Originally posted by Kuali Baba:
Dad suggested some time ago that I should set up an account for trading in shares. He said he'll top it up since my savings amount to just 3-digit figures. However I'm still sceptical, and any input from you guys will be greatly appreciated.
Frankly apart from the pm I replied to you.
At the moment - don't trade shares unless you know the mechanisms that is behind a share market. Don't bother buying books - information is aplenty on the net.
The key thing is that you need 5k to invest. Don't go in with 1k- I know some will market that you only need 1k to invest ( bull shit). You need to spread your losses over the gains. If no choice, then with 1k , you must be prepared to lose 1k. For me , I avoid any companies related to the Temasek holdings - just my preference judging from the decisions Temasek had made.
If you can save 10k - even better .
Right now , I don't think it is a good time. My money is sitting in a bank incurring interest atm - market is booming too well yet it is a little too volatile for me. I am waiting for a crash soon judging on the economic overexpansion of China which is going too fast but then again that is just me. When a crash comes, that is where you see which companies are still standing ( and with the potential of getting themselves out of the mess) and you swoop on fire sales from investors who have to cover their losses.
I play it the kiasu way. Some people are willing to take risks and the risks either pays off or becomes a huge liability for them.
I'm only starting an account, which is the very first step, not a fund or something.