Step 3: Do your homework
Before you choose what stocks you’ll buy, you’ll have to do your homework.
Where (or how) to start?
A stock market can seem overwhelming because there are just so many companies you can choose to invest in. Here are some suggestions on how to start:
Look at an industry familiar to you or that you believe is growing
An easy way to start looking for a good company to invest in is to look at an industry that you are familiar with. You can also look into industries which you believe are growing
Look at recommendations from research houses
Different research houses may provide different recommendations for the same company. Be sure to understand the underlying reasons behind the analysts’ recommendations so you can evaluate which research house you agree with.
Read/ watch the business news
Popular local news sources such as The Edge Markets and The Star’s Business section in English and Astro Awani and Berita Harian in Bahasa Malaysia give you a chance to see what stocks people are looking at and talking about. By reading the news, you’ll gain a broad understanding of what’s going on in the Malaysian stock market generally and in various industries specifically
Don’t automatically believe stock tips from friends and family
Critically assess their recommendations and figure out for yourself whether or not the company is a good buy