Investing in stock market -- Lets learn how to start!

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What is a stock market? A stock market is a virtual place where you can bid and sell the shares of a certain company. It is just like eBay where buyers bid a certain things from sellers and the things go to the highest bid. The only difference is there is no goods sold in stock market.

To start investing in stock market, you can go to register with any brokerage house or bank. You must be 18 years old and above to have your own account. After opening an account, you can start trading.

To buy a certain share, you first place your order in the market, if your order is matched, it means you manage to buy those share. It is not necessary to have money in your account before buying, however, if you do not have the sufficient money after three days to pay for the share which you bought, you will be forced to sell all your shares and any loss resulted from the selling have to be bear by you together with a certain amount of surcharge. This is what they call as force selling. Buying and selling in the duration of three days is called contra trading. If you earn, it is called contra gain and if you loss, it is called contra loss.

There is one unique thing which you can do in the stock market called short selling. Short selling means you sell a certain share which you do not own it. After that you buy back the amount of share which you sell. In other words, you sell before you buy. However short selling is not allowed in some cases and you might get fined for a certain amount of money if you are found doing shot selling.

Nowadays, trading share is pretty convenient compare to the old days. Just signed up for online trading service and you can start trading in front of your computer. Online trading is cheaper and more convenient compared to trading through remisiers and dealers. If you have decided to step into stock market, you can engage any brokerage firm such as OSK, HLE-broking, or other bank such as Public, Mayban, CIMB and so on.

I have no money -- How am I going to invest?
Definitely we all don't have much money, but we still can start with a small amount, for example RM 500. You can start with RM 500 to buy a company and gain some experience about investing in stock market. Those experience will never be gained from books or classrooms. About registration fee, it is only about RM 10 and it is one time payment.

At the age of 18, which is the min age to have your own trading account, is not too early to learn how to invest in stock market. In Malaysia, the passion to invest in stock market among teenagers are still weak but for other countries, some teenagers as young as ten years old have started to learn about stock market. It is time for the teenagers of Malaysia to pick up.

There is one more thing to share here. Do you know when Warren Buffet made his first investment in stock?
The answer is 11 years old. So if you still think that you are still too young to do it, ermmm....you should think about it again.Visit http://shareyouwaytoearn.blogspot.com/

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