How to Make Money in Malaysia by Investing in Stock Market

In a perfect world, everyone would be wealthy and have enough money to enjoy what life has to offer. However, we live in an imperfect world where everyone, despite the amount of effort and hard work we pour into creating our wealth, has to continue earning money to last our lifetime. But do you know how to make money in Malaysia or create wealth Malaysia?

While wealth building may seem like a difficult proposition to most people, especially to those who earn a regular income, it's actually not that difficult to create wealth Malaysia. You just need a systematic approach to get started.

In one of our previous articles, we shared how you can create wealth in Malaysia in five ways. This time around, we’ll be sharing how to make money in Malaysia by investing in the stock market.

Investing in Stock Market

One of the best things about investing is that it takes only one purchase, held for a long time, to change your future. After years of holding stocks in firms that generate earnings, you eventually have the potential to be wealthy. Because when you buy and hold your investment, you’re earning some interest on the interest you’ve received.

The Power of Good Investment

When you invest in stocks in Malaysia, a minimum of 1 lot is required and this is equivalent to 100 shares. Let’s say you decide to purchase 1 lot of Maybank and the share price is RM8.17. You will need to fork out RM817 for this minimum transaction. This may seem like the bare minimum but in the long run, you get to create more wealth in Malaysia.

Moving forward, here are some tips for you to create wealth Malaysia by investing in the stock market.

Tip 1: Start with a plan

Before you come up with any life-changing decision, you need a plan to sort out every detail. The same goes for investing in the stock market. You need to understand your risk appetite. The stock market can make you wealthy but it can also make you lose all that you have. This is a risk you must take to earn the reward.

So before you decide how much you can afford to invest, make a budget of your income and expenses. Estimate how much you can save and use some of it to invest in the stock market. That way, you can make your investment in a systematic way. Also, make sure to set your investment objectives so that you follow through with the plan.

Tip 2: Think long-term and stay the course

Investing in the stock market requires patience and perseverance. While there are investors who strike gold with their investments within a few months, such stories are rare. In fact, most investment plans require a long-term commitment to see the results. So don't hope to become rich in a few years.

Stay invested in your shares for the long-term and you’ll reap the benefits in the long run. On average, the stock market gives a return of 10%. When compounded, investing just the right amount every year can make you a millionaire in 30-40 years. So, stay the course and your dreams may just come true.

Tip 3: Diversify your portfolio

Don’t put all your eggs in one basket. This is a common saying when it comes to investing your money because if you invest in just one company or similar type of stocks, you may end up losing your capital investment along with the earnings.

For instance, if you invest all your money in IT stocks and the IT industry faces a setback, you could potentially lose your money. Diversifying your investments can instead help to mitigate any possible risks so that you have others to fall back on.

Tip 4: Don’t try to time the market

The secret to earning from the stock market is to buy low and sell high. But how do you know when it’s a good time to buy or sell your stock? Beginner investors tend to plunge into the market when there’s a slight surge in the stock market but it’s never a good idea to do so.

Instead of timing the market, you should focus on investing over a period in a systematic manner. Try to invest a fixed sum every month to buy select stocks. When the stock market is at a high, your overall investment appreciates. When the market is down, you can buy more stocks.

Tip 5: Review your investments periodically

Now that you've systematically invested your money, you can sit back and watch your money grow. This is a common perception among beginner investors. Truth be told, the stock market doesn't work that way and you can't afford to take it easy. The stocks that you invested in may perform well now, but you never know what can happen in the future.

Hence, you should review your investments periodically. Stay updated on any news related to the company that you invested in. Should there be any impending problem, it’s probably time to stop investing in that company. The same goes for the industry that you invest in. So, review your investments and make changes accordingly.

How to make money in Malaysia by investing in stocks with little money?

There are many ways for you to invest in stocks with little money. You can even do it with a few hundred ringgit.

The first thing you should do is buy some stocks yourself. That way, you can learn about stocks and how it works. You should also understand the dividends and share prices. Don't buy stocks based on their price alone. A good company will usually have a good profit margin which means they pay their shareholders regularly.

Another way for you to invest in stocks with little money is to buy stock from companies that offer dividends regularly. The bigger the dividend, the better it is. You can easily calculate how much money you can earn from your portfolio by considering the dividends.

You can also use an automated trading programme to invest with little money. Some of the programmes will tell you when it is the right time to buy or sell. This will be a great tool for beginners because they don’t have to spend too much time learning about the stock market.

The stock market can be tricky to navigate if you’re not familiar with it. But it’s not impossible to figure out which are the best stocks to buy.

If you’re new to investing or want to know how to make money in Malaysia, you can start with Gene App. It’s an investment plan that can multiply your wealth, manage and increase your digital assets. You can also earn a daily income and convert your earnings to invest in property and jewellery.

Contact us at 011 6939 2180 or email your on how to create wealth Malaysia's queries to [email protected] to find out more! Hope you enjoy reading this article about how to make money in Malaysia by investing in the stock market.