people come to you and say, "Wow, I would like to buy your restaurant but I don't have RM1,500,000." You might want to somehow divide your restaurant into 10 equal pieces and sell each piece for RM150,000.

In other words, you might sell shares in the restaurant. Then, each person who bought a share would receive 1/10 of the profits at the end of the year, and each person would have one out of 10 votes in any business decisions.

Or, you might divide ownership up into 1,500 shares and sell each share for RM1,000 to make the price something that more people could afford. Or, you might divide ownership up into 3,000 shares, keep 1,500 for yourself, and sell the remaining shares for RM500 each. That way, you retain a majority of the shares (and therefore the votes) and remain in control of the restaurant while sharing the profit with other people.

In the meantime, you get to put RM750,000 in the bank when you sell the 1,500 shares to other people.

Stock, at its core, is really that simple. It represents ownership of a company's assets and profits. A dividend on a share of stock represents that share's portion of the company's profits, generally dispersed yearly.

If the restaurant has 10 owners, each owning one share of stock, and the restaurant makes RM75,000 in profit during the year, then each owner gets a dividend of RM7,500.

One measure of the value of a company, at least as far as investors are concerned, is the product of the number of outstanding shares multiplied by the share price. This value is called the capitalization of the company.

How to Monitor Stocks.

Buying stock in a company is relatively easy once you've researched the stocks you're interested in and have a broker or brokerage account to handle your purchase.

Choose your stocks with care and research before you buy anything, but keep in mind that the stock market could crash at any time for numerous reasons.

Monitoring the rising and falling prices of stocks is an essential part of being a successful investor or stock trader.

Rotate stock to keep the old stock moving out first and the fresh stock going out last. If you do not rotate stock, then older stock will expire and you must throw it away.

This costs money to the person throwing away the items so, prevent waste with stock rotation.

How to Get Started in the Stock Market...........

Perhaps you have been eyeing a stock for a long time but just can't seem to find a good entry point.

You've been waiting for weeks or maybe months for a stock to finally find a bottom, but you are never quite sure.

When the stock falls and you are on the brink of buying, it seems to go still lower. Spotting a bottom in a stock can be quite difficult, and some of it does depend on luck.

However, a better indication than luck is skill, and the art of finding a bottom in a stock can be learned.

The stock market can be a valuable tool for gaining more income as well as strengthening your insight into the world of business.

Playing the stock market is usually reserved for stock market analysts and financial planners but the average person can learn the stock market just as well as the professionals.

Get started in the stock market and start managing your own financial portfolio with the ease of a learned pro.

Many people worldwide own stocks and have their financial security relying on their success, but not everyone is familiar with
the basic tenets of the stock market.

Stocks are units of ownership sold by a company when it switches
from private ownership to a publicly traded company.

Stock investing is an imperfect science requiring patience
and diligence, but you can also make a fortune if you do it right.

CNY HOLIDAY 2010 - Market higher on active buying

Buying interest was active across the board on rising optimism of a recovery in the global economy, said an analyst.

The marke's attention was also on the subdued inflation in China.
"All this good news helped bring buyers back into the markets," the analyst said, adding that regional markets also performed well after Europe's pledge to help Greece out of its debt crisis.

However, the market volume was thin ahead of the extended weekend. Bursa Malaysia will reopen on Wednesday after the Chinese New Year holiday.

The Finance Index rose 62.05 points to 10,946.04, the Industrial Index increased 11.63 points to 2,588.07 and the Plantation Index was up 17.35 points to 6,204.5.

The FBM Emas Index gained 38.74 points to 8,436.33, the FBM70 Index was up 53.58 points to 8,281.51 and the FBM ACE Index rose 71.76 points to 4,328.97.

Market breadth was positive with gainers thrashing decliners 479 to 142 while 241 counters were unchanged, 467 untraded and 26 others suspended.

Total volume decreased to 560.587 million shares worth RM811.432 million from 646.353 million shares worth RM881.907 million yesterday.

Of heavyweights, Sime Darby was up two sen to RM8.40, Maybank added seven sen to RM6.90, CIMB Group increased six sen to RM12.42, IOI Corporation rose one sen to RM5.22 but Maxis fell two sen to RM5.38.

Among major gainers, Nestle rose 64 sen to RM33.80, KKB Engineering increased 45 sen to RM3.85, Malaysia Smelting Corporation went up 43 sen to RM3.80, Goh Ban Huat moved up 30 sen to RM2.00 and Hai-O Enterprise increased 28 sen to RM9.10.

The FBM KLCI futures contract on Bursa Malaysia Derivatives closed lower, dealers said.

Spot month February 2010 fell 7.5 points to 1,244.5, March 2010 lost 3.5 points to 1,242.5, June 2010 dropped 3.0 points to 1,238.5 and September 2010 declined 3.5 points to 1,233.0.

Turnover, however, was higher at 4,863 lots compared with 4,510 lots on Thursday while open interest rose to 18,209 contracts from 17,973 contracts previously.