How Do Beginners Trade Stocks in Malaysian Market?

 Entering the financial world is not difficult at all. You need to have basic knowledge of investment, when the market is bullish and when it is bearish, market sentiments and you are good to go. Also, the returns on investment are calculated on the basis of risk. Higher the risk, the higher the returns.

So if you are new to trading, you must be wondering how to trade stocks in Malaysia. So here are some of the basic things that you must know before making any investment in the stock market. Also, we have answered a few common queries that beginners might have in the stock market.

What is the minimum amount to start trading stocks?

There is no minimum amount to start trading stocks. You can start with any amount. Although all this will depend on your strategy of stock trading and the broker that you want to use. So you can start trading with any amount but a sound trading strategy will help you to generate good returns in the market.

Also if you want to start trading in the Malaysia market you need to hire an investment advisor and also a market signal provider. They can guide you and give you proper recommendations about the stock market. They can also give you daily trading tips that will be beneficial to generate good returns in the market.

How much do I need to invest to make a profit in a month?

The key to making money in the stock market is to stay invested in the stock market. Your time in the market is the best indicator of profits generated in the market. The average return provided by the stock market is 10-12% annually. But there are many investors who fail to generate a return of even 10%.

The only reason for this is that they don’t stay for a long period of time. So if you are a beginner to the market, it is important to understand the market trend. It is also important to understand the time of investment and exit strategy for a particular stock.

With all this information you will be able to enter the market successfully, invest a good amount, and generate good returns in the course of time.

The timing of entering and exiting the market is very crucial. A stockbroker or a market signal provider is the best source to get this information. They are experts in this field and with their detailed research, they will help you to find a suitable time for investment. They will also train you about when to hold an investment and when to sell it off.

Bursa opens easier but rebounds thereafter

 bursa malaysia stock tips

KUALA LUMPUR (April 8): Bursa Malaysia opened easier but rebounded thereafter today, attempting to extend yesterday’s gains, despite the flat overnight performance on Wall Street.

The US stock markets staged a modest recovery after the US Federal Reserve signals no changes to the current bond-buying program.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.02 points to 1,602.61 from Wednesday’s close of 1,600.59.

The index opened 0.78 of-a-point easier at 1,599.81.

“We believe the foreign buying support yesterday may continue to lift FBM KLCI members in the near term. Given the higher oil prices resulting from the recovery of global economy, coupled with the smooth ongoing COVID-19 vaccination, it should bring some optimism to the market.

“The key index may have a positive bias moves over the near term with the resistance envisaged along 1,615 to 1,635, while the support level is set at 1,565 to 1,575.

It added that sector-focus traders will still look out for the recovery-theme sector such as consumer, aviation, tourism, construction and property on the back of the ongoing vaccination plan on the local front.

Of the heavyweights, Public Bank gained three sen to RM4.25,  Petronas Chemicals added four sen to RM7.99,  while Maybank fell eight sen to RM8.40, Tenaga shed two sen to RM10.24, and IHH Healthcare was flat at RM5.31.

Among the active counters, Luster Industries and its warrant added one sen each to 24.5 sen and 14.5 sen, respectively, DGB Asia and Pasukhas Group edged up half- a-sen each to 6.5 sen and three sen, respectively, while Permaju was flat at 22 sen.

Sector-wise, the Industrial Products and Services Index edged up 0.24 of-a-point to 195.12, the Financial Services Index slipped 15.5 points to 15,363.71, while the Plantation Index went down 17.48 points to 7,060.43.

+ Check out the news of the past 24 hours

  

1️⃣ The House of Representatives plans to vote on the $ 1.9 trillion stimulus package at the weekend

 The US House of Representatives will vote on Friday on the US $ 1.9 trillion bailout bill proposed by Mr. Biden, said Representative Steny Hoyer, the House's No. 2 Democrat.

 - The American people strongly support this bill and we are moving quickly to make it into law, "Hoyer said on Twitter Tuesday.

 The House Budget Committee approved the measure on Monday.  Adopting new bailout packages to reduce the economic damage caused by the pandemic is a top priority for Democratic President Joe Biden.

 Although polls show that Americans want more economic support, Democrats - which control Congress closely - and Republicans have been very different in their views about whether it has  how can be given.

 The number of coronavirus deaths of the United States this week surpassed half a million, along with millions of others are infected and unemployed.

 2️⃣ Fed Chairman - J. Powell's statements during Monday's hearing to House Financial Services Committee:

 - Inflation may take more than 3 years to reach the Fed's inflation target.

 - Fed will continue to keep interest rates low.

 - Repeat commitment to continue buying bonds to support the economy.

 => The Chairman's comments are a sign that the Fed plans to keep interest rates unchanged for a long time, at least 3 years.  Fed will be ready to keep the stimulus to support the economy in the next 3 years.  This allayed concerns about the possibility that the Fed would soon raise interest rates when the economy began to recover.  Gold has the potential to increase in the near future.

 3️⃣ Notable facts and data for today

  - At tonight, the United States will announce the adjusted value of the annual real GDP ratio for the fourth quarter, which is expected to be adjusted up to 4.2%.  Also announced is the monthly rate of US durable orders in January, is expected to hit a record 1.1%.

 At tonight, Bostic, the 2021 FOMC voting committee and Atlanta Fed president, delivered the opening speech at the 2021 virtual banking outlook hosted by the Atlanta Fed.  In the early hours of Friday morning, the 2021 FOMC voting committee, the Atlanta Fed President, Bostic, and the FOMC permanent voting committee, New York Fed President, Williams will also make speeches.

DOW JONES & CRUDE OIL PRICE OUTLOOK

DOW JONES & CRUDE OIL FORECAST: WILL A CRUDE BREAKOUT BOOST THE DOW?

The Dow Jones trades at record levels once again after recovering from market turbulence in late January. Not to be outdone, crude oil prices have climbed to their highest levels since January 2020. Encouragingly for the Dow, the recent breakout in the fossil fuel should serve as a tailwind for energy stocks and could translate into greater gains for indices with energy exposure.

That said, the Dow Jones Industrial Average is not what it once was and its exposure to energy has slowly dwindled in recent years. The fall from grace suffered by energy stocks was acutely exemplified when Exxon Mobil (XOM) was removed from the Industrial Average in August 2020 after holding a spot on the index since 1928. XOM shares have outperformed the broader market in the year-to-date, but this outperformance has not been shared with the Dow Jones.

With that in mind, traders searching for exposure to energy stocks in the event crude oil looks to climb higher might find tighter correlations in single stocks or the exchange-traded funds like XLE.

Further still, USD/CAD typically enjoys an inverse correlation with crude oil, meaning if crude prices continue to rise, the pair may fall under pressure. Combined with the reversal in recent USD strength, USD/CAD might serve as a potential proxy for macro traders looking to ride crude oil strength.

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GOLD NEWS HEADLINES- Money Life Research

Gold went down last week because of advances in vaccines stimulating the outlook for a recovery from the coronavirus pandemic. The metal's appeal as a secure haven is diminishing as investors compare this view to the likelihood that further stimulus could weaken the dollar and approach consumer prices.

Gold was steady after the most important two-day gain during a month as investors weighed prospects for more stimulus within the U.S. and therefore the possibility of upper consumer prices against attention on Bitcoin and stocks at a record.

Bullion rose on Monday as Democrats released the primary draft of key legislation which will comprise President Joe Biden’s Covid-19 relief bill. Bets on a strong package are helping to underpin market-derived inflation expectations, which are at multi-year highs, and have fanned the so-called reflation trade.

Gold is rebounding after last week’s get back rock bottom level since the beginning of December when a stronger dollar and rising U.S. Treasury yields weighed on the haven asset that doesn’t offer interest. A report on Wednesday is forecast to point out U.S. consumer prices rising at a quickening pace.

“Gold is rallying from a two-month low as Biden’s massive $1.9 trillion plan is close to becoming a reality,” said Edward Moya, senior analyst at Oanda Corp. “The economic recovery is weak, and prospects are growing that more is going to be done. The reflation trade is occurring tons faster than expected.”

Spot gold was steady at $1,832.68 an oz by 8:25 a.m. in Singapore, after a 2.1%, two-day gain. Silver rose with platinum, while palladium was little changed. The Bloomberg Dollar Spot Index was flat after easing 0.1% Monday.

Meanwhile, traders were also watching a surge in Bitcoin, which hit a record on Monday after Tesla Inc. bought $1.5 billion of the cryptocurrency. The automaker said revised policies also permit it to take a position in gold.

KEY POINTS

The price of gold was way oversold, and this has provided the right catalyst for retracement later last week.

Non-farm payroll data has reaffirmed the necessity for an additional round of stimulus, which can help the gold price to recover.

Important levels: 1,784, 1,814, 1,827, and 1,848.

USD Dollar Update Today's

 

USD: Dollar correlations with other stalling asset groups

The trade-weighted dollar is up from its lows in early January by just over 2 percent. The declining negative correlation of the dollar with stock markets is noticeable and it is difficult to put a finger on what drives this. True, US yields have picked up marginally, but last week's increase in German Bund yields matched that of US Treasuries. And, of course, the US vaccine roll-out looks far more promising than in Europe, while year-to-date returns in the US S&P 500 are just slightly higher than those of the Eurostoxx 50. Here, heavy short dollar positioning is likely to play a major role and would again seem vulnerable if any portion of the employment data for non-farm payrolls were welcomed positively. After the 140k decline in December, Consensus is looking for around a 100k gain. Any upside surprise might see DXY extend its rally at 91.88 to the 100-day moving average, but we still prefer to see this as a rally for the bear market.

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Mid- Morning Market Report- Money Life Research

The main index of Bursa Malaysia reversed its earlier gains and dipped in the mid-morning as glove makers and plantation stocks dragged against a backdrop of mixed regional markets.

At 10am, the FBM KLCI had fallen 2.82 points to 1,582.08. The index earlier rose to a high of 1,590.47.

The decliners included Nestle (Malaysia) Bhd, Kuala Lumpur Kepong Bhd (KLK), Supermax Corp Bhd, Unisem (M) Bhd, Top Glove Corp Bhd, PPB Group Bhd, United Plantations Bhd, and Batu Kawan Bhd.

The actively traded stocks included i-Stone Group Bhd, Trive Property Group Bhd, Luster Industries Bhd, QES Group Bhd, Iris Corp Bhd, and Fintec Global Bhd.

The gainers included Malaysian Pacific Industries Bhd, Genetec Technology Bhd, See Hup Consolidated Bhd, and Hong Leong Bank Bhd (HLB).

E-mini futures for the S&P 500 and Hong Kong's Hang Seng Index futures were essentially flat, while Japan's Nikkei 225 futures inched 0.1% higher, it said.

Bursa Malaysia Stock Tips

Us Dollar Fall Down

 The US dollar had a bounce in January from a 34-month low.  The DXY index recorded an increase of 0.71% monthly.  The strength of the US Dollar seems to correspond to an increase in demand for safe-haven currencies as market sentiment worsens and volatility accelerates.

 This relationship is highlighted by the generally positive correlation between the DXY Index and the S&P 500 based on the VIX Index.  The bulls of the US Dollar may find the impetus to take another step forward if the trader's risk appetite continues to decline and pushes the VIX's 'fear gauge' higher.  However, selling pressure in USD is likely to continue if there is a lower pullback in the VIX Index compared to current levels.

Looking at the daily chart of the US Dollar Index, we can see that an inverse head and shoulders pattern appears to have formed.  This makes the potential for a bullish reversal into the spotlight, which can be confirmed by a break above the 91.10 price level.  Overcoming this obstacle can get you quickly moving to the 92.00 handle that is almost reinforced by the 100-day simple moving average.

 Though, the US Dollar is currently facing technical resistance due to its negative sloping 50-day moving average.  Not to mention, the upper Bollinger Band may continue to conceal the rally of the US Dollar.  The sustained rebound could be destroyed if the DXY fails to defend the short-term uptrend line connecting the chain of lower levels since Jan. 6.

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