Can I trade with RM6000 capital?

Since we published the trading idea, there are a lot of newbie interested and have wrote to ask how to start if they only have RM6000 only. In this article, I am sharing with you one of our student following our article and trade accordingly to her own style.

For many newly established investors, the prospect of actively trading in the markets can be intimidating. Although mastering the markets may take years of patient study and practice, there are a variety of relatively straightforward stock trading strategies that you can begin using right away.

Trading Strategies for Beginners

Before you get bogged down in a complex world of highly technical indicators, focus on the basics of a simple trading strategy. Many make the mistake of thinking you need a highly complicated strategy to succeed in trading, but often the more straightforward, the more effective.

Key elements:

Money management – Before you start, sit down and decide how much you’re willing to risk. You have to prepare yourself for some losses if you want to be around when the wins start rolling in.

Time management – Manage your time well by doing some study and research. Look out for opportunities when market is dipping.

Start small – Whilst you’re finding your feet, stick to a maximum of three stocks during a week. It’s better to get really good at a few than to be average and making no money on loads.

Education – Understanding market intricacies isn’t enough, you also need to stay informed. Make sure you stay up to date with market news and any events that will impact your asset, such as a shift in economic policy.

Consistency – DO not let your emotion kick in. You need to let maths, logic and your strategy guide you, not nerves, fear, or greed.

What is her result?

From March 2019 onwards, she choose 2 stocks from the following articles:

i) PARKSON (5657)

ii) Trading Ideas - LIONIND (4235), MRCB (1651) and CCK (7035)

Stock she picks for her trade are:

a)      Parkson

b)      CCK-WA (she choose Warrant due to lower entry cost compare to CCK)

Since she only has a capital of RM6000, she has to control each trade below RM6000. Her target is to make at least 7% gain for each trade. Her first trade is on Parkson and make 6.9%.

Subsequent 2 trades is on CCK-WA and both trades make 7.5%. Refer to below for the details of each trade.

You may think that the result is not fantastic, but for a beginner with starting capital of RM6000, the result is incredible. She is not spending too much time on the screen. Just follow the trades advice given and wait to close. You can see, only 3 trades in 2 months.

With capital of RM6000 and earn RM875 in 2 months. The yield is 15%!